AGP Executive Report

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.

India–SACU Trade Talks: India and the Southern African Customs Union signed Terms of Reference to restart negotiations for a Preferential Trade Agreement, with talks aimed at tariff relief on goods including cars, pharmaceuticals and industrial machinery, and a target to wrap up within a year. Botswana Labour Reform: BOFEPUSU has rejected plans for centralised bargaining in the public service, arguing it could weaken unions and undermine existing recognition agreements, even as government seeks to implement new employment law standards. Botswana Agriculture Branding: Botswana launched a global beef brand initiative to move from exporting raw commodities to capturing more value through certification and branding of 100% grass-fed beef under food-safety and ethical farming standards. Energy Retail Expansion: Vivo Energy Botswana opened the Shell Tlokweng service station, expanding fuel and convenience retail offerings and supporting local enterprise and jobs. Trade Gateway Push: Nigeria partnered with Botswana to create a trade gateway into SADC, positioning Botswana as a production and distribution hub under AfCFTA and SACU market access. Public Health Cooperation: Namibia’s health ministry called for stronger cross-border cooperation to prevent infectious disease outbreaks, stressing that diseases spread with people and trade.

Botswana–Nigeria Trade Gateway: Botswana and Nigeria have partnered to position Botswana as a production and distribution hub for the wider SADC market, with both sides gazetting provisional tariff schedules under AfCFTA and pointing to manufacturing, agribusiness, pharmaceuticals and logistics opportunities. Creative Economy Procurement Fallout: Government is weighing options after the Steve Harvey Global deal for Botswana’s creative sector became a costly “inheritance,” with about P355m paid for year one deliverables but later phases stalled amid financial constraints and sustained criticism over procurement and secrecy. Regional Trade Talks: India and the SACU bloc (including Botswana) are set to sign terms of reference on August 12 to start negotiations for a preferential trade agreement, with cooperation flagged in critical minerals, pharmaceuticals and manufacturing. Energy & Logistics Signals: Namibia’s central bank cut its 2026 growth forecast to 2.1% amid weaker diamond mining and construction, while rail freight plans (including the Walvis Bay–Karibib corridor) underline the region’s push to strengthen logistics corridors. Mining & Capital Markets Watch: Botswana’s BSE is urged to expand into agriculture commodities trading, and Botswana’s mining FDI hit P47.8bn in 2024—both pointing to growing interest in investment-linked value chains.

Botswana Tax Overhaul: Botswana’s corporate income tax rate rises from 22% to 24.5% from 1 July 2026, while Manufacturing Development Approval holders keep a 15% concessional rate only for profits tied to manufacturing—tightening rules for other income. Capital Markets Push: The Botswana Stock Exchange unveiled its “10x by 2030” plan to grow capital markets tenfold by 2030, aiming for deeper liquidity, broader ownership and more long-term funding beyond diamonds. Agribusiness Finance & FMD Fallout: The Botswana Mercantile Exchange is set to use warehouse receipt systems to help livestock and other commodities access financing during crises like foot-and-mouth disease, reducing pressure on farmers and feedlot operators. Payments Modernisation: Absa Pay is accelerating Botswana’s shift to secure contactless smartphone and smartwatch payments, replacing card friction with faster, digital transactions. Mining & Investment Signals: Botswana’s mining FDI hit P47.8 billion in 2024, with mining still the biggest draw, while Cobre Limited appointed Rothschild & Co as strategic adviser for its copper portfolio including assets linked to the region. Retail Watch: Sefalana Group reported record revenue of P12 billion (+9%) for the year to 26 April 2026, but profits fell amid weaker consumer spending, leaving it cautiously optimistic. Livestock Legal Battle: Two major beef feedlot operators filed an urgent High Court application against government over FMD-related veterinary restrictions they say could collapse their businesses.

