Category: Business

Botswana Prisons Service (BPS) anticipates a bumper harvest of over 20 tonnes of maize in 2026, Prisons Commissioner Anthony Mokento has said.

Speaking during the signing ceremony of a Memorandum of Understanding with Seed Co Botswana in Gaborone on Wednesday, Mr Mokento said they planted Seed Co Botswana seeds on 106 hectares of land, of which 97 hectares were under maize production, two hectares of sorghum was planted in Lethakane, while cowpeas were cultivated on seven hectares.

“From this total area planted, we hope to harvest handsomely. We may not produce enough, but it will be sufficient to make a significant reduction in government expenditure on the maintenance of inmates,” he said.

Last year, he said prisons service harvested 20 tonnes of maize in 2025, equivalent to about 400 bags.

For his part, Seed Co Botswana managing director, Samson Ruwisi said agriculture was a powerful tool for transformation and an effective way of empowering inmates through modern farming techniques and productive agricultural practices.

“Inmates will gain skills that can help them reintegrate into society and contribute positively to their communities,” he said.

He said one of the most meaningful ways to contribute to communities was by transferring knowledge and practical skills that empower people.

“Through this partnership, we are proud to support the correctional services mission by equipping inmates with valuable life skills, including agriculture,” he said.

He said Seed Co. believed its role went beyond providing quality seeds in the 22 African countries where it operated. Mr Ruwisi said their mandate also extended to corporate social responsibility and rehabilitation efforts aligned with the objectives of the prisons service.

He further noted that the Seed Co Seed App, launched in Botswana in 2025, used technology to enhance best farming practices and assisted in imparting agricultural knowledge to farmers across the country. 

Botswana’s tourism fees, some unchanged for 30 years, are set to rise in a bid to strengthen revenue mobilisation and sustainability.

Currently ranked among the lowest in the region, the fees are expected to be increased starting beginning of April. Minister of Environment and Tourism, Mr Wynter Mmolotsi, said on Thursday during a consultative meeting on the proposed revision of tourism user fees, which is part of the government’s broader strategy to strengthen revenue mobilisation while ensuring affordability and sustainability.

The new fee proposals, he said, were guided by inflation adjustment, affordability considerations, revenue mobilisation, user feedback and comparative analysis.

“Comparative analysis shows Botswana’s fees remain among the lowest in the region, and benchmarking against Namibia, Zambia, Zimbabwe, and South Africa confirms the need for alignment,” he said.

Among the key adjustments are increases in tourism enterprises’ licencing fees, with citizen operators protected through differentiated charges. Wildlife and National Parks fees have been revised to reflect inflation and conservation financing needs.

For example, Minister Mmolotsi said citizen park entry fees had been proposed to increase from P30 to P50, while non-resident fees would increase from P380 to P500. While research and filming permits have been proposed to be adjusted to reflect operational costs, with commercial filming permits ranging from P20,000 to P50,000.

“As an outcome of the consultation process, some of the proposed fees that this meeting agrees on will take effect from 1st April 2026,” he said, adding that some would require amendment of applicable regulations and later gazetting for public consumption.

Minister Mmolotsi told stakeholders that the adjustments were not simply about raising fees, but about strengthening tourism and environmental management systems, ensuring sustainability, and aligning with international best practices.

He assured stakeholders that the ministry recognised the concerns raised and was willing to listen, clarify, and work with them to ensure that the revised fees were fair, transparent, and effective, while securing the financial sustainability of the sector.

The Department of Tourism director, Mr Lopang Pule, noted that the prices were not set in stone and stressed the need to periodically review costs in the sector.

“We are getting feedback from our institutions and stakeholders, some are saying your costs are too low,” he said, adding that the review was part of the government’s cost recovery.

However, participants opined that some of the proposed fees were too steep, which could lead to some agents cancelling their bookings, thus reasoning that there was a need for more time before they could be implemented.

The Hospitality and Tourism Association of Botswana (HATAB) chief executive officer, Ms Lily Rakorong, noted that the increase in fees should also be matched with quality service from the ministry.

Mr Kenson Kgaga of the Botswana Guides Association (BOGA) pointed out that some fee increments could make it difficult for them to operate, adding that tour operators, other than paying for their industry fees, had to pay for salaries and other taxes.

A quiet revolution is taking root at Seroto Ward in Tonota. 

