Category: Sunday Standard

An unusual cast of international businessmen and lobbyists has emerged as private deal makers around President Duma Boko, attracting scrutiny from the United States’ foreign influence transparency system and raising questions about the nature of their role.

Hardly two years since President Boko swept to power promising transparency, accountability and a new economic direction, a small but influential network of foreign businessmen and international intermediaries has quietly emerged around Botswana’s new administration.

At the centre of that network are three men whose backgrounds could hardly be more different. There is a Canadian-Israeli lobbyist with history of representing controversial political figures across the globe.

An Iranian-born entrepreneur who has been the subject of public allegations and red flag reports linking him to controversial crypto and investment circles, but no verified criminal conviction or official charge.

And a controversial South African mining and investment magnate whose name has repeatedly surfaced in discussions involving major projects in Botswana.

Individually, Ari Ben-Menashe, Farzam Kamalabadi and Zunaid Moti may appear unrelated. Together, however they reveal a striking pattern.

The first sign that Boko’s presidency would be different emerged long before he entered the State House. In July 2024, documents filed in the United States revealed that Boko had signed a lobbying agreement with Canadian firm Dickens and Madison headed by Ari Ben-Menashe. The agreement attracted attention because Ben-Menashe is no ordinary lobbyist. Over the years, he has cultivated a reputation as one of the world’s most colourful political operators, representing presidents, opposition leaders and governments across Africa, Asia and Latin America.

The assumption among many observers was that the relationship would end once the election was over. Instead, public filings suggest otherwise.

A January 2026 filling submitted under the United States Foreign Agents Registration Act stated that Dickens and Madison ‘ continue to work with Mr Duma Boko in support of his presidency.’ The filing did not elaborate. It did not specify the nature of the work. It did not specify who was paying, nor did it clarify whether the work was being undertaken on behalf of Boko personally, the ruling party or the Botswana government.

The website assigns a 50/100 score to the registration involving Dickens and Madson Canada Inc. and Duma Boko, stating:’The principal is a political party leader, which generally falls in the middle range of U.S. interest alignment. Without further details on the specific activities, a neutral score is appropriate.’ The assessment concludes that the registration ‘warrants scrutiny.’

If Ben- Menashe operates largely behind the scenes, Farzam Kamalabadi occupies a far more visible position. In 2025, Boko appointed Kamalabadi as Presidential Envoy on International Relations and Economic Development. The appointment placed Kamalabadi at the centre of Botswana’s effort to attract international investment at a time when the country faces one of its most challenging economic environments in decades.

Information published on the website tracking filings under the U.S. Foreign Agents Registration Act (FARA) states that Botswana currently has two active registrations. It describes the country’s direct efforts to influence U.S. policy or public opinion as ‘minimal’ compared to many other nations.

According to the website under a briefing titled ‘What Botswana is doing in Washington,’ the filings reveal that the Government of Botswana has engaged Fang Consulting LLC for strategic consulting, a company under Kamalabadi’s stable.

The website notes: ‘Botswana’s engagement with U.S. influence operations, as indicated by available FARA filings, is minimal, with only two active registrations.’ It adds that the filings demonstrate that ‘both governmental and individual political interests from Botswana have sought representation in Washington, albeit on a small scale compared to many other nations with active FARA registrations.’

Regarding the government’s engagement of Fang Consulting LLC, the website states that Botswana’s country baseline score is 60/100, but that ‘Strategic Consulting adjusts by -3, yielding a neutral signal.’ It describes this as a ‘heuristic’ assessment and notes that ‘no AI score [is] available.’

The website further observes that the strategic themes emerging from Botswana’s filings ‘appear to center on general strategic engagement and political lobbying rather than specific policy objectives.’

It says: ‘The government’s engagement with ‘strategic consulting’ points to image management or broad relationship building, while the lobbying by a political figure could encompass a range of objectives from advocating for a particular political stance to garnering support for electoral campaigns.’

