23 Jan 2025

There is a need to address the national oil security shortfall as a matter of priority.

The current reserves can provide about 15 days of the national consumption against the preferred minimum of 60 days.This was indicated by the Minister of Minerals and Energy, Ms Bogolo Kenewendo, during a stakeholders consultation workshop between the ministry and the oil and gas sector.

Ms Kenewendo said the shortfall, as it currently was, exposed the Botswana economy to strict supply risk as the country was not producing or processing oil domestically. Minister Kenewendo said government was already putting up some measures to address the matter.

“To address this economic contingency shortfall, government has undertaken the process of additional storage facilities but we have been reviewing this particular process to consider how much of it should be held by government and how much should be released to the private sector,” she said.

She said between NDP 9 and NDP 11, government implemented some industry reforms, which established the Botswana Oil and later gave the entity an import allocation.

“We have had several engagements with some of you on what that import allocation means to the industry and I am hoping that through your input as major stakeholders, we will understand the industry’s perspective on that,” she noted.

She said the pricing of the petroleum products also required urgent attention in order to ensure a conducive business landscape. Ms Kenewendo noted that there was a lot of potential of doing business in the oil and gas sector as long as there were actions to unlock it.

She also said government intended to facilitate a sustainable and low-carbon economy focusing on job creation for the betterment of the country. The minister said government had identified the energy sector as an enabler that cut across all economic sectors.

“The Energy Policy also acknowledges the importance of increasing security of supply of petroleum products, facilitating the participation of local companies in this particular sector and ensuring that petroleum products are priced in a manner that will satisfy the players in the industry, and most importantly, that consumers will receive fair pricing in the market,” she said.

Ms Kenewendo said pursuant to this, the sector also endeavoured to provide affordable, reliable and adequate supply of energy as well as to improve access and efficient use of energy resources.

She said in order to facilitate this, the ministry had identified three impact areas quite critical, being sustainable development. Sustainable development cuts across different spheres and this includes value chain development, building a regionally competitive economy as well greening the economy.

 “To this end, government has successfully developed biodiesel production programme, which now requires concerted efforts for implementation. In addition, Botswana has been reducing the content of sulfur in diesel to address carbon emissions as well,” she said.

She said she was hopeful that the week-long engagements with various stakeholders would help foster long-lasting working relationship that would stimulate growth and foster industrialisation in the wider economy.

“This will lead to the creation of the much needed growth and employment and the generation of wealth for Botswana and what we bequeath to the next generations,” she said.
She therefore called on stakeholders to work together for a common cause.

Meanwhile, Ms Kenewendo hailed the week-long engagement, which allowed the ministry to sit at the table with all stakeholders, adding that it would help the ministry come up with an informed policy paper and strategic policy to better serve the constituents.

She said such engagements were in line with the resolution of the ministry to run a series of stakeholder engagements that touch across the ministry’s mandate. ENDS