Ms Lady Moruakgomo, a 35-year-old horticulturalist, is cultivating a brighter future for herself and her community through mushroom production.

As the second person in her village to venture into mushroom production, she is proving that with the right skills and passion, even the most unlikely crops can yield a bountiful harvest.

“I am sharing my skills and expertise with fellow women, proving that even the most unlikely crops can yield a bountiful harvest,” she said.

Ms Moruakgomo’s journey began with a training programme sponsored by NARDI, where she mastered the art of mushroom cultivation. Her dedication has earned her reputation as a skilled trainer, and she is now passing on her knowledge to other women in the community.

“I want to empower other women in the society. We women have to support each other, and that is the only way to get out of poverty,” she added.

The process of growing mushrooms is labour intensive, but Ms Moruakgomo is undeterred. She uses cleaned maize straws, soaking them overnight, boiling them to disinfect and then filling them into plastic bags for germination in a dark room.

The mushrooms are grown in a dark house, where they are kept for three weeks before being exposed to sunlight by opening windows.

“I have never felt so empowered,” she said, carefully placing oyster mushrooms in a plastic bag. 

Her dark room is a demonstration to the power of entrepreneurship, providing for her family and inspiring other women. Ms Moruakgomo’s venture is more than just a business, it is a beacon of hope. She is creating jobs, promoting sustainable farming and putting nutritious food on tables.

“Mushrooms are a superfood. They are packed with protein and goodness,” said Ms Moruakgomo.

“It is a labourious business, but the returns are worth it. Mushrooms are fragile and very sensitive to anything surrounding them. It is a high value crop, but it requires patience and care.”

With a huge market demand, particularly in Francistown, Ms Moruakgomo, whose mushrooms are the first batch she has ever grown, is confident that her produce will find eager buyers.

With the market research that she conducted pointing to a sprawling market, her target is chain stores and food outlets like restaurants.

“This is just the beginning,” she said, envisioning a future where mushroom farming transforms lives.

Tonota-based Agricultural Scientific Officer, Ms Amanda Molantwa is all praises for Ms Moruakgomo’s initiative; and sees it as a timely answer to the huge demand for mushrooms locally.

Ms Molantwa said with dedication and expertise, Ms Moruakgomo could prove that even the smallest initiatives could have a profound impact.

“Women need to support each other to get out of poverty and I am grateful that with the mushroom production, she is certainly doing just that,” she added.

Ms Molantwa is also urging women to consider mushroom production to improve their livelihoods.

“It is a high value crop with huge market and demand. With the right skills and support, women can graduate from poverty and achieve financial independence,” she said.

Ms Molantwa explained that with determination and passion, Ms Moruakgomo was cultivating a brighter tomorrow, one mushroom at a time.

When asked about common diseases affecting mushrooms, Ms Molantwa explained that their fragile nature and ability to ‘code’ surrounding smells made them susceptible to even minor threats.

“They can absorb smells from nearby substances, including harmful chemicals,” she noted.

Despite the challenges, Ms Molantwa highlighted the benefits of mushroom production.

“Mushrooms are not only delicious, but they are also packed with nutrients and numerous health benefits,” she said.

She said they were rich in protein, fibre, and antioxidants, and that mushrooms could help boost immunity, reduce inflammation, and even support cancer prevention.

Ms Molantwa’ s appeal is clear, “Join the mushroom revolution and take control of your financial future.” 

The emptiness of the public gallery tent pitched along Parliamentary Grounds at Annex II during the presentation of the National Budget Speech on Monday may have prompted legendary American musician Bob Dylan to belt out his famous tune, “the times, they are ‘a changing.”

Or fellow Grammy award winner Prince, to similarly sing, “Sing o’ the Times.”

Filled to the brim just a year earlier with an excited citizenry when Vice President and Minister of Finance Mr Ndaba Gaolathe delivered his maiden budget address, and over the past two State-of-the-Nation Addresses (SONA), the public gallery that in the recent past captured a highly expectant public mood was now empty.

Perhaps the sheer weight of sustained economic recession characterised by high unemployment, rising costs of living, plus a foot and mouth disease outbreak and a national healthcare crisis conspired to shift the national mood.

As the public listened in on national radio, television and online platforms to hear if the despair could turn to hope, Mr Gaolathe, the man tasked with performing the national Houdini Act, spoke.

“We are fully aware of the realities facing our people,” Mr Gaolathe forthrightly acknowledged.