However, updated filings submitted to the U.S. Department of Justice by Ari Ben-Menashe of Dickens and Madson Canada Inc. indicate that the firm’s activities on behalf of Duma Boko have not been directed at the United States.

The filing states:’DandM’s activities for Mr. Duma Boko have consisted of lobbying in Botswana, South Africa and the United Kingdom in support of his election as President of Botswana.’

It adds:’DandM continues to work with Mr. Duma Boko in support of his presidency.’

The filing emphasizes: ‘All activities DandM has engaged in on behalf of Mr. Duma Boko have occurred outside the United States, and none of those activities have been directed at the United States.’

The company further declared:’DandM has not prepared, disseminated or caused the dissemination of informational materials in the United States in connection with this foreign principal.’

On compensation, the filing says the firm did not receive any contributions, income or money from Boko during the reporting period. Instead, it reported that it applied retainer payments previously provided by Boko and previously disclosed to the Department of Justice. Those previously disclosed payments were reportedly USD 50,000 for a 12-month period, equivalent to approximately P675,000.

The disclosures suggest that Botswana’s government and political leadership have become part of the U.S. foreign influence transparency regime, where lobbying and consulting activities undertaken on behalf of foreign principals are publicly registered and monitored under FARA, even when the reported activities themselves are conducted outside the United States.

Then there is Zunaid Moti. The South African businessman has become a familiar figure in Botswana’s political conversation since Boko’s election victory. Government officials have acknowledged receiving proposals associated with Moti involving infrastructure projects. Media repots have linked him to efforts to secure opportunities in sectors ranging from construction to public-private partnerships. Critics, including former President Mokgweetsi Masisi have suggested that Moti’s proximity to the new administration deserves closer examination. Supporters dismiss such claims as politically motivated. Yet the persistence of Moti’s name in discussions involving major government projects continue to fuel speculation about the extent of his influence.

Minister of Water and Human Settlements Onneetse Ramogapi is reportedly facing mounting pressure from President Duma Gideon Boko to deliver on the Bonno Housing Project or face removal from cabinet.

Reports reaching the Sunday Standard indicate that the President is especially furious because he had praised the project during its launch last year, hailing the Bonno Target 3,000 Kgale Housing Project as the first step towards a national goal of delivering 100,000 homes.

Behind the ostentatious fanfare, however, murmurs of discontent have amplified. Emerging reports suggest that Botswana Housing Corporation (BHC) executives were bullied into signing a Memorandum of Agreement (MoA) with the developer, Ongos Valley, just days before the official launch.

The MoA was reportedly signed without issuing an Expression of Interest (EOI) or giving other prospective bidders a chance. Furthermore, the project was launched without housing plans, enforceable contracts, or a completed due diligence report. Law firm Minchin and Kelly, alongside transactional advisors Grant Thornton, would later warn BHC to reconsider its contract with Ongos Valley. They highlighted the Namibian developer’s failure to disclose critical documentation during the due diligence process, which hampered confirmation of its financial soundness, technical operational capacity, and ethical standing.

To many, the writing was on the wall. In December 2025, barely six months after the launch, the much-touted partnership between BHC and Ongos Valley collapsed.

‘It was very unfortunate that the project was launched, but we had to terminate the contract as negotiations with the partner did not go well,’ then-acting CEO Pascaline Sefawe said at the time.

Internally, BHC employees breathed a collective sigh of relief. But the President was left embarrassed. In cabinet, Ramogapi began feeling the heat as Boko and fellow ministers grew increasingly impatient.

THE PURGE

Ramogapi has never minced his words: anyone standing in the way of the Kgale project would be removed. The threat of summary dismissal was real and repeatedly pronounced.

The casualties of the project began mounting rapidly. Permanent Secretary Bonolo Khumotaka was redeployed in July 2025, while Chief Executive Officer (CEO) Nkaelang Matenge was shown the door in October. Ramogapi wielded his axe again in February 2026, as acting Deputy CEO Steven Ofetotse and Property Development Manager Urban Ferguson were summarily dismissed for allegedly sabotaging the Kgale development.

