Business

BDC revives Lobatse Clay Works

Boitshwarelo Lebang-Kgetse, LCW Caretaker CEO
 
Boitshwarelo Lebang-Kgetse, LCW Caretaker CEO

The relaunch of Lobatse Clay Works (LCW) marks a significant milestone in Botswana's industrial landscape, aligning with the nation’s Vision 2036 and global sustainable development goals. During the relaunch ceremony, Minister of Trade and Industry, Honourable Mmusi Kgafela, emphasized the broader implications of the reopening, highlighting its contributions to industrialisation, economic diversification, and social advancement.

Minister Kgafela applauded the Botswana Development Corporation (BDC) for its role in transforming challenges into opportunities. He praised BDC’s commitment to reviving LCW, which ceased operations in 2017 due to operational difficulties. The resuscitation of the plant is a testament to BDC's dedication to driving Botswana’s industrial transformation and diversifying its economy. Kgafela noted that BDC’s influence extends across multiple sectors, including aviation, financial services, manufacturing, and hospitality, all of which contribute to Botswana’s socio-economic development. The Government, through the Ministry of Trade and Industry, supports businesses like LCW by fostering a conducive regulatory environment and implementing policies that drive enterprise development. The Minister also emphasized that the relaunch represents not just an economic win but a step toward self-reliance. By producing high-quality clay products locally, Botswana can reduce its reliance on imports and retain wealth within its borders.

Beyond the economic benefits, LCW's revival is set to have a significant impact on job creation. At full capacity, the plant will employ 240 people, directly benefiting the local community and contributing to Botswana’s overall industrialisation efforts. Additionally, the project will stimulate further economic activities along the value chain, providing opportunities for businesses upstream and downstream. Kgafela highlighted the social impact of LCW, which goes beyond job creation. The revitalization of the plant aims to empower the people of Lobatse and Botswana by offering opportunities for skills development and fostering greater participation in the national economy. The project is expected to prepare the local workforce for future industrial demands, contributing to the nation’s long-term development goals.

Boitshwarelo Lebang- Kgetse, Caretaker CEO of LCW, shared the company’s journey of overcoming operational challenges since 2017. With the support of BDC, LCW underwent a comprehensive overhaul, including facility upgrades that enhanced its efficiency, sustainability, and technological capabilities. Kgetse described the relaunch as an opportunity to expand capacity and meet the growing demand for high-quality building materials in Botswana and the region. LCW’s competitive advantage lies in its access to high-quality clay from the Mmamabula and Lobatse mines. The plant now features state-of-the-art technologies, including advanced automation, energy-efficient kilns, and a hybrid fuel system using coal and liquid fuel to minimize environmental impact. Kgetse announced that during the refurbishment phase, 80 jobs were created, and the plant now boasts one of the most energy-efficient brick manufacturing operations in southern Africa.

“Under BDC’s strategic direction, we enacted a comprehensive turnaround strategy that went beyond financial restructuring to completely revitalizing the plant. Our goal was to modernize the entire business, making it more efficient, sustainable, technologically advanced, and competitive in local and regional markets,” said Lebang-Kgetse during the launch.

Looking ahead,

LCW plans to diversify its product range to meet evolving market needs, including modern architectural designs and sustainable materials. LCW’s modernization efforts set a new standard for industrial excellence in Botswana, positioning the plant to supply key infrastructure projects and target regional markets in Namibia, Zambia, and Zimbabwe. At peak operation, the plant will employ around 240 individuals, with 114 already on the ground—over 70% of whom are residents of Lobatse. During the refurbishment phase, 80 jobs were created through contractors.

The expansion of LCW’s operations will also create significant value across the broader economy. Botswana's brick market is poised for substantial growth, driven by urbanization, infrastructure development, and the government's Vision 2036 focus on economic diversification.