Processing and Manufacturing Industries in Botswana and the SADC Region

Upon completion of this topic you will be able to:

1. Classify industries into primary, secondary, tertiary and quaternary sectors.
2. Differentiate between processing and manufacturing industries.
3. Describe the factors which affect the location of industries in Botswana
4. Distinguish between small and large scale industries in terms of labour, capital and output.
5. Discuss the importance of small and large scale industries to the economy of Botswana
6. Evaluate government policies on small and large scale industries in Botswana.
7. Select and analyse one small scale and one large scale industry in Botswana in terms of location factors,
processes, input and output, problems, solutions and its impact on the environment.
8. Select and analyse any one large scale industry (for example Textile, Car Assembly, Iron & Steel) in South
Africa, Zimbabwe, Swaziland or Lesotho in terms of: location factors, processes/activities involved, input and
output, problems and possible solutions and impact on the environment.

Definition of Industries
What is an industry?
 Industry can be defined as the means of producing goods and services.
 It can also be defined as all the work that we do in order to gain a living or a group of activities that are of
economic value.
 It can also be referred to as the production that takes place inside a factory, whereby raw materials are turned
into finished goods.
 The processing and manufacturing industries exploit their raw materials from the following sectors:
 Farming
 Forestry
 Fishing
 Mining

What is a processing industry?

 A processing industry is an industry that prepares or improves or purifies raw materials for use (Bolux milling
industry). In simple terms, this is an industry that prepares raw materials, so that they can be used to produce
other goods or finished goods. These industries are also known as Primary Industries.
 A processing industry is involved in the preparation of raw materials or resources from the earth surface.
 In processing output resembles input

What is a manufacturing industry?

 A manufacturing industry is an industry that uses raw materials from a processing industry to turn them into
finished goods or products/is an industry that changes raw materials into more useful products (Bakery).
 Manufacturing industries use many inputs to produce one output.
 In manufacturing output is totally different from input

Take skin or hide for example. The raw material will be skin/hide of course. This raw product can be processed into
leather, which in turn can be used in a manufacturing industry to make a pair of shoes you are putting on right now

The Major Classification of Industries

Industries can be classified into these major classes namely:
• Primary Industries
• Secondary Industries
• Tertiary Industries
• quaternary sectors

1. Primary industries
These are those industries which extract raw materials from the earth or from nature. Primary industries
obtain raw materials which can be used to produce finished goods. The extraction of raw material is made in
such a way that nature can have a chance of reproducing them.
Examples of primary/extractive industries are:
 Fishing
 Mining
 Forestry
 Agriculture
An example of a Primary Industry is the sugarcane harvesting industry or a sugarcane cutting industry. Why is
sugarcane harvesting considered a Primary Industry? It is a Primary Industry because sugarcane is harvested or
extracted from the soil which is a natural source. In this case, sugarcane is regarded as a raw material. The
sugarcane can then be changed into a new form under other levels of production.

2. Secondary industries
The secondary industries use raw materials from primary industries to produce finished goods or end
products. These industries are also known as Manufacturing Industries. Secondary industries involve several
stages of processing. The end product in secondary industries is much more valuable than the raw materials.
Each level of processing increases the value of the product.
There is a wide variety of secondary industries including food processing industries. The following are
examples of secondary industries that process food items:
 Meat packing
 Maize milling
 Sorghum milling
 Fruit and vegetable canning
 Brewing and soft drink bottling.

3. Tertiary industries
Tertiary industries are service industries. Tertiary industries are different from both primary and secondary
industries because they do not process or manufacture goods. Like primary industries, tertiary industries do
not increase the value of raw materials by changing their form. Service industries provide services to both
primary and secondary industries. They provide a wide range of services to other industries such as:
 Banking
 Insurance
 Transport
 Telecommunications
 Health
 Education
 Panel beating
 Repairing of machinery in workshops.

The relationship between primary industries, secondary industries and tertiary industries can be illustrated as
follows:
Primary/first Order Industries = Iron ore extraction or mining
Secondary/second Order Industries= Manufacturing of iron ore into steel = Manufacturing of cars from steel
Tertiary/third Order Industries= Transportation of steel and finished Cars to the market
4. Quaternary Industries
Quaternary industries are basically that part of the economy that deals with information. They are the
economic activities that involve the intellectual services (specialized skill or knowledge). Examples of these
activities include:
 scientific research
 governance
 libraries,
 culture
 education
 information technology

Using the example above, you would realize that if we had to include quaternary industries, an example would
be marketing of the steel and cars on the internet for example. By so doing, you are creating awareness about
the products, or giving out information about the products.

