AGP Executive Report

Tax & Revenue Overhaul: Botswana’s BURS has rolled out major changes from July 1, with new Income Tax, VAT and Customs Acts plus a Tax Administration Act—raising the corporate tax rate to 24.5% and introducing a 27.5% bracket for individuals earning P400,001+ while adding rules for small businesses and mining taxation. Economic Recovery Watch: Statistics Botswana says GDP grew 3.5% in Q1 2026, rebounding on stronger mining output, a surge in electricity generation and a diamond trade revival. Energy Independence: Record local power generation and expanding solar cut import reliance by 61.8% in Q1, led by Morupule A and B. Local Business Push: Debswana’s Jwaneng CBD project is set to break ground, aiming to diversify the mining town through retail, services, tourism and citizen-led enterprises. Jobs Pressure: An Afrobarometer survey finds 76% of Batswana rate government job-creation efforts “very badly” or “fairly badly,” with 55% of working-age people unemployed and actively seeking work. Governance Test in Gaborone: City councillors blocked a motion of no confidence against Mayor Oarabile Motlaleng, giving him temporary political breathing space. Mining Pipeline: Giyani Metals filed its NI 43-101 technical report for the K.Hill battery-grade manganese project feasibility study in Botswana.

Botswana Economy: Stats Botswana data show growth returning, with Q1 2026 GDP up 3.5% after a 5.4% Q4 contraction—yet businesses, households and investment remain cautious, keeping the recovery feeling uneven. Mining & Investment: Arc Minerals says it will begin drilling at its Virgo copper project in Botswana in August, after geophysics and talks with drilling contractors; it also reports Zambia disputes settled. Battery Metals Pipeline: Giyani Metals filed the NI 43-101 technical report for its K.Hill battery-grade manganese project in Botswana, confirming a post-tax NPV of US$482m and IRR of 20.3%. Fuel Costs: Botswana Petroleum Retailers Association welcomed a fuel price cut for consumers and firms, but warned retailers still face heavy financial pressure. Governance & Integrity: Zimbabwe will host a joint African Anti-Corruption Day with Botswana and Zambia, under the AU anti-corruption convention theme of scaling up integrity action. Social Watch: Court audits in Francistown and Maun highlight a backlog-heavy pattern of rape and defilement cases, with officials warning of a “pandemic of sexual violence.”

Botswana Economy Watch: Botswana’s GDP grew 3.5% in Q1 2026 after a tough 2025 and a Q4 contraction, but analysts say the recovery feels uneven—businesses stay cautious, households tighten spending, investment falls, and cost-cutting continues at key firms. Justice & Safety: Court audits in Francistown and Maun warn of a “pandemic of sexual violence,” with rape and defilement cases making up a large share of unresolved dockets, alongside thousands of defilement registrations since 2020. Mining & Investment Pipeline: Giyani Metals filed its K.Hill battery-grade manganese project DFS in Botswana, confirming a post-tax NPV of US$482m and IRR of 20.3%, while Arc Minerals prepares drilling at its Virgo copper-belt project and says it has settled disputes in Zambia. Regional Business & Markets: Sanlam’s Satrix expands into Botswana via a secondary listing of ETFs on the BSE, aiming to deepen local capital markets. Sports & Talent: Ghana’s Diamond Rackets (women’s tennis) arrive in Gaborone for the Billie Jean King Cup Africa Group III, with Botswana among the hosts and promotion spots at stake.

Human-Wildlife Conflict: New research warns that southern Africa’s crop-raiding elephants are set to intensify as human populations grow and farms expand, with the high-risk conflict area potentially doubling by 2085 across Namibia, northern Botswana and parts of Angola and Zambia. Justice System Pressure: Botswana’s court backlogs are showing a worrying pattern, with audits in Francistown and Maun indicating rape and defilement cases make up a large share of unresolved dockets, prompting renewed calls to protect women and children. Mining & Investment: Arc Minerals says it is entering an “important phase” after settling Zambia disputes and is preparing to drill at its Virgo copper project in Botswana in August, while Giyani Metals filed its K.Hill manganese DFS technical report, confirming a post-tax NPV of US$482m and IRR of 20.3%. Energy & Finance: Botswana’s banking system is broadly resilient, but risks are concentrated in non-banking financial institutions, according to the latest Bank of Botswana stability report. Sports & Business Links: Ghana’s Diamond Rackets have arrived in Gaborone for the Billie Jean King Cup Africa Group III, and Nkana FC will travel to Botswana for the inaugural Tati River Cup.

