Botswana is expected to ramp up the production of coal through coal-fired plants in the near future and attain full independence with respect to generation of electricity by year 2020. The refurbishment of Morupule A and the advent of independent power producers (IPPs) – representing private investment – will boost thermal power production.

Similarly, Shumba Energy is in the process of finalising the power producer agreement (PPA) ahead of construction on the Sechaba Coal power plant, set to commence by 2018/19.

The Introduction of IPPs in Botswana is a significant milestone and stands to boost future generation potential. It gives the government a window of opportunity to divert scarce resources toward investment in other sectors while at the same time bringing in expertise and efficiency in the private sector.

Commitment to infrastructure development

The Government of Botswana is committed to infrastructure development in key sectors of the economy.

(Scroll down for specific investment opportunities in these key sectors)

Power – Key focus for government

A joint venture between the Japanese giant Marubeni and the South Korean Pasco Energy will expand Morupule B Power plant and have secured a contract worth US$800-million. This is expected to ramp up production from the current 600 MW by an additional 300 MW.

Once ready, the joint-venture will sell to Botswana Power Corporation electricity under the first power purchasing agreement for 30 years at a BWP 812.56 (±USDD73.21) per megawatt hour.

Construction is expected to commence towards the end of 2016, supplying power to the national grid by 2020. Additional plans include a possible further expansion by 300 MW, to produce 1200 MW thereafter.

Similarly, Shumba coal is in the process of developing a solar power station to generate
200 MW earmarked for the Kalahari copper belt.

Water – Key for investment

The country is also undertaking construction of a US$1.6-billion water pipe line from Zambezi river to the south of the country. This pipe line was originally planned for the Zambezi agro-commercial project in the north-west, but Government had to re-prioritise.

Transport – The required backbone

There is a need for robust transport infrastructure, especially in the face of possible mining investment and the subsequent need to reach export markets.

Being a land-linked economy, Botswana has to have clear and reliable conduits in the form of roads to nearby ports. The 1500 km, US$15-billion Trans-Kalahari railway is one huge project that will go a long way in harnessing such efforts, linking Botswana and the Port of Walvis Bay in Namibia.

Investment opportunities

Transport: Botswana Railways

Project description
  1. Mosetse-Kazungula-Mmamabula-Lephalale railway lines
  2. Construction of a wagon maintenance workshop (at Mahalapye)
Key project metrics
  1. The Mosetse–Kazungula line starts at Mosetse on the Francistown–Sua Pan railway line, linking with the Zambia Rail network at Kazungula. It covers a distance of 367 km, from Mosetse to Kazungula. The Mmamabula-Lephalale route starts at Dibete and continues in an easterly direction. Part of the route (56 km) is situated within Botswana and the rest (67 km) in South Africa.
  2. The workshop will undertake repairs and refurbishment of wagons and locomotives-operations, which are currently outsourced abroad.
Business model
  • Government finances.
Investment costs
  1. Estimated Costs for the project is US$115,994,879.95 for the construction of the Mosetse/Kazungula and Mmamabula/Lephalale rail links.
  2. The workshop will cost about US$15-million.

Interested parties are invited to contact Botswana Railways via the Botswana Investment and Trade Centre for more information.

Infrastructure: Airport City

Project description

The SSKIA Airport City aims to transform the SSKIA (Sir Seretse Khama International Airport) into a vibrant commercial centre through a series of logistical, retail, and
recreational developments.

Key project metrics
  1. Airport centre – which will include retail and offices including an entertainment area measuring 50 000 m². Hotel and conferencing facilities to host international events. The
    area zoned for this use is approximately 200 000 m².
  2. Cargo hub which will be the core of logistics for the distribution and export of goods and freight using the multi-modal transport system – (556 000 m²).
  3. Free Trade Zone – a zone with special incentives for the investors (500 000 m²).
  4. Commercial and mixed use zones – mixture of retail and office buildings – approx. 500 000 m².
  5. Recreational area – approximately 650 000 m².
  6. Servicing of land with all the backbone infrastructure such as water, power, telecommunications, sewer, etc.
Business model

Various models BOT, BOOT amongst others in the form of private sector development, PPPs, government funded, etc.