Factors Influencing the Location of Industries in Botswana

Factors that influence the location of industries are very important because they determine the establishment of
an industry. Before an industry is constructed, these factors have to be considered. There is no single factor, which
can influence the location of an industry alone. The major factors influencing the location of industries are as
follows:

1. Availability of raw materials

Raw materials form the basis of the production of goods. There must be enough raw materials before one can
establish an industry. In order to start an industry one has to look at raw materials and how the raw materials will
be transported to the factories. Transportation of raw materials is very important as well as the cost of
transporting raw materials. Raw materials are usually heavy and bulky. This means that it is expensive to carry raw
materials from one area to another. Industries which process heavy and bulky raw materials are located closer to
the source of raw materials because:
 Raw materials are bulky
 To reduce transport costs
 Need for immediate processing

2. Availability of market
In order to start an industry one has to consider those people who will buy the goods produced by industries. The
market size can be big or small. We can also talk of a local market or an international market.

3. Labour supply/availability of labour

Labour or manpower we are referring to those people who are employed to produce goods in industries.
Some industries are situated in areas with easy availability of labour. People with skills or technical skills are
important in every industry e.g. engineers. So both skilled and unskilled labour is very important in the production
of goods.

4. Good transport and communication network

Transport is important for carrying raw materials to the factories or industries and also for carrying finished goods
to the consumers and for carrying both machines and workers to and from industrial areas. So when locating a
manufacturing industry the network has to be good to allow for this movement.

5. Government policy/Politics
The political stability of a country is to be considered before one can establish an industry in such a country.
Politically stable countries attract more foreign companies or investors than politically unstable countries. Few
industries will be located in politically unstable countries.
6. Availability of power
Electricity or power is very important in the location of industries. Industries develop quickly in an area with a lot
of electricity because electricity is used to drive machines that produce goods or new end-products. Electricity is
very expensive and some countries especially developing countries, Botswana included do not produce enough
electricity. Botswana and her sister countries such as Lesotho and Swaziland depend on South Africa for electricity.

7. Availability of water
Industries cannot grow or develop if there is no adequate water supply. Some industries are located near sources
of water such as dams. Water is used for cooling machines which are used by industries and for washing raw
materials. There are many other uses of water.

8. Availability of capital
Industries cannot develop without money. Most of the developing countries depend on rich countries or big
organisations or companies to develop their own industries. In Botswana there are many industries which were
helped to grow by foreign companies.

9. Physical factors
Site factors are physical factors and they affect the place where the manufacturing and processing industry is to be
established. Some of the physical factors which are to be considered are: soils, relief, and climate

Factors favouring the development of industries in Botswana/ steps that the government of Botswana is taking
to encourage the development of industries
These refer to the advantages Botswana has for the development of industries:
 Government provides financial assistance/CEDA/NDB/BDC/Youth grants (fund)
 Government policy/Political stability
 Low taxes/Tax rebates/holidays (reinvesting part of your money/tax returns)
 Profits earned in Botswana by foreign companies can be repatriated without restrictions/Easy terms on
money transferred/few foreign exchange control restrictions/liberal foreign exchange control
 Abundant unskilled labour which is relatively cheap.
 Advertising abroad/BEDIA
 Training/education through institutions such as LEA/IFS
 Industrial sites/factory shells
 Serviced plots/telephones/electricity/sanitation/roads
 Improved water supply
 Encourage rural industrialization
 Imposing tariffs or quotas on imported goods as protection of local industries from foreign industries/taxing
goods which enter Botswana from other countries/ not charging custom duty on goods produced in Botswana
and exported to other countries in order to encourage the development of manufacturing industries and
protecting locally produced goods
 protecting property rights and recognising the existence of industries
 the development of the private sector
 the existence of competition among industries

Problems that Botswana faces in an effort to industrialise

 Small domestic market/low population

 Lack of capital
 Lack of raw materials
 Lack of skilled labor/technology
 Competition with superior products from abroad
 Far from European market/landlocked
 Expensive power/high prices for electricity
 Expensive urban land
 Lack of machinery
 Late development of minerals

The difference between small and large scale industries

The differences between small scale industries and large scale industries:
 Small-scale industries produce few goods while large-scale industries produce goods in large quantities.
 There is less money used or invested in the development of small scale industries while large-scale industries
use a lot of money/Most of the small-scale industries use few machines or simple tools while large-scale
industries use a lot of machines.
 Goods produced under small scale industries are cheap compared to those produced under large scale
industries.
 Small scale industries are can be classified as labour intensive while large scale industries are capital intensive
industries. There is a difference between these two types of industries.
 Labour intensive industries are industries which employ more people and use few machines
 Capital intensive industries employ few people and use more machines
 Labour intensive industries are said to be good because they create employment for many people. Labour
intensive industries are also generally slow compared to capital intensive industries when producing new end
products.
 Capital intensive industries encourage unemployment since they use many machines in the production of
goods. The production of goods by machines tends to be faster.

