Category: Sunday Standard

Botswana Development Corporation (BDC) is seeking to dispose of its 30 percent stake in Mashatu Nature Reserve, one of Botswana’s luxury safari operators, according to a merger notice published by the Competition and Consumer Authority (CCA).

The proposed purchaser is Ager Holdings Proprietary Limited, a newly incorporated Botswana company wholly owned by Guernsey-based Pula Properties Limited. The remaining 70 percent shareholding in Mashatu is held by Mashatu Investments Proprietary Limited. The CCA has invited public comments before deciding whether to approve the transaction.

The disposal comes after another profitable year for the tourism business despite relatively modest revenue growth.

BDC’s 2025 annual report shows Mashatu generated P10.2 million in revenue and P4.6 million in profit after tax during the year ended June 30, 2025. The company also reported total assets of P393.1 million and shareholders’ equity of P319.3 million, highlighting the underlying value of its asset base.

Based on the reported net asset value, BDC’s 30 percent stake would be worth about P95.8 million, although the final purchase price has not been disclosed and may differ depending on the valuation agreed by the parties.

The state-owned investment company carried the investment at P105.1 million in its latest financial statements, down from P118.1 million a year earlier. Besides its equity interest, BDC has a P19.5 million shareholder loan to Mashatu, from which it earned P1.35 million in interest income during the reporting period.

Although BDC has not disclosed the reason for the sale, the corporation has historically exited mature investments to recycle capital into new projects aligned with its development mandate. The terms of the proposed transaction, including the purchase consideration, remain confidential pending regulatory approval.

The Botswana Small Poultry Farmers Association (BPFA) has called on government to immediately suspend poultry imports from Zimbabwe following allegations that some producers there administered antiretroviral (ARV) drugs to broiler chickens to accelerate growth.

The association says Botswana should adopt a precautionary approach until Zimbabwean authorities conclude investigations and certify that imported poultry products are safe for consumers.

BPFA chairman Ishmael Mosinyi warned that the allegations, if proven, could have far-reaching consequences for public health, consumer confidence and regional poultry trade.

‘It would be irresponsible for both government and farmers to continue importing chicken products under such circumstances,’ Mosinyi said. ‘Authorities should suspend imports until the allegations are fully investigated and consumers can be assured of the safety of imported poultry.’

Zimbabwean authorities have launched investigations following reports that some poultry farmers allegedly used ARV medication to promote faster weight gain in broiler chickens. Veterinary and public health officials are assessing the extent of the alleged practice and any potential food safety risks.

Botswana imports poultry products from Zimbabwe through a permit system administered by the Department of Veterinary Services, which is designed to protect animal health and food safety. Farmers in northern Botswana have traditionally relied on Zimbabwe as a source of day-old chicks because of its proximity and lower transport costs.

Mosinyi acknowledged that a temporary import suspension could disrupt supplies for some farmers but said consumer safety must take precedence. He urged producers to source chicks from local hatcheries or alternative markets until the investigations are complete.

The controversy comes as Botswana seeks to strengthen domestic poultry production and food security, with the outcome of Zimbabwe’s investigation likely to shape future import controls and regional poultry trade.

The global diamond industry remains under severe pressure, with De Beers reporting another difficult six months as weak rough diamond demand, lower prices and intensifying competition from laboratory-grown stones continued to weigh on the world’s largest diamond producer. Yet, even as earnings remained in the red, the company struck a cautiously optimistic tone, pointing to the first signs that years of market disruption may finally be beginning to ease.

Presenting its half-year results, De Beers said the first half of 2026 was shaped by geopolitical tensions, macroeconomic uncertainty and structural changes within the diamond market. The war in the Middle East disrupted global trade routes, raised energy costs and dented consumer confidence, while uncertainty surrounding United States tariffs, synthetic diamonds and elevated midstream inventories suppressed rough diamond demand.

Revenue fell to US$1.6 billion from US$2.0 billion a year earlier, while the average realised price dropped to US$105 per carat from US$155. Despite increasing production by almost 50 percent to 14.9 million carats, De Beers posted a negative EBITDA of US$113 million, highlighting the disconnect between stronger output and subdued demand.