“Chief among them is the health crisis that has tested our nation’s resilience. At a time when our nation is already navigating economic and social pressures, the outbreak of the Foot and Mouth Disease (FMD) in Zone 6B has emerged as a dark cloud over our agricultural sector.”

Having candidly appreciated the deep seated, structural challenges Botswana faces, Mr Gaolathe pronounced the short term solutions- advanced talks with the United Arab Emirates (UAE) to provide extensive health affordable supplies to normalise operations in the health system; and a National Emergency Operations Centre to coordinate the national response to FMD, among other interventions.

He then pronouced a new path towards the long terms solutions, in a budget titled: A New Era of Economic Transformation and Fiscal Prudence.

“The 2026-27 National Budget is anchored in and launches the Twelfth National Development Plan (NDP 12) and the Botswana Economic Transformation Programme (BETP),” Mr Gaolathe said.

Key to this, is building “an inclusive and deep economy” through a reform process of halting wastage and taking tangible steps towards the upper income prosperous Botswana envisioned by the National Vision 2036.

He said the 2026/2027 Budget built directly on his maiden 2025-26 budget framework, with four key steps of halting financial wastage, stabilising the economy and preparing it for takeoff, initiating tangible steps of change and building a New Botswana.

Already the process had commenced to manage public spending more prudently, strengthening oversight institutions to safeguard public resources; and mobilising the private sector and society as active partners in restoring efficiency, discipline, and accountability, Mr Gaolathe revealed.

Now the BETP and NDP 12 would guide the nation towards the True North- “A high income Botswana that is digitally enabled, export driven, and economically diversified where every citizen is employed, empowered and fulfilled.”

The BETP was developed with the technical assistance of PEMANDU Associates, a Malaysian transformation and performance management consultancy firm that has been endorsed by American Ivy League universities Harvard and Princeton.

They have a record of assisting Malaysia transform into high income status, the UAE and its Emirate of Dubai establish a world class economy and also guided Rwanda and Tanzania develop policy reform, and Botswana hopes for such transformation.

Over the second half of 2025, the BETP identified 186 projects and initiatives across six economic priorities- agriculture, manufacturing, financial services and digitalisation, infrastructure, tourism as well as energy and mining. There are also three social sectors to be prioritised- healthcare, education and social protection.

“Government has developed a more structured, evidence based approach to project execution. Through the BETP, a set of strategically significant and transformative projects underwent rigorous analysis,” Mr Gaolathe said.

The Vice President added that transformational initiatives such as the Chobe-Zambezi Water Transfer Scheme, development of rail infrastructure and the upgrade of the A1 road will be delivered under NDP12 as part of state investment in economic enablers based on fiscal discipline and accountability, “deliberately building a new culture of project delivery anchored on value for money, integrity and results.”

He said government would lay a firm foundation for long term agriculture industrialisation driven through the National Agricultural Research and Development Institute (NARDI), which was already developing national seed production self sufficiency.

Complementing this would be high impact technology driven initiatives including organic fertiliser, drone assisted crop nutrition, as well as the expansion of water melon value chains into juices, jams and other processed products, the Vice President revealed.

Also, the government had negotiated market access for fresh citrus exports to the European Union, Canada, the UAE, South Africa, Russia and Hong Kong, translating to strong performance of citrus exports from 2,790 tonnes in the 2024 season to 13,711 tonnes in 2025, a 390 per cent growth.

This typifies the future of a diversified export led economy that is envisioned to generate over 500,000 jobs over the next decade in fields such as manufacturing, agriculture, energy and mining, and increasing the country’s revenue base from heavy reliance on a diamond sector that is susceptible to external shocks.

As Vice President Gaolathe disembarked the Parliamentary Chamber podium, he had pronounced hope amid a climate of national despair. Now the nation awaits delivery. In the words of Karl Marx, “Philosophers have interpreted the world in various ways. The point, however, is to change it.”

The expansion of the Khoemacau Copper Mine is set to transform Botswana into a key global copper exporter and inject substantial employment and training opportunities into the local economy. 

The project, which officially broke ground last Friday, centres on the development of three new mines. The next phase of growth directly fulfils the promise made by MMG Limited during its 2023 acquisition to create a long-life operation with a lifespan exceeding 20 years. 

Speaking at the ground-breaking ceremony, MMG CEO, Mr Zhao Ivo, said the expansion was designed to align with Botswana’s national development agenda through several high-impact initiatives, including long-term employment. 

