HomeNewsLocalForeign Firms Dominate Botswana’s Billion-Pula Projects as Locals Shut Out

Foreign Firms Dominate Botswana’s Billion-Pula Projects as Locals Shut Out

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A government review of the Development Manager (DM) procurement model has exposed the extent to which Botswana’s multibillion-pula infrastructure drive has been dominated by foreign firms at the expense of local participation. 

The report, commissioned by the Ministry of Transport and Infrastructure, found that seven of the nine appointed Development Managers are majority foreign-owned and that the model’s prequalification requirements effectively locked out citizen-owned companies. 

These requirements, including high financial thresholds, meant that only a handful of well-capitalised international players could bid for packages, leaving smaller local firms sidelined from lucrative contracts. 

The review also noted that many foreign professionals engaged in the projects were working without proper registration or work permits, undermining both professional regulation and tax collection. Critics argue that the DM model’s structure not only excluded local companies from the top-tier contracts but also failed to build meaningful capacity among citizen contractors. Site visits revealed that where local subcontractors were involved, they often worked under foreign-led management with limited transfer of skills. 

The Task Team concluded that the model was in breach of the Citizen Economic Empowerment Policy and warned that such exclusionary practices threaten to weaken Botswana’s construction industry in the long term. In its recommendations, the report urges the government to restore procurement processes that give local firms a fair chance, and to create structured mentorship programmes that prepare citizen-owned companies to compete for large-scale infrastructure projects in the future.

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