10 Feb 2025

There is need to diversify the economy by expanding key sectors such as tourism, agriculture, manufacturing, information technology, and healthcare to secure Botswana’s future, as the country’s reliance on diamond revenues has been both a strength and a vulnerability.

Delivery 2025/26 Budget Speech today, the Vice President who is also Minister of Finance, Mr Ndaba Gaolathe said a central pillar of this strategy was the diversification of the mining sector and an aggressive drive for mineral beneficiation.

 To this end, he said the Khoemacau Copper mine in the North West District was embarking on an expansion exercise that would ramp up production from the current 60 000 tonnes of copper to at least 130 000 tonnes.

Mr Gaolathe said the expansion was anticipated to increase the labour force from the current 2 000 to 4 000 employees.

“Another noticeable progress is Menzi Battery Metals which has been granted a mining license to exploit battery grade Manganese at Kgwakgwe Hills near Kanye and they are currently finalising the establishment of processing plant. At construction, the project will employ 300 people and during operation the numbers will reduce to 200 due to plant automation,” he said.

Mr Gaolathe said the energy sector  was a key driver for diversification adding that there was no doubt that another important aspect of diversification drive was the modernisation of the power sector, with a strategic shift towards a solar-dominated energy industry.

 This, he said would be coupled with unbundling of power generation, transmission, and related services, a move designed to enhance efficiency, competition and investment in the sector.

Mr Gaolathe said the approach would enable Botswana to scale up electricity production to at least 8 000 MW within four years, laying the foundation for a more sustainable and competitive energy landscape.

“It is a decisive step towards fulfilling our commitment to reducing electricity costs by 30 per cent, easing the financial burden on businesses and households alike. Beyond domestic benefits, this initiative positions Botswana as a major regional electricity exporter, strengthening our economic resilience and regional influence,” he said.

Furthermore, he said a stable, cost-effective power supply would not only attract investment but also enhance Botswana’s appeal as a thriving hub for business and a desirable place to live.

Mr Gaolathe said to cater for the national base load power requirements, a 600 Megawatts Jindal Coal fired power plant in Mmamabula had already commenced construction of the pre-project’s activities.

He said other projects which were still under procurement were the 200 MW Concentrated Solar Power in Maun;, 100 MW Solar PV in Jwaneng,100 MW Solar PV and 100 MW of Wind Power in Letlhakane.

“These projects are expected to create business opportunities and jobs for our people as well as reduce energy costs in the long run, making energy more accessible and affordable for all,” he said. ENDS