PROCESSING AND MANUFACTURING INDUSTRIES

Types of industries
Industries can be divided into four basic sections:
a) PRIMARY INDUSTRY
The extraction of raw materials from the earth. It includes agriculture, mining, forestry, hunting,
fishing and tourism.

b) SECONDARY INDUSTRY
The processing and manufacturing of raw materials into finished or semi finished products. There
are two types of secondary industries namely :
i) PROCESSING INDUSTRY
The cleaning or refining of raw materials into finished products/ goods that resemble or
look like the raw material used e.g. beef production/ meat processing. There are few changes in
processing and it produces low value goods.

ii) MANUFACTURING INDUSTRY

The changing of raw materials into useful products that are completely different from
the original raw material e.g. planks to furniture, soap manufacturing and car assembly plants.
Two or more raw materials are used to give a new different product. There is more change and
produces more value goods.

c) TERTIARY INDUSTRY
The provision of commercial and service requirements. It includes banking, insurance, transport,
etc.

d) QUATERNARY INDUSTRY
It deals with provision of information and research industries (research and development). eg.
Information technology, Media, Vocational training, Consultants etc.

Industries can also be classified according to :

1. SIZE
a) Small scale industries – This is where goods are produced in small quantities and
there is also low capital input, few workers and few raw materials.

b) Large scale industries – This is where goods are produced in large quantities and
production is capital intensive. They employ many workers especially in heavy
industries.

2. TYPES OF PRODUCTION
a) Light industries – They produce goods in small factories either by hand or simple
machines. Also have a small volume of raw materials eg. Weaving, food processing,
bread baking and textiles etc.
NB: Botswana has many of these industries

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 EXAMPLE OF LIGHT INDUSTRY - TEXTILES

PREMIER CLOTHING FACTORY IN GABORONE

The industry specialises in clothes such as overalls, sports wear, towels etc.

Factors influencing its location

 Nearness to South Africa for supply of raw materials eg. cotton, cloths etc
 Availability of large, cheap labour in Gaborone, Mochudi, Ramotswa etc.
 Water from Gaborone dam
 Availability of power from Botswana Power Corporation
 Market in Gaborone, Lobatse, Jwaneng etc.
 Availability of tarred roads and railway line for easy transport.
 Large, flat land for expansion
 Government policy encouraging industrialisation

INPUTS PROCESSES OUTPUTS

Cotton Designing Cloths
Dyes Cutting Clothes/clothing
Threads Sewing Towels
Water Dying Bed linen
Sewing machines Printing
Labour Tagging
Capital
Large, flat land
Power

b) Heavy industries - They produce bulky or heavy goods in large scale production.
They also have a large volume of raw materials. eg Iron and Steel works, car
assembly plants, oil refining etc.
Characteristics:
 Located in industrial estates
 Some import raw materials
 More valuable outputs
 Large scale production
 More capital and more labour used.

NB: There are no heavy industries in Botswana.

3. LABOUR AND CAPITAL

a) Labour Intensive industries – These use more workers and few machines. eg Car
assembly plant

b) Capital Intensive industries – They use a lot of machines, finance and few
workers. eg. Oil refining

Factors influencing the location of industries

- Raw materials
- Market
- Capital
- Distance from raw material and market

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 - Availability power
- Labour supply
- Availability of water
- Government policy

Importance of industries to the economies of countries they are found in

- Employment/income which improves standards of living
- Brings foreign to pay for imports
- Develop infrastructure to improve service delivery
- Leads to training/skills development to cater for new jobs
- Government revenue through tax which is used to develop the country
- Promotes self sufficiency in goods which reduces reliance on imports
- Diversify economy hence reduce reliance on one economic sector

Some industries may differ in that some are:

Raw material oriented
Industries developing near the supply of raw materials because they may be producing perishable
products eg. sugar cane which must be processed immediately or its sugar content declines.
Others have a large amount of waste during processing e.g. minerals like copper at Selebi-
Phikwe which has 1% mineral content and therefore it will be expensive to transport the bulky
material (99%) for processing elsewhere.
Market oriented
Some industries need to be located close to markets because they require many raw materials to
be brought together or because the produce perishable products e.g. bread and milk.
Import substitution industries
Industries producing goods that were previously imported i.e. goods are produced and sold
locally.

Examples of small scale industries in Botswana

- Pottery
- Wood carving/ sculpture
- Basket making/ basketry
- Blacksmithing,
- Hand spinning
- Textile,
- Plaiting,
- Beadwork
- Knitting

Characteristics of Small scale industries

- They use few raw materials/ small premises/ small capital investment
- They are labour intensive
- They use locally produced raw materials
- They use simple tools/ hand tools
- Mainly found in rural areas
- Workers are mainly women/females
- Use of traditional skills

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Importance of small scale industries to local communities
- Creation of employment/ income
- Local people gain skills and training/ Promote preservation of culture
- Sustainable use of resources
- Promotes self sufficiency
- Reduce importation of goods/ promote self sufficiency.
- Help reduce rural-urban migration
- Poverty alleviation/ improves living standards
- Empowers women
- Diversify the economy
- Promotes rural development

