Two condom manufacturing companies, owned by Batswana, have closed down due to market saturation.
Minister for Presidential Affairs, Governance and Public Administration, Mr Dumezweni Mthimkhulu said one of the companies was operating in Lobatse and closed shop in 2013.
He said although government had signed a three-year framework contract with the company for the supply of condoms, that did not help the company to remain in business as the market was saturated following a donation of over 20 million condoms from international partners.
Mr Mthimkhulu said the second company, which operated from Gaborone, was also not in operation given that it closed in 2017.
The company, he said, had a staff compliment of 86, of whom 75 were Batswana. He, however, said information on projected staff numbers over a period of five years was not available.
“Whilst it is difficult to establish the total value of imported condoms as these came through different commercial outlets, I can however confirm that government placed an order of about 47 million condoms through the Gaborone based company, which was only able to supply a little over 31 million condoms,” he said.
Mr Mthimkhulu noted that the procured condoms were valued at P12 125 141.00.
Furthermore, he said the Gaborone based company required government to honour the initial condom consignment of 23 260 condoms by procuring them beyond December 2016.
The company, he said, further required government to enter into partnership on the promotion of condoms in the country, which government could not honour as that would have constituted a different contract.
Moreover, he said in terms of incentives and support from government, the company entered into a three-year framework contract with the Ministry of Health and Wellness from March 2015-March 2017 to supply 23 260 000 condoms.
He, however, said the company was only able to supply 15 000 000 condoms for which it was paid P3 497 141 as per contract during the 2015-2016 financial year.
Mr Mthimkhulu noted that in the 2016-2017 financial year, the company supplied 16 000 000 condoms instead of the required 24 000 000 and was paid P8 628 000.
“Overall, the company could not fulfill the agreed quantities of condoms despite the agreed framework contract with the ministry,” he said.
Kanye North MP, Mr Thapelo Letsholo had wanted the minister to share with Parliament if he was aware that a group of Batswana operated a condom manufacturing plant in Botswana. He was to state the current status of the company, how many Batswana were employed by the company and the number the company projected to employ cumulatively over a five year period.
Mr Letsholo also wanted the minister to state the total value of condoms imported into Botswana and the specific value procured by government while that company was in operation, what support the company required from government, and the support and incentives government provided and failed to.