The new Umbrella for Democratic Change (UDC) administration has pledged to overhaul state-owned enterprises (SOEs) to ensure efficiency, good governance, and value for public funds.
Vice President and Minister of Finance Ndaba Gaolatlhe emphasised in the 2025/26 budget speech that SOEs must be transformed into high-performance organisations that fulfil their intended mandates. Among the most affected are agricultural institutions such as the Botswana Agricultural Marketing Board (BAMB), Botswana Meat Commission (BMC), and Botswana Vaccine Institute (BVI), whose inefficiencies have long frustrated farmers.
For years, BAMB has been plagued by poor management and market inefficiencies, leading to growing frustration among farmers. This has resulted in calls for either its complete shutdown or radical reform. Lilian Scheepers, CEO of the Pandamatenga Commercial Farmers Association, revealed that grain farmers issued an ultimatum to the government in November 2024: overhaul BAMB or shut it down.
“The government is aware of farmers’ grievances, and I truly believe there is a motion to change things,” Scheepers said during the First National Bank of Botswana (FNBB) Budget Review.
Scheepers highlighted unfair pricing mechanisms as a major concern, with farmers advocating for a pricing system that reflects fair market value. Efforts to establish a Botswana Agronomic Board in late 2024, aimed at regulating grain pricing, have been slow and unfruitful.
“It has been a bumpy road; we have not come to any agreement. Extensive meetings have been held. We need expert help, and that is the main message from farmers to the agronomic board. We need experts to establish a modelling system that is adequate for all parties, and only then can we move forward,” Scheepers explained.
Despite these challenges, Scheepers remains hopeful that BAMB’s transformation will ensure sustainability, enabling grain farmers to increase production and meet both local and export demand.
“Farmers need BAMB as much as BAMB needs farmers. I am glad this particular issue came up in the budget speech because it means the government is aware of farmers’ grievances, and I truly believe there is a motion to change things,” she said.
BMC: Calls for Liberalisation and Farmer Involvement
The Botswana Meat Commission (BMC) has long been at the centre of inefficiencies, burdened by mismanagement and a lack of competition. The government plans to stabilise the commission by first implementing strong management and later securing investment partnerships to revitalise it as a global player within the meat value chain.
Andrew Seeletso, Chairperson of the Botswana Beef Producers National Union, stressed that farmers must have a greater voice in BMC’s operations. “Farmers are the main stakeholders. Without them, there is no BMC,” Seeletso told The Business Weekly & Review.
He pointed out that BMC’s monopoly has hindered efficiency, and beef producers are calling for the liberalisation of the sector. The privatisation of BMC, he said, would mark a significant step in transforming the beef and cattle sector.
Seeletso also urged the government to fast-track the Meat Industry Regulatory Authority (MIRA) Bill, which he believes will empower farmers by giving them a greater say in the beef industry. Additionally, he emphasised the need to implement the BMC Transitional Act to allow privatisation, enabling farmers to buy shares in BMC and exert more influence over its direction.
BVI: A Success Story with Room for Growth
While the Botswana Vaccine Institute (BVI) has been one of the few successful SOEs, Seeletso noted that it still has room for improvement. The institute, which has partnered with France’s Meryl in vaccine research and development, has built strong manufacturing and export capabilities over the years. However, Gaolatlhe stated that it is now time to scale up production and expand product diversity.
Seeletso praised BVI for its achievements but emphasised the need for further growth. “BVI has done its mandate well, but it must expand its capacity to develop vaccines like Foot and Mouth Disease (FMD) vaccines, which can be exported to neighbouring countries like Zimbabwe,” he said.
The government aims to strengthen funding, management, and market partnerships to position BVI as a global leader in livestock vaccines.
Revising Agricultural Policies for Growth
Botswana has long sought to diversify its economy, with agriculture identified as a key sector. However, targeted policies in the sector have often failed to unlock growth. Speaking at the budget review, FNBB Chief Economist Gomolemo Basele stressed the importance of revising outdated agricultural policies to align with Botswana’s economic goals.
“We have seen agricultural policies being halted and revised to improve output. The challenge is ensuring they truly drive productivity,” said Basele.
A major shift in the new government’s strategy is moving away from input-based subsidies towards incentivising output and productivity. The challenge, however, lies in ensuring that subsidies truly drive productivity and growth in the sector.
Scheepers acknowledged the need to re-evaluate past subsidy models. While subsidies can be helpful, she emphasised that they must be calculated based on the best farming techniques to ensure maximum productivity.
“The best way forward to find a working solution is a three-way conversation between the government, farmers, and the private sector,” said Scheepers.
P2.88 Billion Allocation to Agriculture
With P2.88 billion—12.1 percent of the national budget—allocated to the Ministry of Lands and Agriculture, the new government aims to modernise the local agricultural sector. The funding is intended to boost food security, enhance productivity, and promote sustainable farming practices that ensure long-term prosperity for all Batswana. However, farmers stress that the success of these initiatives will depend on efficient implementation, good governance, and active collaboration with farmers.
