Government investment arm, Botswana Development Corporation (BDC), has launched a P36-million factory development which houses Kromberg and Schubert, another player in the Botswana manufacturing space.
Kromberg is said to be a significant international player in the development and production of complex wiring systems for the automotive industry, with over 115 years in the market.
The company’s appetite to invest in Botswana is commendable and employs more than 2 000 people and is the largest harness factory in southern Africa.
Speaking at the launch, BDC Chief Executive Officer (CEO) Bashi Gaetsaloe spoke of the importance of partnerships in business and hailed the corporation’s partnership with Kromberg and Schubert.
“The newly built 4 100 square metres expansion factory will house about 250 employees. This expansion brings the total built area for the Kromberg factories to about 26 000 square metres,” he stated.
Gaetsaloe said the expansion project is a response to an increase in production requirements which are market driven, adding that it is a true indication of real business growth.
Minister of Investment Trade and Industry Vincent Seretse stated that BDC remains crucial and relevant to date, adding that it is to promote and facilitate the economic development of Botswana through the financing of commercially viable businesses in the country through partnerships with local and foreign investors.
He said that in delivering the mandate, the corporation contributes towards the government’s broad objective of diversifying the economy, creating sustainable jobs for Batswana, export promotion, import substitution, utilisation of local raw materials and empowerment of Batswana in general.
“Standing here today to launch this factory shell attests that Botswana has a chance to grow and penetrate the export trade market. BDC has financed the expansion of this factory shell to allow Kromberg, to operate here, hire Batswana and to export its products all over the world,” said Seretse.
He observed that economic conditions globally are currently not very favourable adding that Botswana was not spared the hostile effects that are becoming more prevalent by the day. He said with the prevailing conditions, government is reliant on entities like BDC to bring in revenue and acceleration of private sector development in line with its mandate and strategic plan.
“BDC, as an investment arm of government has a responsibility to operate on a commercial basis and earn a reasonable return from their lendings and investments,” said Seretse.
The project commenced on July 1, 2016 and was completed on October 30, 2016.