AGP Executive Report

Regional Integration Push: SADC leaders meeting in Durban urged faster industrialisation and value addition, warning that slow integration is costing jobs as intra-SADC trade remains low and the region still exports raw materials. Cross-Border Payments: Standard Bank and UnionPay expanded UnionPay e-commerce acceptance to nine African markets including Botswana, giving online merchants more payment choice and access to cross-border shoppers. Transport & Trade Infrastructure: Botswana’s Trans-Kalahari Railway has entered the procurement phase after feasibility work confirmed the 1,850km corridor is viable, aiming to move coal, copper, iron ore and other freight while boosting Walvis Bay’s role. Livestock Health: Botswana is intensifying foot-and-mouth disease controls after outbreaks across SADC, with measures aimed at protecting livestock trade and export access. Digital & Education Tech: Absa says its agentic AI chatbot now handles 100,000+ queries monthly for 1.6m users, while AWS is scaling NBA Math Hoops across Africa, with a pilot that trained educators in Botswana. EU Market Access Risk: Botswana exporters face potential exclusion from EU markets unless they meet deforestation compliance requirements in their supply chains.

Rail & Trade Logistics: Botswana’s Trans-Kalahari Railway has entered its procurement phase after feasibility work confirmed the 1,850km corridor is technically and economically viable, with a planned PPP concession model aimed at moving bulk commodities and boosting the Port of Walvis Bay’s role. Agribusiness & Market Access: Botswana is tightening foot-and-mouth disease controls as outbreaks threaten cross-border livestock trade, while the country also donated 100,000 FMD vaccine doses to Lesotho to support regional response. Payments & E-Commerce: Standard Bank and UnionPay expanded UnionPay e-commerce acceptance to merchants across nine African markets including Botswana, giving shoppers more payment choice and helping local businesses sell beyond borders. EU Compliance Pressure: Botswana exporters face potential exclusion from key European markets unless they meet the EU’s deforestation rules across supply chains. Digital & Financial Inclusion: Mukuru launched a Visa Companion Card in Botswana, letting customers pay cashlessly from their Mukuru Wallet without a traditional bank account. Business Matching for Exports: The Good Life Show’s hosted buyer programme is connecting African producers with qualified international buyers, highlighting opportunities in indigenous ingredients and value-added agricultural products. Regional Innovation: Botswana Digital and Innovation Hub and South Africa’s Technology Innovation Agency signed an MoU to build a cross-border innovation economy aligned to SADC industrialisation.

EU Market Access Pressure: Botswana exporters face possible exclusion from lucrative EU markets unless they can meet the bloc’s deforestation rules, with compliance framed as a market-access issue. Cross-Border Digital Trade: Standard Bank and UnionPay expanded secure e-commerce acceptance to nine African markets, including Botswana, giving online merchants more payment choice and access to cross-border shoppers. SADC Industrial Push: SADC leaders backed a regional agenda centred on industrialisation, infrastructure, agricultural transformation and critical minerals, with emphasis on corridors, one-stop border posts and regional value chains. Resource Wealth Diversification: Namibia and Botswana stressed managing resource wealth through diversification, stronger institutions and skills for value addition. Regional Agriculture Linkages: Botswana and Lesotho discussed closer collaboration on agriculture and trade, including farmer support and easier transport for exports. Livestock Trade Momentum (Region): Namibia reported broad-based livestock growth in 1H 2026, with higher marketing and live exports. FMD Cooperation: Botswana donated 100,000 FMD vaccine doses to Lesotho to support transboundary disease response. Innovation for STEM (Botswana): Botswana Digital and Innovation Hub and South Africa’s Technology Innovation Agency signed an MoU to build a cross-border innovation economy. AfCFTA SME Boost: AfCFTA launched a programme to prepare export-ready SMEs in Gaborone, tackling market intelligence, export readiness and financing barriers.

