One of our SILVER members, Mr Patrice Lasserre, would like to share with you an investment project in Botswana, in which he has been involved recently.
You will find herewith the details:
Through a series of National Development Plans, the Government of Botswana has affirmed its will to eradicate poverty in the country. Of particular note are the National Strategy for Poverty Reduction (2003) and the Citizen Economic Empowerment Policy (2012). Significant progress has been made over the years. Poverty levels in Botswana have been decreasing although they remain high in certain areas in spite of the country being one of the richest in Africa.
At present, both commercial and industrial (mining) tyres are stockpiled. This creates a serious health and environmental risk. It is estimated that, excluding mining, 2.5 million tyres are currently stockpiled in Botswana; 400,000 of these tyres are added annually.
Botswana has a deficit of electricity, requiring about 25% to be imported (2015).
Mr Matshoba Malepa, a Motswana citizen, was born in Letlhakeng, about 120km north-west of Gaborone. Letlhakeng is a village of 6,000 inhabitants where jobs are scarce; poverty level is high in the region. Matshoba’s dream is to transform Letlhakeng into an industrial hub. To achieve this, his company, Dikgalalelo Engineering (Pty) Ltd, is seeking financing for a first project: a Waste Tyre Recycling plant. Dikgalalelo Engineering focuses on green energy.
A Waste Tyre Recycling Project in Letlhakeng has numerous tangible advantages:
• It will create jobs in a region that badly needs them. Employment priority will be given to people from the region.
• It creates economic diversity, providing manufacturing activity, while allowing mines to dispose elegantly of the end-of-life tyres of their large machinery.
• It has a strong positive ecological impact as it solves the hazard created by stockpiling end-of-life tyres.
• It is commercially viable as the output entirely consist of saleable products.
• The fuel oil produced could be used to generate electricity for the region.
• It will allow the creation of micro-enterprises around the country to collect and shred or compact end-of-life tyres.
In order to get this project started, BWP 10million (= ± ZAR 15 million) are needed. This could be in the form of a government grant or as an investment partnership.
It will be used to:
• Set-up the company, Dikgalalelo Engineering (Pty) Ltd as a going concern and sustain the core team during the first phase of the project.
• Secure the land where the industry will be constructed.
• Perform the required environmental impact assessment.
• Prepare the call for tenders. Receive, analyse and award tenders for the construction of the plant and the acquisition of the machinery.
• Pay for the required consulting services.
• Create credibility toward obtaining funds from financial institutions or business partners.
As a complement to the project, Mr Malepa intends to create a local university that will train job seekers, rendering them more desirable for employment.
Chairman & CEO Dikgalalelo Engineering (Pty) Ltd
Mobile: +267-7774 3174
Patrice Lasserre – Non-Executive Director Dikgalalelo Engineering (Pty) Ltd
Mobile: +27-82-552 1302