The board ran helter-skelter trying to fill the resulting human capital gaps, leading to further internal chaos. A newly recruited female engineer had several run-ins with the board after employees raised complaints of harassment and bullying against her.

In another bizarre twist, the Director of Property Development-who reported for duty in February- abruptly resigned in April, before later attempting to rescind his decision. By that time, his resignation had been accepted and a replacement appointed. The situation escalated when the minister reportedly instructed the acting CEO to reinstate the former director. According to insiders, Ramogapi’s instructions could not be obeyed as terminating the replacement employee’s contract without lawful cause would expose BHC to immense financial liabilities. This set the stage for a direct, high stakes showdown between the board and Ramogapi.

THE BOARD DISSOLUTION

Tensions arose after the female engineer was instructed to ‘show cause’ why disciplinary action could not be taken against her for appointing two contractors to develop bulk services at Kgale without following due process.

The dispute highlighted a major shift from the project’s initial financial structure, in which the identified developers would recoup their investments through both bulk services and housing developments. Under the new arrangement, the contractors appointed by the female engineer were tasked exclusively with developing essential utilities infrastructure, including water supply, wastewater management, and stormwater drainage. BHC would be liable to pay a substantial upfront deposit, followed by monthly installments of up to P8 million over a 24-month period. Insiders revealed that total expenditures for development of bulk services at Kgale would ultimately exceed P200 million.

The board reportedly refused to validate the appointments; demanding clarity on whether management had fully assessed cash flow projections to ascertain BHC’s repayment capacity; collateral arrangements as well as sensitivity and stress-testing scenarios. While the board insisted this was necessary due diligence to prevent another disaster, Ramogapi viewed it as deliberate sabotage and unnecessary delay.

The tension reached boiling point during a heated meeting on June 1. Ramogapi reportedly dressed down the BHC board, accusing them of failing to deliver on the corporation’s mandate. Three days later, on June 4, Ramogapi officially dissolved the board in accordance with Section 6(3) of the BHC Act. The minister has since assured stakeholders that the process of constituting a new board is already underway.

Letshego Africa Holdings’ decision to withdraw from five African markets follows years of mounting losses that ultimately undermined one of the lender’s most ambitious growth bets.

Documents circulated to shareholders ahead of a vote on the proposed disposal of subsidiaries in Ghana, Tanzania, Nigeria, Rwanda and Uganda show the operations generated a combined loss after tax of P519.5 million in the year ended December 2025, despite producing operating income of P1.46 billion.

The businesses held assets worth P3.82 billion and carried a net asset value of P819.9 million at year-end, highlighting the scale of the investment that failed to translate into sustainable returns.

The figures offer fresh insight into the financial pressures behind Letshego’s decision to retreat from markets that were once central to its pan-African expansion strategy.

Earlier this year, the Botswana Stock Exchange-listed microfinance lender announced an agreement to sell the subsidiaries to Axian Digital Venture Holding and Management Limited for US$62.7 million, equivalent to about P850 million. The transaction forms part of a broader restructuring programme aimed at improving profitability and strengthening the group’s balance sheet.

In its shareholder circular, Letshego attributes the poor performance of the businesses to a combination of foreign exchange volatility, elevated inflation, regulatory shifts and rising credit impairments across several East and West African markets.

The disposal is significant. The assets being sold account for nearly one-fifth of the group’s consolidated asset base, marking a decisive shift away from the continental expansion model that drove Letshego’s growth for more than a decade.

Management says the exit will enable the group to redeploy capital towards higher-return markets, improve capital efficiency and bolster liquidity. Sale proceeds are expected to be directed towards debt reduction, working capital requirements and investment in core operations.

Yet the strategic reset comes with a financial penalty. Letshego estimates the transaction will result in an accounting loss of approximately P281 million.