For Botswana, whose economy remains heavily dependent on diamonds, the update offers a mixed picture. The company said it is making ‘significant progress’ in implementing commitments arising from its new partnership agreements with the Botswana government.

De Beers Executive Vice-President for Diamond Trading, Paul Rowley, said there were encouraging signs emerging from key consumer markets.

‘We are starting to see some more encouraging signals as our actions gain traction,’ he said, citing stronger natural diamond demand among independent United States retailers, firmer polished prices and growing support for natural diamond marketing under the Luanda Accord. However, he warned that the war in the Middle East and competition from synthetic diamonds remain significant near-term headwinds.

The company also said Anglo American continues to make ‘meaningful progress’ in discussions with parties interested in acquiring its shareholding in De Beers, although the process remains commercially confidential.

Botswana is heading toward a future defined by worsening water shortages, rising competition for scarce supplies and mounting pressure on its economy unless urgent investments are made to strengthen water security, a new report warns.

The latest Econsult Botswana Review says the country, already among the world’s most water-scarce nations, will become increasingly vulnerable to climate change over the next 25 years, with higher temperatures, more frequent droughts and declining inflows into dams threatening livelihoods and economic growth.

‘As a semi-arid and water-scarce country, Botswana is one of the countries most exposed to the impact of climate change, notably heat, drought, water stress, and climate variability,’ the report says. The report warns that by 2050, climate models project ‘increased rainfall variability, the delayed onset of the rainy season, a shorter crop growing season, rising average temperatures, increased drought frequency, reduced water inflows to dams and reduced rangeland productivity.’

Those changes, it says, will undermine water security while intensifying competition among households, agriculture and mining which are three sectors that already place heavy demands on Botswana’s limited water resources. The report identifies ‘greater water demand’ and growing ‘competition among cities, mining and agriculture’ as one of the country’s most significant climate risks.

Econsult argues that safeguarding water supplies must become Botswana’s foremost adaptation priority. ‘Several assessments identify water as Botswana’s highest adaptation priority,’ the report says, urging greater investment in reservoirs, groundwater development, wastewater recycling, leak reduction and more efficient water use.

With nearly two-thirds of Botswana’s population living in urban areas, cities including Greater Gaborone, Francistown, Maun, Kanye, Molepolole and Palapye are expected to face hotter summers, rising electricity demand for cooling, worsening water shortages and more frequent flash flooding after intense rainfall events.

The report recommends urban greening, stronger water conservation standards for buildings, improved drainage systems and better protection of water infrastructure to help cities withstand climate shocks. Climate pressures also threaten Botswana’s tourism industry, with ecosystems such as the Okavango Delta, Chobe National Park and the Kalahari Desert facing increasing environmental stress.

While Botswana has already adopted a National Adaptation Plan Framework and other climate strategies, the report says the real test lies in implementation. ‘Botswana already has a National Adaptation Plan Framework and related climate strategies, but implementation and financing will be the main challenge through 2050,’ it says.

The report states that despite Botswana’s relatively strong governance, the country’s dependence on water, rain-fed livestock production and nature-based tourism leaves it highly exposed to climate shocks, making investment in water infrastructure and conservation critical to protecting future economic growth.

Botswana’s new Employment and Labour Relations Act risks attracting damaging international scrutiny unless lawmakers tighten provisions dealing with child labour, according to Botswana Chamber of Mines Chief Executive Officer Charles Siwawa.

Speaking during a panel discussion titled ‘Rights on Paper or Rights in Practice? Botswana’s Readiness to Enforce Fair Labour Standards under the New Employment and Labour Relations Act,’ Siwawa said the legislation generally posed little risk to the mining industry but warned that one section could undermine Botswana’s reputation in global markets.

‘The risk that I picked up, it’s a small risk. I don’t think it’s a major one,’ Siwawa said. ‘If you look at the section on child labour, to me, we probably need to rewrite that.’

Siwawa argued that while the Act prohibits child labour, it weakens that message by creating circumstances under which children may be employed in non-hazardous work. ‘You cannot legislate child labour. In other words, you are saying you want to employ children, because the perception internationally is going to be very difficult for you. You cannot get away from it,’ he said.

