Rail freight revenue rises faster than volumes

Botswana’s rail freight business generated stronger returns in the first quarter of 2026, with revenue growing faster than cargo volumes as a surge in transit traffic reshaped the mix of goods moving through the network.

According to a report compiled by Statistics Botswana, during the first quarter of 2026, Rail freight volumes increased 4.9 percent to 171,715 tonnes from 163,681 tonnes in the previous quarter, while revenue rose 7.5 percent to P42.9 million from P39.9 million.

The performance was driven largely by transit traffic, which more than doubled, rising 108.8 percent. Transit cargo nevertheless represented only 18.8 percent of total freight, behind exports at 31 percent, local traffic at 25.5 percent and imports at 24.7 percent.

The stronger revenue growth highlights the value of the traffic mix. Transit freight generated average revenue of P395 a tonne, considerably above local traffic at P275.72. Imports generated P29.37 a tonne, while exports brought in only P13.22.

That disparity gives Botswana’s rail network a potentially important commercial incentive to attract more transit cargo, even if such traffic remains smaller in volume terms.

The figures also show the limits of relying on traditional freight categories. Exports and imports together accounted for more than half of volumes, but produced substantially lower revenue per tonne than transit traffic.

For a railway operating in a regional market, the opportunity may therefore lie less in simply increasing tonnage and more in capturing cargo that can command higher yields. The first-quarter figures offer an early indication of that shift, although it remains to be seen whether the sharp increase in transit traffic can be sustained.

SA power reforms put BPC costs in spotlight

Botswana Power Corporation (BPC) could face greater pressure on electricity procurement costs as South Africa reforms its power market, potentially changing how electricity is priced and traded across the region.

South Africa’s Cabinet has approved for public comment a revised electricity pricing policy that seeks to make tariffs more cost-reflective and separate charges for generation, transmission, distribution and retail.

The reforms are intended to move South Africa towards a more competitive electricity market, with greater participation by independent generators and traders.

For Botswana, the changes matter because BPC remains exposed to South African electricity prices despite growing domestic generation.

BPC chief executive David Kgoboko recently told a government assurance committee that the corporation buys electricity from South Africa, Namibia, Mozambique and Zambia at prevailing industry rates, while domestic tariffs do not fully recover supply costs.

BPC’s 2024 integrated report showed power-import expenditure more than doubled to P3.676 billion from P1.641 billion, contributing to a post-tax loss of P1.842 billion.

Botswana has reduced its reliance on imports, with electricity imports falling 61.8 percent year-on-year to 220,305 MWh in the first quarter of 2026. Eskom nevertheless supplied 80.9 percent of those imports.

The reforms could eventually benefit Botswana if greater competition and investment increase regional electricity availability. But the transition could also introduce greater price volatility as South Africa moves towards a more market-based system.

The pressure comes as BPC remains reliant on government support. Minerals and Energy Minister Bogolo Kenewendo said government provided about P2.5 billion to BPC during 2025/26 period.

South Africa has also approved an 8.76 percent increase for Eskom direct customers for 2026/27, while municipal tariffs will rise by 9.01 percent.

Botswana Tennis Reaps Benefits of Hosting International Events

Botswana Tennis Association (BTA) is reaping the benefits of hosting international tournaments for its upcoming young aces.

This is demonstrated by the improvement in world rankings for the country’s young tennis players from the first ITF J30 Gaborone alone. More improvements in rankings are expected when new rankings are published early this coming week.

Speaking in an interview with this publication, BTA vice president technical Nonofo Othusitse said the return on investment is visible. During the recent ITF J30 Gaborone, Botswana had eight (8) boys and seven (7) girls in the main draw. Most of the players were under the age of 14 years.

‘Two of our players emerged as World Tennis Tour Juniors doubles champions. That is Martin Seetso (boys) and Angel Chakanyuka (girls). Two other players, 13-year-old Reene Sebego and 14-year-old Rerotlhe Kgannyeng gained their first ever international rankings.’

Of greater importance, a number of our players are improving their rankings. Martin Seetso jumped 440 places to move to a world ranking of 2222 while Angel jumped 206 places to 1691 ranking.

