Botswana is poised for a significant transformation in its energy sector, with the government unveiling plans to modernize the power industry and shift towards a solar-dominated energy landscape. This strategic move, highlighted in the 2025 Budget Speech, aims to enhance efficiency, foster competition, and attract investment in the sector.

Minister of Finance Ndaba Gaolathe said in his 2025 Budget Speech that the government plans to scale up electricity production to at least 8,000 MW within the next four years, a move that will lay the foundation for a more sustainable and competitive energy environment. This ambitious goal is part of a broader commitment to reduce electricity costs by 30%, easing the financial burden on businesses and households alike.

Key projects under this initiative include the construction of a 600 MW coal-fired power plant by Jindal in Mmamabula, as well as several renewable energy projects. These include a 200 MW Concentrated Solar Power project in Maun, 100 MW Solar PV projects in Jwaneng and Letlhakane, and 100 MW of Wind Power in Letlhakane. These projects are expected to create business opportunities and jobs, while also reducing long-term energy costs.

Gaolathe said the government is also focused on positioning Botswana as a major regional electricity exporter, strengthening the country’s economic resilience and regional influence. A stable, cost-effective power supply is anticipated to attract investment and enhance Botswana’s appeal as a business hub and desirable place to live.

This energy sector overhaul is part of a larger diversification drive, aimed at reducing Botswana’s reliance on diamond revenues and promoting sustainable economic growth.