UAE-backed P25bn city project kickstarts
Lewanika Timothy | Tuesday June 9, 2026 13:40
The project, known as New Botswana City, will be developed through a partnership involving the Botswana Development Corporation (BDC) and UAE-based AlBaddad Group, with the first phase centred on a 124,000-square-metre international convention and exhibition facility. Government has unveiled that the broader development carries an investment value of approximately P25 billion to P26 billion, placing it amongst the largest private-sector backed projects ever announced in Botswana.
According to BDC Managing Director Oteng Keabetswe, AlBaddad will provide the bulk of the project's financing, whilst BDC's contribution will primarily be through land. The state-owned investment agency is expected to initially hold a five percent stake, with ambitions to increase its participation over time.
The project forms part of government's broader strategy to position Gaborone as a regional destination for conferences, exhibitions, trade, and investment promotion. At its core will be an international-standard exhibition and convention centre, supported by hotels, commercial space, retail facilities, and residential developments.
Speaking at the groundbreaking ceremony, President Boko described the development as part of a wider economic transformation agenda aimed at attracting investment and creating new engines of growth beyond mining.
The investment arrives at a critical moment for Botswana's economy. The country has spent the past two years grappling with weak diamond sales, which have weighed heavily on government revenues, foreign exchange earnings and overall economic growth. In response, authorities have intensified efforts to attract large-scale investments in sectors ranging from renewable energy and manufacturing to tourism, logistics, and business services.
Convention and exhibition infrastructure can have significant spillover effects by attracting business travellers, international events and investment conferences, whilst stimulating demand for hotels, transport services, restaurants, and retail businesses. However, large-scale urban developments have historically faced questions around implementation timelines, financing structures and market demand. The success of New Botswana City will likely depend on its ability to attract sustained international events, corporate tenants and private investment once construction is completed.