Botswana has a severe energy shortage and generally relies on expensive imported power and diesel generation to deliver its requirements.
The energy market in Botswana are underdeveloped and will continue to suffer from a deficit of supply in the medium term. In response to power shortages in its domestic market of South Africa, one of the largest suppliers of electricity in the region (Eskom) is progressively terminating power export agreements to other South African countries whilst continuing to rely on coal resources for its power stations. In addition, other southern African governments are demonstrating increasing levels of support for independent power producers.
Botswana is currently placing heavy reliance on expensive diesel generation due to unfulfilled import commitments and the under performance of the Morupule B coal fired power station.
There is considerable demand for CBM to play a significant role in future power generation in Botswana in pursuit of energy security and optimising the energy mix. The current energy crisis is a major impediment to Botswana’s economic growth plans, and with this in mind, the government is highly supportive of new energy projects.
Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in 1966. Uninterrupted civilian leadership, progressive social policies, and significant capital investment have created one of the most dynamic economies in Africa. Mineral extraction, principally diamond mining along with tourism, dominates economic activity.
Political & Financial Stability:
Government type: parliamentary republic
Stable multi-party democracy.
GDP per capita of US$16,900 (2016 est.)
Average real GDP growth of 5.3% (2010-2012).
US $7.622 billion foreign currency & gold reserves (31 December 2016 est.)
Favourable foreign investment culture:
No exchange rate controls.
Low tax rate.
April 2016 — Moody’s Investors Service has today affirmed Botswana’s A2 long-term issuer and senior unsecured debt ratings. The outlook remains stable.
Transparency International: Rates Botswana as having one of the of the lowest corruption indexes in the world, 35th out of 176 countries (2016).
Fraser Institute: Botswana is the highest ranked jurisdiction in Africa on policy factors, ranking 12/104 in 2016, after ranking 14/109 in 2015