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A decline in diamond prices weighed on Botswana’s mining sector in the final quarter of 2025, highlighting the economy’s continued exposure to global commodity cycles. The Producer Price Index, compiled by Statistics Botswana, tracks changes in prices received by producers in sectors such as mining and utilities, offering an early signal of inflationary trends in the economy.

Producer prices in mining fell sharply, with annual mining inflation recorded at -13.6 percent in the fourth quarter of 2025, though this marked a slight improvement from -17.4 percent in the previous quarter.

On a quarterly basis, the mining producer price index declined 4.3 percent, driven largely by a 5.4 percent drop in diamond prices, which dominate Botswana’s mineral exports. The data underscores how fluctuations in the global diamond market continue to shape domestic economic conditions.

While diamonds pulled the index lower, other minerals showed mixed performance. Coal prices surged, recording a strong quarterly increase, while soda ash and salt posted modest gains. Gold prices, however, also declined, adding to the downward pressure.

The contrasting movements point to a fragmented recovery within the mining sector, where smaller commodities are unable to offset the weight of diamonds.

In contrast, the utilities sector remained stable. Producer prices for water and electricity were unchanged during the quarter, although annual inflation held at a relatively elevated 19.1 percent, reflecting earlier price adjustments. The divergence between mining and utilities highlights two sides of Botswana’s price dynamics: externally driven volatility in exports and more stable, regulated pricing in domestic services.

For Botswana, the data reinforces a familiar pattern. When diamond prices soften, the ripple effects are felt across production, exports and ultimately growth. As global demand conditions remain uncertain, the latest figures suggest that any recovery in the mining sector will depend heavily on a turnaround in diamond markets rather than broader commodity support.

Government has reiterated its difficulties in settling outstanding payments to oil companies, as rising global crude oil prices continue to strain the National Petroleum Fund (NPF). Speaking in Parliament, Minister of Minerals and Energy Bogolo Kenewendo said the fund has disbursed over P262 million in fuel subsidies over the past three months but still owes oil companies about P350.6 million in outstanding claims.

She said the NPF is struggling to fully cushion pump prices amid persistent increases in global oil prices, largely driven by geopolitical tensions in the Middle East. While the fund continues to support consumers, the rising cost of fuel imports has limited its ability to stabilise prices and meet supply obligations.

Kenewendo noted that although there has only been one upward fuel price adjustment in the 2025/26 financial year, in September 2025, underlying pressures have remained. Between June and September, import costs exceeded regulated prices, resulting in a cumulative debt of over P544 million due to delayed price adjustments.

The NPF has been absorbing these price differences to shield consumers, accumulating more than P150 million in recent months to offset rising costs. However, the pressure has intensified as global oil prices remain elevated.

The minister said recent pump price adjustments made at the end of March 2026 will continue to be supported by the fund, despite ongoing cost pressures. Fuel has been imported at higher prices while being sold below cost for several weeks, widening the gap between actual and regulated prices.

For March alone, under-recoveries are estimated at P714 million, reflecting the scale of the subsidy burden. The growing debt highlights the challenge facing government in balancing fuel subsidies with volatile global oil markets, while maintaining energy security and protecting consumers.

Choppies Enterprises Limited has opted for a modest shareholder payout, declaring a dividend of 1.0 thebe per share for the six months ended December 31, 2025, underscoring the retailer’s cautious stance amid margin pressure.

The Botswana Stock Exchange and Johannesburg-listed grocer said the dividend will be paid on April 29, with eligibility already locked in after the stock went ex-dividend on April 15. The register closed on April 17.

For local investors, the payout narrows further after tax. A 10 percent withholding tax reduces the dividend to 0.9 thebe per share, trimming already thin returns. South African shareholders will receive the dividend in Rands at a conversion rate of P1 to R1.155, equivalent to 1.155 cents per share before tax. Withholding tax of up to 20 percent may apply, subject to double taxation agreements.

Choppies said the distribution will be paid out of income reserves and treated as a foreign dividend for South African investors. The payout comes against a mixed set of results. Retail sales rose 8.9 percent to P5.09 billion, supported by the addition of 25 stores and selective price increases. However, earnings moved in the opposite direction.

Profit after tax from continuing operations fell 33 percent to P77 million, while operating profit declined 20 percent to P152 million, as cost pressures intensified. The company cited inflation, currency devaluation and the implementation of a living wage in Botswana as key drivers of margin erosion. A weaker pula alone added P64 million in costs, much of which could not be passed on to consumers.

With household spending under strain and government austerity weighing on demand, the results reflect a retailer expanding footprint even as profitability tightens.

Parliament has turned up the heat on government to overhaul Botswana’s veterinary disease control framework, calling for an urgent review and re-demarcation of livestock zones as pressure mounts from recurring outbreaks of Foot and Mouth Disease (FMD).

The motion, tabled by Boteti West legislator Sam Digwa, targets sprawling zones such as 11 and 3B, arguing that their size undermines effective disease management. Lawmakers say the current structure makes it difficult to isolate outbreaks, deploy vaccines efficiently and enforce quarantine measures with precision. The motion also calls for urgent rehabilitation of veterinary cordon fences.

The push comes as government battles a widening outbreak first detected in Goodhope District. Acting Minister Edwin Dikoloti recently told a kgotla meeting that the disease has spread beyond initial containment areas, with confirmed cases reported at multiple crushes and a commercial feedlot. Authorities have since declared new infected zones under emergency regulations.

Officials concede the situation is fluid. Veterinary authorities have long argued that existing zones combine areas with varying risk levels, complicating surveillance and response efforts. The renewed outbreak has exposed these weaknesses, with cross-border transmission and internal movement controls proving difficult to manage.

