Bolux calls for protection of domestic market
Isaac Pinielo | Thursday November 24, 2016 16:33
At the official opening of the new wheat mill in Ramotswa on Tuesday, Bolux Group managing director Christo Ellis said although the new facility has enhanced their capacity, there are still threats from Botswana’s neighbour.
“Unfortunately, the threat of big brother next door, with a mature milling industry and years ahead of the Botswana industry with regard to investment in efficiencies and downstream facilities, like bakeries, frozen dough, pastries, pies, and pasta is real,” he said.
Ellis stated that there is need for the local industry to position itself to protect its shelf space and market share to survive.
He also expressed concern at the threat posed by dumping and unfair business practices on the industry and the economy of the country overtime.
“We are confident that the Ministry of Investment, Trade and Industry in our corner, will overcome these challenges and create more and more jobs through growth of local industries,” Ellis said.
Meanwhile, the group embarked on a major expansion project following an $8 million (P85 million) investment by American firm, Seaboard, in which Bolux sold a 49% stake in a move aimed at securing investment and capital injection into the company. Bolux Group is currently distributing between 10,000 and 12,000 tonnes of product to all corners of Botswana, according to the managing director.
He said the raw materials, wheat and maize, are procured from all over the world with maize from South Africa and wheat imported from countries like Russia, Lithuania, the US, Australia and a number of European countries.
“On average, Bolux is sending out 450 truckloads of product per month across the country via Transport Holdings as the service provider, covering 160,000 kilometres per month to make sure that the products reach the customers,” Ellis said.
He went on to explain that Bolux Group has a long history of supplying food to the locals as well as supplying brands like A1 Super Maize Meal, Snow White Flour, Chobe Maize Samp and rice, Pasta King macaroni and Maxi bread. In addition, he noted that Bolux plays a pivotal role in Botswana’s beef sector as it supplies chop and bran to local farmers, feedlots, the Botswana Meat Commission (BMC) and Botswana Agricultural Marketing Board (BAMB).
“Bolux group has also contributed by playing its part supplying feed to the government in support of the drought relief programme,” he said.
According to Ellis, over the past 12 months the board also approved the refurbishment of the pasta plant to the extent of P10 million as well as the installation and commissioning of a state-of- the-art bakery from one of the group’s sister companies in Swaziland.