The Importance of Industries to Botswana

 They bring government revenue through taxes and the government also sells pieces of land or plots to
companies which build warehouses and factories. There are also some warehouses or factory buildings which
are owned by the government which are rented out on a monthly basis
 They give the country prestige and are well known all over the world
 They encourage development of other industries
 They create employment/source of income
 Local people gain skills and training
 They encourage development of infrastructure such as roads and railway lines.
 They reduce the importation of goods/self-sufficiency in goods
 They encourage exportation of goods which bring foreign exchange
 Industries promote economic growth/economic diversification

Government Policies on small and large scale industries in Botswana

 The Botswana Government is trying to solve some of the problems facing the development of small scale
industries through the establishment of the industrial policy which has come up with a series of incentives and
programmes such as:
i. Local Preference Scheme (LPS) replaced by Local Procurement Programme
 Established to channel a proportion of central government supplies procurement to local
manufactures.
ii. Trade and Investment Promotion Agency (TIPA) replaced by Botswana Export Development
Investment Authority (BEDIA)
 Helps local manufacturers to improve their foreign market access
iii. Botswana Investment and Trade Center (BITC)
 Promotes and attract investors
  Promotes and develops exports/promotes locally manufactured goods to regional and
international markets
 Manages and promotes the Nation Brand
iv. Industrial and labour relations legislation
 To govern safety and health, compensation for injury at work, minimum terms and conditions of
employment, the settlement of trade disputes, promotion of freedom of association and
collective bargaining, human resource development and localization
v. Integrated Field Services (IFS)
 To promote rural industrialization by providing financial assistance and training
 Rent out production machinery at subsidized rates
 Provides factory shell spaces
 Operates Rural Industries Promotion Company and its subsidiary Rural Industries Innovation
Center (RIIC)
 The government also established two major agents or bodies which are responsible for developing the
processing and manufacturing industries: Botswana Development Corporation (BDC) and Botswana
Enterprises Development Unit (BEDU)
i. Botswana Development Corporation (BDC)
 This agent was established about thirty years ago.
 It was aimed at developing the commercial, industrial and agricultural sectors of the economy.
 It attracts foreign investors to open industries in Botswana.
 It owns several small companies or industries.
 It is also a shareholder in many large companies. Examples of small companies or properties owned
by the BDC are: The President Hotel, Broadhurst Industrial Estate, SelebiPhikwe Mall, Botswana Craft
Marketing Company (Pty) Ltd.
ii. The Botswana Enterprises Development Unit (BEDU) now Integrated Field Services (IFS)
 It was established in 1974.
 Its main purpose is to help Batswana who want to start their own businesses or industries.
 Provides financial, technical and management services.
 Like the BDC, BEDU has established small scale industrial estates throughout the country.
 It has several projects including the production of: garments, pottery, leather products, school
furniture, knitwear, office furniture and jewellery.

Small Scale Industries in Botswana

Some of the industries which are listed under small scale industries category include craft industries. The main
features of craft industries are:
 Small premises/few inputs/few outputs
 Labour intensive
 Workers mainly women
 Use traditional skills
 Rural based
 Simple tools
 Mostly uses local raw materials
 Raw material oriented

Examples of craft industries

 Basket weaving/basketry
 Pottery
 Wood carving
 Leather works
 Blacksmithing
  Hand spinning
 Tanning
 Bakery
 Textiles

Everest Mills - A Case study of Small Scale Industry in Botswana

Everest Mills is a textile manufacturing company situated in Francistown. At first, it was known as Shashe River
Textiles. It is an example of a small scale industry.

