Energy Ministry Gets Lion’s Share Of Development Budget

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Botswana is all out to generate and stabilise the country’s electricity supply in order to stimulate industralisation, support the country’s economic diversification and position Botswana, as a competitive and reliable supplier in the region. 

As government proposed to set aside P23.38 billion for its development budget for the financial year 2026/27, P0.37 billion less from last year’s P23.75 billion approved budget, the ministry of Minerals and Energy gets a lion’s share of P5 23 billion of the budget.

This huge chunk is to ensure Botswana becomes the region’s energy hub, a reliable exporter of power and electricity security and a catalyst for new industries such as data centres which require stable and high capacity of electricity.

Delivering the 2026/27 Budget this past Monday, Vice President and Minister of Finance Ndaba Gaolathe said this year’s budget is prioritizing maintenance and consolidating of existing infrastructure, with emphasis on projects which offer high impact and returns on investment.

Apart from covering critical allocations such as Botswana Power Corporation’s (BPC) imports, loan obligations to the Industrial and Commercial Bank of China and cross border electricity supply project, the Ministry will this financial period embark on major projects such as the North West Transmission Grid Phase II during the incoming fiscal year.

“Among the major projects for 2026/2027 is the North West Transmission Grid Phase II budgeted at P1.37 billion. This strategic transmission backbone will connect the Chobe district, enable electricity exports into the ZIZABONA market. The Ministry also prioritises Rural Village Electrification and network extension, aimed at expanding access to electricity in underserved communities”, highlighted VP and Minister of Finance.

“As well as the Integrated Resources Plan (IRP) which targets to achieve a 50 percent renewable energy contribution by 2030.  In addition, to safeguard the security of petroleum product supply, which is critical for sustaining economic growth and national stability, Government is implementing two projects, namely the expansion the expansion of Francistown and Ghanzi petroleum depots both scheduled for commissioning in April and August respectively.”

Meanwhile the National Integration Plan (NIP) has been upgraded upwards by another 1.5 Giga watts of renewable energy by the first quarter of 2027.

“A number of IPPS have since been engaged to deliver projects covering both renewable energy and coal thermal power generation. Implementation of the 600MW Mmambula coal fired plant is on track and the first 150 MW is expected by December 2026 and the full 600 MW is expected by June 2029 as planned.”, highlighted Gaolathe.

Still on renewable energy, government has commissioned the 100 MW solar plant in Mmadinare, and three small grid tied projects in Bobonong, Ghanzi and Shakawe.

“In addition, the 100MW solar plant in Jwaneng is scheduled for commissioning in March 2026, with additional small-scale projects expected within the next 24 months. The Maun 600 MW solar plant is under procurement, whilst procurement of Letlhakane 400MW solar PV is still under preparation. The 400 MW Isang solar PV project has been moved forward, for implementation in 2026”, continued the Vice President.

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