ETF Expansion: Sanlam’s Satrix is expanding into Botswana via a secondary listing of three JSE-listed ETFs on the Botswana Stock Exchange, aiming to widen local access to offshore exposure and boost BSE global reach. SACU Industrial Push: A Sacu summit in Cape Town flagged regional value-chain plans for the vehicle sector, including battery and component manufacturing ideas plus a R5bn “fund of funds” to turn policy into real projects—though Botswana officials warn execution is complex. Sovereign Wealth Focus: A new study says sovereign wealth funds are shifting toward strategic national priorities like resilient infrastructure and key industries, with bigger deals and heavy interest in AI-linked investments. Diamond Outlook: Debswana says it expects a 20% diamond output increase in 2026 to 18 million carats, a key lever for Botswana’s fiscal and foreign-exchange recovery as demand remains volatile. Financial Stability Watch: Bank of Botswana says the system is stable overall, but risks are concentrated in non-banking financial institutions, making the sector more sensitive to shocks. Health Supply Crisis: Botswana’s blood banks are dangerously understocked, with NBTS collecting about 24,000 units against a need of roughly 45,000, prompting urgent calls for donations.

Botswana’s blood supply crisis: Access Bank Botswana says the country’s blood banks are dangerously understocked, with NBTS collecting about 24,000 units against an estimated need of 45,000—raising risks for surgeries, trauma care and chronic patients. Renewables push for diamond-hit finances: Botswana is investing $100m in the 100MW Tati Solar Project as falling diamond prices strain public finances. Rail and trade links: Botswana Railways’ Okitanye Gaogane says the country wants to work with Chinese firms on new rail links to ports in South Africa, Namibia and Mozambique, as African officials welcome Chinese participation in rail projects. Regional business scaling: Standard Bank’s Africa Unlocked 2026 summit in Cape Town (9–10 July) focuses on turning AfCFTA into real cross-border growth for mid-sized firms. Mining and investment outlook: Botswana’s mining future is back on the agenda, with calls for new economic partnerships and a fresh push for the next mineral boom. Diamonds and market signals: De Beers cuts diamond prices sharply amid weak demand, while Vietnam’s diamond import data shows Botswana among key suppliers. Sports and community: Botswana’s elite athletes may get a new IOC athlete grant to ease camp welfare disputes; meanwhile, Ghana’s Diamond Rackets head to Gaborone for the Billie Jean King Cup Africa Group III.

Botswana–Zimbabwe Economic Push: Botswana has approached Zimbabwe to deepen an enhanced economic partnership, with Vice President Ndaba Gaolathe citing Zimbabwe’s manufacturing base and proposing more cross-border business links and joint investments. Mining & Exploration Focus: Government says it is sharpening its “Future of Mining” agenda with higher exploration spending (targeting P150 million by 2029) to build a pipeline beyond diamonds. Energy Regulation Update: Botswana’s energy regulator, BERA, has appointed a new board to strengthen licensing, tariff-setting, compliance and consumer protection as the power sector shifts toward renewables and more private participation. Public Procurement Under Scrutiny: The DCEC has suspended the P1.5 billion Ncojane Water Supply tender while it investigates allegations of abuse of office, fraud and forgery. Labour Law Readiness Concern: Business Botswana warns the Employment and Labour Relations Act is not ready for its 1 July start, citing missing regulations and limited communication. State-Owned Beef Payment Delays: Farmers in Ngamiland say Botswana Meat Commission payments for cattle deliveries are still delayed, despite reform promises to pay within days. Banking Performance: The Bank of Botswana posted P5.2 billion net income in 2025, driven by realised investment gains and foreign exchange sales despite market turbulence.

