Expensive electricity will cause multiple problems

While this long awaited law would be highly welcome, the Minister of Minerals Energy and Water Resources Kitso Mokaila has not hid the fact that the generation of electricity by the private sector is going to come at hefty costs, resulting in the escalation of the costs of electricity to the consumers. We are not talking about the 10% increase in tariffs that Minister Mokaila announced this week; it will be a more serious and frightening story when the private investor factors in their production costs and profit margins expected. This brewing scenario on the horizons immediately brings back memories of one of the obstacles to doing business in Botswana over the past years—the exorbitant costs of electricity in Botswana over many years has caused a lot of concern to current and potential investors; often leading to the closures of businesses.