BOTASH expands into the rest of Africa

• Aims to lead supply of soda ash and salt across Africa

Currently, BOTASH has a strong footprint in Namibia, Zimbabwe, South Africa, Zambia, Malawi, Tanzania, Angola, the Democratic Republic of Congo (DRC) and locally. “Given market growth potential, Botash will explore and enter markets across the continent based on clear criteria for entry, market intelligence and cohesive business case,” Phatshwane said during the launch of the BOTASH 2023-2027 strategy at Sowa recently.

Embarking on this momentous journey, Phatshwane said Botswana Ash will streamline operations and optimise route-to–market to ensure delivery of soda ash and salt across the continent. However, Phatshwane said Botswana Ash will not forget the Southern African Development Community (SADC) market.

Instead, the SADC market opportunities will be seized by increasing soda ash and salt sales and introducing new products, according to Phatshwane. Botswana Ash’s strategic intent is to sustainably deliver diversified sodium-based product growth through improved logistics, plant operations, new product development and geographical expansion, he said. “Our strategic intent will enable us to double our earnings before interest, taxes, depreciation and amortization (EBITDA) to P761 million by 2027,” explained Phatshwane.

Market fundamentals for Botswana Ash are intact and portfolio momentum is maintained, said Peter Kgomotso when deliberating on the mining giant’s financials at the similar event. Kgomotso said growth fundamentals will be driven by volumes through moderate pricing on both soda ash and salt saying soda ash plant capacity expansion from 300KT to 430KT. He added that market expansion, strategic partnerships with long term contracts and strategic logistics partnerships will be prioritized.

Salt volume growth fundamentals will be determined by fine salt capacity expansion up to 200KT and market consolidation, said Kgomotso. He further stated that the fundamentals will be determined by re-dollarisation of northern trade alongside fine salt beneficiation through real time market vertical integration as well as margin expansion.