Botswana Economy: Inflation eased to 9.4% in July, down from 10.7% in June, as a government cut to diesel and petrol prices from 7 July pulled down transport costs. Mining & Exploration: Arc Minerals picked G D E Botswana Drilling & Exploration to run diamond drilling at its Virgo project (PL135/2017) in the Kalahari Copper Belt, targeting high-priority zones along a 14km formation contact. Energy & Electrification: Botswana Power Corporation is facing scrutiny over a smart meter tender, after a local bidder quoted about four times the lowest evaluated international price, raising questions on value for money as the country pushes electrification. Regional Trade & Industry: Botswana and South Africa signed a cross-border innovation MoU via BDIH and South Africa’s TIA, aiming to build an integrated innovation economy that supports industrialisation and jobs. AfCFTA Support for SMEs: The AfCFTA SME Booster Programme ran a three-day capacity build in Gaborone to help women and youth-led SMEs become export-ready, tackle market and financing barriers, and connect with buyers and logistics providers. Investment & Finance: The AfDB urged Botswana to diversify beyond diamonds and expand development financing as fiscal revenue declines and productivity gaps persist.

SADC Industrial Push: The UN Economic Commission for Africa urged SADC to speed up industrialisation by processing agricultural and mineral resources and building regional value chains, arguing Southern Africa has the minerals, land, manufacturing capacity and corridors to move beyond exporting raw commodities. Regional Summit Outcomes: At the 46th SADC summit in Durban, leaders backed economic corridors, agro-processing, critical minerals transformation, one-stop border posts, and a new SADC Tourism UNIVISA, while also calling for better security and cross-border health cooperation. Botswana Inflation Relief: Botswana’s inflation eased to 9.4% in July as transport costs fell, driven by government-mandated diesel and petrol price cuts. Development Finance Pressure: The AfDB urged Botswana to expand growth and unlock new development finance, warning that diamond dependence and weaker productivity/industrialisation are holding back structural transformation. Energy Transition Funding: Botswana is listed among priority markets for the AfDB’s proposed $200m African energy transition fund (ATAF), targeting renewables, storage and grid projects. Mining & Drilling: Arc Minerals selected a drilling contractor for its Botswana diamond drilling programme in the Kalahari Copper Belt, targeting over 6,000m. Payments & Diaspora: Absa launched Absa Pay to push contactless digital payments, and rolled out a diaspora banking proposition aimed at turning remittances into investment.

SADC Industrial Push: Leaders wrapped up the 46th SADC Summit in Durban, backing a regional tourism UNIVISA and a new industrialisation agenda centred on infrastructure, agriculture and critical minerals, with South Africa’s Ramaphosa set to lead the bloc. Regional Financing: Zimbabwe’s Mnangagwa urged members to operationalise and fund the SADC Regional Development Fund to back cross-border energy, water and infrastructure projects. Botswana Electrification Watch: Botswana Power Corporation’s smart meter tender sparked scrutiny after a local bidder reportedly quoted about four times the lowest evaluated international bid, raising questions for procurement and consumer value as the country pushes electrification. Copper Spotlight (Botswana-linked): Sandfire Resources’ copper momentum is drawing renewed attention, with its Botswana Motheo project and Spain’s MATSA framed as a cleaner way to ride electrification-driven copper demand. Food Import Pressure: Botswana’s food import bill fell by nearly P1 billion in Jan–May 2026 as weaker consumer demand reduced spending, signalling softer household consumption. Agribusiness Innovation: A Botswana-focused project is boosting safflower production for drought-tolerant oilseed value chains, aiming to lift incomes for small-scale farmers. Mining & Diamonds: De Beers says it’s adapting its strategy amid diamond market shifts, including more focus on beneficiation and natural diamond demand, while Lucara Botswana’s Karowe diamond mining fleet gets support via financing.

SADC Leadership Shift: Emmerson Mnangagwa formally handed the SADC chair to South Africa’s Cyril Ramaphosa at the 46th Ordinary SADC Summit in Durban, with a push for regional self-reliance, value addition, agro-processing, skills and technology. Electricity Procurement Watch: Botswana Power Corporation (BPC) is defending its smart meter tender after a local bidder quoted about four times the lowest evaluated international offer, raising questions on affordability and consumer protection. Payments Modernisation: Absa Bank Botswana is rolling out Absa Pay to move customers from plastic cards to NFC-enabled contactless payments via smartphones and smartwatches. Food Imports Ease: Botswana’s food import bill fell by nearly P1 billion in Jan–May 2026 as softer consumer demand reduced spending across key categories. Diaspora Investment Push: Absa launched a banking proposition for Batswana abroad, aiming to turn remittances into investment in Botswana’s growth. Mining & Drilling: Arc Minerals selected a drilling contractor for its Virgo project in Botswana’s Kalahari Copper Belt, targeting over 6,000m of exploration drilling. Diamond Value Moves: De Beers says it is reshaping strategy amid diamond upheaval, while Lucara confirmed the sale of Botswana’s giant 2,488-carat Motswedi diamond and ODC eyes wider buyer access via DMCC tender platforms.

