Botswana government Public-Private Partnership deals

Mega projects for infrastructure development

Author

Boago Sephutho
January 20, 2026

Good morning, let’s get into it!

Let me tell you why this economy session is important: to help you know which companies will benefit from funding by the government or institutions, or policies being shifted in their favor. These companies are the ones that will see increased revenue and profit, leading to their stocks performing better, given they are traded in the BSE.

Major Projects & Infrastructure

The government is moving toward a Public-Private Partnership (PPP) model to fund 17 mega-projects intended to modernize the nation's infrastructure:8

  • Energy & Oil Security: * Ikaegeng XTL Project: A coal-to-liquids initiative to ensure domestic fuel security.9

    • Tshele Hills Oil Storage: A massive petroleum storage farm in the Kgatleng District, connected by a new 300km pipeline from South Africa.10

  • Water & Agriculture: * Namibia-Botswana Desalination: A cross-border project to bring water from Windhoek to Gaborone.11

    • Chobe-Zambezi Water Transfer: A pipeline from Kazungula to Moralane to boost irrigation and water security.12

  • Transport & Connectivity:

    • Feasibility studies are underway for the Mmamabula-Lephalale Rail Link (for coal transport) and the Mosetse-Kazungula Rail Link, which will better connect Botswana to regional trade hubs.13

Company & Sector Highlights

Several companies and sectors are being spearheaded to drive this "New Botswana" agenda:

Company/Entity

Focus Area

Impact/News

Lucara Diamond

Mining Innovation

Recently increased its private placement to $165 million to advance the Karowe Underground Project, extending the mine's life despite market challenges.

Babereki Life Insurance

Financial Services

A new citizen-empowerment-focused insurance company set for a major 2026 rollout.

SmartBots

Digital Economy

Spearheading a P1.47 billion digital transformation strategy to move 230 government services online by the end of 2026.

De Beers Group

Partnerships

Successfully concluded negotiations with the government; now co-funding a P1 billion "Diamonds for Development" fund for smart agriculture and tourism.

Choppies & BTCL

Retail/Tech

Remain high-activity stocks on the Botswana Stock Exchange (BSE), showing resilience in the domestic consumer market.

Positive vs. Negative Drivers

  • Positives: High investment in Creative Arts (up 58%) and Research & Development (up 280%); aggressive push for "Green Transition" projects; and the "Reset and Reclaim" agenda aimed at cutting government bureaucracy.14

  • Negatives/Risks: Continued pressure from synthetic (lab-grown) diamonds; a recent S&P credit rating downgrade to BBB with a negative outlook; and high food inflation which has hit low-income households.

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