Category: Sunday Standard

The government is edging cautiously into one of its most sensitive social debates, as it reviews marriage laws while maintaining an officially neutral stance on homosexuality.

Serowe South MP Leepetswe Lesedi asked the Minister of Labour and Home Affairs, Pius Mokgware whether the government might legalise same-sex marriage and how it is responding to growing calls for broader LGBTQ acceptance.

The minister’s reply reflected a government balancing legal precedent with political caution. Botswana, Mokgware said, has not adopted a position with regard to homosexuality, but operates within the framework set by the courts. A landmark 2021 ruling by the Court of Appeal of Botswana upheld the decriminalization of same-sex relationships, striking down colonial-era provisions that criminalized same-sex intimacy as unconstitutional.

‘Consensual same-sex intimacy is therefore not proscribed,’ Mokgware said, adding that public confusion persists over what the judgment permits. In essence, he said, the ruling simply means such relationships are no longer criminal offences.

Marriage, however, remains defined in more traditional terms. The current law recognises unions only between a man and a woman. Yet the government has begun reviewing the Marriage Act, a process that could open the door, at least procedurally, to reconsidering that definition.

‘My ministry is currently reviewing the Marriage Act in line with the Constitution of Botswana,’ Mokgware said, adding that consultations with stakeholders would include ‘issues such as this one’, a cautious reference to same-sex marriage.

The government appears reluctant to move faster than public opinion. It keeps no official data on sexual orientation, Mokgware said, arguing that such matters fall outside the remit of civil registration systems. Nor has it embarked on a centralised campaign to promote LGBTQ acceptance, framing the issue instead as ‘cross-cutting’ and requiring dialogue across society.

That leaves country in a familiar position, legally progressive by regional standards but socially and politically incremental. The courts have dismantled criminal penalties, yet the state has stopped short of endorsing broader recognition.

Stanbic Bank Botswana kept earnings largely unchanged in 2025, as strong growth in trading and fee income offset a sharp squeeze on lending margins in a year defined by tight liquidity and elevated funding costs.

Profit before tax edged up to P951.7 million from P949.7 million, while profit after tax rose slightly to P709.7 million. Stability at the headline level masked significant shifts in the bank’s income mix.

Net interest income fell 21.7 percent to P1.07 billion, as interest expenses surged 86.1 percent to P957.2 million, reflecting intense competition for deposits. The net interest margin narrowed to 3.7 percent from 4.9 percent, underscoring the pressure on traditional lending.

Non-interest income provided the offset. Revenue from trading, fees and commissions rose 62.5 percent to P941.6 million, driven by stronger performance in Global Markets, higher trade volumes and increased foreign exchange activity.

The shift was partly supported by changes in currency market dynamics after the Bank of Botswana widened the pula trading band in July 2025, boosting interbank foreign exchange activity and reducing reliance on the central bank.

Balance sheet growth remained subdued. Total loans and advances declined 9 percent to P21.3 billion, while customer deposits fell 2.1 percent to P22.7 billion, reflecting a more cautious approach to lending in a high-cost funding environment.

Asset quality showed some strain, with credit impairment charges rising to P84.6 million, though cost discipline improved. The cost-to-income ratio fell to 48.6 percent, and operating cash flow strengthened significantly.

The results highlight a shift in earnings drivers, with market activity increasingly compensating for pressure on core lending in a constrained liquidity environment.

Energy minister, Bogolo Kenewendo this week told parliament that high connection costs are limiting the pace of rural electrification, even as government maintains a longer-term commitment to expanding access.

Kenewendo said it remains economically unviable in some areas to extend electricity infrastructure, particularly to ploughing fields and sparsely populated zones where demand is low and distances are significant.

The minister’s response to MP Taolo Lucas underscores a structural challenge facing the country’s electrification drive: balancing universal access ambitions with the high capital costs of grid expansion. Officials indicated that, for now, reducing connection costs in such areas is not feasible, pointing instead to a phased approach.

Kenewendo said that the government will continue to extend electricity access progressively, while encouraging those with financial capacity to co-invest in connections where possible. The model reflects a shift toward shared funding mechanisms in cases where public investment alone may not be sufficient to justify rollout.