SADC Chair Push: South Africa takes over the SADC chairpersonship in Durban, with migration, trade, critical minerals, industrialisation and security set to dominate talks as leaders try to turn regional commitments into practical outcomes. FMD Shockwaves for Beef: Botswana-linked cattle concerns stay in focus as feedlot operators adjust their court fight over FMD handling, while South Africa reports progress in vaccination and quarantines but still has many active outbreaks. Resource Wealth to Prosperity: Namibia and Botswana advanced dialogue on how to convert natural resource wealth into sustainable growth, stressing diversification, strong institutions and saving for future generations. Botswana Capital Markets Drive: The Botswana Stock Exchange doubles down on its “10X by 2030” plan to deepen markets and attract investment beyond diamonds, citing weak investment uptake despite available capital. VAT for Remote Services: Botswana Unified Revenue Service targets an extra P400m in VAT from remote services, using ATAF support to modernise the tax base for the digital economy. Water Utility Strain: Water Utilities Corporation posts a P554.6m loss, with shrinking cash and rising liabilities, even as it pushes for better collections and water security projects. Diamond Trade Moves: Lucara’s giant 2,488-carat Motswedi diamond finds a buyer, while Okavango Diamond Company eyes wider global access via a Dubai tender platform. Mining Equipment Investment: Sandvik wins a Karowe underground fleet order for drills, loaders and services, supported by financing backed by an export credit guarantee. Labour Law Timing Risk: Botswana’s new Employment and Labour Relations Act takes effect 1 September, but business groups warn implementation could be “catastrophic” amid a jobs crunch. Outward Migration Pressure: Government flags rising outward migration, especially to Europe, linked to unemployment and weaker growth at home.

Diamond trade: Lucara confirmed it has sold Botswana’s giant 2,488-carat Motswedi diamond from Karowe, ending a long search for a buyer (price and identity kept confidential). Capital markets: The Botswana Stock Exchange is pushing its “10X by 2030” plan to grow investment and broaden ownership as Botswana faces pressure to diversify beyond diamonds. Tax and digital economy: Botswana Unified Revenue Service is using African Tax Administration Forum support to extend VAT to remote services, targeting an extra P400m as the digital economy expands. Water sector finances: Water Utilities Corporation posted a P554.6m loss for FY ended March 31, 2024, with weaker cash and rising liabilities, even as it funds water security projects. Infrastructure and connectivity: BoFiNet completed a BWP 43m fibre access rollout to three villages, creating 210 local jobs. Mining equipment: Sandvik booked an order to supply Lucara Botswana with an underground drill and loader fleet for Karowe, plus parts and services. Labour policy: Botswana’s new Employment and Labour Relations Act takes effect 1 September, with business groups warning implementation could be “catastrophic” amid a jobs crunch. Cannabis policy: Government says it is moving toward legalising medical cannabis and exports to create jobs and reduce reliance on diamonds. Regional security and skills: Southern Accord 2026 continues joint training between North Carolina National Guard and Botswana Defence Force, including intelligence and engineering support.

Critical Minerals & Security: A new report warns that the Sahel’s lithium rush is increasingly entangled with armed groups, insurgency and cross-border smuggling—raising the stakes for supply chains and governance. Power Sector & Labour: In Eswatini, TUCOSWA and South Africa’s NUM warn Eskom restructuring or partial privatisation could push up electricity costs and destabilise service delivery. Botswana Capital Markets: The Botswana Stock Exchange is pushing its “10X by 2030” plan to grow investment and broaden ownership as the country faces pressure to diversify beyond diamonds. VAT & Digital Economy: BURS is targeting an extra P400m in VAT from remote services, using regional tax expertise to modernise enforcement. Water Utility Financial Strain: Water Utilities Corporation reports a P554.6m loss, shrinking cash reserves and rising liabilities, while trying to improve collections and water security. Diamond Trade Moves: Okavango Diamond Company is set to access Dubai’s DMCC tender platform, while Lucara highlights Karowe’s “undeniable” resource quality and Sandvik books a major underground equipment supply for Karowe. Infrastructure & Connectivity: BoFiNet completes a BWP 43m fibre access project in three villages, creating local jobs. Labour Law Countdown: Botswana’s new Employment and Labour Relations Act takes effect on 1 September, but business groups warn implementation could be “catastrophic” amid weak job creation. Migration Pressure: Government links rising outward migration—especially to Europe—to unemployment, low growth and declining mineral revenues. Cannabis Policy: Botswana signals plans to legalise medical cannabis and exports, aiming to create jobs and reduce reliance on diamonds.