Regionally, pressure is intensifying. The Southern African Development Community (SADC) has recorded a surge in cases, pushing vaccine demand beyond supply. Botswana’s own production capacity is under strain, even as authorities race to restore disease-free status by 2028.

For farmers, the fallout is immediate. Movement restrictions are choking cattle sales and exports, while compliance costs rise. With beef exports tied to strict health standards, delays in reforming the zoning system risk deepening losses in one of Botswana’s most important agricultural sectors.

In a sporting calendar often defined by competition and trophies, an upcoming golf day in Gaborone is aiming for something far more meaningful – changing lives.

On Thursday, April 30, 2026, the fairways of Stanbic Bank Gaborone Golf Club will host the Play with Purpose – Autism Awareness Charity Golf Day. The event blends sport with advocacy, and is driven by one mother’s deeply personal journey.

Melissa Modise, a businesswoman, wife, and mother of two, is the force behind the initiative. Her inspiration comes from her six-year-old son, who was diagnosed with autism at the age of three – a moment that reshaped her family’s life.

‘What began as fear, shock, and confusion has become acceptance and determination,’ Modise shares. ‘We have been fortunate to access early intervention, therapies, and strong support. But that is not the reality for most families.’

Across Botswana, many parents raising children on the autism spectrum face are faced with a lack of adequate resources, information, or support. Early intervention, widely known to improve developmental outcomes, remains out of reach for many due to financial constraints, limited services, and a lack of awareness.

For Modise, the weight of the journey is undeniable. ‘It is mental exhaustion. It is financial strain. It is relationships tested to their core. And it’s often carried in silence, in a society that still does not fully understand autism.’

The upcoming golf day is designed to change this status quo. Play with Purpose is a call to action. It seeks to move beyond surface-level awareness toward meaningful understanding. It seeks to challenge misconceptions, break stigma, and create inclusive spaces where children on the spectrum are fully accepted.

‘We want children on the spectrum to be seen as part of everyday life, not exceptions. Inclusion is not kindness – it’s a necessity,’ Modise emphasizes.

Funds raised from the event will support Autism Botswana, a local organization dedicated to advocating for individuals on the autism spectrum and assisting their families. Autism Botswana works to raise awareness, provide resources, and push for a more inclusive society. And like many in the sector, it faces growing demand with limited resources.

The event also carries an educational message. Modise highlights that autism is not one-size-fits-all. Each child is unique, and communication is not always verbal. Understanding and meeting children where they are, she says, is key to true inclusion.

As golfers prepare to tee off, the message behind the event remains clear: this is about more than sport.

‘This is bigger than a golf day. ‘It is about changing mindsets, showing up for families who feel unseen, and giving children the chance not just to exist, but to thrive,’ she says.

Businesses and individuals are being called upon to support the initiative through sponsorships and participation, helping turn a day on the course into lasting impact beyond it.

Sometimes the most important victories aren’t recorded on a scorecard – but in the lives changed along the way.

Botswana’s economy is set for a rebound in 2026, but the recovery may prove short-lived as global shocks weigh on momentum across Southern Africa.

The International Monetary Fund (IMF) projects Botswana’s growth to swing from a contraction of 0.9 percent in 2025 to 4.7 percent in 2026, before slowing to 2.2 percent in 2027, reflecting a fragile recovery tied to external demand, particularly in diamonds. The outlook mirrors a broader regional pattern where gains remain vulnerable to global disruptions.

Across Sub-Saharan Africa, growth is expected to ease slightly to 4.3 percent in 2026 from 4.5 percent in 2025, as higher oil, fertilizer and shipping costs filter through economies following geopolitical tensions.

For Botswana, the challenge is familiar: dependence on a narrow export base. While improved global conditions could lift diamond sales in the near term, the IMF warns that commodity-dependent economies remain exposed to volatility and shifting demand patterns.

Elsewhere in Southern Africa, growth is subdued. Namibia is projected to hold steady at 2.4 percent in 2026, while South Africa, Botswana’s largest trading partner is expected to expand by just 1.0 percent, underscoring weak regional demand. Zimbabwe, though still growing faster at 5.0 percent, is also set to slow.

The divergence with faster-growing economies is stark. Ethiopia, for instance, is forecast to maintain growth above 9 percent, highlighting the gap between reform-driven economies and those reliant on commodities.

The IMF cautions that risks remain tilted to the downside. A prolonged global shock could raise inflation, tighten financial conditions and erode demand for exports, particularly for smaller, open economies like Botswana.

Construction of the 500MW solar PV plant and battery storage project in Maun has taken off, with Botswana Power Corporation (BPC) expecting the development to cut electricity costs and reduce reliance on imports.

The project, launched last week, is also expected to enhance security of supply, reduce the country’s carbon footprint and lower generation costs by displacing expensive imported power. It forms part of broader efforts to position Botswana as a net electricity exporter in the region.

The plant will be developed under an Independent Power Producer model by O-Green, a company owned by the Sultanate of Oman. During the ground-breaking ceremony, BPC and Okavango Solar, a subsidiary of O-Green, signed a 30-year power purchase agreement.

The development includes a 500MW solar PV plant and a 500MWh Battery Energy Storage System, with construction expected to be completed by the first quarter of 2029. A 2km 400kV transmission line will link the plant to the existing Mawana Substation.

BPC chief executive David Kgoboko said the project comes at a time when the utility is grappling with rising electricity costs, particularly during peak demand periods when power is imported from South Africa and Mozambique.

The battery storage system will allow energy generated during the day to be stored and used during evening and early morning peaks, easing pressure on imports and improving grid stability. The project aligns with government’s Integrated Resource Plan, which targets adding 1.3GW of renewable energy to the grid before 2030.