Problems facing small scale industries in Botswana

- Lack of reliable market
- Shortage of money
- Poor infrastructure
- Lack of business skills
- Shortage of raw materials
- Competition from synthetic products/ alternative products
- Lack of water

CASE STUDY: Botswana Meat Commission (B.M.C)- an example of food/ meat processing
plant.
Location – Lobatse

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Factors that Influenced the Location of the B.M.C at Lobatse
- Labour from Lobatse, Otse and Kanye etc.
- Water from Nnywane dam and more recently Gaborone dam
- Near to South African ports for export market to the EU
- Central to main sources of raw materials such as Gantsi to the west and cattle from the
east of Botswana
- Nearness to the railway line to bring coal for the boilers to make bone and blood meal
- Power from Botswana Power Corporation (BPC)
- Availability of large flat land
Inputs
- Capital
- Plant, buildings and fixed equipment
- Semi skilled labour
- Refrigeration
- Cattle pans
- Water
- Coal for boilers
Outputs
- Frozen beef for E.U
- Hides for the tannery
- Bone, blood and carcass meal for fertilisers and supplementary feed
- Horns to Zimbabwe to make buttons
- Canned meat and pet food
- Hooves for glue

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 - Tallow for Kgalagadi Soap Industries
Processes Involved

1. ABATTOIR
- Cattle slaughtered, skinned, horns chopped off and intestines removed
- Carcass is examined, weighed and divided
- Carcass washed and chilled for day
- Carcass is deboned
- Beef weighed and packed
-
2. CANNERY
-Beef is cooked and canned

3. TANNERY
-Processes hides (up to wet blue stage)

4. BY PRODUCTS
- Pet food
- Beef extract
- Meals- bone, carcass, bone
- Horns
- Tail hair
- Tallow (fat) –Kgalagadi Soap Industries

Problems Facing the B.M.C

- High taxation
- Low number of inputs/ cattle
- Low local demand for beef
- Competition from major world beef producers e.g. Australia ,Argentina and Brazil
- Poor quality cattle due to lack of good livestock management systems
- Livestock disease outbreak
- Drought leading to loss of livestock
- Low producer prices

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SOLUTIONS TO SOME OF B.M.Cs PROBLEMS
- Customer feeding scheme to improve the selling of cattle
- Development of regional marketing
- Introduction of seasonal price systems

NB : Other food processing industries in Botswana outside BMC include :

 Bolux Milling ( Wheat and its products) in Ramotswa

 Sefalana Mills (Maize meal) in Lobatse/Gaborone
 Oodi Sorghum Milling ( Sorghum milling) in Oodi.
 Kgalagadi Breweries ( Beverages/ drinks) in Gaborone.
 Botswana Breweries Limited ( drinks/beverages/chibuku) in Gaborone.
 Food Botswana ( sorghum enrichment/Tsabana) in Serowe

BOTSWANA AND INDUSTRIAL DEVELOPMENT

Botswana still mainly depends on processing, small scale manufacturing and craft industries. The
growth of manufacturing has been slow and is still at its infancy stage in Botswana because of:
- Late development of minerals
- Lack of capital
- Lack of skilled labour/lack of technology
- Landlocked position of Botswana/ long distance to sea ports
- Small raw material base e.g. no iron ore
- Competition from its more developed neighbours e.g. South Africa
- Small domestic market
- Limited infrastructure
- Shortage of power/ expensive electricity

ADVANTAGES THAT BOTSWANA HAS FOR PROMOTING INDUSTRIAL

DEVELOPMENT

- Foreign currency reserves from sale of diamonds

- Favourable government policy ( tax holiday and financial assistance)
- Large coal supplies at Morupule
- Locally produced raw materials( diamonds and cattle production) to develop associated
industries
- Large,
- Flat land
- Power from Morupule Power station
- Availability of large cheap labour
- Improved water supply from Gaborone dam, Letsibogo dam etc.
- Political stability
- Serviced plots eg. Electricity/roads/sanitation
- Education/ training eg. LEA/IFS
- Advertising eg BEDIA
- Tariffs against imported goods
- Financial assistance eg. CEDA/NDB/Youth grants/BDC
- Industrial estates/factory shells

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 DEFINITION OF TERMS/ CONCEPTS

1. Industrial estate – a large area reserved for the development of industries

Advantages of an industrial estate

-Access to large market
-Access to raw materials
-Access to good transport and communication network
-Access to power and water
-Pool of skilled labour
-Economics of scale/ reduction of costs
-Attracts other industries/ industrial linkages

2. Factory shell – a large building where goods are manufactured

3. Industrial agglomeration – the tendency of industries to concentrate in one area for
mutual benefit e.g. minimise costs.
4. Industrial degglomeration – the tendency of industries to spread/ disperse from a site
5. Industrial inertia – where an industry continues to exist in an area while factories which
used to influence it no longer exist
6. Least cost location- location at which one can make maximum profit
7. Backward linkages – industries which depend on a large number of other industries for
the supply of parts and raw materials
8. Forward linkages – industries which provide materials and goods needed as inputs by
factories which make finished products
9. Integrated iron and steel works – where all processes from input of ore to finished steel
are carried out in one place
10. Ingots – lumps of metal
11. Flux – substance used to help metals fuse together
12. Assembly plant – a place where raw materials or inputs are put together
13. Pig iron – Iron as it comes from the blast furnace containing impurities/ Molten iron with
impurities.