Botswana has recorded the lowest suspected digital fraud rate in Africa according to the findings from TransUnions H1 2026 update. However fraudsters are already changing tactics. The Frauds Trends Report update by the organization found out that among all the African countries analysed in 2025, they were 0.9 percent of transaction attempts involving consumers which were suspected to be digital fraud in Botswana.

This is below the global average of 3.8 percent and represents the lowest rate among the African countries analyzed. However, according to the report, despite this Year-over-Year(YoY) decline in suspected digital fraud for Botswana and globally, fraudsters continue to adapt by turning to high-trust, scam-based tactics that can by-pass traditional safeguards.

‘Botswana has not experienced widespread fraud, but the nature of fraud risk is beginning to shift. As digital services become more formal and widely trusted, fraudsters are increasingly targeting these environments,’

‘This is a natural stage of digital growth and highlights the need to strengthen protections as confidence in digital services expand,’ said Amrit Reddy, Senior Director of Fraud Product Management at TransUnion Africa.

The report suggests that digital fraud risk is highest at account creation in Botswana. Despite the fact that suspected fraud rates appear lower compared to 2024, risk remains elevated at specific points in the consumer life cycle, particularly where criminals attempt to create or manipulate identities in Botswana. The highest rate of suspected digital fraud in 2025 across the consumer life cycle occurred at account creation(2.6 percent), followed by account login(0.8 percent) and during financial transactions (0.5 percent).

In addition, Botswana’s fraud profile reflects an early – to -mid stage digital market where onboarding and account creation remain the primary points of exposure. According to the report, this mirrors broader global and Africa-wide trends in markets where digital identity systems are still evolving.

‘Experience from other countries shows that the phase does not last indefinitely. As consumers build longer term digital relationships with banks, retailers and service providers, fraud risk tends to move beyond onboarding toward login and account access, often through impersonation or credentials misuse,’ said Reddy.

‘The key takeaway for Botswana is timing. Strengthening onboarding and early-stage identity checks can help prevent more complex fraud patterns emerging as digital adoption accelerates. Early safeguards can make a meaningful difference as the digital ecosystem matures,’ she added.

Across Africa, suspected digital fraud risk varies by industry, reflecting local user behaviour and where criminals see opportunities. For attempted transactions involving consumers in Botswana, retail recorded the highest suspected digital fraud attempt rate in 2025 at 1.9 percent, followed by Gaming(online sports betting, poker etc) at 1.8 percent and financial services at 1.1 percent.

As fraud tactics evolve, TransUnion has advised consumers to help reduce their risk by safeguarding personal information, remaining cautious of unsolicited calls and messages and regularly reviewing their credit information for suspicious activity. Organizations have also been advised to ensure that their fraud strategies extend beyond compliance to actively protect trust across the entire consumer lifestyle, particularly account creation at points where criminals attempt to exploit established relationships through scams and impersonation.

‘Botswana has the advantage of foresight. The global fraud playbook is already written. The opportunity now is to act before the next phase arrives,’ cautioned Reddy.

TransUnion is a global information and insights company with over 13 000 associates operating in more than 30 countries and territories including, Botswana, Kenya, Malawi, Namibia, Rwanda, South Africa, Eswatini and Zambia.

Botswana’s fight against inflation appeared largely successful in 2025, with consumer price growth falling below the central bank’s target range for a second consecutive year. Yet beneath the headline numbers, persistent increases in food prices continued to erode household purchasing power, particularly among lower-income families.

According to Statistics Botswana’s Consumer Price Index review for 2025, average annual inflation eased to 2.7 percent from 2.8 percent in 2024 and well below the 12.1 percent peak recorded in 2022 during the global inflation shock.

The outcome placed inflation beneath the Bank of Botswana’s medium-term objective range of 3 percent to 6 percent, underscoring a sharp reversal from the price pressures that followed the pandemic and supply-chain disruptions.

However, the moderation in overall inflation masked growing pressure in essential household spending categories.