‘We are happy with the performances. We have two Champions and a number of players improving their rankings. If you look at the round robins some of our players won 2 matches out of 3.’

‘We are expecting to see an improvement in terms of players performances in both singles and doubles. We are expecting more players to improve their rankings. The ROI is definitely there.’

This was all achieved while at the same time reducing expenses for parents who pay from the pocket to take their young players to compete in international tournaments.

‘When we host, we offset international travel cost for our players. This can be a limiting factor for most players. So, with six tournaments hosted, we ensure that at minimum our players get to play 6 tournaments a year.’

Due to the improvement in the rankings for young local players, Botswana has maintained her position in the CAT Nations Trophy. Botswana is currently ranked 8th in Africa in the 2026 African Tennis (CAT) Nations Rankings. In the Southern African region, the country is ranked third, just behind neighbours South Africa and Zimbabwe.

The rankings are compiled from the results of players in the African Junior Championships across the U14, U16 and U18 age groups. The rankings take into account both singles and doubles performances.

Nonofo says the improvement in rankings for the players and the country points to a good investment made to help sports stars. He pointed out that the rankings also show ‘the country’s consistency in terms of participation and competing in the Continental championships.’

Away from the players, the BTA vice president technical says hosting helps the BTA to build capacity. From hosting, ‘administrators and officials are gaining necessary skills and experience.’

‘When hosting, we give our officials an opportunity to organise and run these events. We are therefore building capacity in terms of administrative and technical officials.’

He elaborated that as Botswana tennis, they dream of hosting ATP and WTA events in the future. As such, having as many administratively and technically capable officials will ease the processes of hosting.

Vehicle market hits the brakes

Botswana’s vehicle market started 2026 on a weaker footing, with first-time registrations falling sharply and the composition of purchases pointing to a market still heavily reliant on imported used cars.

A total of 8,119 vehicles were registered for the first time in the first quarter, down 18.3 percent from 9,942 in the final quarter of 2025, according to Statistics Botswana. The decline was recorded across most vehicle categories, with the exception of trucks.

The latest figures extend a downward trend from the high levels recorded in 2024 and early 2025. First-time registrations stood at 11,583 in the first quarter of 2025, meaning the latest quarterly total was substantially lower year on year.

Passenger cars continued to dominate the market, accounting for 74.7 percent of registrations. Vans represented 7.7 percent and trucks 5.5 percent. The composition of imports is equally notable. Used vehicles accounted for 79.6 percent of all first-time registrations, while new vehicles represented just 20.3 percent.

Japan remained the dominant source, supplying 70.3 percent of all first-time registrations. Almost all Japanese vehicles – 99.4 percent – were used. South Africa, meanwhile, accounted for 18.8 percent, with new vehicles making up 76.1 percent of its registrations.

The figures underline the continued importance of the second-hand vehicle trade to Botswana’s automotive market.

For dealers and other businesses exposed to vehicle demand, the latest decline raises questions over whether the slowdown is temporary or indicative of a more sustained cooling in household and business demand.

GIA rebounds in H1:2026

The Government Investment Account (GIA) has staged a sharp recovery in the first half of 2026, rising nearly 88 percent to P3.13 billion by June, although the account remained highly volatile amid persistent pressure on government finances.

The GIA, held with the Bank of Botswana, increased from P1.66 billion in January after plunging to a record low of just P106.5 million in February – its lowest level in more than two decades. It subsequently surged to about P8.7 billion in March following the central bank’s P7.3 billion dividend payment, before falling to P6.1 billion in April and P3.13 billion by June.

The recovery coincided with a broader strengthening of Botswana’s foreign exchange reserves. Total foreign assets increased 10.4 percent to P59.12 billion at the end of June from P53.56 billion in January. In US dollar terms, reserves rose 6.1 percent to $4.16 billion.

Over the year to June, foreign assets climbed 31.5 percent from P44.96 billion, although the stronger Pula also supported the Pula-denominated increase. The Transactions Balances Tranche, representing the more liquid portion of reserves, rose to P12.70 billion from P9.67 billion, while the Pula Fund increased to P30.82 billion.