His remarks come as Botswana prepares to implement sweeping labour reforms aimed at strengthening workers’ rights and bringing domestic labour laws closer to international standards. For the country’s mining industry, which exports diamonds and minerals into markets where environmental, social and governance (ESG) standards are increasingly scrutinised, perceptions of labour practices carry significant commercial consequences.

He pointed to the Democratic Republic of Congo as an example of how allegations of child labour can overshadow an industry’s economic importance. ‘The Democratic Republic of Congo… is the largest producer of cobalt. But the challenge is the perception that they use child labour to produce that cobalt,’ he said.

Although he acknowledged that the drafters of the legislation may have had reasons for including the provision, Siwawa said Botswana should adopt a simpler and more unequivocal approach.

‘Maybe the proponents of that, or who authored that section, had a reason to go that route. But you cannot legislate child labour.’

Instead of allowing limited exceptions, he argued that the law should contain an absolute prohibition. ‘If we could only stop with Section 6(2), where it says, ‘No child labour.’ But not to then go on and say, ‘Yes, but you can employ child labour if they don’t work in hazardous areas, etc.’ No. Just stop there. No child labour.’

His comments underscore the balancing act facing Botswana as it seeks to modernise labour protections while preserving its standing as a responsible mining jurisdiction. For exporters competing in increasingly ESG-conscious global markets, legal wording can carry consequences that extend well beyond the workplace, shaping investor confidence, buyer perceptions and the country’s international reputation.

Botswana’s diamond wealth transformed the country into an upper-middle-income economy, but the benefits have not been widely shared, with poverty, inequality and unemployment remaining stubbornly high, the World Bank says.

In its first Botswana Economic Update, the lender said about 21.4 percent of the population lives below the international poverty line of US$3 a day, while 63.2 percent survive on less than US$8.30 a day, the benchmark for upper-middle-income countries.

Botswana made rapid progress in reducing poverty during the 2000s, with the national poverty rate falling from 30.6 percent in 2003 to 19.3 percent in 2009. Progress has since slowed, reaching 16.1 percent in 2016. Rural poverty remains significantly higher at 26.8 percent, compared with 10 percent in urban areas.

The World Bank also highlighted Botswana’s persistent inequality. With a Gini coefficient of 53.3, the country ranks among the world’s most unequal, behind only South Africa and Namibia among comparable economies.

Despite spending an average 8.1 percent of GDP on education between 2018 and 2023 more than double the average for upper-middle-income countries learning outcomes remain weak. A child expected to complete 8.4 years of schooling receives learning equivalent to just 5.3 years after adjusting for education quality.

Employment outcomes are equally concerning. Only 17 percent of graduates from technical and vocational institutions had secured jobs in the latest tracer study, while graduate unemployment stood at 18.5 percent in 2022.

Preliminary survey data places overall unemployment at 21 percent, with more than 40 percent of people aged 15 to 35 outside employment, education or training.

The World Bank warned that even with economic growth projected at 3.2 percent this year, about 513,000 people are expected to remain below the US$3-a-day poverty line, underscoring the need for more inclusive growth.

Neo-colonial donations are embedded in systems where donor nations outwardly present ‘aid’ while subtly extracting greater value through the terms of those gifts. Contemporary international relations often echo colonial-era dynamics, with recipient nations expected to acquiesce to the interests of donors. For donor nations, understanding the socio-economic status of the recipient nation is as vital to maintaining these colonial-era power dynamics, as selecting the instruments through which influence is exerted.

One pervasive tactic is disguising sales or leases as donations. Botswana, among other nations, has experienced such arrangements where political leaders are constrained by inequitable power dynamics. A recent example is the 2024 transaction involving the United States and Botswana-a case that underscores the problematic nature of quasi-donations and their implications for transparency, accountability, and national sovereignty.

Case Study: The Botswana C-130 Aircraft Acquisitions

Background

In 2024, the Government of Botswana entered into what was publicly described as a donation from the US Government: the provision of a C-130 military cargo aircraft. Despite appearances, the transaction functioned economically as a sale or lease, not a true donation. The arrangement required Botswana to pay an estimated US$20 million (P280 million), a significant portion of the pronounced US$30 million aircraft value, with another estimated US$10 million (P140 million) anticipated for heavy maintenance by 2027. The total expected expenditure by 2027 is over US$30 million (P420 million) for an aircraft purportedly acquired ‘at no cost to Botswana’.

