Sefalana Suspends Gaborone North Warehouse Project Over Borrowing Costs

Sefalana Suspends Gaborone North Warehouse Project Over Borrowing Costs. Sefalana Group has placed the construction of its planned warehouse in Gaborone North on hold, citing the rising cost of borrowing as the reason for the decision.

The project involved a 10,000 square metre warehouse facility that was intended to increase the group’s capacity to hold buffer stock. The development had been estimated at a cost of P90 million.

According to Sefalana Group Managing Director Chandra Chauhan, the company has decided to suspend the development indefinitely. He indicated that the project will be reconsidered once interest rates have stabilised.The warehouse had formed part of the group’s plans to expand its storage and distribution capacity. By increasing buffer stock space, the facility was expected to support inventory management and supply chain operations.

However, the current lending environment has prompted a reassessment of the timing of the investment. Rising borrowing costs can significantly affect the financial viability of large-scale capital projects, particularly those requiring external financing.

Chauhan’s remarks signal that the suspension is linked specifically to prevailing interest rate conditions rather than a cancellation of the project. The group has indicated that it intends to review the development again when borrowing conditions improve.

The decision reflects how broader financial factors can influence corporate investment plans, even for established retail and wholesale groups. Large infrastructure projects often depend on favourable financing conditions, and shifts in interest rates can lead companies to delay or re-sequence expansion initiatives.

For now, the Gaborone North warehouse project remains on hold, with Sefalana Group awaiting a more favourable borrowing environment before moving forward with the planned development.