Another key improvement was the full repayment of the government’s temporary advance from the central bank. The facility stood at P3.20 billion in January but had been cleared by June, removing a significant sign of immediate fiscal cash-flow stress.

However, the improvement comes as Botswana continues to grapple with weak diamond revenues. Government remains reliant on borrowing and SACU transfers, meaning the stronger reserves and GIA provide relief but do not yet signal a durable turnaround in the country’s fiscal position.

Dozens of children exposed to rodent-Infested food

A considerable number of children are feared to have been exposed to a food safety risk after dead rodents were reportedly found inside packaged Tsabana products.

Tsabana is a government-supplied food product manufactured by Sefalana Holding Company Limited’s subsidiary, Foods Botswana (Pty) Ltd.

The discovery has triggered an urgent food safety alert and raised serious questions about food safety controls at the Serowe-based manufacturer.

Foods Botswana is wholly owned by Sefalana Holding Company Limited, a company listed on the Botswana Stock Exchange.

The company produces Tsabana and Malutu exclusively for the government feeding scheme.

The affected product is 2.5kg Tsabana with batch number A16326 which was manufactured on 12 June 2026 and due to expire on 12 October 2026.

A savingram issued by the Kweneng District Council on 3 August 2026 described the matter as an ‘urgent food safety alert.’

The document states that dead rodents were identified in a packaged Tsabana product manufactured by Foods Botswana at Newtown Ward, Serowe.

‘This savingram serves as an urgent notification of a suspected food safety alert requiring coordinated multi urgency action,’ the council states.

Sources at the government enclave have expressed concern because Tsabana is produced for the government feeding programme. The product is distributed to children through public feeding schemes.

The Kweneng District Council called for immediate action to determine whether the affected batch had already reached other districts.

‘As a precautionary action, your esteemed office is requested to engage with all District Councils to establish availability of the food product in their jurisdiction,’ the savingram states.

Kweneng District Council also indicated that it was engaging Foods Botswana to obtain information on the distribution and traceability of the affected batch.

Reports also indicate that the incident has raised questions about how a dead rodent could allegedly end up inside sealed food packaging. It also raises questions about the effectiveness of hygiene, pest control, inspection and quality assurance systems at the manufacturing plant.The savingram calls for a coordinated response and immediate tracing of the affected product.

Contacted for comment, the Ministry of Health referred questions to the Ministry of Local Government and Traditional Affairs.

Ministry of Health spokesperson Christopher Nyanga told Sunday Standard that the matter was already being handled by the latter ministry.

‘We have noted your enquiry; however we advise that you engage the Ministry of Local Government and Traditional Affairs, which is currently seized with the matter at hand and is best placed to provide the relevant information and clarification,’ Nyanga said.

He said the Ministry of Health would only act after receiving a report from the responsible ministry.

‘The Ministry of Health will, at a later stage, receive a report from the Ministry of Local Government and Traditional Affairs whereupon any action or advice as to the way forward, could be made,’ he said.

Despite repeated attempts by Sunday Standard to obtain the company’s response, Sefalana had not responded by press time. The company was asked to explain how the alleged contamination occurred, whether the affected batch had been recalled, how much of the batch was produced and distributed, and whether other products had been affected. It was also asked to clarify what pest-control and quality assurance measures were in place at Foods Botswana’s Serowe facility.

The Ministry of Local Government and Rural affairs also had not responded by press time.

’Vat ‘n sit’ Botswana’s new normal?

Botswana is undergoing a quite transformation in how people fall in love, marry and have children. The country’s latest vital statistics suggests that the traditional sequence of relationship, marriage and parenthood ids being re-rewritten.

Of the 41,784 live births registered in 2024, 84,3% occurred outside wedlock, while only 15,7% were to married mothers, according to Statistics Botswana’s 2024 Vital Statistics Report.

Statistics Botswana describes non-marital childbearing as the ‘ dominant pattern’ across reproductive age groups.

For a society in which marriage has traditionally been an important gateway to family life, the figure is striking. Marriage and parenthood are increasingly becoming separate parts of adult life.