Food and Non-Alcoholic Beverages inflation accelerated to 5.4 percent in 2025 from 4.8 percent the previous year, making it one of the largest contributors to overall price growth. Statistics Botswana noted that sustained increases in food costs could disproportionately affect poorer households and potentially slow progress in reducing poverty.

The steepest increases were recorded in fruits, coffee, tea and cocoa, milk products, and fish. Fruit prices rose by 12 percent during the year, while coffee, tea and cocoa prices increased by 13.9 percent.

The low inflation environment was partly supported by government intervention. Housing, Water, Electricity, Gas and Other Fuels inflation contracted by 1.4 percent following reductions in electricity and water tariffs, helping to offset rising prices in other sectors.

Yet emerging trends suggest inflation risks have not disappeared. Tradeable inflation, which captures goods exposed to international markets and exchange-rate movements, increased to 3.5 percent from 3.0 percent in 2024, indicating growing imported price pressures.

The data highlights a widening gap between macroeconomic indicators and household experience. While Botswana has succeeded in restoring overall price stability, the persistence of food inflation suggests the benefits have not been evenly felt across the economy.

Botswana’s fiscal savings account has staged a remarkable recovery after months of decline, with fresh Bank of Botswana figures showing a sharp rebound in the Government Investment Account (GIA) during March.

The latest central bank financial statements show that the GIA’s Pula Fund component surged to P8.66 billion at the end of March, up from just P106.5 million in February and P1.16 billion in January. The turnaround follows a prolonged erosion of the account that had seen it fall from P6.54 billion in March last year to a low of just over P100 million a month ago.

The rebound comes at a time when Botswana is grappling with shrinking diamond revenues, widening fiscal pressures and slower economic growth, making the performance of government savings and reserves a closely watched indicator.

While the Bank of Botswana does not provide detailed explanations in its monthly statements, the movement appears linked to changes in the valuation of foreign reserve assets and exchange-rate fluctuations that influence the central bank’s balance sheet.

The recovery in the GIA coincided with a jump in total shareholder funds, which rose to P43.4 billion in March from P34.8 billion in February. The currency revaluation reserve also increased to P18.74 billion from P17.66 billion over the same period.

Foreign assets, which underpin Botswana’s external reserves, climbed to P55.95 billion from P55.26 billion in February and P47.43 billion in December.

However, the recovery was not reflected in reserves measured in United States dollars. Foreign exchange reserves declined to US$3.91 billion in March from US$4.01 billion in February, suggesting that currency movements continued to weigh on the value of reserve holdings.

For government, the rebound offers a rare bright spot amid continuing pressure on public finances.

Botswana has enlisted the services of a United States-based consulting firm to help market and attract investors for an ambitious energy infrastructure programme worth nearly US$800 million (about P10.8 billion).

Documents seen by Sunday Standard which were recently filed with the United States Department of Justice under the Foreign Agents Registration Act (FARA) reveal that the Government of Botswana has engaged Fang Consulting LLC, a North Carolina-based and solely owned by American businessman Eric Li, to advance Botswana’s development and investment interests.

Reports indicate that Fang Consulting operates as a subcontractor for the Future Trends Group (FTG). FTG is an international growth acceleration organization led by Farzam Kamalabadi, who was appointed as a special envoy for international relations and economic development for Botswana by President Duma Boko in April 2025.

FARA Registration documents also show that Fang Consulting registered with FARA on January 15, 2026 as a foreign agent representing the Government of Botswana , identified Botswana as its foreign principal. The company stated that its business involves ‘consulting and looking for strategic partnerships’ and foreign investment opportunities.

‘As the Director of the Registrant, I will engage directly with U.S. government officials (including dfc and state Department staff) and congressional offices to advocate for U.S. investment in Botswana; I will also facilitate commercial and diplomatic meetings for the foreign principal to promote economic development and bilateral cooperation,’ Li states in his filing with FARA.

He added that; ‘I will engage in communications with U.S. Executive Branch officials (including the DFC and Department of State) and Legislative Branch staff to advocate for increased U.S. economic engagement with Botswana; I will disseminate information regarding investment opportunities in Botswana’s mining and energy sectors to encourage U.S. government support and financing for these projects, aiming to strengthen bilateral commercial ties.’