CASE STUDY OF HEAVY/ LARGE SCALE MANUFACTURING INDUSTRIES

Iron and Steel Industries in Vanderbijl Park and Vereeniging (South Africa) and Pretoria.

It is owned by Mittal Steel South Africa formely known as Iron and Steel Corporation
(ISCOR)

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Factors that influenced the location of the Iron and Steelworks in

1. Vereeniging/ Vanderbjil Park

Availability of iron from Sishen, Thabazimbi, Newcastle and Pretoria
Scrap iron from the Rand area
Coking coal from Witbank, Vereeniging, Newcastle and Natal
Availability of water from the Vaal dam
Power from Eskom
Labour from Vanderbjilpark and the Southern Africa region
Large flat land
Capital from ISCOR/ Mittal

2. Pretoria
Iron ore in Pretoria/ Rand
Coking coal from Witbank and Natal
Limestone from Marble Hall
Water from Vaal dam
Power from Eskom
Labour from Pretoria/ Rand
Market from the Rand and Neighbouring countries
Capital from ISCOR/ Mittal

Market
Local manufacturing industries, mining, construction and motor vehicle industries in South
Africa.
External markets – Botswana, Lesotho, Swaziland, Malawi and Zimbabwe etc.

Processes/ activities of an iron and steel plant

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Extraction of iron from iron ore (smelting)
Conversion of pig iron to steel
Rolling
Forging

The Extraction of Iron from Iron Ore

- Iron is extracted from iron ore in the blast furnace
- Iron is mixed wit coke or carbon and limestone
- Hot air is blown into the furnace at the bottom
- Limestone acts as flux and enables the impurities in the ore to be removed
- Hot air (about 2000oC) blown in, is enriched with oxygen
- Oxygen combines with carbon in the coke to form carbon dioxide gas
- Impurities in the ore combine with limestone to form slag
- Molten/ liquid iron is drawn off at the bottom of the furnace
- Molten iron is led into sand moulds where it solidifies and thereafter is referred to as pig iron

Basic Raw Materials Processes Outputs

Coke -Smelting -Pig iron/cast iron/wrought
Iron ore -Rolling -Steel products eg metal
Limestone -Forging sheets, wire
Oxygen -Casting/moulding
Manganese -galvanising
Chromium -plating
Carbon
Labour,
Machinery
Electricity/power
Gas
Capital

Waste Products
Carbon dioxide
Ash
Slag
Smoke

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Importance of Iron and Steel Industries to South Africa
Brings foreign exchange/ income
Creates employment
Improvement of transport network
Leads to the development of other industries
Provides a ready market for the raw materials (mining of mineral ores)
Development of social amenities
People acquire skills

Problems Created by the Iron and Steel Industries

Air pollution
Over population in urban areas
Development of shanty towns
Scrapping/ deterioration of land
Rural depopulation

MOTOR VEHICLE ASSEMBLY PLANT IN PORT ELIZABETH, SOUTH AFRICA

Location : Port Elizabeth eg, TOYOTA, FORD, VOLKSWAGEN, BMW, NISSAN etc.

FACTORS INFLUENCING LOCATION OF THE MOTOR- VEHICLE INDUSTRY

 Nearness to the sea for transportation of car parts by ships.

 Best positioned port between main centres of population (Cape Town, the Rand and
Durban).
 Less busy harbour as compared to Durban and Cape Town.
 Availability of power from Eskom.
 Availability of Iron and Steel works in Pretoria and Vanderbijlpark
 Availability of rail and road network connecting to major population centres.
 Market in the Rand, Durban, Cape Town and neighbouring countries etc.
 Large land for manufacturing and storage of finished vehicles.

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  Labour availability in South Africa
 Availability of other industries supplying raw materials such batteries, radiators, tyres
and seats etc.
 Availability of local raw materials in S.A eg. steel
 Government policies protecting locally produced goods against competition from
imported vehicles.

INPUTS PROCESSES OUTPUTS

Capital Fitting Vehicles
Glass Painting Spare parts eg doors,
Rubber Wiring bonnets etc.
Machinery Test driving
Car parts(engine, tyres etc) Designing
Paint
Water
Large, flat land
Power
Labour
Glue/silicon

PROBLEMS FACING THE INDUSTRY

 Competition from other producers eg. Europe and Asia

 Economic recession affects vehicle sales
 High costs of fuel and port charges result in high vehicle prices
 Unreliable rail transport
 Labour unrests/labour disputes
 Lack of skills
 High costs of replacing outdated technology
 Cancellation of orders by customers
 Delays at the ports
 High prices of raw materials/ inputs
 Strict government policies on environmental protection.

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