Trans-Kalahari logistics push: Namibia’s Walvis Bay–Karibib rail corridor is now operating, while the bigger Trans-Kalahari Railway feasibility work points to a future freight link through Botswana—key for regional trade and truck volumes. SACU trade talks: India and the South Africa-led SACU group are set to sign terms of reference on Aug 12 to start negotiations on a preferential trade agreement, with focus areas including critical minerals, pharma and manufacturing. Botswana tax overhaul: Botswana’s corporate income tax rises from 22% to 24.5% from July 1, 2026, while manufacturing firms with valid approvals keep a 15% concessional rate on qualifying profits. Capital markets drive: The Botswana Stock Exchange targets a tenfold expansion of capital mobilisation by 2030, alongside efforts to deepen liquidity and broaden ownership. Agriculture finance under pressure: The Botswana Mercantile Exchange is positioned to help livestock and other commodities weather FMD disruptions via warehouse receipt collateral. Beef industry in court: Two major feedlot operators have filed an urgent High Court challenge over FMD-related veterinary restrictions they say could collapse their businesses. Retail and energy updates: Sefalana reports record revenue but weaker profits amid tough consumer conditions, while Tlou Energy records its first revenue milestone as Lesedi gas-to-power work continues. Regional trade facilitation: SADC moves to simplify border procedures under the Simplified Trade Regime to cut costs for small-scale traders.

Botswana Tax Overhaul: Corporate income tax rises from 22% to 24.5% from July 1, 2026, while some manufacturing firms keep a 15% concessional rate only for profits tied to manufacturing under Manufacturing Development Approval Orders. Capital Markets Push: The Botswana Stock Exchange unveiled its “10x by 2030” plan to grow capital markets tenfold by 2030, aiming for deeper liquidity, broader ownership and more long-term funding beyond diamonds. Mining & Investment: Mining FDI in Botswana hit P47.8 billion in 2024, with the UK the top investor, while manufacturing FDI fell sharply year-on-year. Livestock Financing Fix: BSE says the Botswana Mercantile Exchange (BMX) could help the beef sector manage FMD shocks via warehouse receipt collateral, reducing financing bottlenecks. FMD Legal Fight: Two major feedlot operators (J S Beef and Primefast) have sued government over veterinary disease control orders, arguing restrictions could collapse their businesses. Payments Upgrade: Absa Pay is accelerating Botswana’s shift to secure contactless smartphone and smartwatch payments using virtual card technology. Retail & Energy Updates: Sefalana reported record revenue but weaker profits; Tlou Energy logged its first revenue milestone as Lesedi gas-to-power work continues. Regional Trade Facilitation: SADC is moving to simplify border procedures under a Simplified Trade Regime to cut costs for small-scale traders, including Botswana. Cross-border Infrastructure: A Lesotho-Botswana water transfer project management office opened in Maseru, signalling progress on regional water security planning.

SADC Trade Facilitation: Eswatini and 15 SADC partners are pushing to simplify border procedures under the SADC Simplified Trade Regime, aiming to cut costs and ease informal cross-border commerce by relaxing certificate-of-origin rules and tackling non-tariff barriers. Retail & Consumer Demand: Sefalana says it’s cautiously optimistic despite weaker consumer spending, reporting record revenue of P12bn (+9%) but a sharp drop in EBITA (-39%) and profit before tax (-40%) for the year to 26 April 2026. Gas-to-Power Progress: Tlou Energy reports its first revenue milestone as the Kala Data Centre completes a full quarter of continuous operation, while Lesedi gas production testing and well optimisation continue amid funding challenges. Property & Jobs: Zana Junction Mall in Selebi Phikwe breaks ground, with developers targeting a September 2027 opening for the P200m-plus retail project backed by major local shareholders. Aviation Reliability: Parliament hears Air Botswana’s fleet renewal hasn’t delivered the promised turnaround, with only three of six aircraft operational and disruptions continuing. Roads & Courts: The Court of Appeal lifts orders that froze funds and stalled the Modipane-Mabalane Road after procedural and disclosure failures. Regional Water Infrastructure: A Lesotho-Botswana water transfer project office opens in Maseru as ORASECOM and both governments advance planning for major water security cooperation. Beef Trade Impact: Botswana’s FMD-related quota shortfall is reported to have helped Namibia unlock about N$100m in additional Norwegian beef quota earnings. Immigration Enforcement: Botswana raids expose alleged misuse of farm worker permits to place expatriates in unrelated jobs, prompting tighter checks and prosecutions. Mining Advisory: Cobre Limited appoints Rothschild & Co as strategic adviser to refine strategy and capital markets positioning across its Botswana-linked copper portfolio.

