AGP Executive Report

China Partnership: Botswana and China have elevated ties to a comprehensive strategic cooperative partnership, with President Xi Jinping backing expanded trade and cooperation in digital technology, agriculture and mining. Xi also said African resources should benefit Africa, as Botswana seeks greater value from its minerals. De Beers Deal: Botswana is nearing an agreement with a consortium over ownership stakes in De Beers; the talks could lift the country’s share from 15% to about 25%, though no deal is final. Retail: Choppies lifted annual sales 7.9% to P9.82 billion, despite tough consumer conditions, and expanded its store network to 314. Trade and Markets: Diamonds and copper helped lift Botswana’s exports to P5.16 billion, while the Botswana Stock Exchange is pursuing a role in the Dangote Refinery IPO and linking a potential Continental Re listing to its regional ambitions.

China Partnership: President Duma Boko has arrived in Beijing for a state visit as Botswana seeks deeper trade and investment ties. Bilateral trade reached $1.22 billion in 2025, up 21.3%, with cooperation spanning mining, energy and technology. Fuel Security: Botswana Oil received its first 20-million-litre diesel cargo from Oman’s OQ Trading via Mozambique, adding an alternative supply route for the landlocked country. Exports: Botswana’s exports rose to P5.16 billion in July, led by diamonds and copper, which together made up more than 83% of earnings. Trade remains concentrated in minerals, and Trade Minister Tiroeaone Ntsima says businesses should use the local market to test and improve products before exporting. Banking: BBS Bank’s half-year loss widened to P71.5 million from P17 million a year earlier. The bank attributed the result partly to investment in its transformation and digital services.

Fuel Security: Botswana Oil received its first 20-million-litre diesel cargo from Oman’s OQ Trading via Mozambique, opening a new supply route and supporting efforts to diversify fuel sources. Export Drive: Trade Minister Tiroeaone Ntsima urged businesses to test and refine products at home before expanding abroad. July exports rose 2% to P5.16 billion, but diamonds and copper still made up more than 83% of the total. Economic Rebound: The economy grew 8.7% in the second quarter as diamond production recovered sharply, though the gains underline Botswana’s continued exposure to the diamond market. Banking: BBS Bank’s half-year loss widened to P71.5 million as it invested in a turnaround and digital services. Connectivity: A P34.5 million broadband project has delivered 12 coverage sites along the Trans-Kalahari Highway, with further network sharing planned to extend access for rural communities and businesses.

Mining and Investment: Sandfire Resources showcased its Motheo copper operation to investors, highlighting expansion plans and exploration prospects in Botswana’s Kalahari Copper Belt. China Ties: President Duma Boko begins a state visit to China, seeking stronger trade and investment in digital services, renewable energy and mineral beneficiation, with the goal of building local manufacturing. Trade Links: Botswana, Namibia and South Africa have pledged to attract investment along the Trans-Kalahari Corridor and turn the route into a regional logistics gateway. Public Finances: Moody’s has raised its outlook for sub-Saharan Africa but expects Botswana to see one of the region’s sharpest debt increases, underscoring fiscal risks. Growth and Households: Botswana’s economy grew 8.7% in the second quarter, driven by a sharp mining rebound, but household consumption fell 7.3% and manufacturing contracted. Finance: The Botswana Public Officers Pension Fund will underwrite Letshego’s P800 million share offer as the lender cuts debt and narrows its regional footprint.

Trade and Logistics: Botswana, Namibia and South Africa have pledged to attract investment along the Trans-Kalahari Corridor, aiming to make it a regional gateway for trade, logistics and jobs. China Ties: President Duma Boko visits China from October 12 to 17, seeking deeper cooperation in trade, digital technology and renewable energy, as well as investment that could help Botswana move into manufacturing and diamond beneficiation. Finance: Letshego is seeking P800 million from shareholders to cut debt and reshape its business; BPOPF, its largest shareholder, has agreed to underwrite the offer. Economic Outlook: Botswana’s 8.7% second-quarter growth was led by a sharp mining rebound, but household consumption fell 7.3%, highlighting the challenge of turning diamond production into broader gains. State Investment: Botswana Development Corporation returned to profit, posting P20.5 million after a P167.7 million loss in the previous financial year.

China Ties: President Duma Boko heads to China October 12–17 for his first state visit there, with talks expected to advance trade and economic cooperation. BDC Turnaround: Botswana Development Corporation swung from a P171 million loss to a P20.5 million after-tax profit for the year to June 2026, helped by higher income, lower costs and reduced credit charges. Citizen-Owned Retail: Business leaders say local operators are ready to take on more of the retail sector under proposed empowerment rules, but access to finance remains a major hurdle. Regional Trade: Botswana and Mozambique plan to elevate their cooperation framework to a president-led Binational Commission, aimed at expanding trade and tracking delivery on agreements. Economic Outlook: Moody’s has turned positive on sub-Saharan Africa, but warns Botswana faces pressure from weak diamond demand and rising debt.

