More effort needed to save Selibe Phikwe
For the residents of Selebi-Phikwe, the long-cherished vision of the Selebi Phikwe Economic Development Unit (SPEDU) remains elusive. Many believe it could take decades before this ambitious dream is fully realised.
Limited resources and a slow pace of development have made achieving SPEDU’s mandate an uphill battle. Despite the dedication of its personnel, observers argue that the unit has long suffered from government neglect, marked by chronic underfunding and a prolonged absence of a substantive Chief Executive Officer.
Nevertheless, the existing team deserves commendation for keeping the organisation afloat under challenging circumstances. SPEDU is a government-owned investment promotion agency, tasked with driving economic diversification and investment in the region. It was envisioned as a key vehicle for transforming Selebi-Phikwe and its surroundings into a model for Botswana’s broader economic strategy.
To guide its progress, SPEDU has adopted seven core resolutions. If effectively implemented, these could establish the region as Botswana’s 'breadbasket' and a benchmark for developing nations.
A Legacy of Economic Diversification Efforts
SPEDU’s origins date back to 1970 when the Selebi-Phikwe mining town was established. Recognising the need for long-term sustainability beyond mining, efforts toward economic diversification began.
In 1998, the Selebi-Phikwe Regional Development Programme (SPRDP) was launched, initially attracting several manufacturing companies, particularly in the clothing and textile sector, through
fiscal incentives.
However, many of these enterprises, especially those reliant on exports, eventually collapsed, leaving behind abandoned factory shells. A 2006 study commissioned by the then Ministry of Finance and Development Planning examined economic diversification strategies for Selebi-Phikwe.
This study paved the way for the establishment of SPEDU, which was formalised six years later as a regional economic development agency. Its mandate expanded beyond Selebi-Phikwe to include Bobirwa, Tswapong North, and Mmadinare-Sefhophe.
By 2015, SPEDU became fully operational as a Company Limited by Guarantee under the Ministry of Trade and Industry (MITI).
Investment Promotion & Infrastructure Development
To stimulate economic growth, SPEDU established an Investment Promotion (IP) function to attract potential investors.
The IP department serves as the first point of contact for businesses interested in the region, handling inquiries, assessing investor needs, and conducting due diligence. Beyond investment facilitation, the SPEDU region is strategically positioned to support economic activity, offering essential infrastructure and services: • Industrial Zone – Factory spaces with railway access • Power
Supply – High-voltage network and substation • Transport Connectivity – Well-maintained road links to major towns and access to international borders (South Africa, Zimbabwe, and the broader SADC region) • Airport – A 1.8 km runway • Railway Connectivity – Integration into the national railway network • Quality of Life Infrastructure – Primary hospital, private clinics, schools, and a shopping mall • Water Security – Four major dams ensuring raw and potable water supply • Financial & Professional Services – Commercial banks, accountants, and legal service providers • Natural & Agricultural Advantages – Fertile soils, groundwater access, and a favorable climate
Looking Ahead
Despite setbacks, SPEDU remains committed to its mission. Its progress, though slow, reflects the ongoing efforts to transform the region into an economic hub. As it works to overcome challenges, the hope remains that Selebi-Phikwe will one day fulfill its long-standing vision of sustainable economic diversification. Since its inception, SPEDU has pursued clear objectives for its Investment
Promotion function, making significant strides in positioning the region as a competitive investment destination.
The implementation of government-approved incentives has strengthened SPEDU’s appeal, attracting growing investor interest despite challenges like the COVID-19 pandemic. In 2010, SPEDU took action by organising a national stakeholders’ conference focused on Selebi Phikwe’s economic diversification. The conference generated several key recommendations, including enhancing the region’s image and accelerating major infrastructure projects, such as constructing a railway line linking the area to the Port of Maputo.
Infrastructure and Economic Diversification
Talana Farms and the Tuli Block were identified as key agricultural hubs with the potential to become the region’s breadbasket. Establishing railway links to Southern Africa and international ports was seen as vital to unlocking economic potential.
A proposed railway line would connect SPEDU to global markets, while reopening the Selebi Phikwe airport was expected to attract Foreign Direct Investment (FDI). Additionally, efforts were made to upgrade bridges and road networks across Bobirwa, Mmadinare, Selebi Phikwe, and Tswapong North to boost investor appeal. These improvements aligned with government-driven local procurement initiatives aimed at empowering citizen-owned enterprises.
Funding Challenges and Social Impact
Despite a strategic master plan informed by an EU-sponsored study warning of severe socio-economic consequences following the closure of Botswana’s oldest copper-nickel mine, financial constraints hindered effective implementation. Experts cautioned SPEDU on the urgent need for funding, but these warnings were not sufficiently addressed.
A decade later, the region is still grappling with the aftermath. The mine’s closure has disrupted thousands of livelihoods—some former workers have faced severe financial hardships, while others have tragically taken their own lives. Children housed in former BCL properties under government care struggle without adequate food, uniforms, or learning materials. Concerns about the mine’s liquidation process have been raised, with allegations of asset undervaluation and insider sales. Meanwhile, taxpayers continue to shoulder the financial burden.
Emerging Opportunities
Despite challenges, promising developments signal renewed prospects for Selebi Phikwe’s revival: • Oxygas: The first citizen-owned medical and industrial gas manufacturer in Botswana, producing oxygen, acetylene, nitrogen, and nitrous oxide. • Selebi Phikwe Citrus Project: With 70,000 citrus trees planted, this initiative is now exporting, positioning itself as one of Southern Africa’s largest citrus operations. At full capacity, it is expected to create 1,500 jobs and boost local economic activity. • Kemcore and Vinmart Chemical Manufacturing Facility: Launched in 2022 with a P200 million investment, this project focuses on Sodium Metabisulphite (SMBS) and Phosphoric Acid production, reinforcing global mining standards. Retail and urban development have also progressed. In October 2024, Phase I of a new mall in Selebi Phikwe was completed under a concession agreement with Nickel Head. The broader urban plan includes a bus and taxi rank, market stalls, an amphitheater, and a shopping centre.
Local Entrepreneurship
SPEDU continues to champion local entrepreneurship: • Euclea Crisps: Founded by Motswana entrepreneur Otsile Moje, this company secured an opportunity to distribute sanitary products in Rwanda. With government support, it is establishing a high-capacity production facility in Selebi Phikwe. • Elolam Manufacturing: Specializing in electrical infrastructure such as transformers and substations, Elolam contributes to local job creation and targets Botswana Power Corporation (BPC) as a key client.
The Road Ahead
While these developments are encouraging, they fall short of realising the government’s decades-old vision of diversifying Selebi Phikwe’s economy beyond mining. A bold, accelerated response is long overdue—one that ensures lasting economic revitalisation and sustainability for the region.