The report revealed that teenage fertility is also falling. Women aged 15 to 19 recorded an age specific fertility rate of 41 births per 1,000 women in 2024. Childbearing is increasingly concentrated among women in their twenties and early thirties.

The shift reflects a broader transformation. Young women are spending longer in education, entering the labour market and increasingly, deciding when they are ready for motherhood.

The decline in marriage is perhaps more striking. Only 4,517 marriages were registered in 2024, the lowest number in a decade and about 42% below 7,641 recorded in 2021. Marriage is therefore becoming less of an automatic milestone of adulthood. People are still forming relationships. They are still having children. But increasingly, the wedding comes later, or not at all. Statistics Botswana points to ‘ changing social norms, delayed marriage, increased cohabitation and economic factors’ as possible explanations.

For older generations, having a child outside marriage could carry considerable stigma. But when more than four out of five registered births occur outside wedlock, non-marital parenthood can no longer be regarded simply as a marginal departure from the social norm.

The largest share of births outside wedlock in 2024 was among women aged 20 to 24, accounting for 22.3 of all registered births. Women aged 25 to 29 accounted for another 20.1%, while those aged 30 to 34 accounted for 16.4%.

These are overwhelmingly adult women, not teenagers. That makes the transformation particularly significant. Botswana’s changing family structure is not simply a story about adolescent pregnancy . It is about how adults are organizing relationships and parenthood.

For an earlier generation, settling down often meant marriage, a home and children. For younger Batswana it may mean something different. Maybe, finding a job, securing housing, building savings, living with a partner and having children, with marriage becoming one option rather than an obligation.

Cohabitation may be a step towards marriage, a long term alternative to it, or a practical arrangement shaped by economic circumstances.

Is the US losing the world to China?

The geostrategic tectonic plates are shifting. And that shift is happening at an unprecedented hypervelocity. The resultant has been reconfiguration, recalibration, rebalancing and reshaping of geostrategic postures. New political and security alliances are taking shape and form. Long-standing security policies and postures are quickly being abandoned. Japan being the utmost profound example of this development. Japan’s 2026 Defense White Paper, indicates a clear abandonment of its traditional passive-containment posture, to offensive one. In the White Paper, the Prime Minister Sanae Takaichi’s government characterise China as ‘the greatest strategic challenge,’ and highlights China-Russia relations as causing strategic anxiety in East Asia. Furthermore, Japan has recently launched its centralised National Intelligence Bureau (NIB).

In the context of this unravelling geostrategic environment, Pew Research Center has in July 2026, released a report on a survey they conducted in 36 countries looking at how views of the U.S. and China compare around the world. The survey, considered the following three variables; ratings of their presidents, their respect for personal freedoms, and their approaches to foreign policy. The results of the survey demonstrate that China is now seen more positively in the world than the U.S. Furthermore, the survey indicates that the world has more confidence in President Xi Jing pin than President Donald Trump. Even in places traditionally considered US’ sphere of influence, Canada, Mexico and Latin America, people view China more positively than the U.S. What is more interesting is that, even in Europe, President Xi Jing pin is still highly-rated than President Trump with UK giving him highest favorability rating at 37%. Similarly, people in the 36 surveyed countries see China as a more reliable partner than the U.S. and say China contributes to peace and stability around the world. The survey indicates that in Latin America, people are profusely of the view that the U.S. interferes in the affairs of other countries.

But the results of the survey are not surprising at all. Actually, in context of the unravelling Great Power competition, they are a true reflection of China’s strategic supremacy over the US. In fact, much this outcome, came largely be attributed as strategic own-goal by the US. Since coming into the oval office, President Trump has been at war, literally and figuratively. And it is war of attrition; against everyone and everything. His adversaries, mostly imaginary, spans from Africa through Europe to Asia. Whether by design or by default, Trump is inadvertently rearranging the world. By word and deed, Trump subscribes to a cutthroat world where norms and values count for nothing. Like Ebenezer Scrooge, in A Christmas Carol by Charles Dickens, all relationships are transactional, and outcomes ultimately reflect the naked exercise of power. But that is not the scary part. The scary part is his recent hint at possibility of a third term in office. No matter how ridiculous this may sound, Trump unlike other politicians, always follows his word to the letter. By now, he probably has already commissioned someone to painstakingly go through the US Constitution to search for every possible loophole, to fulfil the ambition.

