Botswana is stepping up the fight against illicit fuel trade, with the Botswana Unified Revenue Service (BURS) and Botswana Energy Regulatory Authority (BERA) joining forces to plug revenue leakages in the sector.
The two institutions signed a Memorandum of Understanding (MoU) this week to strengthen collaboration in tackling illegal fuel trade and protecting government revenue.
Speaking at the signing ceremony, Acting BURS Commissioner General Phodiso Valashia said the agreement marked an important milestone in strengthening energy security and protecting consumers. He said BURS had a responsibility to identify and close revenue leakages and gaps, particularly at a time when the economy is under pressure.
BERA Chief Executive Officer Dr Nevah Tshabang said the MoU demonstrated the commitment of both institutions to confronting illicit fuel trade at Botswana’s ports of entry.
“The Revenue Service has a responsibility to close all revenue leakages and gaps in order to improve the already ailing economy of the country,” Valashia said.
The collaboration comes amid growing concerns over illicit activities within the fuel sector, including illegal trade and the dumping of fuel into Botswana.
BERA Chief Executive Officer Dr Nevah Tshabang said the MoU demonstrated the commitment of both institutions to confronting illicit fuel trade at Botswana’s ports of entry.
He said the partnership would enable BURS and BERA to work more closely in detecting and curbing illegal fuel trading, which has significant implications for both government revenue and the integrity of the energy market.
Tshabang revealed that an estimated P4 billion in revenue is lost annually through illicit fuel trade, highlighting the scale of the challenge facing the country.
The figure underscores the potential economic cost of fuel smuggling and other forms of illicit trade, which not only deprive government of revenue but can also undermine legitimate businesses operating within the regulated fuel market.
For BURS, plugging revenue leakages is increasingly important as government seeks to strengthen domestic revenue mobilisation and reduce pressure on public finances.
The MoU is therefore expected to strengthen cooperation between the two institutions, particularly in information sharing, monitoring and enforcement at points of entry.
For BURS, plugging revenue leakages is increasingly important as government seeks to strengthen domestic revenue mobilisation and reduce pressure on public finances.
For BERA, closer cooperation with the revenue authority provides an opportunity to reinforce regulatory oversight of the fuel industry and address practices that threaten the orderly functioning of the energy market.
The two institutions are expected to use the partnership to improve coordination in identifying suspicious fuel movements and strengthen measures against illegal imports, dumping and other forms of illicit trade.
The agreement strengthens inter-agency efforts to protect Botswana’s revenue base and ensure compliance in the fuel market.
