Botswana Railways eyes overhaul amidst crippled operations
Opelo Rakereng | Monday January 19, 2026 06:25
In a candid update to stakeholders this week, the rail utility said due to the challenges, freight tonnage is reported to stand at 521,000 tonnes against a period target of 935,000 tonnes and operational costs continue to exceed income generation, resulting in persistent monthly deficits.
BR is also struggling with an increasingly aged creditor book, which further affects cashflows.
In a statement, officials said Botswana Railways is initiating a multi-year turnaround strategy that includes strengthening governance and compliance systems, enabling private sector participation and developing a long-term rail strategy aligned with national logistics, industrialisation, and economic diversification objectives.
The current challenges are being addressed through comprehensive rolling stock assessment, prioritisation of refurbishment requirements, and the development of investment and partnership models to support fleet modernisation.
“The organisation is currently engaged in discussions and more advanced stages in some cases with potential investors and partners across rolling stock provision, infrastructure development, maintenance operations, and signalling and communication systems,” BR officials stated.
Officials conceded that some opportunities remain constrained by the provisions of the Botswana Railways Act, which is currently under review to enable more effective private sector participation.
The rail utility’s new board chair, Chris Hughes and new Caretaker General Manager, Okitanye Gaogane, are expected to take the lead in the turnaround.
“Central to the turnaround is the alignment of leadership structures with the Botswana Railways Act. “Leadership structures have now been stabilised, positioning the organisation to benefit from renewed and cohesive leadership in 2026,” officials added.
The turnaround strategy also involves an assessment of internal capacity, with BR not ruling out possible restructuring.
“Any restructuring initiatives will be guided by organisational requirements, fairness, and the objective of sustaining operational integrity. “Staff engagement remains ongoing and aligned to safety considerations and operational realities.”
Botswana Railways has hit the headlines frequently in the past months, with its perennial loss-making apparently worsened by frequent high-level board and executive reshuffling, as well as a failed deal with a private sector player.
BR has also been on the hunt for a partnership and on December 19, executives signed a Memorandum of Understanding with Rail India Technical and Economic Service. According to the Ministry of Infrastructure and Transport, the partnership is intended to modernise Botswana’s railway systems, develop transport infrastructure, and enhance technical capacity, amongst other potential benefits.
In addition, Transport and Infrastructure minister, Noah Salakae, recently embarked on a working visit to locomotive manufacturer Banaras Locomotive Works (BLW) in Varanasi, India.
The engagement with BLW underscores a noticeable commitment to adopting global best practices whilst assessing investments in rail, infrastructure, and rolling stock.