China Ties: President Duma Boko visits China October 12–17 for talks aimed at deepening cooperation, a timely push to strengthen Botswana’s economic partnership with a major trading partner. BDC Turnaround: The Botswana Development Corporation swung to a P20.5 million after-tax profit in FY2026, reversing a P167.7 million loss as income rose and costs fell. Credit Outlook: Moody’s turned positive on sub-Saharan Africa, but warned Botswana faces one of the region’s sharpest debt increases, citing weak diamond demand and spending pressures. Citizen Business: Retail leaders say local entrepreneurs are ready to take over more stores under proposed empowerment rules, but access to finance remains a hurdle. Regional Trade: Botswana and Mozambique are elevating their cooperation to a presidentially led Binational Commission, with trade and economic opportunities among the priorities. Diamond Dependence: BIDPA’s chief says Botswana was warned 15 years ago about relying heavily on diamonds, sharpening calls to build a more diversified economy.

China Visit: President Duma Boko heads to China October 12–17 for talks aimed at deepening the two countries’ strategic partnership and economic cooperation. BDC Turnaround: Botswana Development Corporation returned to profit, posting P20.5 million after tax for the year to June, reversing a P167.7 million loss as income rose and costs fell. Regional Trade: Botswana and Mozambique have upgraded their cooperation framework to a president-led Binational Commission, intended to turn trade and investment agreements into measurable results. Citizen Business: Retail-sector leaders say local entrepreneurs are ready to take on more ownership, but access to finance remains a key barrier as citizen-empowerment rules are prepared. Economic Outlook: Moody’s has turned positive on sub-Saharan Africa, while warning Botswana faces pressure from weak diamond demand and spending challenges that could push debt higher. Livestock Trade: Botswana, Namibia and South Africa are coordinating on foot-and-mouth disease controls; cross-border red-meat trade depends on agreement over biosecurity protocols.

Diamonds: De Beers and the government have extended sprinter Letsile Tebogo’s ambassador role into a three-year campaign to promote diamond demand and highlight the industry’s contribution to Botswana. Regional Trade: Botswana and Mozambique are upgrading ties to a presidentially led Binational Commission, aiming to turn agreements into stronger trade and wider economic opportunities. Citizen Business: Retail leaders say local entrepreneurs and experienced workers are ready to take over more stores, but access to finance remains a key barrier as new empowerment rules are prepared. Livestock Exports: Botswana is negotiating animal-health agreements with potential buyers to widen export markets and ease pressure on farmers facing foot-and-mouth disease restrictions. Credit Outlook: Moody’s has turned positive on sub-Saharan Africa, but flagged Botswana among countries facing sharper debt increases, citing weak diamond demand and spending-control challenges.

Diamonds: De Beers and the government have extended Olympic champion Letsile Tebogo’s ambassador partnership into a three-year campaign promoting diamond demand and Botswana’s role in the industry. Citizen Ownership: Retail leaders say locals have the skills to take over more businesses under proposed empowerment rules, but access to finance remains a major obstacle. Livestock Trade: Botswana is negotiating animal-health agreements with new markets, potentially giving farmers more buyers amid recurring foot-and-mouth restrictions. Cooperative Finance: Vice President Ndaba Gaolathe’s Kenya visit focused on SACCO governance, digital services and financial sustainability, with lessons intended to strengthen Botswana’s sector. Economic Shift: BIDPA has warned that Botswana was cautioned about its reliance on diamonds 15 years ago, underscoring the need to build new sources of growth. Capital Markets: Letshego is seeking P800 million from shareholders to lower funding costs, while BITC has set a target of P30 billion in annual investment.

Credit Markets: The African Union launched its new credit-rating agency, aiming to give investors more context on African risk and help lower borrowing costs. Moody’s has also turned positive on sub-Saharan Africa, while Botswana and Mauritius remain the region’s only investment-grade borrowers. Livestock Exports: Botswana is negotiating animal-health agreements with several countries to open new markets for cattle and animal products, offering farmers alternatives as FMD restrictions squeeze trade. Cooperative Finance: Vice President Ndaba Gaolathe led a delegation to Kenya to study SACCO governance, digital services and financial sustainability, seeking lessons for Botswana’s cooperative sector. Diversification: BIDPA chief Gloria Somolekae says Botswana was warned 15 years ago about overreliance on diamonds, underscoring pressure to act on diversification advice as De Beers reports natural-diamond prices stabilising and beginning to rise. Investment: Solar Industries has established a Botswana explosives subsidiary with an initial US$325,000 investment, targeting opportunities linked to the mining sector.

Biotechnology: Bio Usawa has launched a Botswana subsidiary, positioning the country as its Southern African hub for partnerships, skills development and possible future biomanufacturing. Copper Exploration: Vantage Metals intersected a prospective mineralised horizon at its Kalahari project; laboratory results are pending. Capital Markets: The BSE could host a regional trading venue for a Dangote refinery investment instrument, giving Botswana a central role in the proposed SADC arrangement. Power: Domestic electricity generation reached a decade high in the second quarter, up 56.6% year on year, while imports fell sharply—supporting ambitions to become a regional exporter. Small Business: Vice President Ndaba Gaolathe’s Kenya visit focused on lessons in cooperatives and support for small businesses, including access to finance and markets. Public Finances: Moody’s raised its outlook for sub-Saharan Africa but warned Botswana’s debt could rise as weak diamond demand weighs on the economy.

