28 Aug 2024

The multi-species abattoir in Tsabong will contribute to the creation of an entrepreneurship ecosystem that will foster a sustainable economic cluster, with citizen-focused and efficient value chains.

This was said by Minister of Entrepreneurship, Honourable Karabo Gare in response to a question in Parliament on Monday.

Honourable Gare said construction of the abattoir was being undertaken by the Ministry of Agriculture and upon completion, it would be transferred to that of entrepreneurship, to be operated by the Botswana Meat Commission (BMC).

He explained that government undertook to develop the abattoir, primarily focusing on small stock, and other species including cattle and game, for both the local and export markets.

He added that the project commenced on January 12, with an initial completion date of July 6, 2022. “The revised date of completion, as advised by the Ministry of Agriculture is yet to be confirmed, but we are looking at the end of September or early October this year.

The date sounds tentative because we are in the final weeks of completion and adjustments are being made as we go along. The bottom line is that completion will be reached in the next two months,” he said.

Nonetheless, he indicated that construction suffered several challenges that resulted in the extended period, adding key amongst them were the COVID-19 pandemic, during which movement was restricted from time to time, globally.

He said delays were experienced in manufacturing shipment of equipment from international suppliers, scope     and design deficiencies, as well    power outages, which worsened in the recent past in South Africa.

“This is due to the fact that since power in the Tsabong area is supplied from across the border. As mentioned, work is ongoing at the abattoir. The facility is expected to be commissioned and launched by October this year,” he said.

The minister told Parliament that the original contract sum was over P161 million, out of which P161.366,762 had so far been paid to the contractor, with a remaining balance of P422 512 from the budgeted cost.

“Cost overruns are regrettably being experienced in this project, primarily due to variations resulting from scope and design deficiencies. Presently, the cost overruns are estimated at P104.2 million including Value Added Tax (VAT). In total and at functional completion, the project will cost approximately P266 million,” he said.

He told legislators that it was possible that the costs may increase as the abattoir got fortified against dust and other environmental and natural considerations, which were not catered for at initial scoping.

“These will, however, not stop the abattoir operating as planned for launch soon,” he said.

On one hand, he said BMC would operate the Tsabong abattoir as a stand-alone abattoir, with own cost and revenue arrangements to ensure that it was financially independent from other abattoirs it was running across the country in Lobatse, Francistown and Maun.

On staffing at the abattoir, he said, the total estimated complement at full operationalisation was 120 employees, employed incrementally from 50 employees at the opening stage.

“Of these, the professional category is estimated to be around 12 per cent, skilled at 25 per cent, semi-skilled to unskilled at 63 per cent

“It is estimated that up to 75 per cent of the employees will be from the local labour catchment area, with required training for skilled labour provided by the BMC, through on-the-job-training,” he added.

Kgalagadi South MP, Mr Sam Brooks, had asked the minister to update Parliament on the construction of the abattoir, commencement date of the project as well as the initial expected date of completion.

Mr Brooks also wanted to know the cause of the delays when the abattoir would be commissioned.

He further asked the minister to state how much the project was budgeted for, how much had been spent a far and the balance on the budgeted cost.

The legislator also wanted to know, among others, if any cost overruns can be expected, the model of operation to be employed at the abattoir once completed and the categories and number of people expected to be employed once the abattoir was in operation. ENDS