Factors Influencing the Location of Everest Mills

There are many factors which influenced the location of Everest Mills in Francistown. These are:
1. Availability of large land
Everest Mills were established in the early 1970s. The mills were established where there was enough land or
space for expansion.
2. Availability of power
Everest Mills get electricity from the Botswana Power Corporation. The mills also use coal from the Morupule
Coal Mine.
3. Availability of capital
The establishment of the Everest Mills received financial support from the Botswana Government, through
such projects as FAP
4. Availability of labour
Francistown city is the second largest city in Botswana after Gaborone. It provides skilled and unskilled labour
to the Everest Mills. Thus, Everest Mills employ about 300 workers and the majority of the workers are
Batswana. Settlements around Francistown also provide labour to Everest Mills.
5. Availability of water
The Shashe Dam is the major source of water for most of the industries located in Francistown including
Everest Mills.
6. Availability of raw materials
Francistown is located near Zimbabwe. The basic raw material used in this industry is cotton which is imported
from Zimbabwe. The mills are not located far from the source of raw materials. This also means that the cost
of transporting cotton to the mills is higher.
7. Availability of good transport network
Everest Mills are located near the major railway line. The railway line links Everest Mills to the source of raw
materials. Cotton is transported using railway lines from Zimbabwe to Botswana.
8. Availability of market
Everest Mills sell their products to local and external markets. There are clothing textiles which buy materials
from Everest Mills. It produces100% cotton indigo dyed denim. The factory sells its fabrics to the European
Union and South Africa.

Production at Everest Mills

Everest Mills produces high quality products. The textile mills produce both woven and knitted fabrics which are
competitive in the world market. The total production per year is estimated at over 5 million metres of fabric.
Everest Mills started as a small industry and has developed to a large industry. The mills use machines in the
weaving and knitting of cotton to make denim fabrics. In the weaving of denim about 48 F2001 rapier looms are
used. The pre-shrinking of the cloth is done in a Greenville finishing plant using a Morrison Sanfoviser. Everest Mills
provides training for its workers. There is a linkage between Everest Mills and other industries. There are other
industries which are built in the same area as Everest Mills. Some of these industries buy fabrics from Everest Mills
to produce different types of clothing. The items which can be made from the denim cloth produced at the Everest
Mills are: bags, jeans, jackets, shirts, skirts, dresses.

Problems Facing Everest Mills

1. Competition
Everest Mills face competition from overseas companies. In other countries there are well established textiles
mills which also produce high quality goods.
2. High transport costs
The cost of transporting raw materials from Zimbabwe is high. A lot of money is used to pay for transportation
of raw materials. A lot of money is also used to pay transport for the finished goods to the market. The major
market for the produced cloth is the European Union.
3. Low prices
Despite the fact that prices for the denim cloth is competitive, there are certain times when the European
Union buys the cloth at very low prices. The prices in the world market go up and down/fluctuate.
4. Growth of the industry
Every industry needs to grow from a small scale into a large scale. This is not always easy because of shortage
of money. A lot of money is used to change a small scale industry into a large scale industry. The reason why
most industries remain at the same level is that they do not have money to grow into another stage or level of
growth.
5. Shortage of skilled labour
Most of the people who are hired lack some skills. Everest Mills and some other small scale industries or
textiles have to hire people and train them. Training people on the site requires a lot of time and money.

The impact of industrial development on the environment

Industries promote economic growth, but they affect the environment negatively. Both small scale industries and
large scale industries affect the environment through the following ways:
1. Pollution
During the processing and manufacturing, industries release substances into the air. The air will then become
polluted. The burning or use of coal by many industries release gases such as carbon monoxide into the
atmosphere. Apart from air pollution, there is also water pollution by industries. Water is polluted when
industries release chemicals into the water. The polluted water affects vegetation and animals which normally
live in water.
2. Deforestation/Clearing of vegetation
The clearing of vegetation to create space for the construction of industrial buildings is also another problem
caused by industries. When the trees or the vegetation is cleared off, the trees are not replaced.
3. Waste heaps
Industries are also associated with ugly, untidy and a dirty environment. Some industries usually leave the
ground surface with some waste heaps or waste dumps. Industries will pile up waste material at one point.
4. Pits/holes
There is sometimes unnecessary digging of the ground which leaves the ground surface with many holes.

Botswana Meat Commission: A case Study of a Large Scale Industry in Botswana

The Botswana Meat Commission contributes a lot to the economy of Botswana. It is known as the beef industry
and it is the second largest revenue earner for the Botswana Government after the Mining Industry. The Botswana
Meat Commission has three abattoirs in the country. The largest of these is the Lobatse abattoir. The second
largest is the Francistown abattoir and finally there is the Maun abattoir.
Map of Botswana showing the distribution of Botswana Meat Commission abattoirs

The beef industry is greatly influenced by the presence of raw materials namely livestock such as cattle, sheep and
goats. This means that without livestock, it would be difficult to have the beef industry in Botswana. The livestock
sector therefore plays a very important role in the beef industry.