Mr Zhao assured that the next two years would see a significant increase in local hiring, with impacts extending far beyond direct mine labour.  Additionally,  MMG was launching a new programme alongside government, international universities and technical partners. 

The initiative, Mr Zhao said aimed to address labour shortages by creating talent pipeline of job-ready Batswana graduates through accelerated certification and practical experience. 

He added that it also aimed to support a low-carbon future given that the company was progressing with pre-feasibility work for a future 200 000+ tonne per annum expansion. 

“This includes studies into electric surface haulage trucks and bulk solar power initiatives,” Mr Zhao said. 

Again, he said by strengthening the base-metals sector, the project bolstered Botswana’s reputation as a premier mining investment destination. 

The ground-breaking ceremony at the Zone 5 site was attended by the Minister of Minerals and Energy, Ms Bogolo Kenewendo, Chinese Ambassador to Botswana, Mr Fan Yong and North West district leadership. 

Furthermore, Mr Zhao described the milestone as a long-term commitment to building a modern and high-performing copper operation that would create enduring value. 

He emphasised that the mine’s vision was built on the pillars of safety, operational excellence and environmental stewardship. While the economic outlook was positive, the event also highlighted the importance of worker welfare. 

Maun East MP, Mr Goretetse Kekgonegile, welcomed the expansion’s timing during a difficult economic period but urged management to prioritise employee working conditions. 

“The Ministry of Labour is overwhelmed by complaints from employees and Botswana Mines Workers Union against unfair working conditions,” Mr Kekgonegile said. 

In response, MMG CEO reaffirmed its commitment to ensure that every person returned home safe every day as well as working closely with the Ministry of Labour and the Botswana Mine Workers Union to address concerns regarding fair conditions. 

Mr Zhao further indicated that the company would maintain strict adherence to international safety and footprint management expectations. 

Meanwhile, the expansion represented the realisation of the ambitious outlook MMG presented in 2023.  Supported by its major shareholder, China Minmetals Corporation, MMG aims to leverage world-class Chinese and international expertise to turn the Kalahari Copper Belt into a sustainable powerhouse for the essential minerals the world increasingly depends on. 

Botswana’s economic slowdown is no longer just about diamonds. It is now a story of weak productivity, fragile private-sector growth and an urgent race to diversify before structural cracks widen further.

Presenting the 2026 Budget Speech on Monday, Finance Minister, Mr Ndaba Gaolathe painted a sobering picture of an economy that shrank by 2.8 per cent in 2024 and was expected to remain in negative territory in 2025 and the better part of 2026, with growth projected at minus 0.4 per cent.

While the downturn was triggered by a slump in diamond activity, the minister made it clear that the country’s deeper problem lied in the limited strength of its non-mining sectors.

Manufacturing, construction, transport and storage industries that should be absorbing shocks from mining volatility, he said, had instead slowed, weighed down by the country’s dependence on government spending financed by diamond revenues.

“Growth is rebounding to 3.1 per cent in 2026, but without structural reforms, the economy will continue operating below potential,” he said.

A major red flag, he said was the continued decline in Total Factor Productivity (TFP), a key measure of how efficiently labour and capital were used.

Minister Gaolathe stated that Botswana’s TFP fell to minus 1.0 per cent in 2024, reversing earlier modest gains. He said the decline signaled that businesses were producing less value from the same inputs, a trend linked to aging infrastructure, regulatory bottlenecks, weak skills alignment and slow private-sector expansion.

Also, he said poor infrastructure maintenance, in particular, was quietly eroding returns on investment, making it harder for firms to expand competitively.

However, he mentioned that government now would now scale back its direct footprint in the economy and push harder for private-sector-led growth under the Botswana Economic Transformation Programme (BETP).

He said planned interventions included regulatory streamlining, targeted skills development and improved value-chain productivity.

After a period of low inflation, he said price pressures were now resurfacing. He said inflation stood at 3.9 per cent in December 2025, up from 1.7 per cent a year earlier, driven by higher utility tariffs, fuel price adjustments and exchange rate changes that raised the cost of imports. 

Nonetheless, he said inflation was expected to temporarily breach the upper limit of the Bank of Botswana’s three to six per cent target range in 2026 before easing later in the year.

Minister Gaolathe further stated that the central bank had already raised the Monetary Policy Rate to 3.5 per cent, signalling a cautious stance as it balanced price stability with weak economic growth.