In parallel, the government is also focusing on institutional capacity building. ‘A new electricity-related training and certification programme has received approval from the Human Resource Development Council, with curriculum development at an advanced stage. The course is expected to combine theoretical and practical components, aimed at strengthening technical skills in the energy sector’, Kenewendo said.

Meanwhile the dual approach, targeted infrastructure expansion alongside skills development, highlights the government’s attempt to address both supply-side limitations and workforce readiness.

While electrification remains a policy priority, the update signals that near-term progress will likely be uneven, shaped by cost realities and the need for alternative financing models in low-density areas.

Only 10% of Botswana workers say they are thriving in life, while workplace engagement remains stagnant at 20%, according to the State of the Global Workplace: 2026 Report released in April 2026 by Gallup.The findings, based on data collected between January and December 2025, paint a mixed picture of working life in Botswana, where low life satisfaction contrasts with relatively moderate levels of workplace stress compared to regional averages.

According to the report, employee engagement in Botswana stands at 20%, matching the global average and slightly above the Sub-Saharan Africa average of 19%. However, this figure reflects a five-point decline from the previous three-year rolling average, suggesting a downward trend in workforce motivation.

The report states: ‘Employee engagement in Botswana reflects stagnation, with no significant improvement over global benchmarks and a noticeable decline from previous averages.’

Despite lower stress levels compared to regional peers, broader wellbeing indicators remain weak. Only 10% of employees in Botswana are thriving in their overall lives, significantly below the Sub-Saharan Africa average of 18% and the global average of 34%. The report notes: ‘Life evaluation in Botswana remains among the lowest observed globally, indicating persistent challenges in overall wellbeing and life satisfaction among employees.’

On a more positive note, 26% of employees reported experiencing high stress the previous day, well below the regional average of 46% and the global average of 40%. Daily emotional strain also appears comparatively moderate, with 16% reporting anger, 22% reporting sadness, and 24% reporting loneliness. However, loneliness remains slightly above the global average of 22%.

Job market confidence is also subdued. Only 42% of employees believe it is a good time to find a job in their local area, compared to 50% regionally and 52% globally. This reflects a two-point decline from the previous rolling average, suggesting weakening labour optimism.

The report highlights: ‘Perceptions of job availability in Botswana are lower than both regional and global averages, signalling reduced confidence in local labour market conditions.’

While stress and anger indicators show slight improvements over time, the broader picture remains concerning, with stagnating engagement and low life evaluation suggesting deeper structural issues in workplace satisfaction and economic confidence.

The report suggests that the combination of low thriving rates and declining engagement may point to a disconnect between employment and quality of life, even as Botswana continues to outperform parts of the region on day-to-day stress indicators.

Overall, the 2026 findings also suggest a labour market that is stable in participation but struggling to translate employment into meaningful wellbeing gains for many workers.

Citizen Entrepreneurial Development Agency (CEDA) ramped up funding to small businesses while tightening collections, as government leans on the institution to drive citizen-led growth amid fiscal pressure.

Figures tabled in Parliament show the agency invested P696 million in 1,716 businesses by the end of the third quarter of the 2025/2026 financial year, creating 3,109 jobs and sustaining a further 1,569.

On the revenue side, CEDA collected P814 million in loan repayments and generated P207 million in income, reflecting an increased focus on recoveries as liquidity constraints weigh on the public purse.

The agency continues to position itself as a development finance vehicle, offering loans ranging from P500 for micro enterprises to as much as P50 million for large-scale projects, with subsidised interest rates for priority sectors such as manufacturing, agriculture and tourism.

A five-year strategy, branded ‘Katlego ya Mogwebi,’ is now guiding operations, with emphasis on sustainability and SME growth. Key interventions include restructuring distressed firms, particularly in manufacturing, and rolling out a ’60/40′ funding model that channels capital into high-impact projects while reserving a portion for inclusion-focused ventures.

CEDA is also diversifying its approach through digitisation, equity participation and sector-specific products, including financing for horticulture, poultry and livestock under the A-Di-Tsale programme.

However, officials acknowledge that government liquidity challenges continue to affect the agency’s portfolio performance, prompting a renewed push to improve collections and reduce non-performing loans.