Number of cattle slaughtered per day at each of the BMC abattoirs

Name of Abattoir Number of Cattle per day
Lobatse 1200
Francistown 700
Maun 200
There are three major ways of transporting cattle to the Botswana Meat Commission abattoirs. The methods used
are: road or rail transport and trekking method. Both road transport and rail transport are quicker but more
expensive. The trekking method is slower but cheaper. The trekking method has a major disadvantage since
animals are made to travel long distances to abattoirs and thus lose weight.

There are three ways through which farmers sell their cattle to the Botswana Meat Commission.
• Through marketing co-operative societies
It is mainly made up of small-scale farmers. Farmers sell their cattle through co-operatives. The co-operatives
charge farmers a small percentage.
• Through registered BMC (Producers) agents
The selling is done through an agent who also charges farmers a certain percentage of the gross value of the cattle.
• Direct sales
Large commercial farmers who sell their cattle in bulk use this method.

Factors which Contributed to the Selection of Lobatse as the Site for Botswana Meat Commission
There are several factors, which contributed to the selection of Lobatse as the site for the BMC.
1. Availability of raw materials
Lobatse abattoir gets raw materials or cattle mainly from Ngwaketse district, Kgalagadi district, Kweneng
district, and Molopo areas. The abattoir was used to receive cattle from the northern parts of the country as
well before the establishment of the Francistown and the Maun abattoirs.
2. Labour supply
Lobatse is a town with both skilled and unskilled labour. The town as well as other surrounding towns and
villages provide the abattoir with workers.
3. Adequate water supply
The abattoir gets water from the Nnywane Dam in Lobatse. The abattoir also gets emergency water supply
from Gaborone dam.
4. Capital/Money
The Lobatse abattoir gets financial support from the Botswana Government.
5. Availability of power
Electricity is obtained from the Botswana Power Corporation and Eskom in South Africa. Coal is also obtained
from Morupule Coal Mine. The abattoir used to get coal from the Republic of South Africa.
6. Availability of market
Lobatse is close to South Africa which consumes a lot of beef from the abattoir. South Africa also provides
facilities for exporting meat and meat products from Botswana to European markets-European Union (major
buyer)
7. Availability of large and flat and
The abattoir is situated in an area that can allow the abattoir to expand and become bigger.
8. Politics
Botswana is a politically stable country.
9. Good transport network
The abattoir is located near the railway line. Meat is transported by rail line to South Africa.

Meat Processing at the Botswana Meat Commission

The processing of cattle like any other raw material or industrial products is in the form of stages. Each stage of
processing adds monetary value to the product being processed. The following are the stages of processing at the
factory:
o the cattle are washed using sprays of water and then knocked down unconscious using a special gun
o throats are slit
o carcasses are lifted by hind legs to drain blood
o carcasses hang from an overhead moving chain
o horns, heads & skins are removed
o internal organs are removed and put on a conveyor belt and moved parallel to the carcass
o Carcasses are examined by veterinary officers and graded A carcass that is found with a disease is
destroyed. The internal organs are also destroyed. The farmer does not get anything in return or they are
given a small compensation for these animals.
o carcasses are split into two halves, washed and put into a chilling room for 24 hours
o internal organs are washed, graded, packed and made ready for exportation or local markets
o The following day the chilled carcasses are exported to the Republic of South Africa and other countries
such as Mauritius, Hong Kong, Mozambique, Angola as well as the European Union.
 o Some carcasses proceed along the overhead chain to the deboning room where workers remove pieces of
meat until only bones are left. Each worker specializes in removing one piece of meat of a certain type
(top side, silverside etc.)
o The pieces are then packed in plastic bags. The packing of meat into plastic bags is done by packers
o the bags are then weighed, scaled and put into a cardboard box
o boxes are tied up and frozen as boneless meat which will then be ready for export to the European Union
o the remaining bones are scrapped to get every piece of meat and the scrapped meat is sold in Botswana
as minced meat
o Some scrapped meat and other cuts of meat are sent to the cannery where meat is packed into tins and
sold as corned beef. The Lobatse Cannery is said to be capable of processing more than 300 tonnes of
beef per week.
o At the By-products plant different parts of the cattle are “cooked”. There is nothing that is thrown away.
 bones are washed, heated and crushed to make bone meal
 blood is cooked and made into blood meal
 condemned carcasses and heads are cooked and ground into small pieces to make carcass meal
 tallow and dripping fat are collected
 bile from gall bladder is extracted to be used in medicine
NB: Products from bones are sold mostly inside the country
o At the tannery:
 hides/skins are treated and preserved
 there is a leather processing industry in Lobatse – many skins are processed at this tannery

Small livestock such as sheep and goats are also sold to the Botswana Meat Commission. The number of small
livestock sent to the BMC is lower than the number of cattle sent to the three abattoirs.