While the financial sector remained stable, the minister said government was increasingly concerned about rising household indebtedness.

Therefore, he said government planned to promote a stronger savings culture and expand financial literacy programmes to reduce long-term vulnerability among citizens.

He added that the Financial Stability Council also flagged climate risks and uneven liquidity distribution in the financial system as emerging pressure points.

 “Without faster diversification, improved productivity and a stronger private sector, future downturns in diamonds could have even sharper consequences,” he said.

The next phase of reform, the minister suggested, would determine whether Botswana’s economy regains momentum or remains stuck in a low-growth cycle.

Government has placed the private sector at the centre of Botswana’s economic transformation.

This was said by Vice President and Minister of Finance, Mr Ndaba Gaolathe, delivering the 2026 Budget Speech before Parliament yesterday.

Outlining a reform and investment programme aimed at diversification, export growth and long-term economic resilience, he said government remained steadfast in its resolve to deepen private sector participation as the primary driver of a diversified and export-oriented economy.

He said the strategy focused on improving enterprise competitiveness, accelerating the growth of scalable firms and expanding Botswana’s footprint in regional and global markets.

Also, he said a key pillar of the budget was repositioning of agriculture from subsistence production and import dependence to a modern, agro-industrial and export-focused sector.

He said under the Botswana Economic Transformation Programme (BETP), government was implementing 26 transformative agriculture projects spanning crop and livestock production, agro-processing, cold-chain logistics and market access.

Mr Gaolather also indicated that through clustering models, processing hubs and integrated logistics systems, Botswana aimed to convert its land, water resources and farmer base into competitive exports in meat, horticulture, nutraceuticals and other high-value crops.

He cited a BETP agriculture-based cluster project set to make its first confirmed export of Moringa to Germany in February 2026, describing it as a tangible validation of the cluster-based approach and Botswana’s ability to meet stringent international standards.

Manufacturing, he said was also being strengthened as the bridge between primary production and exports. He further said under BETP, government prioritised 22 manufacturing projects focused on assembly-based manufacturing, resource-based heavy industry, clean technologies and precision manufacturing.

“These projects are designed to link agriculture, mining and energy into higher-value goods, retain value domestically, deepen supply chains and create skilled employment. This shift moves our economy decisively up the value chain and reduces vulnerability to external shocks,” he said.

He said significant progress had also been recorded in Special Economic Zones (SEZs ) and that government had invested P714 million in land servicing and the construction of four advanced factory units at the Sir Seretse Khama International Airport SEZ.

Additionally, he said a P63 million grain dryer and related facilities were under development at the Pandamatenga SEZ to support agro-industrial value chains.

To support geographically balanced growth, he said the Revised National Investment Strategy (2025-2030) was expected to be completed by March 2026.

He indicated that it would decentralise investment by embedding local economic development approaches, developing district-specific investment profiles and strengthening competitive value chains, with implementation led by the Botswana Investment and Trade Centre (BITC) in partnership with local authorities.

“Investor facilitation reforms will continue through BITC and the Botswana One Stop Service Centre, with measures to simplify permits, licenses, and approvals, and introduce direct issuance of investor visas,” he added.

On regional trade, he announced that Botswana completed its National AfCFTA Implementation Strategy in July 2025.

“The strategy positions Botswana to tap into the African market of 1.3 billion people, expanding export opportunities and value-chain integration,” he said.

On human capital development, he said Botswana currently spent an average of 7.1 per cent of Gross Domestic Product on education, among the highest levels for upper-middle-income countries in the region.

However, he acknowledged that outcomes had lagged behind spending, creating an efficiency gap that constrained growth.

“To address this, government has introduced a new Tertiary Education Financing Policy, a Higher Education Act and a dedicated TVET Act. These reforms aim to align skills development with labour-market demand, embed digital and green skills and reposition technical and vocational education as a first-choice pathway into employment,” he said.

Under healthcare, he said government was shifting toward a stronger primary healthcare model, adding that a major reform program would transform the Central Medical Stores (CMS), with expected savings of 30 to 40 per cent in medical supply expenditure within five years.

Furthermore, he said work was underway on National Health Insurance, with the enabling Bill scheduled to be tabled during the current parliamentary sitting.

Meanwhile, Mr Gaolathe highlighted that infrastructure remained a central enabler. Under BETP, he said government had prioritised 26 projects across energy, water and transport.

