Debswana ‘reinvents’ itself for the future
Lewanika Timothy | Monday June 26, 2023 06:00
Debswana, the country’s economic engine, is one such company that has long realised that to survive the next wave of disruption, it must reinvent itself. As a company, which incidentally turns 54-years-old today (Friday), Debswana has entrenched itself deep within the global mining sector, establishing itself as the producer of the highest valued diamonds in the world. Achieving such a feat, according to Debswana executive, Tefo Setlhare was the result of a continuous endeavour to unearth the best from both people and the ground. Setlhare was speaking recently at a Botswana Insurance Company Thought Leadership Forum. As the world experiences a disruption in business models due to the development and deployment of a plethora of technological advancements such as Artificial Intelligence (AI), companies are redefining their philosophy and reincarnating, ready for the new wave of disruption, said Setlhare. He believes that Debswana will emerge as a leading corporation after the rising tide of AI settles in Botswana. “With our experience in mining for over 50 years, we have amassed a lot of skill, experience, capabilities and knowledge on the mining of diamonds,” Setlhare says.
According to Setlhare, the company has identified development of human capital as the next set of “diamonds” for the country, alongside commercialising the skills that have helped Debswana to build to a multinational scale at which they operate. “As a company we have set up Naledi Services Company, a 100% wholly owned company by Debswana, as a testament to the fact that we have world class mining skills that Debswana can leverage in pursuit of its strategic objectives and to also develop the mining industry,” he said. He continued: “Furthermore, in the long-term, a consideration can be made of how we can optimise the experience and knowledge that we have amassed over time and possibly even export it as part of the knowledge economy.”
Officially incorporated last year on August 4, Naledi is set to take charge into the competitive mining contractor industry, where major players, mainly from South Africa and beyond, have enjoyed free rein over the decades dating back to country’s mining boom. Mining contractors are independent entities engaged by the owners of mines to undertake their mining operations, handling everything from labour, equipment, mining method and others. The contractors help contain operating costs for the owners through their economies of scale and the fact that a fixed rate is negotiable, while technical and financial risks to the owners are minimised. Naledi’s first task is the P15.7 billion Cut 9 project at Jwaneng, where the new firm will provide labour services, including operational skills such as machines, trucks, supervision, earthmoving equipment, repairs and maintenance.
Furthermore, Setlhare stated that the initiative is part of Debswana’s Citizen Economic Empowerment Programme which is targeting expenditure of P20 billion by 2024. “We will increase service spending on citizens with the anticipation of job creation of close to 20,000 jobs,” he said. Whilst appreciating the benefits of “tenderpreneurship” to citizens, Debswana seeks to empower locals to be more entrepreneurship-oriented as part of the new strategy. The company also seeks to use its procurement power to empower suppliers within its supplier network. Setlhare is of the view that the Botswana entrepreneurship space needs to grow beyond people making a living from end-to-end jobs. Rather, it should grow to encompass a formidable business foundation that will lead to the building of enterprises. “For entrepreneurs that are already within our supply chain, we are going to offer skills development so that they learn how to create value and make their companies have a global outlook,” he said.
Setlhare says Debswana’s approach in seeking sustainable value beyond the mining of diamonds by using its wealth of technical skills, aligns with the country’s desire to become a knowledge-based economy. He is of the view that the long-term growth of the economy and its diversification, will emerge from the development and growth of Small and Medium Enterprises. “We are ready to open the Debswana economy, for other stakeholders to benefit but most importantly for Batswana to be empowered,” he asserted.