PPC Botswana has a milling, packaging and dispatch operation in Gaborone supporting a national distribution network.
We estimate that, for the calendar year, demand in the Botswana market was 12% down on the comparative period and just 10% down for the financial year. PPC volumes recovered well to end 2% down on the prior year, on the back of aggressive competitor pricing in the first half.
In a very price-sensitive market and off a very low base after two years of competitive pricing, PPC increased selling prices by 5%.
With retail being the dominant sector in Botswana, we focus on our ultimate customers’ needs. In this price-sensitive sector, our challenge is to create demand by offering a range of products to suit the customers’ needs.
- Only local large-scale producer
- Experienced sales team – knowledge of the market
- Strong relationships with customers
- Excellent customer service – best in industry
- Strong brand nationally – well known for over 23 years. Strong heritage as largest cement manufacturing company in Botswana
- Consistent quality products
- Excellent team assisting customers with technical solutions
We expect pricing to stabilise and volumes to improve on the back of government expenditure on infrastructure ahead of 2019 elections. A sustainable improvement in Botswana’s economy is projected in the medium term, with real GDP growth expected to rise to nearly 5% in the next year. This will be supported by the current good performance in the non-mining sector and continued recovery in the mining sector.
Inflation remains low and stable at 3,6% and the local currency is expected to appreciate against the US dollar and other major currencies.
In addition, S&P Global Ratings recently revised its outlook on Botswana’s sovereign credit rating from negative to stable.
Against this background, construction activity is expected to improve as major infrastructure projects proceed:
- Gaborone to Boatle 20km dual carriageway
- Okavango River bridge
- Upgrade of 120km road between Dibete and Machaneng
- Government intends to build 10 mini-stadiums worth BWP50 million in this financial year
In the year ahead, PPC Botswana will roll out its new product range and implement its new routeto- market strategies.