17 Dec 2025

The SmartSwitch Botswana tender was awarded and signed on August 28, 2008 as a three year-contract amounting to almost P15 million, following an open and competitive procurement process in accordance with the Public Procurement and Disposal of Public Assets regulations.
The tender was extended multiple times primarily to ensure uninterrupted payments to vulnerable beneficiaries who rely on monthly assistance for their livelihoods.
Assistant Minister of Local Government and Traditional Affairs, Mr Ignatius Moswaane, informed Parliament.
He explained that the ministry made the extensions to largely because other companies were not competitive; the bidders quoted significantly higher charges compared to SmartSwitch Botswana who quoted a lower charge.
The ministry acknowledges that other companies could offer similar services, but past procurement evaluations exposed major shortcomings, Mr Moswaane said, adding that in 2014, an open tender was advertised and three bidders submitted.
He said some failed to meet essential technical requirements because their quotes were significantly higher, and lacked the nationwide coverage needed to reliably reach beneficiaries in remote areas.
Since the inception of the contract in August 2008, Minister Moswaane said the ministry had spent a total of approximately P75.4  million on services provided by SmartSwitch Botswana.
The payment supports the end-to-end enablement of the smart card ecosystem, including beneficiary onboarding, transaction infrastructure deployment, and capacity building for retail partners to ensure seamless and secure benefit delivery.
Mr Moswaane pointed out that the ministry had extended the contract to end of the financial year 2025/26, to avoid service disruptions for vulnerable groups and that there are plans to decentralise social protection procurement while upholding transparency and competition.
He further stated the ministry was reviewing the payment system, including a proposed shift from in-kind support to cash-based transfers to improve efficiency, dignity, and impact as the human-rights-based transition would increase beneficiary choice and ensure a smooth, uninterrupted handover to any new service provider.
Tonota MP, Mr Gaefele Sedombo, wanted the minister to give an update on the Smartswitch company tender, which feeds beneficiaries in the Department of Social and Community Department, the period the tender was awarded and reasons for extensions over the years.
He also wanted to know if there were no other companies that qualified for the same, amount spent on Smartswitch and the ministry's plan regarding the tender. ENDS