Making PPPs work
Lewanika Timothy | Thursday March 19, 2026 11:07
The country has, over the past two years, moved to deepen reforms aimed at crowding in private capital. Central to this shift is the proposed Public Private Partnership (PPP) Bill, which seeks to modernise Botswana’s framework for infrastructure financing and allow private firms to participate more actively in the development of public assets such as roads, housing, power generation, and logistics infrastructure.
The push also aligns with the broader Botswana Economic Transformation Programme (BETP), the government’s flagship strategy aimed at diversifying the economy, strengthening industrial capacity, and reducing reliance on public sector spending.
To unpack how these changes could reshape the economy, Mmegi this week convened a roundtable of economists, financiers and young entrepreneurs to examine what it will take to make public-private partnerships work in Botswana.
Why a private sector-led economy matters
Economist Tlotlo Tlhaga believes the country is approaching a critical inflection point where the private sector must begin taking a greater leadership role in economic expansion. “It’s about government taking a step back and allowing the private sector to take a lead,” Tlhaga says, adding that, “It is important to have a private sector-led economy to allow for the growth of firms, and this growth often carries along jobs and foreign exchange gains.”
Botswana’s economy has historically been heavily anchored on government expenditure. Public spending has long been the primary driver of domestic economic activity, with the State also acting as a dominant investor in infrastructure and large-scale projects.
However, declining fiscal space and growing demands on public finances have forced policymakers to reconsider the model. The PPP framework, currently being refined by government, aims to allow private firms to participate in designing, financing, and operating major infrastructure projects whilst the State focuses on regulation and oversight.
International evidence suggests that well-structured PPPs can accelerate infrastructure development whilst easing pressure on government budgets, but they require strong governance, clear risk-sharing mechanisms, and transparent procurement processes.
The Dawn Bell example
The role of private enterprise in driving industrial growth was highlighted by education sector giant, Dawn Bell, which is growing to be one of Botswana’s most successful locally grown agribusinesses.
Responding to questions from Mmegi, Dawn Bell director, Ndiko Muzila, says the firm’s expansion offers a useful example of how private companies can scale even in sectors where government plays a significant role.
“The Dawn Bell model is a good example of private sector-led development in a sector where government plays a lot,” Muzila says, adding that, “When we started, we didn’t have enough capital and we didn’t look to government for capital. Other small enterprises we started supported the financial needs of Dawn Bell.” According to Muzila, the lesson for entrepreneurs is that limited capital should not necessarily prevent firms from expanding or entering new industries. “So really there is no need for capital to be a big hindrance for the private sector not to show up and lead industrialisation and growth in their industries,” he says.
Striking the balance between the State and business
Entrepreneurs at the roundtable acknowledged that the private sector is willing to play a larger role in development, but warned that the country’s financing ecosystem still needs strengthening.
Mboko Basiamai of fashion brand, Glotto, argues that Botswana must deepen its investment landscape if it hopes to support the growth of young firms. “Private sector players are willing to come to the fore, but we need to strengthen capital trickle-down mechanisms,' Basiami says. “We need to focus on how business valuations are done, whether there are venture capital structures willing to take early-stage risk, and how financing mechanisms can support companies as they grow.”
Botswana’s entrepreneurial ecosystem has long faced a financing gap, particularly for early-stage businesses. Whilst commercial banks remain the largest source of financing in the economy, their lending models tend to favour established firms with strong collateral rather than startups.
According to research by the Botswana Institute for Development Policy Analysis (BIDPA), access to early-stage capital remains one of the biggest constraints facing small and medium enterprises in the country.
The absence of a robust venture capital market has also limited the ability of innovative businesses to scale quickly.
Why existing funding schemes struggle
Despite these challenges, Botswana has several government-supported financing programmes aimed at assisting entrepreneurs.
These include loans from the Citizen Entrepreneurial Development Agency (CEDA) and grants from the Youth Development Fund (YDF). However, repayment rates for some of these schemes have been low, raising concerns about their sustainability.
Game developer Thabiso Paul, creator of the locally developed Motswedi Game Board, believes the structure of government funding programmes partly explains why many businesses fail.
“Government financing mechanisms rely on throwing money at entrepreneurs without sufficiently handholding them,” he says. “Entrepreneurs face different levels of risk in their businesses, but funding programmes often assume that once money is disbursed, the business will simply succeed.”
Paul also criticised the reliance on projected business plans rather than operational performance. “Government tends to believe in projections rather than actuals,” he says.
Technology as a scaling tool
Technology was another major theme during the discussion, with experts noting that digital tools are increasingly allowing businesses to expand beyond traditional geographic limits.
Hankusa Hakoola, the chief financial officer at Braston, said digital platforms and artificial intelligence are transforming how companies grow.
“Technology helps businesses scale quicker than conventional expansion strategies,” he says, adding that, “Businesses are able to reach deeply neglected markets. Any business operating in one market will at some point reach a plateau, and expansion through technology then helps firms scale.”
The rapid growth of digital platforms globally has shown how companies can expand markets without heavy physical infrastructure, allowing even small firms to compete internationally.
The road ahead for PPPs
As Botswana prepares to implement its updated PPP framework, the success of the model will depend largely on whether the country can build trust between government and investors.
Private capital typically demands regulatory certainty, transparent procurement systems and bankable project structures before committing funds to large infrastructure projects.
For Botswana, the challenge will be ensuring that PPP projects are structured in ways that balance public interest with commercial viability.
If successfully implemented, however, the shift towards stronger public-private collaboration could help unlock new sources of investment, stimulate innovation, and ultimately place Botswana’s economy on a more sustainable growth path.