“Currently, domestic electricity generation meets only 63 to 70 per cent of demand, with imports costing approximately P3.4 billion annually. This has prompted the accelerated implementation of the revised Integrated Resource Plan and increased private sector participation in power generation,” he said.

Such reforms, he said, represented a decisive shift toward a more productive, inclusive and resilient economy anchored by private investment and modern infrastructure.

Vice President and Minister of Finance, Mr Ndaba Gaolathe has announced a downward revision of Botswana’s medium-term fiscal outlook, citing persistent global and domestic economic headwinds that continue to strain the country’s public finances.

Delivering the 2026 Budget Speech in Gaborone yesterday, Mr Gaolathe said the revision reflected the urgency of strengthening fiscal and external buffers while maintaining policy credibility in an increasingly challenging macro-fiscal environment.

“The macro-fiscal environment remains difficult, characterised by declining mineral revenues, rising expenditure pressures and growing demands for social and economic support,” he said, adding that those factors continued to place strain on the fiscal position.

Despite the pressures, Mr Gaolathe reaffirmed government’s commitment to a coordinated fiscal consolidation strategy aimed at restoring fiscal sustainability, rebuilding buffers and safeguarding macroeconomic stability.

He said key measures included tighter expenditure prioritisation, improved efficiency in public spending, strengthened domestic revenue mobilisation and accelerated reforms of state-owned enterprises (SOEs).

Mr Gaolathe further emphasised that consolidation efforts would be implemented in a balanced and growth-supportive manner, with essential social spending protected and critical investments preserved to support long-term economic transformation.

The minister warned that Botswana’s medium-term outlook was subject to significant macro-fiscal risks, both external and domestic.

Externally, he said, slower global growth, continued weakness in the diamond market, volatile commodity prices, heightened geopolitical tensions and climate-related shocks could prolong economic recovery.

“Such developments could widen fiscal and current account deficits and undermine efforts to rebuild buffers.”

Domestically, he said growth risks remain skewed to the downside, particularly if the diamond market fails to recover. While the non-diamond sector is expected to cushion the economy, Mr Gaolathe cautioned that its stabilising effect was limited.

He also highlighted the potential economic fallout from delays in containing the Foot and Mouth Disease (FMD) outbreak, which could lead to production losses, higher livestock mortality, reduced beef export receipts and threats to national food security.

In addition, he said the slower-than-anticipated implementation of the Botswana Economic Transformation Programme (BETP) could impede progress on diversification and the broader transformation agenda.

On the fiscal front, Mr Gaolathe said revenue risks were mounting as mineral earnings were projected to remain well below long-term averages, offering only modest upside.

“The persistent shortfall is widening fiscal gaps and intensifying financing pressures,” he said.

At the same time, Mr Gaolathe said expenditure risks remained elevated, with both recurrent and capital spending continuing to outpace revenue growth.

“Without credible consolidation, structural deficits are likely to persist, increasing reliance on borrowing,” he said, adding that as a result, debt vulnerabilities were becoming more pronounced.

While public debt remains within statutory limits, Mr Gaolathe warned that sustained fiscal slippage could place debt on a steeper trajectory, undermining sustainability and increasing exposure to future shocks.

He said additional risks identified included rising inflation pressures, climate-related disruptions, SOE fiscal risks, weak implementation of public-private partnership projects, supply-chain disruptions, cyber-security threats and volatility in food and energy prices.

To mitigate the risks, he said government planned to strengthen fiscal risk management, enhance policy coordination and accelerate economic diversification anchored on private-sector-led growth.

He said that advancing diversification, deepening private-sector participation and boosting productivity were central to building a more resilient, diversified and sustainable economy.

Mr Gaolathe said sustained medium-term growth would require faster implementation of economy-wide reforms across key sectors, given their potential to lift productivity and competitiveness.

He added that further expenditure measures, including containing the public wage bill, simplifying and better targeting social benefits and improving the governance and operational efficiency of SOEs, were necessary to deepen fiscal discipline.

“To secure long-term fiscal and economic sustainability for Botswana, the path ahead demands discipline, coordination and reform,” Mr Gaolathe said.

Botswana stands at a defining economic crossroads, with leadership warning that the growth model which sustained the country for decades can no longer guarantee jobs, prosperity or stability.

As global conditions tighten and the diamond industry undergoes structural change, the country is being urged to rethink its future, with young people cast as the central drivers of a new economic era.

