PPP and the unbundling of BPC4 Feb 2025 09:33
President Duma Boko has unveiled an ambitious economic plan to reduce Botswana’s dependence on diamonds and foster private-sector investment. A key pillar of this strategy is the Public-Private Partnership (PPP) model, which will restructure state-owned enterprises, boost industrialization, and drive economic diversification.
One of the most significant reforms under Boko’s administration is the restructuring of Botswana Power Corporation (BPC) to encourage private-sector participation in energy. “We are unbundling BPC into generation, transmission, and distribution units and inviting private investors to participate in transmission,” Boko revealed at an energy summit in Tanzania.
“The inefficiencies and financial losses at BPC have stalled our energy ambitions. The private sector will help us move forward.” His administration aims for solar power to supply at least 50% of Botswana’s electricity needs by 2030, a move that will reduce reliance on coal. While Botswana previously commissioned a coal- fired power plant from Jindal Steel & Power Ltd. In 2022, Boko suggested no further coal projects would be pursued.
For years, Botswana has maintained a cautious approach to borrowing despite having one of Africa’s lowest debt-to-GDP
ratios. Boko’s government is now engaging with the World Bank and African Development Bank (AfDB) to secure concessional financing for development projects.
“We have had talks with the World Bank and AfDB, and they have indicated that our uptake of their financial facilities has been very low,” Boko stated. “That is a missed opportunity, and we intend to change that.” Unlike previous administrations that prioritized low government debt, Boko sees borrowing as a tool to stimulate growth, build infrastructure, and expand digital and agricultural industries.
Botswana’s economy has long been dominated by diamonds, which account for 80% of the country’s exports. Boko argues that this model has failed to create jobs, leading to high unemployment and economic inequality. “There has been a change of guard,” Boko declared. “We trust we will see growth.”
“The levels of growth we have seen in the past were unfortunately jobless growth,” he said. “Of the unemployed, the majority are young people. It’s a huge risk.” His administration is prioritizing:
Public-Private Partnerships (PPPs) in state enterprises ; Renewable energy expansion; Digital transformation; Value-added mineral processing; Climate-smart agriculture.
“ We need to finance our transition into a digital economy, climate-smart agriculture, and more value-added mineral
processing.”
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