Late last year, the power utility lodged a tariff application with the Botswana Energy Regulatory Authority (BERA) requesting for an average 46% increase in tariffs from April 2026, with the adjustment for households proposed for 68%. The request has since attracted objections from both domestic and business electricity users at a time incomes have been battered by weak economy. Last week, the Botswana Exporters and Manufacturers Association (BEMA) joined the call from those opposed to the requested increment in a letter addressed to Permanent Secretary in the Ministry of Trade and Entrepreneurship, Joel Ramaphoi. In the correspondence, BEMA CEO Mmantlha Sankoloba laid out what she described as far reaching risks to competitiveness, employment, investment and economic diversification. While acknowledging the need for BPC’s financial sustainability, Sankoloba argued that the proposed adjustments fail to sufficiently account for the broader economic consequences. “Electricity is a critical production input for manufacturing and industrial activities,” she stated.
“A significant upward adjustment in electricity tariffs will directly increase production costs, making locally manufactured goods less competitive in both regional and international markets.” She noted that manufacturers are already grappling with elevated operational costs linked to logistics, imported raw materials, regulatory compliance and financing, leaving profit margins razor-thin. “BEMA members already face high operational costs linked to logistics, imported raw materials, compliance requirements and financing. The proposed increase risks eroding already narrow profit margins and undermining national efforts to promote local value addition and industrial growth,” the CEO added.
