Botash set to double revenue to P745 million in five years
Botswana Ash (Botash) has launched an ambitious five-year strategy that, if all goes according to plan, will see the company more than double its revenue by the year 2027.
With the salt mine’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) currently sitting at P301, 097 million, they aim to push this figure up to P744, 475 million over the next five years.
Launched last month under the tagline, ‘Double in Five Safely’, Managing Director, Kangangwani Patshwane explained this will be achieved by maintaining sustainable operational efficiency, adhering to strong corporate governance standards and delivering stakeholder value.
He is confident the lofty goal is attainable, despite an economic outlook impacted by the Russian invasion of Ukraine and the general weakening of Botswana’s economy.
The transformative strategy is expected to propel Botash, the country’s leading producer of natural sodium, into an era of sustainable growth and innovation.
“The strategy encapsulates our dedication to fostering diversified natural sodium-based product growth while prioritising sustainability, innovation and stakeholder value,” declared Phatshwane, adding sustainability is not just a concept but is deeply ingrained in their business model.
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“We are steadfast in our resolve to sustain and strengthen our position as an African leader in natural sodium products, and we are poised to take on the challenges and opportunities that lie ahead,” he said.
Patshwane further noted doubling their EBITDA will require Botswana Ash to streamline operations and optimise route-to-market to ensure delivery of soda ash and salt.
“We have to seize SADC market opportunities by increasing soda ash and salt sales and introducing new products. Given market growth potential, Botash will explore and enter markets on the continent based on a clear criteria, market intelligence and cohesive business case.”
With aims to increase sodium production capacity from 300, 000 tonnes per annum to 430, 000 tonnes, as well as doubling fine salt production to 220, 000 tonnes by 2027, Patshwane revealed they will be in a position to launch a new product: sodium bicarbonate (NaHCO3) – aka baking soda.
This will target the food, animal feed, chemical and detergent markets, with 50, 000 tonnes per annum set aside for a plant earmarked for Selebi Phikwe.
According to Process and Product Development Manager, Othusitse Seokamo, the soda ash expansion and NaHCO3 production will create at least 300 jobs, including 58 permanent skilled jobs.
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“This will also increase revenue by P900 million, and increase dividends to government, through royalties and tax collection,” he said.
In his remarks, Minister of Minerals and Energy, Lefoko Moagi said due to the impacts of Covid-19 and the Russia-Ukraine conflict which have heightened global economic uncertainty, it is vital that Governments and companies re-imagine economic growth paths and sustainability of businesses to shield themselves from future economic shocks.
Minister Lefoko commended Botash Board of Directors for their commitment to achieving the intended strategic objectives and its ultimate impact.
He said Botash is contributing significantly to the country’s Gross Domestic Product (GDP) which currently stands at 2 percent translating to over P680 million in the past five years.
“The Government of Botswana appreciates the strategic value of Botash and its unique industrial positioning to broaden the country’s industrial base while continuing to benefit the region’s economy,” he said.