Botswana’s ambition to achieve high-income status advanced significantly with the recent official launch of the long-anticipated Airport City Special Economic Zone (SEZ), a joint initiative between the Special Economic Zone Authority (SEZA) and the Civil Aviation Authority of Botswana (CAAB).
Officiating at the event, President Mokgweetsi Masisi described the occasion as a watershed moment in the country’s ongoing economic transformation efforts.
“This is more than just another development. It is a landmark testament to our journey to catapult Botswana into a high-income economic status,” he said.
The president said the initiative was mooted in 2011 with agovernment plan to develop the Special Economic Zones Policy to stimulate economic diversification and build sectors that would thrive long after Botswana’s diamond reserves were depleted.
Masisi underscored that the SEZ Policy aims to improve the country’s competitiveness, attract investment flows, and foster business clustering and efficiency.
In 2015, the government further institutionalised these efforts by creating the Special Economic Zones Authority (SEZA) through legislation. However, SEZA only became operational in April 2018, with the mandate to manage and develop eight SEZs across the country. These zones include mixed-use SEZs at Sir Seretse Khama International Airport (SSKIA), Francistown, and Selebi Phikwe; Agropolis SEZs in Tuli Block and Pandamatenga; a meat and leather SEZ in Lobatse; Fairgrounds as an International Finance and Technology SEZ; and Greater Palapye as an Energy SEZ.
The 800 hectares Airport City SEZ, located adjacent to Sir Seretse Khama International Airport, stands out as a mixed-use SEZ at which core economic activities will include diamond beneficiation, aerospace and aviation works, cargo handling and storage, agro-processing, pharmaceuticals, specialist automotive and plastics injection molding. Described by Masisi as a “world-class Diamonds and Logistics City,” the SEZ is envisioned to change the look and feel of Gaborone. Other massive property developments will include office spaces, industrial parks, high-end residential areas, retail malls, schools and hospitals.
According to Masisi, the government has invested P700 million in infrastructure development at the site, including road networks, drainage systems, water and electrical power systems, and telecommunications infrastructure.
“Investment in infrastructure is a cornerstone of our economic strategy because it sends a powerful message to investors that Botswana is open for business,” he said.
At the groundbreaking ceremony, President Masisi also launched a P198 million project for the construction of investor-ready warehouses aimed at accommodating early SEZ investors. The project has been awarded to a local contractor and is expected to create over 180 jobs for Batswana at its peak.
“I am happy to note that, our investment in the development of the SEZs has started generating Return on Investment (ROI). Currently, SEZA is talking to some mega investors operating in the SEZ-regulated industries, namely: internationally traded services, manufacturing, and agribusiness and warehousing, as well as freight and logistics across the different Special Economic Zones,” he announced.
Masisi indicated that the anticipated investors will inject over P2 billion and create over 1000 jobs in the automotive, diamond beneficiation, genomics and precision medicine, pharmaceutical, MICE, and freight and logistics sectors.
While the government has taken the lead in establishing the SEZs, Masisi made it clear that private sector participation is critical for the long-term success of these projects.
“Government alone cannot provide all the necessary infrastructure supporting economic activities,” he noted, inviting private investors to take advantage of the remaining SEZ sites. The SEZA Regulations, he pointed out, make provisions for private-sector partnerships to help operationalise the zones.
Mmusi Kgafela, Minister of Trade and Industry, reiterated the government’s commitment to exploiting SEZs to achieve accelerated rates of economic growth, diversification, employment creation and innovation.
“We are firmly on course to not only lead in the economic diversification agenda but also to contribute to the level of economic growth that will move Botswana to a high-income status,” said Kgafela.