The data underscores CEDA’s dual role as both a catalyst for enterprise development and a balance-sheet-sensitive lender navigating tightening fiscal conditions.

Botswana is moving to overhaul its public sector employment framework through the proposed Public Service Bill, 2026, a sweeping reform that aligns government labour practices with international standards while tightening administrative control.

The Bill, set to repeal the current Public Service Act, introduces a structured system for hiring, promotion and discipline across the civil service. It formalises multiple employment categories including fixed-term, part-time and casual work while placing limits on their use to prevent long-term job insecurity.

A key shift is the codification of worker protections. The legislation mandates equal treatment across employment types, outlaws workplace discrimination and harassment, and expands leave provisions to include paternity, adoption and commissioning parental leave. It also strengthens safeguards for pregnant employees, including restrictions on termination during maternity leave.

For government, the reforms centralise authority. The Permanent Secretary to the President retains broad oversight of the public service, including powers over senior appointments and performance management. A performance contract system is extended across senior roles, signalling a push toward accountability and measurable output.

The Bill also reshapes labour relations. It entrenches the right of public servants to unionise, participate in collective bargaining and undertake lawful industrial action, while establishing a Public Service Bargaining Council to formalise negotiations.

Economically, the changes could raise the government wage bill in the short term due to expanded benefits and compliance costs. However, authorities argue the reforms will improve efficiency, reduce disputes and modernise the state’s role as an employer.

For Botswana, the legislation marks one of the most comprehensive updates to public sector labour law in decades, with implications for fiscal management, workforce stability and investor perceptions of governance.

China Railways Seventh Group, a company owned by the Chinese government which was engaged by the Botswana government to build Thapama Interchange also known as the ‘Spaghetti Interchange’ in Francistown has lost a P3.7 million lawsuit against its former sub-contractor, Dry Landers (Pty) Ltd. The case was recently heard by Justice Lot Moroka at Francistown High Court. Dry Landers (Pty) Ltd was the Plaintiff in the case, while China Railways Seventh Group was the Defendant.

The lawsuit stemmed from a written subcontract between the two parties on or about the 25th of June 2015, where the Plaintiff was subcontracted to perform engineering works for the Defendant. The engineering works as outlined in court documents, included steel fixing, boiler making, steel engineering, threading and fixing water flow pipes, punching, drilling and bolting the Interchange structure. The Defendant failed to uphold the terms of the contract.

During trial, the Managing Director of Dry Landers (Pty)Ltd Gothatamang Reineetse testified that on the 25th of July 2015, the Plaintiff and the Defendant entered into a written contract which the Plaintiff began work on as agreed. The Defendant was represented by its Project Manager Mr Chang and a site Manager during this agreement. Despite several copies of the contract being signed, the Defendant’s Principals residing in China where the company’s headquarters are located, were supposed to review it and sign it. The Plaintiff’s Managing Director agreed in good faith to this arrangement but was not given a copy of the contract. Subsequently work commenced while awaiting final approval from China. The Plaintiff’s Director stated that they performed work in accordance with the contract and the Defendant’s Site Manager signed a daily log sheet acknowledging the work done.

The agreed contract between the parties amounted to P53, 863 000.00 for a 16-month duration. However, while work was on-going the Plaintiff’s Director was confronted with a new contract presented by a new manager named Wang, who was not part of the original negotiations. Wang insisted on a reduced price of P400,00 per ton which the Plaintiff refused to accept. The Plaintiff claims that this new Manager was aggressive, gave him an option to sign the revised contract or leave the site. Instead, the Plaintiff presented their claim for payment in accordance with the original figures. The Defendant refused to pay in accordance with the figures presented by the Plaintiff and insisted on the reduced price at the rate of P400.00 per ton. As a result, a dispute arose between the parties resulting in the lawsuit. The Plaintiff demanded a total sum of P3 771 329.60 in court as cost for damages. According to the Plaintiff, this disagreement led to a financial strain, affecting their ability to meet financial obligations such as paying wages and material supplies.

In response, the Defendant’s Commercial Manager, Yudong Sun, argued in court that no written contract was signed, and parties only agreed on a rate of P400 per ton, pending approval from China. Sun claimed that negotiations were still ongoing, and the Plaintiff reneged on the agreement by refusing to sign the revised contract.

