Rebuilding Botswana’s Construction Future: African Development Bank bolsters Lobatse Clay Works revival

The kilns are firing again—and with them, the economic hopes of a community. In the quiet town of Lobatse, southern Botswana, a decades-old industrial landmark is undergoing a remarkable renaissance. Lobatse Clay Works (LCW), a brick manufacturer that was once the cornerstone of Botswana’s construction industry, has been resurrected owing to a strategic investment from the African Development Bank Group (www.AfDB.org). The financing has transformed not only the company but an entire community.

“The buildings that shaped modern Botswana will rise again from our clay,” declares Anthony Moepeng, Acting Chief Executive Officer of Lobatse Clay Works.

Founded in 1992 as a joint venture between Botswana Development Corporation (BDC) and American firm Inter-Kiln, Lobatse Clay Works quickly established itself as the nation’s premier maker of bricks. For decades, its distinctive reddish-brown bricks were synonymous with Botswana’s construction boom, during which schools, hospitals, and government buildings all showcased the company’s craftsmanship.

But in 2017 the company faced a perfect storm of challenges. Aging equipment, production inefficiencies, and rising fuel costs forced the shuttering of the once-thriving operation, leaving the factory idled — stripping the community of both jobs and identity.

African Development Bank’s Catalytic Investment Powers Revival

Recognizing Lobatse Clay Works’ potential, the African Development Bank provided a loan facility, in partnership with the Botswana Development Corporation to turn around the company’s fortunes, focusing on technological modernization and operational efficiency.

The Bank’s investment enabled Lobatse Clay Works to acquire state-of-the-art manufacturing equipment that dramatically improved energy efficiency. A new hybrid fuel system slashed production costs, while enhanced kiln technology boosted output capacity and product quality.

In 2023, the company, facing supply chain challenges and rising costs, secured an additional 48 million Pula (around $3.5 million) from the African Development Bank — bringing the total financing to 138 million Pula— to keep growth on track.

This substantial investment enabled the plant to reopen in 2024.

Beyond Bricks: Building Communities and Futures

The revitalized facility has already created 148 direct jobs with hundreds more expected in supporting industries from transportation to services.

The plant’s output of three million bricks per month is high enough to meet domestic construction demand and serve lucrative export markets in South Africa, Zimbabwe and Namibia, generating valuable foreign exchange for Botswana’s economy.

African Development Bank’s Deputy Director General for Southern Africa, Moono Mupotola, stressed the broader significance of the investment. “This speaks directly to what we do at the African Development Bank. Lobatse is a small town, but almost one hundred percent of the factory workers are from the town. This project delivers on our High 5 development priority of improving the quality of life for Africans.”

Most significantly, Lobatse Clay Works’s revival aligns perfectly with Botswana’s industrial diversification goal to reduce dependence on diamond revenues by strengthening manufacturing capability.

“Through the African Development Bank funding, we have been able to commit BWP 4 million towards the refurbishment of the plant,” explains Benedicta Abosi, Acting Managing Director at BDC. “This has enabled us to restart operations and produce enough bricks for expansion opportunities into the region.”

The company plans to expand from brick manufacturing to include tiles, further cementing its role in Botswana’s construction renaissance and economic diversification efforts.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Photos: https://apo-opa.co/453yTvZ

About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org