Case studyZutshwa TrustZutshwa Salt project, operated by the Qhaa Qhing Conservation Trust, is in the process ofexpansion which would result in production increasing threefold and possible export of salt.This was explained by the manager of Local Enterprise Authority (LEA) in Hukuntsi, MrGolebaone Molefe, during a tour of the project by President Dr Mokgweetsi Masisi on Thursday.Dr Masisi, who was in Zutshwa to launch the National Mindset Change campaign, encouragedmanagement of Zutshwa Salt to develop strategies that would grow their business and make itsustainable.However, Mr Molefe said the project was currently not sustainable."The current 44 ponds are not producing enough profit to sustain the business," he said whenbriefing President Masisi during the tour.He said LEA assisted the trust to compile a business plan last year aimed at making the projectprofitable.He said they sent the plan to United Nations Development Programme (UNDP), the SouthernAfrica Development Commission (SADC) and Rural Development Council.As a result, he said, UNDP assisted with P1.8 million, RDC with P2 million, and SADC P2.2million. He explained, "the funds would be used for expansion of Zutshwa Salt production. The tests haveindicated that it is 99.9 percent pure salt. Our intention is to expand production so that we can beable to meet market demand in our country. After expansion we foresee increase in ouremployment rate. Our output will also triple."Mr Molefe said the project currently employed 25 people on rotational basis every three months.He said the expansion project would start by August.He said, "we will start with a minimum of four boreholes which will provide us with more mineral(salt deposit). After that we will increase the ponds from the current 44 by building another 10bigger ponds. We will also employ more than 45 people on permanent basis. Our output will tripleand we will be able to meet the market demand and export. We are working on acquiringcertificates of origin in order to be ready for export."Mr Molefe said LEA started working with the trust in 2015 by developing a business plan that ledto P1.5 million funding from constituency development fund, which enabled them to increaseponds from 16 to 44.He said Zutshwa Salt supplied all Botswana Agriculture Marketing Board facilities in the southernpart of Botswana with salt, together with Maun.Also, Mr Molefe said their salt was safe for consumption by people and livestock. He said theirsalt was cheap as 50 kg bags cost P54.50 and 65 kg lick blocks cost P70.Zutshwa Salt plant supervisor, Mr Pobiso Kgamatona, said their main challenge was constantbreaking of equipment due to corrosive effect of salt.He said they use a simple method of harvesting salty water into ponds and allowing it to crystallisebefore adding iodine to it73254943mail@zutshwasalt.comThe above case study is an excerpt from the Botswana Daily News published 20 July 2023(https://dailynews.gov.bw/news-detail/74160) Use the case study above on LEA to answer the questions below. You may use other resources tosupplement your answers.a. Zutshwa Salt project intends to enter the Namibian market as well as the rest of SADC and youhave been tasked to assess its attractiveness. Conduct the analysis using the Porter’s Five Forces(PFF) Model. b. Name and rank two cooperative strategies that you would recommend for accessing the marketyou have chosen in (a) above. c. Explain two (2) characteristics of salt mined at Zutshwa, and argue why each one is a sourceof its competitive advantage. d. Zutshwa was able to raise capital from SADC, UNDP and RDC. Explain, using examples in thecase of Zutshwa, what aspects of the business model do financiers use to decide to fund or notto fund
Case study
Zutshwa Trust
Zutshwa Salt project, operated by the Qhaa Qhing Conservation Trust, is in the process of
expansion which would result in production increasing threefold and possible export of salt.
This was explained by the manager of Local Enterprise Authority (LEA) in Hukuntsi, Mr
Golebaone Molefe, during a tour of the project by President Dr Mokgweetsi Masisi on Thursday.
Dr Masisi, who was in Zutshwa to launch the National Mindset Change campaign, encouraged
management of Zutshwa Salt to develop strategies that would grow their business and make it
sustainable.
However, Mr Molefe said the project was currently not sustainable.
"The current 44 ponds are not producing enough profit to sustain the business," he said when
briefing President Masisi during the tour.
He said LEA assisted the trust to compile a business plan last year aimed at making the project
profitable.
He said they sent the plan to United Nations Development Programme (UNDP), the Southern
Africa Development Commission (SADC) and Rural Development Council.
As a result, he said, UNDP assisted with P1.8 million, RDC with P2 million, and SADC P2.2
million.
He explained, "the funds would be used for expansion of Zutshwa Salt production. The tests have
indicated that it is 99.9 percent pure salt. Our intention is to expand production so that we can be
able to meet market demand in our country. After expansion we foresee increase in our
employment rate. Our output will also triple."
Mr Molefe said the project currently employed 25 people on rotational basis every three months.
He said the expansion project would start by August.
He said, "we will start with a minimum of four boreholes which will provide us with more mineral
(salt deposit). After that we will increase the ponds from the current 44 by building another 10
bigger ponds. We will also employ more than 45 people on permanent basis. Our output will triple
and we will be able to meet the market demand and export. We are working on acquiring
certificates of origin in order to be ready for export."
Mr Molefe said LEA started working with the trust in 2015 by developing a business plan that led
to P1.5 million funding from constituency development fund, which enabled them to increase
ponds from 16 to 44.
He said Zutshwa Salt supplied all Botswana Agriculture Marketing Board facilities in the southern
part of Botswana with salt, together with Maun.
Also, Mr Molefe said their salt was safe for consumption by people and livestock. He said their
salt was cheap as 50 kg bags cost P54.50 and 65 kg lick blocks cost P70.
Zutshwa Salt plant supervisor, Mr Pobiso Kgamatona, said their main challenge was constant
breaking of equipment due to corrosive effect of salt.
He said they use a simple method of harvesting salty water into ponds and allowing it to crystallise
before adding iodine to it
73254943
mail@zutshwasalt.com
The above case study is an excerpt from the Botswana Daily News published 20 July 2023
(https://dailynews.gov.bw/news-detail/74160)
Use the case study above on LEA to answer the questions below. You may use other resources to
supplement your answers.
a. Zutshwa Salt project intends to enter the Namibian market as well as the rest of SADC and you
have been tasked to assess its attractiveness. Conduct the analysis using the Porter’s Five Forces
(PFF) Model.
b. Name and rank two cooperative strategies that you would recommend for accessing the market
you have chosen in (a) above.
c. Explain two (2) characteristics of salt mined at Zutshwa, and argue why each one is a source
of its competitive advantage.
d. Zutshwa was able to raise capital from SADC, UNDP and RDC. Explain, using examples in the
case of Zutshwa, what aspects of the business model do financiers use to decide to fund or not
to fund
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