BURS VAT Push: Botswana Unified Revenue Service is using African Tax Administration Forum support to extend VAT to remote services, targeting over P400m in extra revenue as the digital economy grows. Water Utility Strain: Water Utilities Corporation posted a P554.6m loss for FY ended March 31, 2024, with revenue down, cash squeezed and debt rising, even as it tries to improve collections and water security. Capital Markets Drive: The Botswana Stock Exchange is rolling out its 10X by 2030 plan to attract investment and broaden ownership, arguing growth needs investment, not just government spending and diamonds. Diamond Trade Upshift: Okavango Diamond Company is set to join Dubai’s DMCC diamond tender platform, widening its buyer network as Botswana seeks more value from exports. Mining Equipment Boost: Sandvik booked a deal to supply an underground drill and loader fleet plus services for Lucara’s Karowe mine, supported by financing and monitoring. Rail Link Feasibility: Botswana and Namibia have completed the Trans-Kalahari Railway feasibility study, paving the way for route, engineering and financing decisions. Diversification Pressure: The AfDB warns Botswana’s diamond-led model is weakening, citing a development financing gap and rising debt, and urging stronger domestic revenue and private investment. Cannabis Policy Move: Government says it is ready to legalize cannabis for medical use, manufacturing and exports, aiming to create jobs and reduce reliance on diamonds. Infrastructure Connectivity: BoFiNet has finished a BWP 43m fibre access project in three villages, creating local jobs and connecting homes, businesses and government offices. Labour Law Countdown: Botswana’s new Employment and Labour Relations Act takes effect 1 September, with concerns it may be “catastrophic” if the economy isn’t ready to create jobs.

Banking & Investment: Standard Bank’s South African operations drove group profit growth, with SA now contributing 51% of headline earnings and R11bn up 14% on improved lending and banking activity. Labour & Jobs: Botswana’s new Employment and Labour Relations Act kicks in 1 September, but critics warn the country is not ready as unemployment stays high and businesses fear operational shocks. Mining & Equipment: Sandvik secured a 15-unit underground fleet order for Lucara’s Karowe mine, including drills, loaders, support and financing—deliveries run through Q4 2026. Diamonds: Lucara’s 2,488-carat Motswedi diamond finally found a buyer after two years, ending a long monetisation process. Connectivity: BoFiNet completed a BWP 43m local access fibre rollout to Moshupa, Ramotswa/Taung and Thamaga, creating 210 local jobs. Policy & Diversification: Botswana signals plans to legalize cannabis for medical use and exports, aiming to create jobs and reduce diamond dependence. Trade & Regional Integration: SACU and India signed terms of reference to start preferential trade talks, targeting sectors like engineering, machinery, pharma, textiles and agri-processing. Infrastructure Planning: Botswana and Namibia completed the Trans-Kalahari Railway feasibility study, paving the way for financing and procurement decisions.

Telecom & Jobs: BoFiNet has completed its BWP 43 million local access fibre rollout to Moshupa, Ramotswa/Taung and Thamaga, connecting 191 customers and creating 210 local jobs. Mining & Equipment Finance: Sandvik secured orders for a 15-unit underground fleet for Lucara’s Karowe mine, including drills, loaders and support services, with financing backed by Sweden’s export credit agency. Diamonds & Market Timing: Lucara’s 2,488-carat Motswedi diamond has finally found a buyer after two years unsold, ending a long monetisation process. Migration Pressure: Government links rising outward migration—especially to Europe—to unemployment, weak growth, fiscal stress and declining mineral revenues, warning of trafficking and exploitative recruitment risks. Economic Diversification Push: The AfDB flags Botswana’s diamond dependence as a vulnerability, citing a development financing gap and rising debt, and urges stronger domestic revenue and spending discipline. Regional Trade Talks: India and SACU signed terms of reference to start negotiations on a preferential trade agreement, covering goods, rules of origin, customs and sanitary measures. Infrastructure Planning: Botswana and Namibia completed the Trans-Kalahari Railway feasibility study, paving the way for route, financing and procurement decisions. Business & Innovation: A circular economy challenge offers Southern African entrepreneurs R250,000 in investment and mentorship, with a prototype ready for testing required. Policy Watch: Botswana’s gambling sector faces a regulatory integrity test as growth accelerates and offshore betting siphons value from the formal economy.