Misdirection of the Public Discourse

According to Bame Piet of The Voice Publication, former President Masisi characterized the deal as an act of goodwill, stating, ‘Recently, the US Government offered us excess defence articles in the form of a C-130H aircraft, at no cost to Botswana… instead of selling to us used equipment like others, they opted to partner with us in preservation of global peace.’ This rhetoric however, obscured the true financial obligations incurred by the Botswana government, while echoing the falsehood that this was a donation.

Regulatory Evasion

A press release by the US Embassy in Gaborone titled ‘United States Grants $30-million C-130H ‘Hercules’ Cargo Aircraft to Botswana’ pronounced that, ‘The United States delivered a C-130H ‘Hercules’ cargo aircraft to Botswana on May 24, representing a $30 million (400 million Pula) contribution from the United States to enhance the Government of Botswana and the Botswana Defence Force (BDF)’s capability …’, never explicitly stating the actual purchase price. The US Government’s approach leverages Botswana’s predilection towards intergovernmental donations over commercial procurement. This tactic intentionally circumvents Botswana Public Procurement Regulations, while exploiting the inequitable power dynamics of the relationship, to the detriment of accountability and transparency.Ultimately, the processes for the subsequent public procurrent of products and services ancillary to this quasi donation, such as maintenance costs, purchase of spare parts, and procurement of ferry services, were sidelined for expediency.

Ongoing Patterns: The Offer of Additional Aircraft

The pattern has persisted as the US Government, following the 2024 deal, offered Botswana two more C-130 military aircraft under similar terms. Again, official channels refer to the aircraft as ‘valued at’ US$12 million (P170 million) each, avoiding mention of the actual costs to be borne by Botswana. Each aircraft is expected to require a payment of US$12 million (P170 million), plus additional maintenance expenses estimated at US$10 million (P140 million) per aircraft. This brings the estimated total to roughly US$22 million (P304 million) per aircraft, or US$44 million (P608 million) for both. This is before any required upgrades to the aged aircraft. The aircraft offered for donation are either decommissioned or about-to-be decommissioned US Government assets, often located in a decommissioned aircraft scrapyard referred to as the boneyard.

Ownership and National Interest

A hidden stipulation of these quasi donations is that the US retains ownership even after all payments, denying Botswana the right to freely sell or transfer the aircraft in the future. This indefinite leasing structure means that despite significant outlays, Botswana never achieves full ownership. Ironically, at a time when the US has withdrawn a wide range of humanitarian aid programs programs-such as PEPFAR- it is with the other hand offering to ‘donate’ its decommissioned military assets, calling into question donor priorities and the net impact on the recipient nation,

Broader Implications: Public Procurement and Dependency

These quasi donations are a sham, and constitute a fraudulent misrepresentation of the true nature of the transactions, and are unashamedly facilitated by the relevant authorities. Furthermore, the transactions constitute a drain on national resources, with Botswana effectively resuscitating decommissioned foreign assets for which it will never assume ownership. The lack of transparency and accountability evident in these quasi donations also undermines public procurement processes and confidence in public procurement, and betrays the trust vested in public administration.

Conclusion

These cases demonstrate how donations, when structured opaquely, can mask the true costs and perpetuate dependencies, eroding public accountability in recipient nations. The procurrent of products and services ancillary to all donations, such as maintenance costs, purchase of spare parts, and procurement of ferry services, should at all times comply with public procurement regulations. The Botswana example illustrates the urgent need for greater transparency and rigorous oversight in international aid, ensuring that national resources serve genuine public interests rather than facilitating disguised extractions under the guise of benevolence.

Access Bank Botswana posted lower earnings for the year ended December 2025 after higher loan impairments and funding costs offset strong growth in digital banking income and an expanding loan book.

The lender’s profit before tax declined 23 percent to P103.6 million from P134.6 million a year earlier, while after-tax profit fell 20 percent to P79.9 million. The weaker performance came despite a six percent rise in interest income and strong growth in non-interest revenue, underscoring the difficult operating environment facing Botswana’s banking sector.

