Lobatse Clay Works Finds New Life Through AfDB Investment.

Saturday 10th May 2025

Por inAfrika Reporter

In the small town of Lobatse, Botswana, a once-thriving brick manufacturing plant is making a strong comeback, reigniting local economic hopes. Lobatse Clay Works, originally founded in 1992 as a joint venture between Botswana Development Corporation and the American company Inter-Kiln, had long been a cornerstone of Botswana’s construction industry. Its reddish-brown bricks were used in the construction of schools, hospitals, and government buildings across the country. But by 2017, a series of challenges including aging equipment, inefficient production, and rising fuel costs led to the closure of the plant. The shutdown not only affected national infrastructure development but also stripped the community of much-needed jobs.

Recognizing the company’s untapped potential, the African Development Bank partnered with the Botswana Development Corporation to provide a loan facility to breathe life back into the factory. The financial support was focused on modernizing equipment and improving efficiency, marking a significant turnaround strategy. A new hybrid fuel system was installed, reducing production costs, while advanced kiln technology improved the quality and quantity of the bricks produced. These upgrades have positioned the factory to not only meet domestic demand but also to serve export markets in South Africa, Zimbabwe, and Namibia.

In 2023, facing new hurdles such as rising costs and supply chain delays, the company secured an additional 48 million Pula (approximately $3.5 million), increasing the total financial support to 138 million Pula. This investment enabled the full reopening of the plant in 2024, with promising results. As of today, Lobatse Clay Works produces three million bricks monthly and has created 148 direct jobs, with expectations of more employment in related sectors such as transportation and services.

Anthony Moepeng, Acting CEO of Lobatse Clay Works, believes that the revitalization of the company marks a new era not only for the business but also for Botswana’s construction sector. The company is already planning to expand its product range to include tiles, further solidifying its role in the national goal of industrial diversification and reduced reliance on diamond revenues.

The broader economic significance of this revival has not gone unnoticed. African Development Bank’s Deputy Director General for Southern Africa, Moono Mupotola, highlighted how the project directly contributes to the Bank’s High 5 development priorities, particularly in improving the quality of life for Africans. Most of the factory workers are drawn from Lobatse itself, reinforcing the project’s community impact.

Benedicta Abosi, Acting Managing Director at Botswana Development Corporation, underscored that the financial backing has enabled not just production recovery but also regional expansion efforts. The BDC committed an additional BWP 4 million to the plant’s refurbishment, further demonstrating public sector support for the company’s growth.

The revival of Lobatse Clay Works is not just about bricks and machinery; it’s a story of economic empowerment, local pride, and strategic investment. The plant’s success is a testament to what can be achieved through thoughtful financial partnerships and a clear vision for national development. As Botswana continues to chart a path toward economic diversification, projects like this serve as powerful examples of how targeted support can reignite entire sectors and uplift communities from the ground up.