Retail & jobs: Construction has started on the P200m+ Zana Junction Mall in Selebi-Phikwe, with developers targeting a September 2027 opening and citing local employment and economic renewal. Diamond market & capital markets: An opinion piece warns that Anglo American’s likely exit from the Botswana Stock Exchange after De Beers restructuring could expose weaknesses in Botswana’s financial system and shift pressure onto pension funds to invest locally. Beef trade shock: Botswana’s FMD-related restrictions have forced it to surrender part of a premium Norwegian beef quota, with Namibia gaining an estimated N$100m as it taps unused quota under SACU-EFTA arrangements. Air Botswana reliability: Parliament hears only three of Air Botswana’s six aircraft are operational after P355.9m fleet renewal, leaving disruptions and losses unresolved. Road finance & courts: The Court of Appeal lifted orders that froze funds and stalled the Modipane–Mabalane Road after procedural and disclosure failures in an urgent ex parte application. Labour permits crackdown: Government raids found farm worker permits allegedly used to place expatriates in unrelated jobs, prompting tighter enforcement and prosecutions. Water security planning: ORASECOM has opened a Lesotho-Botswana water transfer project office in Maseru, pushing regional cooperation on long-term water supply. Regional integration & trade: India and South Africa are reviving talks on a Preferential Trade Agreement covering SACU, with minerals, pharma and manufacturing flagged. Agriculture exports: Namibia’s trade deficit widened to N$5.5bn in June, while live cattle and sheep export growth is highlighted in regional reporting.

Water Infrastructure: A Lesotho-Botswana Water Transfer Project Management Office has opened in Maseru under ORASECOM, aiming to strengthen regional water security and create jobs and business opportunities. Livestock Exports: Namibia reports strong growth in live cattle and sheep exports in the first half of 2026, with export-approved abattoirs also seeing higher throughput—good news for Southern Africa’s meat value chain. Trade & Regional Competition: Namibia’s trade deficit widened to N$5.5 billion in June as imports hit a record N$18.3 billion, even as mining exports stayed dominant and food still delivered a N$743 million surplus. Critical Minerals Push: The US announced US$3 billion in government-backed critical minerals investments, including rare earths and battery projects, with Africa flagged as a key supply partner. Beef Market Fallout: Botswana’s FMD-related restrictions are said to have forced it to surrender a premium Norwegian beef quota worth about P75 million to Namibia. Aviation & Costs: Air Botswana’s fleet renewal programme has left only three of six aircraft operational, with Parliament hearing persistent disruptions and losses. Immigration Enforcement: Government raids exposed alleged misuse of farm worker permits to place expatriates in unrelated jobs, prompting tighter checks. Tourism & Agribusiness: The Okavango International Beef & Fish Festival is set for September 25–26 in Shakawe, positioning local producers and culture as a business and tourism draw.

Trade & Industry: Namibia’s trade deficit widened sharply to N$5.5 billion in June as imports hit a record N$18.3 billion, while exports rose to N$12.9 billion; mining products led exports, and China stayed the biggest destination while South Africa remained the top import source. Agribusiness & Trade: Botswana’s foot-and-mouth disease fallout is costing it premium beef access, with Namibia securing extra SACU-EFTA Norway-bound quota worth about N$100 million after Botswana couldn’t fully use its allocation. Labour & Immigration Enforcement: Botswana is tightening scrutiny after raids found farm worker permits being used to place expatriates in unrelated jobs, with investigations targeting mining and power projects. Regional Connectivity: Court action has cleared the way for the Modipane-Mabalane Road after procedural failures in an earlier bid to freeze funds. Energy & Power Context: South Africa’s electricity generation fell 8.1% year-on-year in June for the 13th straight decline, adding pressure to regional supply planning. Tourism & Value Chains: The Okavango is set to launch an Okavango International Beef & Fish Festival in Shakawe, aiming to spotlight agribusiness and culinary tourism beyond wildlife.