The filing comes as Botswana seeks billions in foreign capital to finance a sweeping energy expansion programme that includes solar farms, battery storage facilities, transmission networks and cross-border electricity interconnectors designed to turn the country from a net power importer into a regional energy exporter.

The documents accompanying Fang Consulting LLC filing with FARA and submitted by the Botswana Government show that at the centre of the lobbying effort is a portfolio of projects submitted alongside the FARA registration.

The proposal, prepared by the Government of Botswana through Ministry of Minerals and Energy, outlines eight major energy projects with a combined estimated cost of US$799.89 million, equivalent to approximately P10.8 billion at current exchange rates.

The largest component is a planned 1.5-gigawatt solar photovoltaic programme, which government says could eventually be expanded to 8GW depending on market demand. The project alone carries an estimated price tag of US$300 million and would be implemented through Independent Power Producers (IPPs) under long-term power purchase agreements with Botswana Power Corporation.

The government is also seeking US$200 million for a 500MW Battery Energy Storage System aimed at storing surplus renewable energy and stabilising the national grid.

Other projects include the Botswana-South Africa 400kV interconnector valued at US$150 million, the Botswana-Zambia interconnector worth US$50 million, the Morupule-Jindal transmission line estimated at US$49 million, and a further US$50 million earmarked for upgrades to the national transmission and substation network.

According to the proposal, Botswana currently has installed generation capacity consisting mainly of coal-fired power stations and diesel peaking plants, while demand continues to rise. Authorities also want renewable energy to account for up to 50 percent of the country’s energy mix by 2030.

The documents state that the projects would attract foreign direct investment, create jobs, improve energy reliability and position Botswana as a net exporter of electricity within the Southern African region.

The filing states that activities on behalf of Botswana could include emails, publications and press releases targeted at public officials, legislators and other audiences.

The proposal by Botswana notes that 1.5GW of solar projects are already under development and that the country intends to significantly increase renewable generation capacity over the coming years.

Officials envision a future where Botswana not only meets domestic electricity demand but exports power across the Southern African Power Pool through expanded transmission networks linking South Africa, Zambia, Namibia and Zimbabwe.

The interconnector projects are specifically designed to strengthen regional energy trade while reducing the country’s vulnerability to supply disruptions.

On its website, FARA says Botswana currently has two active filings which reveal a split in the nature of principals.

‘The Government of Botswana has engaged Fang Consulting LLC for strategic consulting, indicating an interest in official-level guidance and advisory services within the U.S. sphere,’ sys FARA.

It further states that; ‘Separately, Duma Boko, identified as a political party figure, has retained Dickens and Madson Canada Inc. for lobbying, suggesting an effort by non-state actors or (political) figures to advance their interests in the U.S capitol,’ it says.

Botswana Vaccine Institute’s (BVI) struggle to meet growing regional demand for foot-and-mouth disease (FMD) vaccines is beginning to exact a commercial cost, with South Africa increasingly turning to alternative suppliers after years of relying on the state-owned producer.

The shift shines a spotlight on longstanding capacity constraints at BVI, which has battled production disruptions, aging infrastructure and maintenance challenges at a time when demand for livestock vaccines across Southern Africa continues to rise.

South Africa’s Agriculture Minister John Steenhuisen recently cited production delays and export interruptions at BVI as reasons for sourcing vaccines from Argentina’s Biogénesis Bagó and Turkey’s Dollvet. The decision followed recurring supply shortages during a period when South Africa was battling FMD outbreaks.

For Botswana, the development raises concerns about BVI’s ability to defend its dominant position in the regional vaccine market. South Africa is BVI’s largest customer, purchasing 1.6 million doses during the 2025/26 financial year.

The problem appears to be one of scale. While demand from Southern African Development Community (SADC) countries is estimated at about 43 million doses annually, BVI’s maximum production capacity stands at roughly 25 million doses.

