The Selebi-Phikwe Economic Diversification Unit (SPEDU) says it has assembled the largest industrial investment pipeline in its history, valued between P5.9 billion and P6.8 billion, as the institution seeks to reposition itself from a post-BCL recovery agency into a national industrialisation platform.
Addressing Parliament’s Committee on Statutory Bodies and State Enterprises this week, SPEDU Acting Chief Executive Officer Othata Batsetswe said the organisation had undergone a ‘structural repositioning’ over the past four years, shifting from what he described as a passive coordination entity into an execution-driven investment facilitation institution.
Batsetswe told legislators that SPEDU had facilitated more than 157 enterprises with an investment value of P3.4 billion and supported the creation of over 8,000 cumulative jobs during the reporting period.
He said the institution had also operationalised governance reforms including enterprise risk management systems, anti-corruption frameworks, ESG strategies, whistleblowing mechanisms and digital procurement controls aimed at improving investor confidence and institutional credibility.
‘SPEDU today is fundamentally different from the institution that existed a few years ago,’ Batsetswe said in his executive summary to the committee. The agency was established following the collapse of the BCL copper-nickel mine in Selebi-Phikwe, which triggered widespread job losses and economic decline in the region. Batsetswe said SPEDU’s mandate had evolved from economic recovery toward building a diversified industrial economy less dependent on mining. Batsetswe said SPEDU’s manufacturing portfolio had grown from 22 enterprises in the 2020/21 financial year to 60 active enterprises in 2025/26, spanning sectors including food processing, pharmaceuticals, chemicals, plastics, electrical components and metal fabrication.
He said the institution had secured approximately P340 million in investor commitments, while negotiations involving an additional P120 million were at an advanced stage.
Among the projects highlighted was what SPEDU described as the largest foreign direct investment transaction in its history, valued at approximately US$45 million and linked to a chemicals manufacturing investor.
Batsetswe also outlined efforts to position the SPEDU region as a future industrial hub focused on electric mobility, battery value chains, metallurgical beneficiation and green manufacturing, with projected capital frameworks exceeding P3.1 billion.
He said the institution had submitted Botswana’s first application to the United Nations Fund for Responding to Loss and Damage, seeking about US$17 million for industrial decarbonisation and climate resilience projects.
Despite the reported progress, SPEDU acknowledged major structural challenges affecting industrial take-off in the region.
The institution said more than 92 percent of its heavy industrial land remains unserviced, describing this as the single biggest constraint limiting investor conversion and project implementation. Out of 103 plots held within SPEDU’s land bank portfolio, only eight have been fully developed, representing an overall development rate of about 7.8 percent. Batsetswe told Parliament that delays in gazetting the 30 percent Government Offtake Policy into a legally enforceable statutory instrument had also undermined investor certainty and weakened implementation across government procurement entities.
He further cited high electricity costs, particularly maximum demand charges imposed on emerging industries, delayed financing approvals, shortages of serviced industrial land and competition from imports as barriers to industrial growth.
SPEDU said it continued to advocate for power tariff reforms, stronger domestic market protection measures and accelerated infrastructure servicing.
The institution also addressed governance and audit concerns raised during previous years.
Batsetswe said SPEDU had inherited governance instability, prolonged board vacancies and audit backlogs, but maintained that all identified audit findings were classified as medium-risk, with no high-risk governance failures identified.
He added that the organisation had implemented cost-containment measures including tighter procurement controls, reductions in acting allowances and migration toward digital governance systems.
Financially, SPEDU said it received cumulative government subventions of approximately P141.5 million over four years, while also pursuing long-term revenue sustainability through industrial land leases, investment facilitation fees and One-Stop-Shop services. The agency reported that its accumulated reserves had increased from about P327,844 to more than P7.1 million by the 2025 financial year. Batsetswe said SPEDU’s 2026-2029 strategy aimed to position the institution as Botswana’s leading regional industrialisation platform, targeting 85 percent industrial land utilisation, expanded export-oriented manufacturing and increased integration into African Continental Free Trade Area value chains.
‘The institution’s strategic importance to Botswana’s future industrial economy is becoming more evident with every investment facilitated, every enterprise supported, every job created, and every governance reform implemented,’ he said.