Trump is a man who has mastered the art of living happily side by side with ridiculousness. Let us be reminded that, he owes his entire political career to weird ideas. He has single-handedly built a quasi-cultic political movement, ‘MAGA’ out of these weird ideas. The weirder the idea, the more politically sexy it is, to his support base. His popular vote has grown by over 14 million since his 2016 victory. And he is enjoying the dividends. As things stand, the world wakes up every day, to wonder at his every action. And he never disappoints. True to his campaign promises, Trump has launched a nuclear bomb of a trade war, leaving even his closest allies, Europe, scrambling for bomb shelter. The tariffs are as extreme as are comical. The tariffs ranged from 10 percent to 145 percent, and still counting in the case of China. While the rest of the world has been thrown into panic, China remained calm, but thoroughly proportionate in response. Perhaps credit goes to the Chinese intelligence services, who seem to have made accurate estimates on Trump’s course of action. Trump is clearly employing the tariffs to derive strategic capitulation from the rest of the world, in particular, China. However, Trump must know that, capitulation is a means, not an end. As such, there is strategic incentive for countries, especially those with limited trade links with the US, to cave into Trump’s demands. It only serves to soothe his pride, but does not upend the balance of power.

In the context of the unravelling strategic environment, the strategic end-goal of Trump’s tariffs is already a lost course, as their long-term costs outweigh the benefits for the US. These tariffs, are a strategic blunder that carries the potential to push the rest of the world towards China, catapulting it to sole global superpower, and inadvertently bringing back unipolarism. The US and its allies, have been playing a catch-up to China in geostrategic competition, especially in the Global South. Trump’s pullback of American aid is likely to catalyse erosion of American influence and soft power to the benefit of China. With the tariffs, Trump has literally turned back on his traditionally dependable allies. This behaviour ruins relationships and collaborations in all fronts, including multilateral and bilateral security arrangements, consequently casting the US as an outright adversary than an ally. Eventually, many of US allies will seek refuge on China, which is already the largest trading partner for over 120 countries and is seeking to expand its military footprint across the globe. At the present moment, no country command such strategic weight, to counter-balance China. Europe is still struggling to find its strategic balance after Trump’s sudden political, economic and military decoupling.

Riddled with inherent contradictions, it may take Europe a decade or two to distinctly define its security and foreign policy posture away from the US. The US’ foreign policy is now driven, in part at least, by the imperatives of its domestic culture wars. As such, security of Europe has become entangled in the battle between two polarised and mutually antagonistic visions of what the US stands for. In this environment, China stands ready to reap strategic dividends from Trump’s trade war and increase its investment in soft power and consolidate influence across much of the world through various instruments including, the Belt and Road Initiative. When General Michael Langley, former Commander of U.S. Africa Command, testified before the Senate Armed Services Committee he described US foreign aid as ‘needed capabilities’ to counter China in the African continent. He also highlighted the need for the US to out-compete China in the security cooperation arena, at the same time acknowledging that, Africa relies heavily on China’s economic and infrastructure investments. The securocrats like General Langley, understands the importance of ‘3D’ approach which synchronises, diplomacy, development, and defense in Great Power play.

Unlike Mexico, which relies on the U.S. market for 83% of its total exports, China sells only 16% of its total exports to the US, which implies a diversified export base that allows it to be more resilient to Trump’s trade war. But with this vantage point, China would not be seeking to play ‘Father Christmas.’ Just like the US, it will leverage on its pole position and soft power to aggressively pursue its national interests which include, but not limited to access to raw materials, political support at international fora, and deals to build, operate, or access dual-use infrastructure. Further, Trump’s tariffs are an opportunity for China to consolidate its dominant position in BRICS economies. They are also likely to embolden China to upend the strategic balance in the Korean Peninsula and the Indo-Pacific region to its favour, leaving both Japan and South Korea nervous.

