Airport SEZ kicks off with P4.2bn investments

Mbongeni Mguni | Friday October 11, 2024 14:06

Government spent P112.3 million on Phase 1 of the Airport City SEZ, covering 100 hectares. The funds were spent on developing a 1.8km six lane dual carriageway, storm water drainage, primary water and sewer networks, electrical power reticulation, streetlighting, telecommunications networks and others. When complete, the Airport City SEZ will cover over 800 hectares. Investors announced last week include Syndicate Bio, a genetics firm which plans to build a first-in-Africa facility, Universal Builders who will establish a five-star hotel and convention centre, KGK Diamonds who are looking to expand their diamond and gold jewellery plant, Bluelite who will manufacture automotive parts and others. Officially launching the SEZ, President Mokgweetsi Masisi said the development speaks to the mandate of the Special Economic Zones Authority (SEZA), which targets export-focused premier investors with impactful projects. “That is projects which can spur the attainment of accelerated economic growth and development, thus enabling us to solve our national challenges such as high unemployment, a high import bill as well as food, water, and energy insecurity,” he said.

Trade and Industry Minister, Mmusi Kgafela, said SEZs are part of government’s efforts to achieve accelerated rates of economic growth, diversification, employment creation and innovation. “It is my conviction that we are firmly on course to not only lead in the economic diversification agenda but also to contribute to the level of economic growth that will move Botswana to a high-income status,” he said. In an interview with BusinessMonitor on the sidelines of the launch, SEZA CEO, Lonely Mogara, said the Airport City SEZ is one of eight SEZs being developed around the country in strategic areas and focussed on key sectors. The others include Francistown and Selebi-Phikwe as mixed use SEZs, Tuli Block and Pandamatenga as Agropolis SEZs, Lobatse as meat and leather SEZ, Fairgrounds as an International Finance and Technology SEZ, and Greater Palapye as an Energy SEZ. He revealed that the SEZs are part of the Authority’s target to attract at least P50 billion in investments in the coming years. “We will be expanding on the P4.2 billion we announced today, hence the road to P50 billion,” he said. “We are determined to achieve this in the next five years and what we unveiled today is a good step in the right direction. We are looking at multiple industries, from e-mobility, logistics, MICE and these are big money spinners, not just for Gaborone but the entire country.”

He added: “The road to P50bn is not just limited to the Airport City. We have eight SEZs with seven that are public sector-led and one that is private sector one, where the core or anchor investors are the private sector. We already have investors lined up to contribute to the P50 billion that we are talking about. Countries are already benefiting a lot from such strategies and Botswana is not the only one. We are positive that Batswana will be able to live their dream of diversifying the economy.” Investors in the SEZs receive various tax and import duty incentives, as well as access to the packaged, developed and exclusive sites where they are also able to network with other investors for collaboration.