In the Final Pre-Trial Order, the parties agreed that the Plaintiff successfully constructed 543 piles at a cost of P1,303,200. The Plaintiff’s Director also presented evidence of work done on the eastern column for P2 000,000, supported by photographic evidence and signed log sheets.

Justice Moroka ruled in favour of the Plaintiff, stating that they had proven their case on a balance of probabilities. The Judge highlighted that it is worthy to note that the Plaintiff s witness told court that when the Defendant negotiators informed them that the signed contract had to be sent to China for approval, it was clear that the parties agreed in lieu of the contract. The Defendant would then write a letter confirming the existence of the contract embodying some salient aspects of the contract. The letter formed part of the court documents.

‘The letter was written by the Defendant’s site Manager. In this letter, he says that the letter serves as a shadow of the main contract; a letter signed by both parties. This confirms the Plaintiff’s testimony that the parties did sign an agreement. This therefore means that the unsigned contract that was presented to the Plaintiff by a new manager is not the signed copy that was sent to China.’

‘It is a revised version as it had no signatures. The other difficulty is that suddenly, the persons with whom the Plaintiff dealt with were withdrawn and new persons introduced on the side of the Defendant. None of the persons could speak to the letter that was written in lieu of the contract and the contract itself,’ said the Judge.

The Judge criticized the Defendant for failing to call key witnesses who could have shed light on the negotiations and performance of the contract. He noted that the signed log sheets provided substantial evidence of the Plaintiff’s performance.

‘Most importantly, over and above the evidence of the Plaintiff’s Director, the signed log sheets are evidence of performance of the contract by the Plaintiff in specified quantities on the price averred by the Plaintiff,’ said Judge Moroka in his ruling.

The Judge agreed to the relief sought by the Plaintiff.

Botswana’s beef sector is facing renewed pressure after an outbreak of foot-and-mouth disease (FMD) at the Ramatlabama Artificial Insemination and Training Centre, a key node in the country’s livestock genetics programme.

The Department of Veterinary Services confirmed that 34 bulls have tested positive at the facility, which houses breeding stock used for semen collection. Coordinator Odireleng Thololwane said the infected animals are part of a group of 65 bulls dedicated to semen production, underscoring the potential implications for breeding operations.

Authorities have quarantined the affected animals and vaccinated them to contain the outbreak. Surveillance has been intensified around the centre, with no additional cases reported so far, according to officials.

Still, the incident has unsettled producers and raised questions about biosecurity at one of Botswana’s most strategically important livestock facilities. The Ramatlabama centre, which accommodates more than 200 animals, including imports from the United States and Australia, serves as both a genetic reservoir and a training hub for artificial insemination.

The outbreak comes against the backdrop of significant public investment aimed at improving herd quality. Government spent about P25 million to procure 162 high-grade cattle from Texas, with additional logistics costs exceeding P8.6 million. The animals form part of a broader plan to position the facility as a centre of excellence and a source of export-quality semen.

Botswana National Beef Producers Union spokesperson Andrew Seeletso said the outbreak was unexpected, given the facility’s status. He called for a thorough investigation into how the virus entered the centre, warning that lapses could undermine confidence in the country’s beef value chain.

The government has promoted genetic upgrading as central to boosting productivity. An FMD disruption at a core breeding facility risks slowing that effort and complicating disease-control efforts in a sector already exposed to periodic trade restrictions.

In 1990, the government published a White Paper that became to be known widely as the Incomes Policy. This was a groundbreaking move by the government of Botswana And the main idea was to promote and liberalise economy and to fuel growth. It was a recognition that while the diamond mining business was generating handsome revenues for the government the broader economy was not, at the same time, creating enough jobs for the people. This was mainly due to the fact that mining is, on the whole, capital intensive. In other words, it is a business where you put in a lot of money, on machinery, as opposed to, manual labour.

And this is why, essentially, they decided to publish this White paper . And one needs to underscore the fact that it was a seminal move. And what it did was to do away with a number of backward commercial practices. One of the key ones that was abandoned , of course was, the practice of allowing competitors, especially in the retail sector , to object to new entrants . Back then, before, your licence for a retail store could be approved , the Town or District were allowed to invite objections from competitors.

