BOTSWANA Botawana

BOTSWANA

Company overview

PPC Botswana has a milling, packaging and dispatch operation in Gaborone supporting a national distribution network.

Review
Demand

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.

Selling prices

In a very price-sensitive market and off a very low base after two years of competitive pricing, PPC increased selling prices by 5%.

Customers

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.

Product range
The popular 32,5R BOTCEM product, manufactured at the Gaborone milling depot
is complemented by the SURETECH
SUREROAD and SUREBUILD brands
PPC Cement

Value creation
Outlook
Gaborone – milling depot

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:

In the year ahead, PPC Botswana will roll out its new product range and implement its new routeto- market strategies.