Operational challenges have compounded the problem. The institute has repeatedly had to suspend production for sterilisation and maintenance, while aging equipment has become increasingly expensive to maintain. Some spare parts are no longer readily available, limiting operational efficiency and affecting output.

The numbers tell the story. In the 2023/24 financial year, BVI produced 14.26 million monodoses of blended FMD vaccines, missing its target of 20.9 million doses by nearly a third.

The institute is betting on a P300 million expansion project, due for completion in 2027, to reverse the trend. Until then, however, BVI faces the risk of losing market share as regional buyers prioritise reliable supply over historical relationships, potentially weakening one of Botswana’s most successful export-oriented state enterprises.

Botswana has launched construction of a P25.5 billion mixed-use development near Sir Seretse Khama International Airport, marking one of the country’s largest private-sector-led investments as authorities seek new sources of growth beyond diamonds.

Dubbed New Botswana City, the project is being developed through a partnership between Botswana Development Corporation (BDC) and UAE-based ALBADDAD Holding. The development’s estimated cost is equivalent to roughly 10 percent of Botswana’s 2024 gross domestic product, underscoring the scale of the bet being placed on trade, tourism and business services as future growth drivers.

The project will be anchored by a 124,000-square-metre exhibition and convention centre, which developers say will position Botswana as a regional destination for conferences, trade exhibitions and business tourism. Plans also include commercial districts, hotels, residential developments and retail facilities.

The investment comes at a time when Botswana is grappling with the economic fallout from weak diamond demand, which has hit export earnings, government revenues and economic growth. Officials increasingly view diversification as critical to reducing the country’s dependence on mining.

BDC’s contribution to the project is land within the airport special economic zone. In return, the state-owned investment agency will receive a ring-fenced five percent equity stake, allowing government participation without assuming the full financing burden of the development.

The developers estimate the project could support between 14,000 and 21,000 jobs during construction and up to 37,500 direct and indirect jobs once fully operational.

The development is expected to support Botswana’s competitiveness under the African Continental Free Trade Area by providing a trusted platform for trade conversations, investment delegations, exhibitions,

conventions and business tourism. Regionally, it strengthens the case for Botswana as a serious SADC trade, business tourism and investment platform, with supporting demand for transport, logistics and local supply chains.

Botswana has slipped in Africa’s industrialisation rankings, dropping six places over the past 14 years. This decline is linked to weaker manufacturing and a more specialised export base, according to a new African Development Bank (AfDB) report.

The Africa Industrial Investment Barometer (AfIIB) and African Industrialisation Index (AII) 2025 report shows Botswana’s position fell from ninth in Africa in 2010 to 15th in 2024, despite some recent improvements.

Botswana’s industrialisation score dropped from 0.6049 in 2010 to 0.5853 in 2024. Although there was a small improvement from 2023, the score is still much lower than in 2010.

The AfDB notes that Botswana is among the countries with the biggest drops in industrial competitiveness in Africa.

‘Libya, Lesotho, Cabo Verde, São Tomé and Príncipe, Niger, Botswana, Equatorial Guinea, Sudan, Seychelles, Mali, and Madagascar experienced the biggest drop in the ranking, losing five ranks or more,’ the report states.

The AfDB says Botswana’s decline is mainly due to weaker industrial performance, not changes in supporting conditions.

‘Botswana, Lesotho, Libya, and Seychelles exhibit a similar pattern of decline, driven exclusively by underperformance in the performance dimension,’ the report notes.

Despite this slip, Botswana is working hard to move its economy beyond diamonds and into areas like manufacturing, agriculture, and technology. Through the Botswana Economic Transformation Programme (BETP), the government is changing trade rules, strengthening ties with neighbouring countries, and investing in big infrastructure projects to become a strong player in global industry.

Top officials, have said that Botswana should stop exporting raw materials. The country now focuses on processing agricultural products, adding value to minerals and diamonds, and growing advanced manufacturing.