This was the message delivered by the Vice President and Minister of Finance, Mr Ndaba Gaolathe, when he addressed the Budget Pitso for Youth in Gaborone on Tuesday. He cautioned that both the global and domestic economies had entered what he described as a “new normal.”

The Youth Budget Pitso was convened to ensure continued engagement and meaningful participation of young people in the national budgeting process. Mr Gaolathe said global economic growth was expected to slow, particularly in advanced economies that absorb a significant share of Botswana’s exports. At the same time, he noted that long-standing pillars of the domestic economy were weakening.

Falling diamond prices, reduced production and the rapid expansion of lab-grown diamonds are steadily eroding the country’s traditional economic base.

“In previous crises, Botswana experienced strong V-shaped recoveries. That pattern is no longer holding. We cannot continue to do the same things and expect different results,” he said.

Although diamonds still contribute about 30 per cent of government revenue, the Vice President expressed concern that declining sales were weighing heavily on exports, foreign reserves and fiscal buffers. He said lab-grown diamonds now command approximately 20 per cent of the global market, intensifying competition and underscoring the urgency of economic diversification.

Against this challenging backdrop, Mr Gaolathe pointed to Sub-Saharan Africa as a rare bright spot, projected to record positive growth over the next two years. He identified the African Continental Free Trade Area (AfCFTA) as a critical opportunity for Botswana to expand domestic production, reduce import dependence and access regional markets through a more competitive export base.

However, he warned that economic transformation would ring hollow if it failed to confront unemployment, particularly among young people. With youth unemployment estimated to be approaching 40 per cent, he described the situation as “unacceptable” and incompatible with Botswana’s development aspirations.

“This cannot be the new normal. If our policies and budgets do not reduce unemployment, then we are failing,” he said.

Mr Gaolathe added that the forthcoming 2026/2027 National Budget, anchored in the Botswana Economic Transformation Programme, would prioritise a private-sector-led, export-driven economy. This will be supported by targeted skills development, innovation and modern infrastructure aimed at creating sustainable jobs.

“We have transformed before. This generation must now do it again,” he said.

The message to the nation’s youth was both a warning and a call to action that Botswana’s future prosperity will depend not on past successes, but on the willingness to adapt, innovate and place young people at the centre of economic renewal.

As the country confronts an uncertain global environment and the limits of its traditional growth engines, the choices made now in policy, investment and human capital will determine whether Botswana’s “new normal” becomes a story of resilience and reinvention, or one of missed opportunity.

The Vice President Ndaba Gaolathe has emphasised the crucial role of tourism in driving socio-economic transformation and shared prosperity across Botswana. 

Delivering the keynote address at the launch of the 2026 Tourism Pitso in Francistown on Thursday, Mr Gaolathe, also Minister of Finance, highlighted the sector’s potential to contribute to economic diversification and job creation. 

He explained that the Botswana Economic Transformation Programme (BETP) and National Development Plan 12 (NDP 12) were designed to deepen citizen participation in the economy, strengthen collaborations and foster inclusive growth. 

He added that the tourism sector remained top priority, with strategic focus on reducing economic leakages, regaining value and enhancing global competitiveness.

He stressed that tourism must serve as a sustainable driver for wealth and welfare, creating opportunities for all citizens to ensure that Botswana ranked among the world’s leading sustainable destinations. 

For his part, Minister of Environment and Tourism, Mr Wynter Mmolotsi, outlined several ambitious projects intended to boost the sector, including addressing local per diem concerns and diversifying tourism offerings. 

“The ministry is finalising a tender to engage a consultant to study the impacts of local per diem on tourism, aiming to provide evidence-based recommendations for policy adjustments,” Minister Mmolotsi stated.

The minister also highlighted significant legislative milestones which included the Community-Based Natural Resource Management Bill, which he said had been passed by Parliament to strengthen community involvement and ownership. 

He said recently approved by Cabinet, the review aimed to streamline licensing and foster a more investor-friendly environment. Despite global challenges, the minister reported that the sector had shown remarkable resilience. 

“The sector has shown resilience, with 1 183,432 international arrivals in 2023 and a strong recovery trajectory, contributing 5.1 per cent to GDP and supporting over 58,000 jobs,” he added.

Meanwhile, the 2026 Tourism Pitso was held under the theme, Tourism as a catalyst for economic transformation and sustainable growth through partnerships.