FDI surpasses target as tourism leads
Pauline Dikuelo | Monday September 28, 2026 06:00
During the financial year, tourism emerged as the leading sector for FDI, followed by energy, services, mining, manufacturing and agribusiness, highlighting continued foreign investor interest across key areas of the economy. South Africa, Ethiopia, Germany, Zimbabwe, Poland, India, Switzerland, and China were identified as key source markets for FDI during the reporting period.
According to BITC Chief Executive Officer Keketsositse Olebile, the FDI performance formed part of BITC’s overall investment facilitation results, which amounted to P14.882 billion against a target of P13.6 billion. Direct investment and expansions accounted for P9.062 billion, surpassing the P8.6 billion target.
Despite exceeding its investment targets, BITC recorded weaker employment outcomes, with 4,918 jobs created against an initial target of 13,600, representing a 36.2% achievement. Olebile attributed the shortfall in job creation partly to investors delaying planned expansions and hiring amid global economic uncertainty.
“Some of the factors leading to the shortfall in job creation are that some investors were holding back on planned expansions and deferring hiring amid global economic uncertainty,' he said. 'We also saw large-scale expansions increasingly adopting automation instead of adding headcount, so investment value is outpacing job creation.”
During the reporting period, mining accounted for the largest share of domestic investment and expansions, at P2.89 billion, and generated 912 jobs. Manufacturing followed with investment of P1.548 billion.
Investment activity was subdued during the first three quarters, largely due to reduced activity in the diamond sector and liquidity constraints, before recovering later in the financial year.
Meanwhile, exports reached P7.325 billion against a target of P6.5 billion, supported by the opening of new markets across Africa, Europe, the Middle East and Asia.
Fourteen new export markets were secured during the year. These included Nigeria, Greece, Iraq, Kuwait, Namibia, Russia, Zambia, and the Czech Republic in the first quarter, largely driven by meat exports.
Saudi Arabia, Bangladesh, and Mozambique were added in the second quarter, whilst Lesotho and South Africa followed in the third quarter.
The United Arab Emirates became the latest market in the fourth quarter, with Botswana recording its first exports of PVC pipes, tubes and hoses to the market.
The results point to continued efforts to diversify Botswana’s investment and export base whilst attracting foreign capital into sectors beyond the traditional diamond economy.