Category: Sunday Standard

Botswana’s recurring foot-and-mouth disease (FMD) outbreaks are proving increasingly costly, with neighbouring Namibia emerging as the biggest beneficiary after securing a significant portion of Botswana’s unused premium Norwegian beef export quota worth an estimated N$100 million (approximately P75 million).

The development highlights the growing economic consequences of Botswana’s livestock disease challenges, which have repeatedly shut the country out of lucrative European beef markets while allowing competitors to seize opportunities that would ordinarily belong to Botswana producers.

Namibia’s Meat Corporation (Meatco) announced last week that it had secured an additional 344,766 kilograms of premium Norwegian beef quota from Botswana under the Southern African Customs Union-European Free Trade Association (SACU-EFTA) quota-sharing framework after Botswana was unable to utilise its allocation because of FMD-related export restrictions.

The additional allocation is expected to generate approximately N$100 million in export earnings, increasing the projected value of Meatco’s Norwegian exports this year to N$365 million.

The transfer follows Meatco’s rapid utilisation of its own Norwegian quota by the end of June-five months earlier than last year prompting the Namibian government to negotiate access to Botswana’s unused allocation rather than allowing the valuable quota to lapse.

‘Namibia has fully utilised the 2026 Norwegian beef export quota allocated to Meatco by the end of June,’ the corporation said in a statement.

It explained that Botswana made 459,688 kilograms of its remaining quota available, with 344,766 kilograms subsequently allocated to Meatco in accordance with Namibia’s quota-sharing formula.

Meatco Interim Chief Executive Officer, Ambassador Albertus Aochamub, described the development as a major milestone for Namibia’s beef industry.

‘Fully utilising our Norwegian quota by June is a significant milestone for Namibia’s beef industry and demonstrates the continued confidence that international customers place in premium Namibian beef,’ said Aochamub.

He added that ‘We welcome the agreement between the Governments of Namibia and Botswana, which enables Namibia to further benefit from this important market, and we are committed to fully utilising the additional allocation before 31 December 2026.’

During a briefing to Namibian Prime Minister Elijah Ngurare at the Meatco abattoir in Windhoek, Aochamub made it clear that Botswana’s FMD situation had effectively opened the door for Namibia.

‘This year Botswana is unable to utilise its allocation, and they have given Namibia the remainder of their quota to execute on their behalf,’ he said.

He added that Namibia expects to export the additional allocation within the next two months, ensuring the quota remains within SACU instead of being forfeited.

While the quota-sharing arrangement benefits the regional trading bloc by ensuring available market access is fully utilised, it underscores the mounting cost of Botswana’s FMD outbreaks.

Botswana has endured repeated FMD outbreaks in recent years, triggering export restrictions to premium markets such as Norway and the European Union. Those restrictions have disrupted the country’s beef export industry, one of its key non-mining foreign exchange earners, while competitors with disease-free status continue strengthening their foothold in international markets.

The latest transfer represents more than just unused export volume. It reflects lost premium earnings for Botswana’s cattle farmers, processors and the wider economy at a time when the country is battling sluggish economic growth and seeking to diversify away from diamonds.

Meanwhile, Namibia says international demand for its beef continues to strengthen despite weaker returns in the European Union and South African markets.

According to Meatco, the Norwegian market remains one of its most valuable premium export destinations, delivering significantly higher returns to livestock producers.

‘The milestone underscores Meatco’s continued focus on improving commercial performance, maximising value from premium export markets and strengthening returns for Namibian livestock producers,’ the corporation said.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sefalana Holding Company reported its sharpest profit decline in almost a decade after rising operating costs, weak consumer demand and disruptions to government supply contracts outweighed record sales, underscoring the pressures facing Botswana’s largest listed retailer.

The retailer posted revenue of P12.1 billion for the 52 weeks ended April 26, 2026, up 9 percent from the previous year, the highest in the group’s 52-year history. However, profit before tax fell 40 percent to P331 million, while basic earnings per share dropped to 93 thebe from 169 thebe. The board declared a final dividend of 20 thebe per share.

Sefalana said underlying profit before tax declined 19 percent after excluding one-off gains recorded a year earlier. Botswana operations absorbed most of the pressure as a seven-month gap in government milling tenders cut manufacturing profit by P72 million, while higher electricity tariffs increased costs by P25 million. Above-average wage increases for lower-paid employees added another P14 million to operating expenses.

The company said weak economic conditions continued to reshape consumer behaviour, with shoppers focusing on essential goods, value packs and private-label products rather than higher-margin discretionary items, squeezing profitability despite higher turnover.

Regional operations provided an important buffer. Namibia contributed 39 percent of group profit before tax after revenue rose 16 percent, while Lesotho remained profitable despite weaker consumer spending. Sefalana also expects its recently acquired South African investment to contribute about 10 percent of group profit over the medium term.

Despite the earnings setback, the retailer maintained a cautious outlook, pointing to new store openings, manufacturing expansion and regional diversification as key drivers of long-term growth while preserving cash to limit expensive borrowing during Botswana’s economic slowdown.

A probe by the Public Accounts Committee (PAC) on circumstances surrounding the appointment of Oteng Keabetswe as Managing Director suggest the previous board was dissolved to pave way for his direct appointment.

Members of the PAC this week scrutinized the timing and process behind the managing director’s ascent to the top job at the state-owned development finance institution.

The previous board was dissolved around August 2025. The dissolution was framed as part of the government’s restructuring of boards across several state-owned entities.

Proceedings from the PAC suggest the timing of the dissolving of the then board was too convenient. Keabetswe was appointed as caretaker managing director effective August 1, 2025, following the board’s departure. He later transitioned to the permanent role of substantive managing director on February 1, 2026, following a six-month caretaker period, with the new board appointed on October 13, 2025, confirming him.

