Botswana urged to move away from tenderpreneurship
Pauline Dikuelo | Monday September 14, 2026 06:00
Speaking at Stanbic Bank’s Thought Leadership Session on Competitiveness in a Challenging Economic Environment, Joel Ramaphoi said the procurement-led growth model that has characterised Botswana’s economy for decades had reached its natural limit.
He said the country’s historical reliance on government spending, largely supported by diamond revenues, had created an economic model that encouraged businesses to depend heavily on public contracts rather than developing products and services for wider markets.
“Competitiveness in this era cannot mean waiting for the next government tender,” the Permanent Secretary said, stressing that Botswana must shift from consumption to production if it is to achieve its Vision 2036 ambition of becoming a high-income economy.
Ramaphoi said genuine economic competitiveness would require businesses to produce high-value goods and services capable of competing regionally and globally, generating foreign exchange and reducing the economy’s vulnerability to fluctuations in public spending.
He further noted that Business Botswana has previously warned that excessive dependence on government procurement exposes the private sector to fiscal cycles. When government spending contracts, businesses dependent on public tenders can face declining revenues, with wider implications for economic activity.
The Permanent Secretary identified regional integration as one of the opportunities Botswana can leverage to overcome the limitations of its domestic market.
Through the African Continental Free Trade Area (AfCFTA), SACU, and SADC, Botswana businesses have access to millions of consumers across regional and continental markets. The country’s geographical position in Southern Africa could therefore be leveraged to expand exports and attract investment.
Agriculture was also highlighted as a potential growth engine under the Botswana Economic Transformation Programme (BETP), adding that government seeks to increase the sector’s contribution to GDP from two percent to six percent.
However, the Permanent Secretary cautioned that unlocking such opportunities would require a fundamental shift in how government, banks, and businesses operate.
He said government must facilitate trade, reduce red tape, and improve logistics, whilst financial institutions need to develop more flexible lending models suited to modern businesses. Entrepreneurs, meanwhile, must improve transparency, financial planning and cash-flow management.
The Permanent Secretary said Botswana’s current economic pressures should be viewed as a catalyst for transformation rather than simply a challenge. He said the ultimate goal should be a diversified, export-led economy in which government enables, banks empower, and entrepreneurs execute.