Botswana Ash (Botash), the sole producer of soda ash, continues to grapple with the dumping of soda ash by American soda ash companies in South Africa, Botswana’s biggest market.
Tumelo Molefhe, Botash’s Marketing Manager, said in an interview that dumping in the SA market by American companies is turbulent.
“We are not saying we don’t want competition; all we are saying is we don’t want dumping in our markets,” said Molefhe.
In 1991, Botash launched an anti-dumping case against the American companies and when the dumping did not stop, Botash, again, launched another case against the American companies in 2012.
American soda ash companies are the major producers of soda, producing 11 million tones of soda ash, while Botash only produces 300 thousand tones of soda ash per annum.
“There is over supply. We are fighting for the same market; that’s why we don’t want dumping. It kills us,” she said.
When American producers bring their products to the South African market, they sell them at a price that is 25 lower. Currently, Botash has a 37 percent market share in South Africa.
Meanwhile, Botash is looking into strategic alliances with other soda ash and salt producers to supply the rest of Africa. There is high demand of soda ash globally and Africa’s production of ash is far less than the existing market demand.
“There is plenty of opportunity for Botswana Ash,” she said.
Demand for soda ash in Africa stands at 1.3 metric tons.
“We are looking into growing our soda ash market in the North and grow fine salt market in South Africa and in North Africa,” Molefhe said.
Plans are underway to diversify the product line to include Sodium Bicarbonate, Potassium Chloride Sodium Sulphate, Specialty Chemicals and Caustic Soda.
“There is a huge demand for our products and we realize there is a potential for glass production,” said Molefhe.
In the 2012 financial year, Botash experienced a production shortfall by 23 000 tones against a set target of 280 000 tons, producing 257 000 tons of ash.