Problems in the Beef Industry

The following are some of the problems, which are facing the livestock sector and the beef industry:
 cattle diseases, e.g. foot and mouth/external parasites, e.g. ticks and internal parasites, e.g. tapeworms
 scarcity of water
 poor pastures/overgrazing
 drought
 long distances covered by trekked cattle
 rising costs of transporting meat and meat products to the market overseas
 There are also fluctuations in prices in the world market.
 The meat supply to the market is sometimes low due to the fact that farmers send a few cattle for slaughter to
the Botswana Meat Commission.

Solutions to the problems

Livestock plays a major role in the beef industry, so the government introduced some measures to solve some of
the problems facing the livestock sector.
 cordon fences are used to control the spread of diseases
 veterinary assistants use quarantine camps to inspect cattle
 farmers are given loans to develop their livestock
 research projects are established to improve the quality of livestock
 the government provides artificial insemination (AI) services
 farmers are assisted to purchase bulls under the Bull Subsidy Scheme
 farmers are advised to sell their livestock at the youngest profitable age
 development of ranches
 compulsory and free vaccination of livestock against diseases

Environmental impacts
 The livestock sector causes a serious environmental problem of overgrazing. Overgrazing is no longer a
problem caused by traditional livestock farming only. Commercial farming also causes serious overgrazing due
to poor management of ranches. Overgrazing will leave the land bare without vegetation cover.
 If the land is left bare erosion will take place easily.
 The end result of soil erosion is desertification or the development of desert areas. Now let us summarise
what you have learnt in this topic.

Urban/Rural Location of Industries

Most of the industries are found in towns. The major industrial towns are located along the eastern part of
Botswana. It is because of population (market) and infrastructural development like the railway line. It is estimated
that about 90% of all the industries in Botswana are located in towns and only 10% are situated in rural areas.
Rural areas or villages are less attractive for the development of industries.

Why new industrial estates usually located on the edges of towns and cities

 Cheaper land value (land is expensive at the center)

 Away from congestion of center of urban area/lack of open space at the center
 Less competition for land/open space for expansion
 To avoid environmental pollution in city center
 Near main roads/railways

Why there are few Industries in Rural Areas

Most of the rural areas favour very few industries because of the following reasons:
 most of the rural areas are far from the sources of raw materials
 rural areas have poor transport and communications such as roads which are very poor and some rural areas
are linked by poor or dirty and gravel roads
 rural areas lack proper sources of power such as electricity. Those industries found in rural areas sometimes
use small power generators
 There is also a serious shortage of water in the rural areas
 Most of the skilled labour is found in towns instead of rural areas
 Most of the people in rural areas do not have money to buy goods, therefore, lack of markets in rural areas
discourage industries to locate in rural areas
If rural areas seem so unattractive for industrial development what then would be the benefits of locating
industries there?

Benefits from the Development of Rural Industries

The government is encouraging the development of industries in rural areas because when industries are built in
rural areas:
• The rural population will be employed and they will have some wages and their living standards will be
improved
• It will also encourage the development of infrastructure such as roads and railway lines for the
transportation of raw materials and finished goods
 It will reduce the rate at which people migrate to towns from rural areas which is known as rural-urban
migration. The problems caused by rural-urban migration are:
 It leads to unemployment in urban areas.
 Lack of accommodation in urban areas.
 An increase in crime in urban areas.
 Overcrowding in urban areas.
 Rural areas will be left with few able-bodied people who can be involved in the production of
crops and rearing of livestock (only children and the elderly people are left in the rural areas).
  Rural areas will become less developed and also become depopulated.

Iron and Steel Industries in Southern Africa

South Africa and Zimbabwe are among the largest producers of iron and steel in Southern Africa. Iron and steel
play a major role in the manufacturing process such as Engineering, Locomotive manufacturing, Car
manufacturing, Railway lines manufacturing, Rolling stock and Shipbuilding industries. Iron and steel are the basis
for the processing and manufacturing industries. South Africa has four major iron and steel processing centers. This
iron and steel is not consumed only in South Africa but is also exported to other countries which do not produce
iron and steel. The major iron and steel producing centers in South Africa are: Pretoria, The Rand or
Witwatersrand, Vereeniging – Vanderbijl Park and Newcastle. The largest of the South African iron and steel works
is the Vereeniging – Vanderbijl Park Centre and it produces more iron and steel than the other centers. The South
African iron and steel works are owned and controlled by the South African Iron and Steel Corporation (ISCOR).
ISCOR is responsible for the processing of iron ore in association with the African Metals Corporation (AMCOR).

