Trade & Industry
Botswana is a true African success story, enjoying peace and democracy since independence in 1966. Ranked among the world’s fastest-growing economies, Botswana has many investment incentives. It also has multiple industries that could benefit from improved technology and management expertise.
Thriving economy in the heart of southern Africa
Joseph Huggins, American Ambassador to Botswana
Traditionally, the economy has been dependent on textiles and mining. Major exports include meat and meat pro-ducts, hides and skins, diamonds, copper-nickel, textiles, soda ash and automotive parts. Efforts are underway to diversify and introduce more value-added activities.
American Ambassador to Botswana Joseph Huggins describes the leather products industry as one of these. Botswana is already one of the world’s biggest beef producers, but has not exploited the potential of leather products. Rather than exporting skins to Italy, the Ambassador would like to see this as a thriving home-grown industry.
Ambassador Huggins wants to see more focus on Botswana, rather than neighboring South Africa. “There are 53 countries in Africa, all with their problems, but Botswana is a success story,” he comments. “We have the highest sovereign credit rating in sub-Saharan Africa, and a very attractive market to offer United States investors. There are endless opportunities here. Botswana really is the jewel of Africa.”
Orthosurge
“There is a definite opportunity for partnerships.”
Sehularo Motshegare, CEO Orthosurge
Orthosurge specializes in high quality medical equipment. In particular, it is known for its exceptionally good laboratory instruments, pharmaceutical products and implants. Founded in 1992, the company now has a 60 percent share of the laboratory instruments market. The core business remains the sale of diagnostic kits to detect the HIV virus, and Orthosurge also has a veterinary business unit.
CEO Sehularo Motshegare is proud of what the company has achieved to date. “Our main customers are hospitals and the general public, but we also see opportunities in the veterinary market,” he comments. “Despite strong competition our company has always set very high standards. The quality of our products and services has given us a good market position.”
Motshegare has ambitious plans for expansion. He plans to introduce new laboratory instruments to the product range, and grow the equipment side of the business. Orthosurge also needs to move to a new, larger location with more advanced facilities. Motshegare expects the business to achieve growth of 10 percent this year.
Motshegare sees many opportunities for United States investors in Botswana. He would like to form strategic alliances to develop Orthosurge’s laboratory testing kits and veterinary devices, with one or more American companies. “There is a definite chance for partnerships,” he says. “The technology available in the United States within the laboratory instruments range is very attractive for us. American technology is at a very high standard, which fits with our standards here at Orthosurge.”
A partnership could be beneficial for both sides. For a United States partner, Orthosurge’s market knowledge can help with the distribution of products throughout Botswana and the southern African marketplace.
United States partners can find in Orthosurge a flexible, reliable partner with westernized management practices and a desire to get results.
SBM Pipe Services and Engineering Works
“A partnership would be a win-win situation.”
SBM Pipe Services, established in 1988 as a small dealership, has grown rapidly through filling a market niche and providing top-quality products and services. SBM provides a sourcing and procurement service to the government Departments, District Councils, Parastatal Organisations and Private Companies throughout Botswana.
The company’s product lines include bathroom and sanitary equipment and accessories, plumbing tools and related equipment, rainwater storage equipment, fire-protection products, boreholes, water works equipment and accessories, Pipes and Pipe Fittings, building, plumbing and fencing material as well as hardware, and most recently, a range of Randcon paints. SBM’s products are sold throughout the country and the company is now a market leader in Botswana.
Mpho Derrick Setlang, founder and General Manager, points out that SBM’s exemplary after-sales service is one reason for the company’s competitive edge. Having managed to expand the company from a small enterprise into one of Botswana’s leading firms in its sector, Setlang is now looking to other markets. “I have a plan of exporting to neighboring markets the products we manufacture and some of the products we import,” he says.
Setlang is currently seeking American partners and investors to help him continue to add to his company’s offerings and to move into new markets. He points out that the regional market is just beginning to be tapped and represents significant investment potential. He is interested in acquiring new technologies as well as financial support, and would particularly like to work with United States companies and investors.
To potential investors in the United States, SBM offers a proven track record and in-depth understanding of local market conditions. As Setlang points out, “We are open to working with American investors and companies concerning technology transfer, capital joint ventures and production partnerships. I believe a partnership between SBM and an American company would be a win-win situation for both of us.”