Beef Trade Shock: Botswana’s foot-and-mouth disease fallout has cost the country a premium Norwegian beef quota worth about P75 million, with Namibia securing an extra 344,766kg under the SACU-EFTA quota-sharing deal. Immigration Enforcement: Labour and Home Affairs raids have exposed alleged misuse of farm worker permits to place expatriates in unrelated jobs, prompting tighter checks and prosecutions. Aviation Strain: Air Botswana’s P355.9m fleet renewal is underperforming, with only three of six aircraft operational and ongoing disruptions and losses. Road Project Legal Win: The Court of Appeal lifted orders freezing funds for the Modipane-Mabalane Road after finding procedural and disclosure failures in an urgent ex parte application. Skills and Defence Training: President Mnangagwa capped 216 graduands at ZNDU’s seventh graduation, including engineering and defence/security studies, with allied participants from Botswana and other countries. Tourism & Agribusiness Push: The Okavango International Beef & Fish Festival is set for September 25–26 in Shakawe, aiming to spotlight local producers and culinary tourism. Community Infrastructure Momentum: Zimbabwe’s Tsholotsho Road Rehabilitation Initiative highlights community-led works, with fuel support donated ahead of launch.

Okavango Tourism & Agribusiness: Botswana’s Okavango gets a people-first spotlight with the “Batho Ba Metsi” documentary premiere in Gaborone, while the Okavango International Beef & Fish Festival is set for Sept 25–26 in Shakawe, aiming to turn local cuisine, culture and agribusiness into a bigger tourism draw. Mining & Local Enterprise: Khoemacau Copper Mine and Absa Bank Botswana partner to back citizen-owned SMEs, pushing mining-linked value creation beyond extraction. Energy & Power Reliability: South Africa’s electricity generation fell 8.1% in June and marked a 13th straight year of decline, a reminder of the regional power challenge that affects business planning. Regional Integration & Industry Push: SADC’s Industrial Week wrapped in Durban with a push to accelerate industrialisation through deeper regional value chains and investment. Transport & Connectivity: Emirates and South African Airways expanded their codeshare, adding nine destinations including Gaborone, boosting travel links for business and tourism. Culture & Creative Economy: Botswana’s Mophato Dance Theatre marks 15 years with “Chaba” in September, and BOMU has elected its first woman union president, Gloria Dzwikiti, as artists face piracy and shifting digital economics.

SADC Summit Push: SADC leaders meet in Durban as South Africa takes over the 2026/27 chair, with a focus on accelerating industrialisation, infrastructure, food security and regional integration. Electricity Strain: South Africa’s electricity generation fell 8.1% in June for the 13th straight year, with weaker distribution and shifting inflows/outflows—another reminder of power reliability pressures across the region. Regional Industrialisation Agenda: SADC’s Industrial Week in Durban ends with a declaration urging deeper integration and stronger value chains to move from raw exports to competitive manufacturing. Trans-Kalahari Railway Moves to Execution: Botswana and Namibia complete the feasibility study for the N$264b Trans-Kalahari Railway, with next steps now centred on financing, procurement and community engagement. Mining-to-SME Finance: Khoemacau Copper and Absa Bank Botswana partner to empower citizen-owned SMEs, aiming to widen access to mining-linked opportunities. Energy Projects Shift to Delivery: Coverage highlights energy firms moving from funding rounds into drilling, construction and production campaigns, with the September quarter expected to test execution. Air Connectivity Boost: Emirates and South African Airways expand their codeshare, adding nine routes including Gaborone, Windhoek, Lusaka, Harare and Victoria Falls. Digital Safety for Rural Botswana: A village-to-village initiative tackles mobile money scams and cybercrime through practical community education. Botswana Economic Outlook Warning: The AfDB flags Botswana’s weak 2025 performance, citing diamond dependence and investment collapse as key risks. CJ Global Investment: CJ Global Express Group announces a US$890m programme across Zimbabwe and Botswana, including a five-star hotel project and 300+ jobs.