The distribution of iron and steel works in South Africa

Vanderbijl Park Integrated Steel Works: A Case Study of a Large Scale Industry in the Republic of South Africa
Factors That Influence the Location of Vanderbijl Steel Works
The following are some of the factors which have influenced the Vereeniging – Vanderbijl steel works:
 Availability of the basic raw material needed for iron and steel processing-Iron ore obtained from Sishen iron
field in Cape Town and Thabazimbi, scrap iron obtained from the Natal mines and railways and pig iron
obtained from Newcastle
 Limestone from Vereeniging which is near to Vanderbijl Park
 Cooking Coal obtained from Newcastle and Witbank
 Water Supply from the Vaal river
 Electricity generated from the Vaal River.
 Manganese mined at Postmasburg.

The Mining and Transportation of Iron Ore

 Iron ore is only extracted or mined if the iron content of the ore is more than 20%. The mining method used
for mining iron ore is the open cast. This is the most common method although the shaft method is
sometimes also used.
 When the open cast method is used, the surface rocks are stripped off.
 Ore is then exposed and then dug out using diesel powered shovels.
 Thereafter, iron ore is transported to the blast furnaces using the cheapest means of transport such as railway
transport.
 At the blast furnace the iron ore is smelted.
 Since iron ore is bulky and heavy, the iron ore of low grade is not transported but instead, blast furnaces are
built closer to the ore mine. There are different types of iron ore and these iron ores differ according to quality
and the geological occurrence. The four types of iron ore are as follows:
 Hematite - contains about 70% iron
 Limonite - contains about 60% iron
 Magnetite - contains about 50% iron
 Siderite - contains about 30%.

Processing Iron Ore

Iron ore is an unprocessed rock.
All of the processes of extracting iron from iron ore are carried out in one operation known as the Integrated
Steelworks/The production of both iron and steel, thus, takes place at the same point. An integrated iron and steel
plant is made up of: coke ovens, blast furnaces, steel furnaces and rolling mills.
The first stage of processing involves the making of iron from iron ore while the second stage involves the making
of steel from molten pig iron.

The making of iron from iron ore

For smelting iron from iron ore, a large structure called a blast furnace is used.
• Iron ore is mixed with coke (Coke is important because it supports the weight of iron ore since coke is very hard
and also produces a lot of heat which makes the smelting process quicker) and limestone (Limestone is used to
remove impurities or waste material from the ore)
• The mixture is fired in a blast furnace
• Hot air full of oxygen (helps to increase the temperature inside the blast furnace) is blown into the blast furnace
which is heated at very high temperatures, i.e. about 1650ºC
• Molten iron (iron in liquid form) called pig iron is produced
• The molten pig iron remains at the bottom of the blast furnace which is then removed from the furnace.

The making of steel from pig iron

The molten pig iron is produced from smelting of iron ore inside the blast furnace. Steel is produced because steel
is used widely by many industries. Steel is stronger than iron. It is also easy to work with steel or to shape steel into
different shapes. Steel is not the only product produced from molten pig iron. The other products or types of iron
produced from pig iron are: cast iron and wrought iron.
In making steel from molten pig iron a furnace called the Bessemer Converter Furnace is used. The Bessemer
Converter Furnace works like the blast furnace:
 molten pig iron is poured into the furnace
 air is blown into the furnace
 impurities such as carbon and sulphur are removed
 anthracite is added to make steel hard
 Molten steel then passes to the rolling mills
NB: temperature inside the Bessemer converter furnace is higher than that inside the blast furnace (temperatures
rise up to 1700°C).

Uses of iron and steel

Iron and steel are the two most commonly used metals. These metals have more uses than other metals because
they are strong and also cheap. The following are some of the uses of steel:
• It can be made into bars
• It can be made into plates
• It can be made into sheets
• It can be made into wire, etc.

Problems Facing Iron and Steel Works

Some of the problems which are facing the development of the iron and steel industries and other industries in
South Africa are as follows:
 High transport costs for selling or exporting goods outside the country
 Fluctuations in prices of finished goods in the world market
 Political instability which exists in the country disturbs the development of processing and manufacturing
industries. The political situation was worse during the apartheid policies.
 Competitions from the developed European countries. There are countries which are leading in the production
of iron and steel worldwide, e.g. Russia.
 Most of these industries use a lot of land and this means that some sectors will be left with little land
 Industries also cause a lot of pollution. Some poisonous gases are released into the atmosphere causing air or
atmospheric pollution. Some industries also dump some waste materials into rivers, streams and other water
bodies, thus causing serious water pollution.
 When locating or establishing industries, vegetation is destroyed to create an open space for industries.
 Even though South Africa is a rich country, some industries still lack money to develop or increase in size.