As part of the ongoing efforts, President Duma Boko and South African President Cyril Ramaphosa have recently agreed to work more closely on trade, coordinate their industrial policies, and make the most of important minerals needed for electric vehicles and clean energy.

Meanwhile, on the report, it also says that while Botswana made progress in other areas, it has seen a ‘significant decline in productive capacity and performance in manufactured exports.’

These findings are a setback for Botswana, which has tried for years to move its economy beyond diamonds by focusing on industrialisation and manufacturing.

The report lists Botswana as one of Africa’s most specialised economies. South Africa is the most diversified, with a score of 0.555, while Botswana, Angola, and Zimbabwe have ‘very high levels of specialization’ above 0.85.

Since 2010, only Mauritius, Namibia, and Mozambique have managed to diversify their exports. Most African countries, including Botswana, have become more specialised.

These findings come as Africa overall is making progress in industrialisation. The African Industrialisation Index 2025 shows that 41 out of 54 countries improved their scores from 2010 to 2024, leading to a six percent rise in overall performance.

However, the report warns that Africa still faces big structural challenges. The continent makes up less than two percent of global manufacturing output and only 1.4 percent of global manufacturing exports. Manufacturing value-added per person is also lower than before 2014.

One key finding is that Morocco has passed South Africa to become Africa’s top industrial economy. This is due to export diversification, industrial upgrades, and steady policy implementation.

The AfIIB says Africa’s industrial future depends on stronger economic integration, better trade corridors, quality infrastructure, and common standards under the African Continental Free Trade Area (AfCFTA).

AfDB Director for Industrial and Trade Development, Ousmane Fall, said the findings should be both a warning and a guide for policymakers.

‘This report is a roadmap as much as a diagnosis. It shows that 41 of our 54 countries are now moving in the right direction, but it also reminds us that industrialization at scale demands resilient infrastructure, value addition close to source, and finance mobilized on African terms,’ said Fall.

Dr. Harouna Kaboré, President of WITBA Invest, said Africa’s main challenge is not a lack of industrial strategies but the failure to implement them.

‘The continent’s real deficit is no longer the absence of industrial strategies. What is still lacking is execution discipline, continuity in public policy, and systemic coherence between financing, energy, infrastructure, human capital, governance, and industrial vision,’ he said.

When looking at the continent as a whole, Africa is poised for a significant transformation in both consumer markets and manufacturing. However, this transition will require time and concerted effort. The continent faces substantial challenges, such as inadequate infrastructure, fragmented markets, skills shortages, and inconsistent regulatory environments. Nevertheless, the potential benefits are considerable, and the outcomes of either success or failure will have far-reaching implications.

By 2050, Africa’s population is expected to reach 2.5 billion, with half of the population under the age of 25. This demographic trend positions Africa as one of the largest emerging consumer markets globally, characterised by increasing demand for modern goods, services, and economic opportunities.

Despite significant potential, Africa continues to rely heavily on imports of finished products. Although the continent is abundant in raw materials essential to global industries, including cocoa, coffee, cobalt, and other critical minerals, much of the value is realized outside Africa through processing and manufacturing. Currently, Africa contributes only 2% to global manufacturing output, which exposes many economies to external trade disruptions, currency fluctuations, and ongoing trade imbalances.

Establishing a robust manufacturing sector is not only an economic necessity but also a means to achieve long-term resilience and inclusive growth. Industrialisation generates employment, reinforces domestic value chains, and increases public revenues for investment in healthcare, education, and essential services. It contributes to higher living standards, poverty reduction, and the development of more balanced and self-sustaining economies. Furthermore, industrialisation supports community stability, promotes technological advancement, and provides young people with the skills required to succeed in a rapidly changing global economy.

The rationale for advancing industrialisation in Africa is increasingly compelling. The continent has the necessary resources, skilled workforce, and demographic advantages to emerge as a major manufacturing center. The primary challenge lies in converting this potential into sustained economic transformation.