Capital Markets: The Botswana Stock Exchange could become the regional trading hub for a proposed Dangote refinery depository receipt, putting Botswana at the centre of a SADC investment structure while the primary share offer remains in Nigeria. Small Business: Vice President Ndaba Gaolathe’s visit to Kenya focused on lessons in cooperatives and support for small businesses, including access to finance, markets and technology. State-Owned Enterprises: Government is reviewing how it owns and manages SOEs, with possible restructuring and private-sector partnerships; PEEPA says only five are consistently profitable. Business Sustainability: BITC has launched its Green Mark to help companies showcase responsible practices and stay competitive as global markets raise sustainability expectations. Economic Outlook: Moody’s has turned positive on its outlook for sub-Saharan Africa, but expects Botswana’s debt to rise as weak diamond demand weighs on the country’s finances.

FMD Response and Trade Shield: Namibia’s President Netumbo Nandi-Ndaitwah says government is stepping up foot-and-mouth disease containment while protecting farmers and Namibia’s meat export markets, with 127 confirmed cases across 15 farms as of 5 Oct and 20 surveillance teams plus 10 roadblocks in //Kharas. Procurement Pressure: Opposition leader Panduleni Itula demands a fully costed FMD recovery plan and disclosure of fencing milestones and emergency contracts as a tender dispute over a veterinary cordon fence continues. Botswana Business Climate: Botswana’s economy grew 8.7% in Q2 2026 after a 5.2% contraction a year earlier, while pension funds keep rising, with offshore equities driving gains. Energy Independence: Botswana recorded a 56.6% jump in electricity generation in Q2 2026, cutting imports and boosting local supply, led by Morupule A and B plus solar. Sustainability Push: BITC’s Green Mark calls on businesses to adapt to global sustainability demands. Regional Investment Signals: Bloomberg’s 2026 investment risk ranking shows Nigeria climbing to 8th, while Botswana drops two places amid a weaker growth outlook. Connectivity and Craft: De Beers backs Botswana basket weaver Shakunona Parata at Homo Faber 2026, and Paratus Namibia launches OneWeb LEO satellite service.

Investment Climate Watch: Nigeria surged four places to 8th in Bloomberg’s 2026 Africa investment risk ranking, with gains in economic strength, fiscal strength and external vulnerability; Botswana slipped two places as its growth outlook weakened. Capital Markets & Banking: Letshego Africa seeks P800m from shareholders to cut expensive borrowing and diversify funding, while Wise (with Capitec) prepares to expand in South Africa after conditional Reserve Bank approval. Pension & Finance: Pension fund assets keep rising, with offshore equities driving gains; Capricorn’s profit fell to N$1.87b as bad loans and credit impairment pressured earnings. FMD Shock to Trade: Namibia’s foot-and-mouth outbreak triggered an EU suspension of beef imports, with Cabinet approving a containment buffer zone and border fencing—an economic hit felt across the livestock value chain. Botswana Business & Growth: Statistics Botswana reported 8.7% GDP growth in Q2, following a prior-year contraction—two straight quarters of growth. Mining & Exploration: Jacaranda Natural Resources eyes an $8m–$10m IPO to fund gold and copper exploration in Botswana and Queensland. Tech & Connectivity: Paratus Namibia launched Eutelsat OneWeb LEO satellite services, targeting both residential and business connectivity. People & Policy: Pensioners and asylum seekers face ongoing pressures as welfare and refugee reception systems come under strain.

Letshego Capital Raise: Botswana’s Letshego Africa Holdings is seeking P800m via a rights offer on the BSE to cut costly borrowing and lower annual interest costs, with the Botswana Public Officers Pension Fund fully underwriting the issue. FMD Shock Management: Namibia says it’s intensifying foot-and-mouth disease containment in Karasburg, including surveillance teams, roadblocks and a critical containment plan—measures aimed at protecting its livestock and meat exports and avoiding prolonged financial distress that could spill into cross-border trade. Botswana Diamond Marketing Push: Under the House of Botswana banner in New York, Minerals and Energy minister Bogolo Kenewendo urged more aggressive diamond marketing and stronger storytelling to translate visibility into sustained demand and higher value for Batswana. Mining & Exploration Moves: Eastport Critical Metals says it has completed Phase II geochemistry and geophysics at its Selebi-East project in northeast Botswana, setting up next steps toward drilling. Local Business & Waste Agenda: Kasane hosts the 3rd Sustainable Recycling and Waste Management Summit, pushing practical solutions to turn waste into economic opportunity. Procurement Tensions: Botswana Power Corporation faces a P30m Zero-Pula Connection tender dispute, with local contractors alleging corruption and kickbacks and the matter now before the Public Procurement Tribunal.