A local economist has observed no signs of an imminent structural shift under Botswana’s new government, attributing this to the similarities in party manifestos during the recent watershed elections.
The economist, Mphoeng Mphoeng of MP Consultancy, stated, “In reality, I think the manifestos between the three major parties were really very similar. It’s really just the quantum of certain things, but I think the general idea is very similar. So, I don’t think you will see a huge shift in approach.”
Speaking at the launch of BBS Bank’s business current account, Mphoeng expressed interest in how the new administration will address current financial constraints while implementing ambitious manifesto pillars, such as job creation and a living wage.
“There’s some really ambitious things in that manifesto,” he remarked. “There’s one about making Botswana a transport hub, almost making Botswana the center of SADC, where people can move up and down in these high-speed trains between Johannesburg, Harare, all of that kind of stuff has been mentioned there.”
Mphoeng highlighted the emphasis on agriculture, noting that the combination of the agriculture and land portfolios signifies a stronger commitment to the sector. He also acknowledged the ruling party’s focus on Foreign Direct Investment (FDI), stating that it is a significant shift given Botswana’s recent inward-looking stance, including restrictions on imports.
During his State of the Nation Address, President Duma Boko outlined measures to attract investment, including the establishment of a Legal Reform Task Force. “Botswana has the highest credit rating in Africa with a BBB+ long term and A-2 short term Standard and Poor rating,” Boko stated.
He stressed the importance of exploring new markets for goods and services to strengthen the nation’s economy.
“In an interconnected world, Botswana must strengthen its national security and develop strategic regional and international partnerships,” said Boko.
Highlighting the significance of trade partnerships, Boko noted the government’s commitment to collaborating with neighbouring countries and international organisations to identify new trade opportunities. He further announced plans to organise high-level government visits to strengthen ties with key trading partners and attract foreign investment in priority sectors.
“With the African Continental Free Trade Area, becoming an export-led economy implies that we need to open our markets and take advantage of that,” Mphoeng commented.
He pointed to the government’s commitment to cut electricity and water tariffs by 30 percent, despite the Botswana Power Corporation’s claim that power is already subsidised.
“That’s going to be interesting to see how they finance it in the current financial situation that we have,” he said.
Another ambitious pledge involves addressing budget inefficiencies, with the government claiming it can save 37 percent of budget wastage.
Mphoeng urged the new government to prioritise critical metals such as copper, nickel, cobalt, and manganese, which are essential to the burgeoning electronic vehicle (EV) battery market.
“In 2022, the EV battery market was $95 billion, and it’s expected to reach $508 billion in 10 years, growing at 14.4 percent year-on-year,” he said.
He cautioned that Botswana must actively participate in the global rush for mineral assets. “I think Batswana don’t realise there’s a whole scramble for Africa happening afresh. The Americans, the Chinese, and even the Middle Eastern countries are running all over Africa to buy mineral assets,” he said.
Mphoeng criticised the lack of a mineral beneficiation policy, noting, “The reality is, right now, we still don’t have a mineral beneficiation policy. Most people will be surprised to know this about Botswana.”
Boko emphasised that excessive bureaucracy is a barrier to doing business in Botswana. The task force will draft legal reforms to improve the investment climate, with a focus on renewable energy, agriculture, tourism, and technology.
Boko also announced plans to fast-track strategic infrastructure projects in transportation, energy, and digital connectivity to boost employment and economic growth. “We are committed to working with local and global technology companies to rapidly prepare Botswana for the future,” he said.
The government aims to launch a comprehensive national housing program to address inequality and lack of stable housing. “Economic reforms must go hand-in-hand with social development. A nation cannot thrive when its people lack access to safe and affordable housing,” Boko asserted.
By fostering transparency, innovation, and skill transfer, Boko said the government hopes to position Botswana as an open, fair, and ambitious player in the global economy.
