LCW set to bounce back to life
Pauline Dikuelo | Monday March 27, 2023 06:00
Presenting his budget requests for 2023–2024 in Parliament this week, Trade and Industry minister, Mmusi Kgafela said the Botswana Development Corporation (BDC) had disbursed about P355.6 million to Delta Automotive Technologies Botswana and LCW.
He did not break down how the funds were divided between the two entities.
“It should be noted that through these efforts LCW is being resuscitated since ceasing operation in 2017,” he said.
This is not the first time the corporation has come to LCW’s rescue. In 2019, BDC injected P41 million into the firm and sourced a consultant technical manager to assist in terms of resuscitating LCW. The technical consultant came up with the strategy to kick start the company with a target market of South Africa and Namibia. The strategy was finalised in February last year.
The landmark company, whose operations support the border town of Lobatse, was wholly owned by the BDC. However, about six years ago it suffered financial stress, failed to pay close to 500 employees and closed its doors.
By then the LCW’s challenges included an old plant which was not maintained and was in a poor state. Thereafter the company retrenched workers and remained with only 21 who handled care and maintenance of the plant, administration as well as financial issues.
The corporation has over the years invested a total of P122 million into LCW.
At one point after its 2017 closure, LCW looked set for revival but failed to secure a P60 million cash injection from the Botswana Opportunities Partnership (BOP) Fund, a Botswana Public Officers Pension Fund entity. The BOP had sought to take up to 80% equity.
Lobatse Clay Works was established in 1992 as a joint venture involving the BDC. The company manufactures and supplies a variety of clay products including face bricks, pavers, and specially shaped bricks locally with exports into the region.