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Download File IN-DEPTH ANALYSES OF BUSINESS OPPORTUNITIES BY LEA REGIONS – PHASE IV MASUNGA LEA REGION REPORT Submitted to: Director, Research and Development Division Submitted by: Research and Development Division Date of Submission: 31 March 2014 EXECUTIVE SUMMARY Objectives The overall objective of the study was to provide an in-depth analysis of the identified opportunities in Masunga LEA region. Study Findings Introduction Masunga LEA region includes North East District, Tutume Sub district and Sowa Town. Among these three areas there are four business opportunities that were identified for LEA consideration as priority areas for business promotion and these include; Brick and Block Moulding, Grain milling, Truck Inn Stations and Tourism sites and Associated businesses in general with more emphasis in tourism diversification beyond wildlife tourism. These opportunities were identified under a predetermined criterion characterised by the following variables: raw material availability, land availability, water availability, Legislation and programme support, technical support, skills availability, physical environment, financial support and market availability. Brick and Block moulding opportunity Brick and block moulding opportunity has the advantage of the region being predominantly characterised by seasonal rivers which provide both sand and water as the major inputs into manufacturing bricks and blocks. These rivers include Page ii of 10 Nata River, Tutume River, Tati River, Shashe River, Ramokgwebana River, Mosetse River, Nkange River, Maitengwe River and Semoane River. The availability of cement from a nearby cement manufacturer in Matsiloje and Francistown hardware stores strengthens this opportunity as cement is one of the major raw materials for masonry products. A major challenge in this opportunity is difficulties in acquisition of sand mining rights especially the prerequisite EIA requirements that has not been easy to comply with by sand miners. Grain milling opportunity Grain milling has the advantage of the region being traditionally a crop production area with more emphasis on Sorghum and Pearl millet being the two staple crops in the region, and also dominating the grain milling industry. This therefore makes grain supply and market availability very receptive to this opportunity. The proximity of the Pandamatenga agro-farms as the major grain producers makes grain supply more achievable. Legislative provisions that also allow grain importation when there is shortage locally is an added advantage to this opportunity. A challenge associated with this opportunity is grain supply especially during low harvest and drought years. Truck Inn opportunity It should be realised that the transport industry in Botswana has grown over the years and continues to grow. This is even propelled by the reality that Botswana serves as a transit route to the rest of Africa through the A1, A2, and A3 road networks. This inevitably calls for service businesses to be established that will Page iii of 10 serve the road transport industry. The Masunga LEA region has vehemently realised the need to establish Truck Inn stations both for profit and for environmental protection. Such need has been answered by allocating and reserving land in the Nata village for erection of truck inns. Recent developments in the A3 route such as the Salt mining in Sowa Town and the future development of the Kazungula Bridge even increases the potential of this opportunity to flourish. The challenge that has been attributed to none development of the currently allocated truck inn plots is lack of funds. Tourism Sites and Associated Businesses opportunity The tourism diversification drive in the region includes agro-tourism, surface water (dam) tourism, cultural tourism, sports tourism and heritage tourism. This will benefit individual enterprises and Community Based Resources Management (CBRMs) projects. As these sites are developed they will attract associated businesses such as lodges, guest houses and services needed in these accommodation facilities. Lack of knowledge by local communities on the potential business opportunities attached to various tourism sites in their vicinity is a major challenge to none development of those sites and their associated service business entities. Conclusions All the four identified business opportunities in the Masunga LEA region were found to be supported by the RDD opportunity identification criterion which includes; raw material availability, land availability, water availability, Legislation and programme support, technical support, skills availability, physical environment, Page iv of 10 financial support and market availability. These opportunities are therefore worth investing appropriate interventions in their further exploration. Recommendations The brick and block moulding business opportunity should be further explored by LEA in the quest to promote it in light of the availability of raw materials and inputs locally through relevant interventions that can improve efficiency and competitiveness of small scale producers. LEA in collaboration with the Ministry of Minerals, Energy and Water Resources (MMEWR) should facilitate alleviation of SMMEs the burden of EIA requirements for acquiring sand mining rights. LEA should include promotion of grain milling under its new portfolio of business areas to widen the economic diversification horizon beyond primary agricultural production into agro-processing. A collaborative engagement with the MoA by LEA should give LEA a clear insight into interventions that are of immediate need in the cereal grain processing industry. LEA should make a further assessment of major impediments underlying the non-development of the fourteen truck inn plots allocated in Nata with a view to facilitate their development. LEA in collaboration with the Ministry of Environment, Wildlife and Tourism (MEWT), Ministry of Lands and Housing (MLH) should solicit a way through which Truck Inn stations are constructed in all national highways in Botswana. Page v of 10 In developing the truck inn businesses, LEA should first benchmark with countries that already have this type of businesses to acquire more knowledge on laws governing their operations. LEA should open up its portfolio of business areas to include the tourism sector because there are tourism sites in the Masunga region which SMMEs can invest in both as individual enterprises and as CBRMs. LEA should collaboratively engage with Botswana Tourism Organisation (BTO) to ensure that SMMEs get maximum benefits in the development of new tourism sites by investing in associated businesses such as accommodation, recreational facilities and provision of services to other businesses in the sector. Page vi of 10 Summary of opportunities in the Masunga LEA region Region Main opportunity Upstream & down Stream Main supporting factors opportunities MASUNGA LEA Brick & Block . Sand supplies . Presence of seasonal rivers in REGION Moulding the region to supply sand and . Cement supplies water to moulding businesses . Supply and servicing as the main raw materials. of moulding . Availability of machinery. other main raw materials such . Transport and as logistics . Construction industry Page vii of 10 cement in the hardware stores in the region. Supportive legislation such as licensing of sand mining to control indiscriminate use and harvesting. Grain Milling . Supply and servicing . The region is of milling machinery predominantly a crop and grain production area. Grain production . Staple crops in the region . Supply of packaging are sorghum and millet materials. presenting an opportunity . Retail of milled for milling industry products. products markets. Transport & logistics . Supportive legislation. Availability of financing. Truck Inn Facilities . Lodges & guest . The region is the main route houses for Page viii of 10 transit trucks that pass . Service/filling through the A1, A2 and A3 stations roads respectively to upper . Restaurants/take SADC countries. away . Connectivity of the region . Minor vehicle to neighbouring countries maintenance and through the repairs workshops. Ramokgwebana, Maitengwe, Kazungula and Mohembo border gates. Availability of land zoned for truck in stations especially in the Nata prime area. The continuous need to transport salt from BOTASH mining plant to other parts of the continent for further Page ix of 10 processing. Availability of trained personnel in the hospitality industry who can equally operate truck inn stations. Tourism Sites and . Lodges, guest . Existence of unexploited Associated houses, camp sites heritage sites in the region. Businesses . Heritage sites . Cultural villages . Recreational facilities . Events management Local Enterprise Authority Page x of 10 F:RDD:11 Rev.: 01 .
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