Letshego profit rises despite revenue pressure

Letshego Africa Holdings has lifted first-half profit by 25 percent despite weaker operating income, as lower credit impairment charges and tight cost controls helped the pan-African financial services group navigate challenging market conditions.

The group reported consolidated profit after tax of P226.9 million for the six months ended June 2026, up from P181 million in the corresponding period last year. Profit from continuing operations increased five percent to P179.9 million from P171.3 million.

The improvement came against an eight percent decline in operating income to P957.5 million, while net interest income edged down one percent to P764.1 million. Non-funded income fell 28 percent to P193.4 million, partly reflecting a once-off insurance adjustment recorded in the previous year.

Letshego’s bottom line was supported by a sharp reduction in impairment charges, which fell 62 percent to P32.6 million from P86.4 million. The loan loss ratio also improved to 0.5 percent from 1.4 percent, reflecting stronger collections and recoveries.

Operating expenses declined seven percent to P525.4 million, helping the group maintain its cost-to-income ratio at 55 percent despite weaker revenue. In Botswana, Letshego’s profit after tax remained unchanged at P104 million, despite tight liquidity and elevated funding costs weighing on lending activity and margins.

Namibia was the group’s strongest continuing market, with profit rising 12 percent to P208 million, while Eswatini recorded a 42 percent increase to P27 million. Mozambique’s profit fell 14 percent to P153 million.

The results come as Letshego advances plans to sell its Ghana, Nigeria, Rwanda, Tanzania and Uganda operations, focusing capital on markets offering stronger returns.

Citizenship-for-Sale plan hits the buffers

Botswana’s attempt to enter the global citizenship-by-investment market has stalled with the much-hyped programme failing to open on schedule. The result is that would-be investors have been left in limbo.

The Impact Citizenship Program which was promoted as a gateway to citizenship in exchange for a financial contribution is still not operational and is not accepting applications. This is according to the latest update from DirectCitizenship.com. The platform says the government is still scrambling to finalise the legal, institutional and administrative machinery needed to launch the scheme. What was marketed as a fast-track entry into Botswana citizenship has instead turned into a drawn-out delay. This has raised questions about whether the programme is ready for international investors at all.

First unveiled in 2025, the programme was designed to attract foreign capital and position Botswana as a new player in the controversial global ‘citizenship-for-sale’ industry. Early proposals suggested investors could obtain citizenship through contributions estimated between US$75,000 and US$90,000, alongside a licensed-agent system and acceptance of dual citizenship. But the launch expected in early 2026 never materialised. Instead, officials are still working behind the scenes to build the framework required to process applications effectively freezing the programme before it has even begun.

‘Botswana has moved materially towards establishing citizenship by investment, but the announced programme has not yet become an active application route,’ DirectCitizenship.com noted in its assessment. The setback comes despite Botswana’s Parliament approving citizenship legislation in December 2025, a move intended to allow dual nationality and enable the investment-linked citizenship model. However, the legal green light has proven insufficient. The legislation did not activate the programme itself, and key regulatory systems including application processing structures and compliance mechanisms remain incomplete. According to DirectCitizenship.com, these missing components are essential before any formal applications can be accepted. In other words, the law exists but the programme does not.

While a registration portal has allowed interested individuals to submit expressions of interest, officials have made clear that this does not constitute an application and offers no guarantee of future approval. More than 600 prospective investors are reported to have registered interest during the programme’s development phase, but none have been able to proceed further.

DirectCitizenship.com says Botswana has no confirmed launch date and no applications are currently being processed. It warns that the delay also risks undermining Botswana’s attempt to compete in a growing African citizenship-by-investment market. Other countries have already moved ahead. São Tomé and Príncipe offers citizenship from around US$90,000, while Sierra Leone’s programme starts at approximately US$140,000 for a single applicant. Botswana, once positioned as a potentially more affordable and stable alternative, now finds itself stuck on the sidelines. For now Botswana’s citizenship-by-investment initiative exists largely on paper. The promise of a streamlined, contribution-based route to citizenship has not translated into a functioning system.