Business Update

BOTASH

In the late 1980's Soda Ash Botswana was seen as the bright new star in the Botswana's efforts to diversify the national economy away from its principle base of diamond and beef export. A massive plant was erected at Sua Pan, in the Makgadikgadi Pans, a railway line was built and the future looked rosy.

By 1995, however, various factors had forced the company into liquidation. The chief of these was crippling foreign debt and aggressive competition from America in the prime market of South Africa. The company was restructured. The Botswana Government now holds 50% of the shares; Anglo American Corporation, AECI and De Beers a further 42%; and a consortium of South African Banks the remaining 8%.