The other major development from the 1990 Incomes Policy was the removal of the need for submission of business plans. So previously when you applied for a trade license, you would also be asked to provide a business plan. This did not make sense because the licensing authorities do not offer applicants any financial assistance, so that made no sense. If, for instance, your business ran into trouble it is not as if they would give you a loan.

A business plan makes sense if it is submitted to those who offer financial assistance. So that was also abolished. Although they are still pockets of some government departments, that request for business plans such as the Department of Tourism. Even that is a waste of the entrepreneur’s time and resources.

So as a result of that, The Incomes policy facilitated, Free Entry and Free entry of businesses, and that is what you need in a market economy. And then the other major development was to abolish price controls.

Previously, Government had a whole department whose task was to control prices. And as we all know, that is an extremely difficult thing to do because controlling prices requires what people call economic calculation. There are major factors that influence the price of a good or service. It’s mostly the interaction of demand and supply that would determine the price. And it is almost impossible for someone sitting in a government department to know with precision, the price of any product. But somehow for years, there was a belief that Government officials were imbued with some wisdom to know the price of a product. So thankfully that was also abolished and market forces were instead allowed to determine prices.

However, government persisted with price controls in the petroleum sector. They would set prices at the pump station beyond which a retailer would not be allowed to sell their products. Every now and then we know that prices for fuel change owing to market forces.

The fuel price is has not worked well over r time. The current crisis has just exploded the flaw of the government trying to determine the price of fuel or bus fares . This is due to the fact that the price of fuel, just like that of public transport is determined by the market. Any effort by the state to prescribe the fuel price is not going to work.

Botswana’s banking sector has once again come under scrutiny after a company director allegedly siphoned at least P93 million to offshore accounts in what investigators believe is a sophisticated tax evasion and money laundering scheme.

Details emerging from the Money Laundering/Terrorist Financing National Risk Assessment Report which was released last week by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) shows how the country’s financial system is being exploited to externalise illicit funds.

According to the report, ‘most suspected predicate offences proceeds are ultimately channelled through the banking sector, making it the primary channel for money laundering exposure.’ The case in question centres on a company director accused of under-declaring income and diverting vast sums of untaxed company turnover into personal accounts abroad over a ten-year period.

Investigators allege that the director used multiple methods to siphon funds, including routing project payments directly into personal accounts instead of company accounts, withdrawing large sums before tax obligations were met and physically smuggling cash out of Botswana.

The NBFIRA assessment reveals that tax crimes pose a medium-high money laundering threat, with proceeds significantly outweighing those from other offences. Between 2020 and 2024 alone, under-declaration of income accounted for over P1.58 billion, forming the bulk of the P1.7 billion linked to tax-related offences.

The report says the director at the centre of the case allegedly externalised close to P98 million, while about P85 million in undeclared turnover was traced to personal accounts in foreign jurisdictions between 2010 and 2020.

The financial fallout has been severe. Tax authorities raised assessments exceeding P206 million for income tax and over P95 million for VAT against the company, while the director faces an additional P56 million in personal tax liabilities.

To avoid being taxed, the money was siphoned from the company through paying company projects directly into personal accounts rather than company accounts and reporting project payments as sales.

According to the report, ‘Huge sums of money from company projects paid in cash to the director and kept at the company premises and his residential place and eventually smuggled out of the country by his friends.’

The report also states that ‘A tax investigation was also carried out on the director. A total tax assessment of P56,000,000.00 was raised on the director’s personal taxes. Money laundering investigations are ongoing.’ It added that ‘The money that was seized during the raid was deposited towards the reduction of income tax and personal tax liabilities. Further collection efforts on the case are still ongoing.’

The NBFIRA report further notes that perpetrators of such crimes are ‘diverse,’ ranging from company executives and shareholders to professional service providers such as bankers, tax consultants and clearing agents.

The value and scale of proceeds generated from tax crimes were significantly higher than those from other offences, thereby contributing substantially to the overall risk. The risk is impacted by the associated loss of government revenue and the externalization of funds to foreign jurisdictions. Some of the methods used to move funds includes the use of trade-based money laundering, the exploitation of transfer pricing leading to profit shifting and treaty shopping, and the manipulation of thin-capitalization rules which resulted in further base erosion.