The conversation about electricity in Botswana is shifting as it sits at the heart of the economy. Electricity is no longer seen only as a household utility or business expense, but increasingly as a matter of affordability, reliability, and resilience. Rising costs and ongoing power interruptions are prompting greater consideration of alternative energy sources.
Reliable electricity is essential for productivity, from small shops to manufacturing plants. The recent nine (9) percent electricity tariff increase for 2026/27, effective 1 August 2026, highlights rising power costs.
The shift to alternative energy is now as much an economic decision as an environmental one.
The Absa Green Energy Loan supports customers in transitioning to solar energy by offering up to 100 percent financing for solar panels and related components. At Absa Bank Botswana loans are available up to P500,000, with repayment terms of up to 84 months and an interest rate linked to the Absa Prime Lending Rate.
For individuals, solar installations reduce reliance on the grid, as this can lower electricity costs over time, and offer greater energy independence. They also provide peace of mind during power interruptions.
For businesses, the benefits are even greater, because power interruptions alone often lead to lost trading hours, disrupted production, damaged stock, or reduced customer service. Solar solutions therefore help businesses build resilience and manage recurring operating costs.
This is especially important for Botswana’s small and medium-sized businesses, which face a challenging economic environment. Absa’s offering comes as an energy efficiency and alternative power support strategy that help protect margins and enhance operational resilience.
The opportunity also applies to larger commercial and industrial businesses, which must improve efficiency, control costs, and meet rising expectations for environmental, social, and governance (ESG) performance. The green transition now requires active participation.
For Absa, this aligns with our broader purpose of delivering local solutions to local challenges and supporting sustainable economic growth. The bank has integrated sustainability into its business approach, including a Sustainable Finance Issuance Framework, while continuing to support sectors that drive Botswana’s economic development.
Globally, the International Energy Agency reports that solar photovoltaic power is now the least-cost source of electricity in many African countries. Private-sector clean-energy investment in Africa rose from about US$17 billion in 2019 to nearly US$40 billion in 2024.
Despite progress, Africa faces a significant financing gap, and the IEA estimates that about 600 million people lack access to electricity, and achieving universal access will require much greater investment.
Botswana can leverage its abundant sunshine as an economic asset. The country receives more than 3,200 hours of sunlight annually and average solar irradiation of about 21 megajoules per square meter. This then positions the country among the global leaders in solar energy potential.
The benefits of solar energy extend beyond electricity generation. It can help households manage rising energy costs, provide businesses with greater protection against power interruptions, and reduce reliance on imported electricity. Nationally, investing in solar strengthens energy security, attracts investment, and supports the growth of a green economy.
This opportunity is moving from ambition to implementation. Botswana is developing utility-scale solar projects and aims to increase renewables’ share in its energy mix.
For example, the 500MW Maun Solar Project includes a 500MWh battery storage system to store solar power generated during the day for use during peak periods.
For Absa, this aligns with our broader purpose of delivering local solutions to local challenges and supporting sustainable economic growth. The bank has integrated sustainability into its business approach, including a Sustainable Finance Issuance Framework, while continuing to support sectors that drive Botswana’s economic development.
Most importantly, the Green Energy Loan goes beyond purchasing solar panels.
Absa requires vendors to meet technical standards, provide warranties, use accredited technicians and ERB-registered engineers, offer installation insurance, demonstrate BPC rooftop solar experience, and deliver after-sales support.
Customers must also secure BPC pre-vetting and installation guidance.
The green transition will take time and requires collaboration among government, businesses, households, financiers, and technology providers.
Each solar installation is a step toward a more resilient Botswana.
The question is no longer whether to prepare for a greener energy future, but how quickly we can finance and achieve it.
For households and businesses ready to take action, the Absa Green Energy Loan provides a practical starting point.
* Motshidisi Sebina, Product & Portfolio Manager, Lending, Absa Bank Botswana