Possible solutions to problems facing iron and steel works

The South African Government has come up with policies and strategies aimed at improving industrial
development. The following are some of the solutions to the problems:
• Provision of loans
• Unproductive land is spared for industrial development or industrial estates
• The government emphasises improvement of the environment
• The South African government supports and protects local industries against bigger industries or multi-
national companies
• The government encourages the existence of democracy in the country.

Car Assembly Industry – A Case Study of a Large Scale Industry in the Republic of South Africa
South Africa has many motor vehicle industries which rely on iron and steel to manufacture or to produce different
parts of a car. The different components of a car are then used to build or to assemble a complete car. Port
Elizabeth is one of those centers with a wide variety of car assembly plants. Some of the motor vehicle assembly
plants directly import different car parts from overseas countries such as: Britain - Rover cars, West Germany -
Mercedes Benz, France – Peugeot, Italy - Alfa Romeo, United States – Ford, Japan – Suzuki.
There are several parts of a car which are made from the iron and steel produced in the iron and steel works such
as: Engines, Wheels, Shafts, Door Handles, Gearboxes, Car Bodies, and Brake Pedals. There are some mills
(Vanderbijl mills) which specialise in the production of: steel plates, strips, sheets, hollow drill steels, castings, etc.

Textile industries in Zimbabwe

Tariff and quota restrictions aside, the growth of the industry in the 1980’s can be attributed to;
 A stable and peaceful political and socio-economic environment after independence in 1980
 A range of export and investment facilitation and promotion schemes.
 Zimbabwe’s central location in the Southern Africa region.
 An established and relatively new infrastructure.
 A low cost but relatively highly educated labour force.

Processes involved
Zimbabwe’s textile and clothing sub-sectors consist of three components: production and ginning of cotton,
transformation of lint into yarn and fabric, and the conversion of fabric and yarn into garments.
Challenges faced by the sector
The major challenge that is facing the sector is the issue of finance, which is difficult to get from banks, it’s on a
short-term basis and the interest rates that are being charged are very high. This is more to companies that were
not exporting and were only selling to the local market and there did not have any foreign currency reserves to
buy raw materials and pay salaries after the introduction of the multi-currency system.
The high cost of utilities is a major issue that is affecting the sector as they cannot afford the charges that are
charged by ZESA, TEL-ONE and the city council.
The sector has also been affected by an influx of cheap products from the far east (Asian countries). Taking into
consideration the high production costs the sector companies cannot compete with imported goods, which are
way cheaper than what they produce. There is a need to put safeguard measures so that the industry can improve
on capacity and get an advantage on economies of scale as they produce more products to cover their costs and
there-by reducing their prices to compete with imports.
The other major challenge that the companies in the clothing sector are facing is that the local textile companies
are not meeting their demands on raw materials. Locally produced fabrics are unsuitable for the clothing export
market, increasingly so since world fashion trends have dictated a swing to fabrics with a high proportion of
special weaves. Most of the fabric that is available now is not suitable to make dresses for women. The duties
levied on some of these raw materials (dyes, chemicals, machinery and parts) are too high there-by making the
final product expensive than the imported one. This leads to the clothing sector preferring to import than to buy
from the local textile supplies.
Lack of export incentive and high interest rates has contributed significantly to the industry’s viability problems
The decline in agricultural output has had a negative effect on the textile sector, as this is the source of their raw
materials. They now have to import the raw materials, as those that are produced are of low quality.
Solutions/ programme of Intervention / Action.
Putting restrictions on those goods that can be locally manufactured and having a Buy Zimbabwe clothes
campaign.
There is a need to provide funding to the textile and clothing sector, which plays a key role in economic
development. This should be done through loans that have longer payment periods and favourable interest rates.
There is also a need to facilitate some benchmarking visit to countries like China so that these companies can see
the latest production methods, which make the final product much cheaper
There is also a need to recapitalize the textile sector as they play a key role by supplying the fabric to the
clothing/apparel sector.
To have brand name for Zimbabwean products like the Proudly South African for South Africa. The suggested
brand could be the Expo one “House of Stone Zimbabwe”
Companies to fully utilise Zim Trade services as a source of information to exporters and Trade promotion
activities such as trade fairs and missions