21 May 2026

Botswana Railways reported an operating loss of P235 million between 2021 and 2024, with aging infrastructure, poor asset availability, and governance lapses continuing to undermine its ability to transport bulk freight, a parliamentary committee heard Tuesday.

Appearing before the Parliamentary Committee on Statutory Bodies and State Enterprises, caretaker general manager Mr Okitanye Gaogane said the parastatal recorded an operating loss of P90 million in 2021/2022. Losses narrowed to P45 million and P40 million in the subsequent two years, but rose again to P60 million in 2024.

The company has struggled to move enough freight to break even. Mr Gaogane told the committee that BR had hovered around one million tonnes of freight annually, short of the 1.4 million tonnes needed to cover expenses.

He explained that asset shortages were a key constraint. Of 1 155 wagons, fewer than 200 were operational, and only 11 of 34 locomotives remained in service.

He said the poor state of the fleet had led to attachment of some wagons, trucks and shares to settle debts owed to private suppliers.

A 2021/2022 procurement of 34 wagons from China allowed BR to briefly surpass one million tonnes in the following year, but maintenance backlogs continue to limit capacity. Mr Gaogane cited operational inefficiencies, maintenance delays and compliance gaps as barriers to securing lucrative contracts with major clients like Botswana Ash.

To keep operations running, he said, BR had partnered with freight operators for maintenance support. The company is also pursuing network expansion beyond the single Ramatlabama–Ramokgwebana line, with plans for corridors including Mahalapye–Mmamabula to regional ports and an east-west route to Walvis Bay.

Mr Gaogane said a trial for through-working trains from South Africa into Gaborone was underway to reduce trans-shipment delays.

“By enabling direct movement of freight trains across the border without intermediate trans-shipment, the trial streamlines operations, shortens lead times and increases the organisation’s capacity to move more traffic reliably and efficiently,” Gaogane said.

Furthermore, he said the turnaround efforts were centred on three pillars: strengthening governance, improving asset reliability, and expanding private sector partnerships. The initiatives align with national development priorities, he added.

The passenger train services remain suspended since the COVID-19 pandemic. and remained unviable without government subsidies due to low patronage. ENDS