Botswana-Zimbabwe Economic Push: Botswana’s Vice President Ndaba Gaolathe says the country is seeking an enhanced economic partnership with Zimbabwe, pointing to Zimbabwe’s manufacturing base and entrepreneurship in telecoms and finance, and linking it to Botswana’s execution-led transformation and cross-border business plans. Energy Regulation Update: Botswana’s energy regulator BERA has appointed a new board to strengthen licensing, tariff-setting, compliance enforcement and consumer protection as the power sector shifts toward renewables and more private participation. Bank of Botswana Profit: The BoB posted net income of P5.2bn for 2025, driven by realised investment gains and foreign exchange sales despite major unrealised market losses. Mining Exploration Beyond Diamonds: Government says it will ramp up non-diamond exploration spending to build a stronger pipeline of future mining projects, targeting P150m by 2029. Public Service Labour Tension: BOPEU says government’s voluntary separation drive may be the first legal test of public service reform, alleging bypass of collective bargaining at the PSBC. Labour Law Readiness Worry: Business Botswana warns the Employment and Labour Relations Act is not ready for the 1 July 2026 start, citing missing draft regulations and limited communication. Beef Sector Payment Delays: Ngamiland farmers say BMC cattle payments are still delayed two months after delivery, threatening loan servicing and confidence in reforms. Procurement Probe: DCEC has suspended the P1.5bn Ncojane Water Supply tender while it investigates alleged abuse of office, fraud and forgery. HIV Prevention in Prisons: NAHPHA says Botswana Prison Service needs a policy framework to allow condom distribution, after Parliament heard 15 of 211 inmates tested HIV-positive in 2024/25. Public Mood on Jobs and Costs: An Afrobarometer survey shows growing dissatisfaction in Botswana over unemployment, living costs and inequality, with most respondents saying the country is heading in the wrong direction.

Botswana–Zimbabwe Economic Push: Vice President and Finance Minister Ndaba Gaolathe met Zimbabwe’s VP Constantine Chiwenga in Harare to explore an enhanced economic partnership, focusing on cross-border business links, joint investment and an execution-led transformation to cut diamond dependence. Banking Update: The Bank of Botswana posted P5.2bn net income for 2025, driven by realised investment gains and foreign exchange sales despite major unrealised market losses. Energy Regulation Reset: Botswana’s energy regulator BERA appointed a new board to strengthen licensing, tariff-setting, compliance and consumer protection as the power sector expands and renewables grow. Mining Next Steps: Government outlined a sharper “Future of Mining” push, targeting higher non-diamond exploration spending (P150m by 2029) to build a pipeline beyond diamonds. Public Procurement Probe: DCEC suspended the P1.5bn Ncojane Water Supply tender while it investigates alleged abuse of office, fraud and forgery. Labour Law Readiness Alarm: Business Botswana says key regulations and guidance for the Employment and Labour Relations Act are missing ahead of the 1 July 2026 start date. Economic Mood Check: An Afrobarometer survey shows rising public frustration over unemployment, living costs and inequality, with 60% saying Botswana is heading in the wrong direction.

Beef Payment Pressure: Two months after cattle deliveries to the Botswana Meat Commission (BMC), Ngamiland farmers say many are still waiting for payment, with delays blamed on uneven transparency and a lack of clarity on who gets paid when—prompting talk of a petition. Mining Push for Diversification: Botswana’s mining leadership is mapping a shift beyond diamonds, with plans to boost non-diamond exploration spending to P150 million by 2029 and a broader agenda to use mining purchasing power to build citizen-owned suppliers and local manufacturing. Mining Output Rebound: Statistics Botswana reports a Q1 2026 rebound in mining production, with the Index of Mining Production rising year-on-year, signalling early recovery after a tough 2025. Agri Investment Boost: A P200m Matopinion Farming venture is set to expand irrigated fodder production and cut import dependence, targeting 183 direct jobs as Botswana implements its 2026–2035 fodder strategy. SEZ Competitiveness Deal: SEZA and BNPC have signed an MoU to help investors in special economic zones improve productivity and competitiveness, aiming to strengthen enterprise performance and job creation. Labour Law Compliance: Botswana’s new Employment and Labour Relations Act (ELRA) took full effect on July 1, tightening rules on contracts and workplace protections and raising the stakes for employer compliance. Copper Exploration Momentum: Belararox is rebranding to Vantage Metals as it doubles down on copper, with Botswana’s Kalahari Copper Belt highlighted as a key growth focus.

