The year 2024 was undoubtedly a challenging one for businesses across Botswana, but Sefalana Group, under the leadership of Managing Director Chandra Chauhan, managed to weather the storm and record profitable results. Despite extreme drought conditions that heavily impacted the retail industry, forcing Sefalana to import tonnes of sorghum from countries like Australia and Brazil, the company’s resilience and strategic investments helped secure positive outcomes. Chauhan is currently presenting the company’s Unaudited Abridged Group Financial Results for the 26-week period ending on 27 October 2024, shedding light on the company’s performance amid these challenges.
Adapting to Challenges: Drought, Imports, and Growth in Neighboring Markets
One of the key challenges of 2024 was the severe drought, which impacted crop yields and agricultural production across the country. For Sefalana, this meant having to look beyond local borders to ensure a consistent supply of staple foods. The company had to import significant quantities of sorghum from Australia and Brazil, underscoring the far-reaching effects of environmental challenges on local businesses.
However, despite the difficult conditions, Sefalana managed to achieve profitability. Chauhan highlighted the growth in the company’s stores across Namibia, where they recorded positive results, alongside continued success in Botswana and Lesotho. This performance in neighboring markets showcases the company’s ability to adapt to regional demands while continuing to thrive despite domestic challenges.
Celebrating 50 Years: A Milestone Year with Major Prizes for Customers
In 2024, Sefalana Group marked a significant milestone in its history – its 50th anniversary. The company celebrated this achievement with a large-scale competition that generated excitement and engaged customers across the country. Chauhan reflected on the success of the celebrations, emphasizing that the event not only marked the company’s long-standing presence in the retail sector but also created unforgettable experiences for its customers.
The competition offered a range of impressive prizes, including a P1 million cash prize, P500,000 in cash, and 1,800 cellphones. Customers who entered the competition were also in line to win P10,000 in cash from the 71 stores that Sefalana operates across the country. Chauhan proudly noted that the anniversary celebrations not only rewarded loyal customers but also helped to solidify Sefalana’s brand presence as a major player in the retail industry.
Addressing Business Challenges in Botswana: Small Population, Infrastructure, and Supply Chain Issues
Chauhan was candid about the unique challenges that businesses face when operating in Botswana. These include the small population size, which limits consumer market potential, and the ongoing issues with basic infrastructure such as unreliable water supplies. Additionally, long truck queues at the country’s border posts continue to pose a significant logistical challenge for retailers, delaying supply chains and increasing costs.
Despite these obstacles, Sefalana has been proactive in investing in infrastructure to ensure sustainability and growth. One notable investment was in the dairy industry. Chauhan highlighted the company’s acquisition of Delta Fresh, which has allowed Sefalana to significantly increase local milk production. The company now produces over a million liters of milk per month, with projections to reach two million liters by the end of 2024. This move is part of Sefalana’s broader strategy to reduce reliance on imports and boost local production, contributing to the country’s economic sustainability.
Commitment to Sustainability: Economic Goals and Long-Term Planning
In addition to addressing operational challenges, Sefalana has taken a forward-looking approach with the establishment of a Steering Committee on Economic Sustainable Goals. Chauhan emphasized that the company is committed to environmental, social, and economic sustainability, with a clear roadmap in place up to 2026. This plan is designed to ensure that Sefalana not only grows but does so in a manner that aligns with sustainable business practices and supports the broader goals of national development.
Looking Ahead: The Road to Continued Success
As Sefalana Group moves into the latter half of 2024 and beyond, Chauhan remains optimistic about the future. Despite the hurdles faced by the company, it has proven its resilience by continuing to grow and diversify its operations. With a strong presence in Botswana, Namibia, and Lesotho, Sefalana is well-positioned to expand further into other markets in the region.
Chauhan’s leadership, combined with the company’s strategic investments in infrastructure, sustainability, and local production, will likely ensure that Sefalana remains a leader in the retail sector for years to come. As the company moves forward, it is clear that they are focused not only on financial success but also on making meaningful contributions to Botswana’s economy and ensuring the long-term sustainability of the business.
With its anniversary celebrations, innovative projects, and commitment to economic goals, Sefalana is entering its next 50 years with a strong foundation for continued growth and success in a competitive business landscape.