Net interest income dropped 11 percent to P368.8 million as elevated funding costs squeezed margins in a market characterised by tight liquidity. At the same time, impairment charges more than doubled to P80.2 million, reflecting increasing stress on borrowers amid sluggish economic conditions.

The bank, however, continued to diversify its income streams. Non-interest income climbed 26 percent to P373.8 million, supported by increased digital banking activity, while trading income surged 117 percent on the back of higher transaction volumes. Fee and commission income also rose 12 percent.

Access Bank expanded lending during the year, with gross loans increasing to P6.75 billion from P5.95 billion, while customer deposits grew three percent to P7.48 billion. Total assets rose seven percent to P10.8 billion, signalling continued balance sheet growth despite the challenging environment.

Although its capital adequacy ratio declined to 18.3 percent from 21.7 percent, it remained comfortably above the regulatory minimum of 12.5 percent, leaving the bank well-capitalised for future expansion.

Management said it remains optimistic about Botswana’s medium-term prospects and plans to deepen digital banking through platforms such as Primus+, while continuing to support small businesses and improve operational efficiency. The bank expects digital innovation and disciplined funding management to underpin future growth.

Botswana’s annual inflation rate held steady at 10.7 percent in June, remaining at its highest level in more than two years as transport costs continued to drive consumer prices, official data showed on Wednesday.

The unchanged reading follows a sharp jump in April and keeps inflation well above the Bank of Botswana’s medium-term objective range of 3 percent to 6 percent, posing a challenge for policymakers seeking to contain price pressures while supporting an economy recovering from two years of contraction.

Statistics Botswana said the consumer price index (CPI) rose 0.2 percent from May, with transport accounting for 7.3 percentage points of the headline inflation rate. Miscellaneous goods and services contributed 1.2 percentage points, while food and non-alcoholic beverages added 0.9 percentage points. Housing, water, electricity and other fuels made a marginal negative contribution to overall inflation.

Imported goods continued to be the main source of inflationary pressure. Annual inflation for imported tradeables eased slightly to 17.9 percent from 18.1 percent in May, while domestic tradeables accelerated to 7.9 percent from 7.6 percent. Inflation for non-tradeable goods, which reflects domestic price pressures, was unchanged at 3.9 percent.

Among individual categories, clothing and footwear prices increased 0.6 percent during the month, while restaurants and hotels rose 0.5 percent. Health services, alcoholic beverages and tobacco, and miscellaneous goods and services each recorded monthly increases of 0.4 percent.

Core inflation indicators were mixed. Trimmed mean inflation eased marginally to 9.0 percent from 9.1 percent in May, while inflation excluding administered prices held at 5.9 percent.

Regionally, annual inflation remained highest in rural villages at 12.1 percent, compared with 10.4 percent in urban villages and 10.2 percent in cities and towns.

Lucara Diamond has recovered a 1,305.4-carat diamond from its Karowe Mine, reinforcing Botswana’s reputation as home to some of the world’s largest gem-quality stones at a time when the global diamond industry continues to battle weak demand and price pressure.

The latest discovery is the tenth diamond weighing more than 1,000 carats recovered from Karowe since production began in 2012, a record that further distinguishes the mine from other diamond operations worldwide. The white, unbroken stone was recovered using the mine’s X-ray Transmission (XRT) technology, which is designed to detect and preserve large diamonds that might otherwise be damaged during processing.

Lucara said it could not determine whether the stone came from current open-pit mining or from previously mined ore held in stockpiles because both materials were being processed simultaneously.

The discovery adds to Karowe’s list of headline-making recoveries, including the 2,488-carat Motswedi, the largest diamond unearthed in more than a century, as well as the 1,109-carat Lesedi La Rona, the 1,094-carat Seriti and the 1,080-carat Eva Star.

For Botswana, the latest find comes as the diamond sector works through one of its most challenging periods in years, with subdued consumer demand and growing competition from laboratory-grown diamonds weighing on revenues across the industry.

Lucara President and Chief Executive Officer William Lamb said the recovery highlights the unique nature of the Karowe orebody and strengthens confidence in the mine’s long-term value as the company advances its underground expansion project. The underground mine is expected to replace stockpile processing from 2027, with full-scale production targeted for the first half of 2028.