The President's state of the nation address

Good morning, let’s get into it!

President Advocate Duma Gideon Boko's administration is pushing a major economic overhaul, focusing on human capital, mineral beneficiation, and diversifying income streams away from traditional diamonds. Here's a look at the key initiatives from the Presidential Impact Report and recent developments:

De Beers Talent Development and Human Capital

The government is prioritizing skills transfer and youth employment through strategic private sector partnerships.

• De Beers Talent Development Programme: The report highlights that 471 graduates received advanced training under this programme in 2025. This is part of a broader effort, including the Presidential Youth Empowerment Campaign (PYEC) and Generation Unlimited (GenU), to combat youth unemployment.

• New Partnership Initiatives: Separately, the Government of Botswana and De Beers Group announced the inaugural cohort of the International Graduate Development Programme (IGDP) in October 2025 as part of the new Sales Agreement. This two-year program offers high-achieving Batswana graduates international placements across De Beers' global operations in fields like Data Analytics and Project Management, aiming to create a new generation of leaders.

Mining: Soda Ash, EV Batteries, and Regional Logistics

Botswana is leveraging its mineral resources, particularly soda ash, to feed into the global Electric Vehicle (EV) battery supply chain and boost regional logistics.

• Soda Ash for EV Batteries: State-owned Botash (Botswana Ash) is expanding its operations, including expansion into fertiliser and sodium derivative products, aligning with the national beneficiation policy. Soda ash is a key component in producing lithium carbonate and caustic soda (which makes lithium hydroxide), both essential for lithium-ion battery manufacturing. Botash is strategically positioned to supply the growing lithium processing market, notably in neighboring Zimbabwe, by being the closest soda ash producer.

• Regional Logistics to Zambia and DRC: The report explicitly lists Infrastructure & Logistics as a key focus area under the Botswana Economic Transformation Programme (BETP), with projects in rail, roads, and ports. For mining, efforts to resolve coal logistics inefficiencies through revitalized rail corridor upgrades are enhancing exports to the region. This, combined with Botash's existing role as a supplier of industrial salt to Zimbabwe, Zambia, Malawi, and the DRC, underscores Botswana's position as a regional logistics and mineral processing hub.

P200 Million for the Creative Economy

In a massive boost to the arts and creative sector, the government has substantially increased funding for content procurement.

• Creative Sector Funding: The government has announced that P200 million from the Alcohol Levy will be utilized to empower the creative industry by procuring content. This is a major increase from the P2 million figure initially mentioned by President Boko during the State of the Nation Address (SONA).

• Impact: This deliberate move is intended to improve the arts, create employment, and position the creative industry as a central part of the nation's economic diversification agenda. The creative sector is also a prioritized economic focus area for the BETP, alongside Tourism and Creatives.

Potential Job Creation Targets

The core strategy, anchored in the Botswana Economic Transformation Programme (BETP) and major partnerships, aims to create hundreds of thousands of jobs:

• Botswana Economic Transformation Programme (BETP): The 186 high-impact projects identified under the BETP, collectively valued at BWP 514 billion, are targeting the creation of 512,000 jobs by 2036. The national goal of Vision 2036 is to create over 500,000 sustainable decent jobs by 2030.

• Qatar's Al Mansour Holdings Partnership: The landmark USD 12 billion investment agreement with Al Mansour Holdings is specifically projected to create more than 30,000 jobs across sectors over the next decade.

• Hemp/Medicinal Cannabis Sector: This frontier crop industry is projected to create up to 100,000 jobs.

• Bonno National Housing Programme (BNHP): This program aims to deliver 100,000 homes nationwide by 2030, stimulating local employment in the construction and supply chains.

• Milk Valley Farm Expansion: This single project in Lobatse is projected to create 3,000 jobs across the value chain.

The total estimated job creation from the major initiatives mentioned in the report is approximately 645,000+ jobs (512,000 from BETP + 30,000 from Al Mansour + 100,000 from Hemp + other project-specific jobs like the Milk Valley Farm).

Economic Impact on the Nation

The ambitious projects and reforms are designed to achieve a comprehensive shift in Botswana's economic structure:

1. Shift from Importer to Exporter Status

• Energy Exports: The large-scale renewable energy projects, particularly the transformative ZemPower Energy Project (5.2GW solar/15GWh storage), are designed to position Botswana as a net energy exporter within the Southern African Power Pool (SAPP). This creates a new, large revenue stream for the country.

• Non-Diamond Exports: The focus on Agriculture (hemp, horticulture, meat), Financial Services (BIFSC), and Manufacturing (agro-processing, value-chain localization) is intended to significantly diversify export revenue away from diamonds, increasing the resilience of the economy.

2. Fiscal and Sovereign Strength

• Eliminating Subsidies: The Oman Investment Authority (OIA) partnership for a 500MW solar project is expected to eliminate government subsidies to the Botswana Power Corporation (BPC) (currently around US$75 million annually) and make BPC profitable.

• Fiscal Credibility: The reforms, including Zero-Based Budgeting and the Public Finance Management (PFM) Bill, aim to restore fiscal discipline and transparency, which have been critical in retaining Botswana's investment-grade rating (one of only two in Sub-Saharan Africa) from Moody's and S&P Global.

• International Capital Mobilisation: The investment partnerships (USD 12 billion from Qatar, USD 504 million from AfDB/OPEC Fund) show the credibility of the reform agenda and unlock the necessary capital to finance high-impact infrastructure.

3. Economic Diversification and Resilience

• Reducing Diamond Dependency: The entire Botswana Economic Transformation Programme (BETP) is the national masterplan designed to shift the country from resource dependence to diversified, inclusive growth.

• High-Income Status: The overarching national aspiration is to achieve high-income status by 2036. This transformation is expected to mobilize cumulative investment of USD 529 billion and lift the Gross National Income (GNI) per capita to USD 15,730.

• New Financial Hub: The establishment of the Botswana International Financial Service Centre (BIFSC) positions the nation as a regional financial gateway and a trusted, rules-based platform for cross-border investment into Africa.

The successful implementation of these projects is pivotal to addressing high unemployment (youth unemployment is a major challenge) and ensuring the long-term economic stability and prosperity of the nation.

Source:

The Botswana growth story PDF, BW Presidency Facebook page