BPC maps plans for profit rebound
Mbongeni Mguni | Monday September 21, 2026 06:00
On Tuesday, executives unveiled the Atlega strategy, covering the period 2026 to 2029, vowing to take bolder actions to achieve the corporation’s mandate.
The BPC last enjoyed a profit in the 2018–2019 financial year and has become increasingly dependent on government subsidies. Executives said the new strategy outlined plans for financial resilience and growth for the 56-year-old parastatal.
“Whilst we have made significant strides in strengthening our operations, we have not yet achieved the level of financial sustainability that we originally envisaged,” said CEO David Kgoboko. “We need to be more deliberate, more integrated and, in some areas, bolder in the way we run the corporation and make decisions that create sustainable value.”
The Atlega strategy will seek to commercialise and monetise the BPC’s network of unused fibre. The network was once measured at 850 kilometres, but parts have since been tapped into by private players and BoFiNet (Botswana Fibre Networks).
The corporation also intends to cash in on wheeling, an initiative that would involve the BPC charging independent producers a fee for using its power lines to supply their customers.
The Atlega strategy also details plans to expand further into renewable energy, particularly solar and energy storage solutions.
At the launch, executives generally steered clear of addressing the issue of cost-reflective tariffs, which for years have primarily been behind the running losses. The BPC’s losses have largely been due to the high costs of electricity imports, as its own plants have experienced numerous faults, necessitating extensive repair.
The expensive imports have been set against non-cost-reflective tariffs, with the cost of supplying electricity averaging 236 thebe per kilowatt hour last year, compared to an average tariff charged of 152 thebe.
The corporation estimates that between 2021–2022 and 2025–2026, total import costs amounted to P12.2 billion against government subsidies totalling P8.3 billion. The shortfall of about P3.9 billion “was internally absorbed by the corporation,” notes from the new strategy indicate.
Rather than banking on tariff adjustments, the BPC, under Atlega, aims to enhance the efficiency of its own operations and finances, as it pursues the new revenue target.
Kgoboko said the years-long repair programme on the country’s two main plants had resulted in local generation reaching a record 86% of demand in the first quarter of 2026–2027, compared to an average of 67% last year. The completion of the repairs programme, coupled with revenue diversification efforts, would lower costly imports and help achieve the 2031 revenue target.
Acting strategy and transformation manager, Onkgopotse Ramohube, said the corporation was focused on strengthening financial discipline, improving efficiency and optimising resources.
“The ambition to grow BPC from approximately P9 billion to P25 billion in annual revenue will require us to identify new sources of value, strengthen our existing businesses and explore innovative solutions, partnerships and opportunities,” he said.