The Botswana National Productivity Centre (BNPC) has viewed the alleged decision by the Botswana Communications Regulatory Authority (BOCRA) to ‘reject’ an application by US internet firm Starlink with concern.
Starlink, owned by US billionaire Elon Mask, had applied for a licence to provide high-speed internet services in Botswana. It remains unclear why the communications regulatory authority ‘rejected’ the application. However, this development came as a surprise to the productivity tzar. The BNPC identified digital transition as one of the critical areas where the government could allocate significant funds from the national budget to enhance economic growth.
“Although Botswana’s rejection of Starlink’s application was probably for an honourable reason, this company’s operations have the potential to revolutionise digital access and expedite the digital transition in any country,” BNPC quipped.
Citing a World Population Review, BNPC added that Starlink operates in 40 countries, including the United States, Canada, France, Germany, and New Zealand.
“The review further indicates that these countries are reaping benefits through faster, unlimited and cheaper internet. Starlink offers high-speed satellite internet to even the most remote locations, an aspect that Botswana could have heavily benefited from given the aspiration to increase rural connectivity,” BNPC says.
In a statement issued following international media reports that it had rejected Starlink, BOCRA explained that “Contrary to media statements, BOCRA has not rejected any satellite licence application.”
BOCRA indicated that, as the Communication Regulatory Act provided, it “is not at liberty to discuss details of a licence application with anyone other than the applicant.”
BOCRA added, “The licensing process entails engagement between BOCRA and the prospective licensee before a final decision can be reached.” It said the engagement process is currently ongoing in line with the provisions of the CRA Act that mandates BOCRA to, among others:
“Protect and promote the interests of consumers, purchasers and other users of the services in the regulated sectors, particularly in respect of the prices charged for, and the availability, quality and variety of services and products, and where appropriate, the variety of services and products offered throughout Botswana, such as will satisfy all reasonable demands for those services and products.”
BOCRA assured the public of its commitment to promote growth and efficiency in the provision of communications services by facilitating and encouraging private sector investment and innovation in the regulated sector.
Meanwhile, BNPC said that even before the COVID-19 pandemic, Botswana acknowledged digital transformation as a game changer that enhanced productivity, competitiveness, and growth.
“Before the pandemic, the government had allocated P823 million for ICT development in the 2020/21 fiscal year. The Economic Recovery Transformation Plan (ERTP) allocated P3.1 billion towards the digital transition during the pandemic. In the 2024/25 financial year, a development budget of P1.83 billion is proposed to accelerate the implementation of programmes and projects geared towards innovation and digital transformation,” said BNPC. Through this expenditure, 400 government online services are expected to be launched by the end of the 2025/26 financial year.
“This is a welcome step which will proactively enhance productivity and government service delivery,” the organisation says.
BNPC says that under this aspect (digital transition), Botswana has already experienced benefits such as financial inclusion for the unbanked. “Through the three mobile network operators, supported by a network of authorised agents, mobile money enables individuals and businesses to conduct financial transactions using their mobile phones,” it says.
BNPC says mobile money services currently available in Botswana include saving, sending and receiving money, making payments (such as swiping in shops and online), and paying utility bills, among other things.
It says that despite these good developments on the digital front, these services are still being utilised on a miniature scale compared to the Kenya equivalent of M-Pesa.
“It has been estimated that 70 percent of all Kenya’s financial transactions and 59 percent of Kenya’s annual GDP flows through M-Pesa. Underutilisation of mobile money services in Botswana is mostly due to lack of exposure and knowledge of the potential rewards,” the organisation says. Hence, BNPC recommended implementing strategies to encourage more micro and small businesses to use these services.