Mining & Exploration: Power Metal Resources has renewed its Molopo Farms prospecting licence (PL 311/2016) to March 31, 2028, and started a 1,600m core drilling programme targeting five high-interest nickel and platinum group element targets on the eastern feeder zone. Telecom & Payments: Visa is expanding Visa Pay across Africa using a software development kit, with Botswana listed among markets where banks and fintechs can launch virtual cards and digital payment services faster. Agribusiness & Food Security: Seed Co Group says it is boosting seed breeding and research across Southern Africa, with a focus on climate-adaptive crops and disease-tolerant maize varieties. Business Support for SMMEs: Fairpoint Corporate Services promotes the Mothusi Business Bundle to cut costs by consolidating accounting, payroll, tax compliance, company secretarial and regulatory support into one coordinated team. Public Finance Watch: Botswana faces fiscal pressure as the cost of servicing government debt could rise, with concerns tied to a weaker pula and higher interest rates. Electricity Sector: Botswana’s regulator says tariff revisions are aimed at stabilising Botswana Power Corporation operations and encouraging investment in power supply. Sports & Sponsorship: BetXplosion has partnered with the Botswana Chess Federation for the 2026 National Chess Championship, injecting P160,000 and bringing back top titled players.

Business Support Costs: Fairpoint Corporate Services says Botswana firms can cut spending by reviewing long-running accounting, payroll, tax, secretarial and compliance arrangements, pitching its “Mothusi Business Bundle” as a single, flexible team to reduce multiple-provider fees. Mining & Exploration: Power Metal Resources reports drilling has started at its Molopo Farms nickel and PGM project after prospecting licence renewal to March 2028, targeting high-interest targets using updated geophysical interpretations. Electricity Tariffs & Power Sector: BERA says it will revise “lifeline” electricity tariffs to improve stability for BPC and encourage investment, arguing the lowest domestic tariff is benefiting users who can afford more. Telecom Profit Pressure: BTC profit drops 45% to P146.2m as revenue slips 1.6% to P1.47bn, reflecting pressure on legacy services and the need for digital infrastructure investment. Agriculture Financing & FMD Control: Government admits past subsidies and support haven’t delivered productivity gains as it consults on a National Agriculture Financing Strategy; meanwhile, a new containment fence is being erected to combat FMD and protect Botswana’s beef export reputation. Digital Payments Expansion: Visa expands Visa Pay across Africa, listing Botswana among markets where banks and fintechs can embed digital payment features via an SDK. Cement Sector Sustainability: Dangote Cement unveils a sustainability roadmap aiming for a 20% emissions intensity cut and 80m tonnes capacity by 2030, with new footprints including Botswana. Cross-Border Fibre: Powertel and Paratus Zimbabwe say the first phase of a fibre corridor linking Zimbabwe to Botswana and the wider Paratus network is now live. Sports & Sponsorship: BetXplosion signs as partner for Botswana’s 2026 National Chess Championship with a P160,000 package, boosting plans to bring back top titled players. Regional Business: BITC strengthens trade links between Botswana and Namibia.

Botswana–Namibia Trade Push: Botswana’s BITC is organising “Meet the Buyer” missions to link local firms with Namibian distributors, aiming to use the Walvis Bay and Trans-Kalahari corridors as an alternative route to South Africa, with diamonds and petroleum still dominating bilateral trade. SACU Trade Tax Debate: A Botswana-focused op-ed questions whether SACU’s import-duty model can support export competitiveness when productive imports are taxed, arguing the region may be undermining its own industrialisation goals. Copyright & AI Readiness: Botswana’s music creators are raising alarms after reports of songs appearing in AI training datasets, with the concern that existing copyright protections don’t clearly cover machine learning and data scraping. Digital Skills for Kids: Alliance Française de Gaborone launched COLORI, a screen-free programme teaching children coding logic, AI basics, online safety and digital citizenship through movement and storytelling. Road Safety Warning: A desert-race crash in Jwaneng, Botswana, shows how dangerous trackside viewing can be, with calls for stricter spectator zones and safer crowd management.

