Home Business Government injects Over P200 million for Lobatse Leather Park

Government injects Over P200 million for Lobatse Leather Park

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The Government of Botswana has approved P292 million for the development of a Leather Industry Park in Lobatse. This was said by the Assistant Minister of Investment, Trade Industry lately at Parliament Karabo Gare.

Gare told Parliament that the funds will be used to service the Park, construction of the common effluent treatment plant, secure landfill Facility, factories, warehouses, administration block and one fully equipped tannery.

Although the initial Model of the Leather Industry Park had envisaged Government identifying Technical Partners who were to contribute 50% of the cost of the project and provide technical expertise, Gare said after careful consideration government has realised that the model  was not practical and sustainable hence the needed to review it.

“Both the Business and Financial Models were reviewed in December 2019 taking into account the current development in the Sector locally and globally,” voiced Gare.
Gare further said the revised Model entails Government constructing enabling infrastructure and the private sector leasing out tanneriess factories and warehouses.

It is said recruitment of Tannery Operators and Leather products Manufacturers will start in March 2020 and will be undertaken simultaneously with construction of the Park.

The Park is anticipated to create about 4700 jobs at the initial stage and 7000 jobs at full capacity.