World Bank, AfDB pledge support as gov't launches $3bn electricity plan
Mbongeni Mguni | Wednesday October 22, 2025 06:00
The energy compact is expected to spend between $2.06 billion and $2.98 billion towards new energy generation comprising mainly solar and wind, regional transmission connections for power trade, clean cooking technologies and support to the Botswana Power Corporation.
The public sector will finance $1.4 billion of the financing required, whilst the balance will be sought through the private sector and development finance institutions.
The Botswana Energy Compact is supported by Mission 300, a World Bank and African Development Bank initiative to provide electricity access to 300 million people in sub-Saharan Africa by 2030. The initiative, which also has the support of organisations such as the Rockefeller Foundation, has mobilised over $8 billion in investments in more than 40 countries since its launch in April 2024.
Launching the plan yesterday, Minerals and Energy minister, Bogolo Kenewendo, said under the energy compact, Botswana commits to raising electricity coverage from the current 76.6% to 100% by 2030, connecting over 220,000 new households to electricity and enabling 260,000 households to transition to clean cooking solutions. The compact also sees the country increasing the contribution of renewable energy to national generation from the current eight percent to 50% by 2030, driven primarily by solar and wind power.
“We intend to mobilise between US$2 billion to US$3 billion through public-private partnerships, concessional financing, and regional collaboration,” Kenewendo said. “This is not a government initiative but a baseline for us to all work on and to ensure that by 2030 every Botswana citizen enjoys the benefit of clean, reliable and affordable energy.”
The minister said the compact was also focused on building financially viable utilities, specifically the Botswana Power Corporation and the Botswana Energy Regulatory Authority.
“This is to ensure that our utilities are not overburdened by commitments and that they are allowing private sector space to participate, but most importantly, that they are able to deliver on some socio-economic needs in the country. “At this point, BERA has started the work that is needed to review its act that will facilitate independent power producers, but similarly those in the transmission space. “There are a few countries in the continent that have already started in this journey and so it won't be completely new to ourselves and not to the experts that will facilitate this journey.”
Mirlan Aldayarov, the World Bank’s lead energy specialist, said the institution was providing $122 million for renewable projects in the country, including a 50-megawatt battery energy storage project. He said another $50 million had been mobilised in concessional climate financing and was ready should Botswana submit a request.
“In all these efforts, we are keen to join our hands with our close partners, again the Rockefeller Foundation, Global Energy Alliance for People and Planet, and Sustainable Energy for All, who all share Botswana's vision and we all collectively stand ready to help with capacity building, financing and innovation to help this common development,” he said.
Whilst Botswana’s electricity coverage rate is high by sub-Saharan standards, the country’s large size set against a sparse and scattered population, has made universal access a challenge over the decades.
As of 2021, 66.6% of the population had access to clean cooking fuels, up from 44% in 2000.