Botswana–Namibia Trade Links: The Botswana Investment and Trade Centre (BITC) says it is strengthening buyer connections with Namibia through “Meet the Buyer” missions, aiming to diversify beyond a narrow basket dominated by diamonds and petroleum and to better use the Walvis Bay and Trans-Kalahari corridors. Regional Investment Push (Botswana–Zimbabwe): Botswana’s Vice President Ndaba Gaolathe met Zimbabwe’s VP Constantino Chiwenga to discuss execution-led transformation and joint investment opportunities, with emphasis on solar and technology, plus ranching and value-chain upgrades. SACU Trade Tax Paradox: A Botswana Gazette op-ed argues SACU’s import-duty model may undercut export competitiveness by taxing the productive imports needed to build regional value chains. Copyright Meets AI: Botswana’s music industry is bracing for a new copyright fight as AI training and data scraping raise questions about whether current law covers machine learning use. Road Safety Warning: A desert-race crash in Jwaneng saw a car flip near spectators, sparking renewed calls for strict use of designated viewing zones. Business & Finance (Botswana): Stanbic Bank Botswana was named Banking Brand of the Year 2026 in the Global Banking & Finance Review Awards. Sports & Talent: Botswana’s volleyball is showing signs of recovery as the league continues.

Botswana–Namibia Trade Push: BITC says it is using “Meet the Buyer Missions” to connect Botswana firms with Namibian buyers and distributors, positioning Namibia as an alternative route via Walvis Bay and the Trans-Kalahari Corridor, with diamonds and petroleum still dominating bilateral trade. Diamond Market Watch: Kimberley Process data shows global rough diamond production value fell about 3% in 2025 to $9.23bn and output dropped 8%, with Russia still top by value and Botswana gaining from higher-value stones. Copyright vs AI in Botswana: Botswana’s creatives are questioning whether existing copyright protections cover machine learning and data scraping, as AI training increasingly pulls in music datasets at scale. Regional Diplomacy: Botswana received Sahrawi envoy Brahim Ghali’s secretary-general, with President Duma Boko reaffirming support for Western Sahara self-determination and peace. Digital Connectivity Deal: Powertel and Paratus Zimbabwe say the first phase of a cross-border fibre corridor linking Zimbabwe with Botswana and the wider Paratus network is now live. Business Recognition: Stanbic Bank Botswana Limited was named “Banking Brand of the Year Botswana 2026” at the Global Banking & Finance Review Awards. Education & Youth: A Botswana Insurance Company initiative highlights a shift in school mattress damage claims from girls to boys, alongside earlier free sanitary pad support for adolescent girls. BTO Governance Court Fight: Botswana Tourism Organisation board secretary Kgotso Mile Ollyn’s suspension dispute heads to court, with arguments over unlawful suspension and calls for an independent board.

Botswana–Zimbabwe Economic Push: Botswana’s VP Ndaba Gaolathe met Zimbabwe’s VP Constantino Chiwenga in Harare to push execution-led diversification and joint investments, with solar and technology flagged as priority areas. Cross-Border Connectivity: Powertel Communications and Paratus Zimbabwe say the first phase of a fibre corridor linking Zimbabwe with Botswana (via Plumtree–Bulawayo) is now live under a PPP, aiming to deepen regional digital integration. Energy Supply Watch: South Africa’s Stats SA reports electricity generation down 9% year-on-year in May, with distribution also weaker in several provinces—an important regional signal for power-reliant business. Copyright vs AI in Botswana: A new debate is emerging after reports of millions of songs, including Botswana works, appearing in AI training datasets; officials say Botswana’s copyright law protects creators but doesn’t explicitly cover machine learning and data scraping. Corporate/Jobs Update (Namibia): Cheetah Cement in Namibia halted planned retrenchments after a minister reversed a merger block, clearing the way for its takeover of Ohorongo Cement. Digital Creativity Funding: Google Play launched an equity-free Indie Games Fund for Africa, committing $1m to studios across 32 countries. Legal/Boardroom Tension (Botswana): Botswana Tourism Organisation board secretary Kgotso Mile Ollyn’s suspension dispute escalated into court, with arguments over unlawful suspension and calls for an independent board.