Trans-Kalahari Railway: Botswana and Namibia have completed the feasibility study for an ~1,850km rail link to Walvis Bay, with next steps on route, engineering, commercial viability and financing. Mining equipment push: Sandvik has won a 15-unit underground drills and loaders order for Lucara’s Karowe mine, with deliveries running through Q4 2026 and financing support via Sandvik Financial Services. Copper project progress: Bezant Resources says it has completed the first blast at its Hope & Gorob copper-gold project in Namibia, moving toward ROM ore stockpiling and plant commissioning. Trade talks momentum: India and SACU (including Botswana) signed terms of reference to start negotiations for a preferential trade agreement, covering goods, rules of origin, customs and SPS, with talks expected to begin within a month. Gambling regulation debate: Parliament is set to decide on lowering Botswana’s gambling age from 21 to 18, as the Gambling Authority warns illegal offshore betting drains about P850m annually. SME export focus: AfCFTA’s SME Booster Initiative in Gaborone urges support beyond training—buyers, finance and logistics—to get firms trading across Africa. Climate risk: A “super” El Niño threat is expected to hit Southern Africa with hotter, drier conditions, raising water stress and wildfire risks, with Botswana among the countries bracing.

Trade & Compliance: Zimbabwe’s SI 59 of 2026 ushers in a tougher import licensing regime, warning traders to check requirements before buying—late discoveries can mean licence denials, extra clearing/storage costs, and even return freight. Preferential Trade Talks: India and SACU (including Botswana) signed terms of reference to restart negotiations for a preferential trade agreement, with talks expected to begin soon and aim to finish within a year, targeting duty cuts in areas like autos, pharma and industrial machinery. Gambling Regulation: Botswana’s gambling sector is booming, but lawmakers face pressure over proposals to lower the legal gambling age to 18 as the Gambling Authority flags large losses to illegal offshore betting. Mining & Equipment: Sandvik secured orders to support Lucara’s Karowe underground expansion, while Hope & Gorob in Namibia completed its first blast—both signals of continued investment in regional mining capacity. Agri-Trade Infrastructure: Zambia upgraded its Livingstone plant health lab to speed phytosanitary testing and cut costs for exporters. SME Export Push: AfCFTA’s SME Booster Initiative in Gaborone stresses that training must be followed by buyers, finance and logistics to turn workshops into real intra-Africa trade.

Trade & Industry: India and the Southern African Customs Union (SACU) have signed Terms of Reference to kick off negotiations for a Preferential Trade Agreement, aiming to conclude talks within a year and target tariff cuts on goods such as cars, pharmaceuticals and industrial machinery—an effort that could reshape market access for Botswana and its SACU partners. Climate & Risk: A “super” El Niño threat is expected to hit Southern Africa hard, with Botswana among countries bracing for drought, water stress, wildfire risk and wildlife impacts, while economists warn of $10bn–$20bn in potential losses across Africa. SMEs & AfCFTA Implementation: The AfCFTA Secretariat says SME training in Gaborone must be matched with real market links—buyers, finance, logistics and partners—so workshops translate into actual intra-African trade. Labour & Governance: Botswana’s employment law reform is being tested in practice, while BOFEPUSU rejects plans for centralised public-service bargaining that it says could weaken unions and undermine recognition agreements. Gambling Policy: Opposition MPs resist lowering Botswana’s gambling age from 21 to 18 as the Gambling Authority warns illegal betting drains about P850m annually and exposes youth to unregulated platforms. Energy & Retail: Vivo Energy Botswana expands with a new Shell Tlokweng service station, pairing fuels and lubricants with convenience retail and quick-service food to boost access and local enterprise. Agribusiness Branding: Botswana launches a global beef brand to move from raw exports to higher value through certification and branding of 100% grass-fed, sustainably raised beef. Business & Finance: Cobre Limited’s inclusion into the MSCI Micro Cap Index takes effect 1 September, boosting investor visibility for its Kalahari Copper Belt operations in Botswana.