Investment costs: US$61-million.

Interested parties are invited to contact the Ministry of Agriculture via the Botswana Investment and Trade Centre for more information.

Agriculture: Zambezi Integrated Agro-commercial Project

Key project metrics

A feasibility study for this project to diversify agricultural production, reduce imports & ensure food security is completed. The project involves 25 000 ha for the production of rain-fed and irrigated field crops (15 000 ha) and fruits (10,000 ha). Project composition includes irrigation and rain-fed infrastructure and transmission lines.

On-going, land being sought from Chobe Land Board. Clearing of 2,500 ha to take place (September 2016-March 2017), subject to availability of land.

Business model
  • Government procurement.

Investment costs: BWP3.8-billion

Interested parties are invited to contact the Ministry of Agriculture via the Botswana Investment and Trade Centre for more information.

Infrastructure: Power, Water & Transport

Project description
  • Various infrastructure development projects: power, water and transport.
Key project metrics
  1. Morupule B Power plant expansion worth US$800-million. Construction is expected to commence towards the end of 2016, supplying power to the national grid by 2020. Additional plans include a possible further expansion by 300 MW, to 1200 MW thereafter.
  2. Developing a solar power station to generate 200 MW, earmarked for the Kalahari copper belt.
  3. Construction of a US$1.6-billion water pipe line from Zambezi River to the south of the country, to stem water shortages and drive investment.
  4. The 1500 km, US$15-billion Trans-Kalahari railway is one huge project that will go a long way in harnessing such efforts, linking Botswana and the Namibian Port of Walvis Bay.
Business model
  • PPP (Public-Private-Partnership) model.
Investment costs
  • Totaling over US$17-billion.

Contact the Botswana Investment and Trade Centre for more information.

Infrastructure: Telecommunications and ICT services

Project Description

The Botswana Communications Regulatory Authority (BOCRA) reviewed its licensing framework to induce competition and reduce the monopoly powers that is held by the Mobile Network Operators.

Key project metrics
  1. Network Facilities Providers (NFP)
    These are licensees to own, operate or provide physical infrastructure carry service, applications and content such as International Gateway Systems (Satellite or Terrestrial), Cable Transit Systems, Satellite Hub Systems, Tower Management, Broadcasting Signal Distributer, Public Land Mobile Cellular Systems, Public Fixed Systems as well as Uplink Satellite Broadcasting Stations. NFP is also divided into regional, national and international categories, to allow for bigger and smaller enterprises to find a niche and invest.
  2. Services and Applications Providers (SAP)
    Being non-infrastructure services and applications to end users using infrastructures of the NFP. Examples are: Mobile Virtual Network Operator (MVNO) and satellite services.
    Investment costs: BWP100,000.00 (ISP) to BWP1.8-billion (Telecom operator). 1% of net turnover fees is paid to BOCRA as the cost of regulation and an additional 1% of net turnover related fees is paid to the Universal Access and Service Fund (UASF).
  3. Broadcasting Sector
    Under the broadcasting sector there are also Content Services Providers (CSP). These are licensees who will provide content material in the form of speech or other sounds, text, data, images (whether still or moving) solely for broadcasting (TV and Radio). The licences available under the CSP category include: Radio broadcasting, television broadcasting as well as subscription management services. Investment costs: BWP5000.00 plus 1% of net turnover (for broadcasting service and subscription management services). An additional amount of up to 1% goes to the UASF.
  4. Postal Sector
    There are also investment opportunities in this sector. These include but are not limited to, Public Postal Operators and Courier Service Operators.
    Investment costs: BWP20,000.00 plus 0.05% of Net Turnover (for courier services). The Sector also pays an additional fee of up to 1% of Net Turnover fees to the UASF.
Business model
  • Public tender.


For more information about tendering for opportunities in the Botswana ICT and Telecommunications sector, please contact the Botswana Investment and Trade Centre (BITC) with a description of your investment objectives.

Learn more about the business and investment environment in Botswana.

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