The government’s economic strategy is undergoing a gradual but significant change. After decades of relying on diamonds to generate export earnings and finance public spending, the government is attempting to build a broader economy based on manufacturing, logistics, energy, agriculture and services.
President Duma Boko used his State of the Nation Address to present an extensive catalogue of infrastructure and investment projects intended to support that transition.
The government is pursuing a 1,600km Trans-Kalahari Railway, a 1,600km Chobe-Zambezi Water Transfer Scheme, new industrial facilities, additional solar generation and the development of a major commercial hub around Sir Seretse Khama International Airport.
The railway project has been delayed for more than a decade, but Boko said the two bankable feasibility studies had been successfully concluded this year. Procurement of contractors for both the railway and water-transfer projects is expected during the 2027/28 financial year.
If completed, the railway could strengthen Botswana’s position as a regional logistics corridor and improve access to international markets. It would also support the government’s ambition to create additional export industries beyond diamonds.
The Chobe-Zambezi water project is also being integrated with the Zambezi Agro-Commercial Development Project in Pandamatenga to strengthen food security.
Energy offers a more immediate example of progress. Botswana has added 200MW of solar power to the national grid through the Mmadinare and Jwaneng solar plants.
Energy offers a more immediate example of progress. Botswana has added 200MW of solar power to the national grid through the Mmadinare and Jwaneng solar plants. According to the President, electricity imports declined by 62%, from 492 gigawatt-hours during the corresponding period in 2025/26 to 187 gigawatt-hours in 2026/27. He attributed the improvement to the solar additions and better operational readiness at Morupule B Power Station.
The government is also seeking to turn the airport special economic zone into an investment destination. All 82 serviced plots have been transferred to the Special Economic Zone Authority under a head lease arrangement, and the first investor lease has been signed. Four strategic factory shells are nearing completion, with availability for occupation projected by April 2027.
Another major development is New Airport City, a P25.5 billion project being undertaken through a partnership between the Botswana Development Corporation and ALBADDAD Holding and its parent company Alfateen. The project is anchored by a 124,000-square-metre international exhibition and convention centre. BDC’s land contribution is valued at approximately P198 million, securing a 5% golden equity shareholding.
There are some early signs of progress in other areas. The Botswana Mercantile Exchange has begun trading in red sorghum, although additional commodity and cross-listing arrangements are still being developed.
A P15 million specialised export fund has also been established, with 78 companies registered to participate.
The government is simultaneously developing its first comprehensive environmental, social and governance framework to position Botswana as a sustainable investment destination. Contraction in the economy narrowed from 2.8% in 2024 to 0.7% in 2025.
Foreign exchange reserves rose by 32.2% to P63.2 billion in July 2026, equivalent to 8.3 months of import cover.