The role of the next board, it would seem, would only be to rubber stamp the appointment of Keabetswe.

According to a member of the previous board, they had been told during their recruitment exercise that they were ‘wasting’ their time because there was already an ordained candidate for the job. He would not disclose who said that. The then board had advanced in their interviews for a suitable candidate. ‘We were conducting psychometric tests on selected candidates,’ the member said.

The PAC questioned the process behind his appointment of Keabetswe. Committee member and Nkange MP Motlhaleemang Moalosi asked Permanent Secretary at the Ministry of Trade, Joel Ramaphoi, how Keabetswe was identified and if there was an advertisement for the job and if other Batswana were given the chance to apply. The response was in the negative. Ramaphoi said Keabetswe was appointed directly by the Mnister because there was no board.

Moalosi also pointed to a forensic audit at BDC in which he alleged Keabetswe may have been implicated. He said the report pointed to alleged unethical behavior by the then investment officer Keabetswe. Sunday Standard is informed that some of the allegations in the report pointed to insider trading. Keabetswe left BDC then to work for a company in Mauritius before his return to BDC as caretaker MD in 2025 before being confirmed as substantive early this year.

Moalosi also raised questions about Keabetswe’s salary which he said was almost three times that of his predecessor. He said Keabetswe’s salary was P400,000 while his predecessor earned P150,000. He questioned why the disparity. Ramaphoi asked for time to get answers on both questions on recruitment process and the salary.

Following the dissolution and suspension of the board structure in August 2025, Keabetswe stepped in as caretaker managing director before being appointed as substantive managing director effective February 1, 2026.

The government is preparing to review the 15 percent committed allowance paid to senior public service executives as it intensifies efforts to rein in recurrent expenditure amid mounting fiscal pressure from declining diamond revenues.

Permanent Secretary in the Ministry of Finance Dr Tshokologo Kganetsano said the allowance costs government close to P100 million annually and has become a priority as authorities seek to contain spending while preserving essential public services.

Speaking on government’s expenditure reduction programme, Kganetsano said ministries had already cut operational costs, but reviewing personnel-related allowances had become unavoidable.

‘We have managed to cut expenditure in several areas, but there is still a need to revisit committed allowances because they consume close to P100 million from government coffers,’ he said.

Kganetsano questioned whether the allowance continues to fulfil its intended purpose, revealing that some beneficiaries still receive the payment despite not performing official duties outside normal working hours. He also acknowledged growing dissatisfaction within the public service, with junior officers arguing they often work beyond normal hours without receiving comparable benefits.

The Ministry of Finance is considering a wider review of public sector allowances and will engage the Directorate of Public Service Management before implementing any changes.

The proposal forms part of Botswana’s broader fiscal consolidation programme as weak global diamond demand continues to erode mineral revenues, the country’s largest source of government income. Authorities have already introduced tighter controls on travel, procurement and operational expenditure, with personnel costs now emerging as the next focus of spending reforms.

The World Bank and the International Monetary Fund have repeatedly urged Botswana to curb growth in its public sector wage bill while improving productivity and domestic revenue mobilisation.

Botswana’s newly secured duty-free access to the United States offers a competitive advantage over India’s diamond exports, which now face a 10% U.S. tariff, but a top economist says the shift is unlikely to dramatically alter the global diamond trade.

While the tariff differential could encourage some high-value diamond processing to move to Botswana, the country’s higher production costs and structural bottlenecks mean India is expected to retain its dominant position in the global cutting and polishing industry.

‘It’s helpful but not a game changer,’ said Dr. Keith Jefferis, managing director of Econsult Botswana.

‘The main problem is that India is so much more efficient (lower cost) in diamond cutting and polishing that the 10% tariff cost advantage in Botswana vs India is offset by much higher costs in general in Botswana compared to India. So, for most diamonds India is still more competitive, even with the 10% US tariff.’

The comments come as Botswana stands to benefit from preferential access to the U.S. market after Washington maintained a 10% tariff on Indian diamond imports while granting Botswana duty-free treatment, potentially giving the world’s leading rough diamond producer a pricing advantage in one of the industry’s most important consumer markets.

Jefferis said the biggest opportunity lies in larger, higher-value stones where labour costs play a smaller role in determining competitiveness. ‘The exception is for larger diamonds (3 or 5ct+) that can be cut cost effectively in Botswana, and it is possible that more of these will be cut in BW and less in India,’ he said.

Even if demand for Botswana-polished diamonds rises, Jefferis warned that local manufacturers may struggle to expand production because of domestic policy constraints.

‘However, the local industry still faces constraints in expanding. First firms cannot get the work permits they need to bring in trainers and highly skilled polishers, and second there is a punitive Training Levy that is imposed on a firm’s turnover and therefore penalises high value low margin businesses such as diamond cutting and polishing.’

He said Botswana’s levy places local firms at a disadvantage against rival polishing centres. ‘In competing jurisdictions, the TL is imposed on a firm’s wage bill not turnover, and does not impose this penalty.’ The tariff advantage also does little to address the industry’s biggest long-term challenge which is the rapid rise of lab-grown diamonds, which continue to undercut natural stones on price.

Dr. Jefferis also says the newly secured duty-free access to the United States ‘does little to change the relative price points of Botswana natural diamonds vs synthetic diamonds, as the latter has a price advantage of 70-80%’.

The assessment suggests Botswana’s improved access to the U.S. market could provide a welcome boost for selected segments of its downstream diamond industry, particularly larger stones. But without reforms to lower business costs and ease skills shortages, the country is unlikely to significantly erode India’s commanding share of the global cutting and polishing market despite the new tariff landscape.