In the 1960s, Silicon Valley was a quiet expanse of orchards and farmland. Today, it is the epicentre of global innovation, home to trillion-dollar companies that have reshaped industries and redefined the modern economy. Across Africa, countries like Kenya, Nigeria, and Rwanda are carving out their own versions of this success story, leveraging technology to drive economic transformation. But where does Botswana stand?
For decades, Botswana has been celebrated for its diamond wealth, political stability, and prudent economic management. However, in a world where technology is the new currency of power, natural resources alone are no longer sufficient to secure long-term prosperity. Botswana’s economic future hinges on its ability to pivot boldly towards innovation, entrepreneurship, and a digital-first economy.
The Current Landscape: A Foundation in Need of Reinvention Botswana’s economy is home to over 23,000 small, medium, and micro enterprises (SMME), according to the Statistical Business Register (November 2022). However, most of these businesses struggle to scale beyond survival mode. Key challenges include:
Limited Access to Capital: • Startups often lack access to patient, high-risk capital, weak ecosystem support • There is a lack of mentorship, networking opportunities, and infrastructure to nurture innovation, and a skills mismatch • The education system is not yet equipped to produce the technical talent needed for a digital economy.
Lessons from Silicon Valley: A Blueprint for Botswana—Contrasting Challenges and Opportunities Silicon Valley’s rise to global tech dominance is a story of bold vision, risk-taking, and ecosystem-building. Botswana, with its stable governance and entrepreneurial spirit, has the potential to replicate aspects of this success. However, the challenges it faces are starkly different, particularly when it comes to rural poverty, limited infrastructure, and a reliance on traditional industries.
Silicon Valley’s Model: Government as a Catalyst In Silicon Valley, the US government played a pivotal role in laying the foundation for private-sector growth. Key initiatives included:
Funding Early-Stage Innovations: Programmes like ARPANET (the precursor to the internet) and investments in microchip technology were funded by government agencies such as DARPA and NASA.
Creating an Enabling Environment: The government provided tax incentives, R&D grants, and policies that encouraged risk-taking and innovation.
Indirect Support: Rather than directly funding startups, the government invested in research institutions and infrastructure that enabled private-sector innovation to flourish.
This model allowed the private sector to take the lead in scaling innovations while the government acted as a catalyst, de-risking early-stage investments and creating an ecosystem where venture capital could thrive.
Case Study: The Yozma Model (Israel) Israel’s Yozma Program is a prime example of how government can successfully back venture capital funds. In the 1990s, the Israeli government established the Yozma Fund, which invested in private VC funds and provided matching capital for international investors. Key features of the Yozma model included: • Co-Investment: The government co-invested with private investors, sharing both the risks and rewards. • Exit Mechanism: Investors were given the option to buy out the government’s stake at a predetermined price, incentivising private sector participation. • Focus on High-Tech: The program targeted high-tech startups, helping to establish Israel as a global leader in innovation.
The Yozma Programme was instrumental in creating Israel’s thriving VC ecosystem, which today boasts one of the highest concentrations of startups and venture capital per capita in the world.
Key Features of the Yozma Programme: 1. Government as a Catalyst: The government established a $100 million fund to invest in private VC funds. It co-invested with international investors, sharing both the risks and rewards. 2. Focus on High-Tech Startups: The program targeted high-growth sectors like software, telecommunications, and biotechnology, aligning with Israel’s strengths in technology and innovation. 3. Incentives for Private Investors: Investors were given the option to buy out the government’s stake at a predetermined price after five years, ensuring that the private sector had skin in the game. 4. Building a VC Ecosystem: Yozma helped establish 10 private VC funds, attracting international investors and creating a thriving ecosystem of startups, mentors, and accelerators.
Results of the Yozma Programme: • Explosion of Startups: Israel became a global leader in innovation, with thousands of startups launching in the years following Yozma’s inception. • Venture Capital Growth: The program catalyzed the growth of Israel’s VC industry, which today is one of the most active in the world. • Economic Transformation: High-tech exports now account for a significant portion of Israel’s GDP, and the country is home to numerous 'unicorns' (startups valued at over $1 billion).
Botswana vs. Africa’s Leading Innovation Hubs Whilst Botswana is starting to make moves, countries like Kenya, Nigeria, South Africa, and Rwanda have already positioned themselves as tech-driven economies. Here’s what Botswana can learn from these regional leaders:
Kenya Kenya Strengths – 'Silicon Savannah' – thriving startup ecosystem, mobile money innovation (M-Pesa), strong investor presence. What Botswana Can Learn – Invest in FinTech and AgriTech, simplify regulatory processes for startups, attract global venture capital.
Nigeria Key Strengths - Africa’s largest startup ecosystem, strong VC networks, unicorns like Flutterwave & Paystack, government-backed tech funds. What Botswana Can Learn - Prioritise government-backed venture funding, create scalable startup support programs, improve ease of doing business.
South Africa Key Strengths – Well-developed infrastructure, top-tier universities, strong enterprise R&D investments. What Botswana Can Learn – Strengthen research commercialisation, invest in smart infrastructure, and create tech-focused industrial zones.
Rwanda Key Strengths – Government-driven digital economy, paperless governance, strategic foreign investments in AI and blockchain. What Botswana Can Learn – Implement digital-first governance, enhance policy agility, and attract tech-focused FDI.
Innovation in a Small Market The compact nature of Botswana's economy presents both advantages and obstacles. With a population of approximately 2.5 million, the domestic market may seem limited for new ventures. However, this compactness can foster agility and quick decision-making, enabling startups to test new ideas efficiently and pivot rapidly based on market feedback.
For many companies, the key to success lies in developing products and services tailored to address specific local needs. By initially honing their innovations in the Botswana context, these businesses can create strong proof-of-concept models that can be adapted and scaled to other African markets.
One of the most significant advantages of Botswana’s innovation landscape is its shared challenges with other African nations—issues like access to healthcare, agriculture, education, and financial inclusion. By developing solutions that tackle these common problems, Botswana can position itself as a source of expertise and innovation that speaks to a wider audience across the continent. For example, local innovations like Brastorne Enterprises’ mAgri platform demonstrate how agricultural solutions can be adapted for farmers in several African countries. This ability to address shared agricultural challenges can lead to collaborative initiatives that benefit multiple nations, thus scaling Botswana solutions by tapping into various market segments.
Brastorne Enterprises has tackled this issue head-on through its innovative use of accessible technologies such as USSD, SMS, and VOICE. These low-tech, high-impact solutions empower communities where traditional internet access is often unavailable or unaffordable.
For instance, Brastorne’s mAgri platform enables farmers to access vital market information, weather updates, and agricultural advice—all delivered directly to their mobile devices without needing a smartphone or stable internet connection. In addition to agricultural support, Brastorne offers affordable health tips and safety alerts to communities, demonstrating a deep understanding of the real challenges faced by everyday Africans.
Brastorne's journey has had a significant impact, reaching over five million lives across Botswana, the DRC, Cameroon, Guinea, and Zambia. This remarkable achievement highlights the power of innovation and collaboration. By forging partnerships with organisations such as Heifer International, Orange, Mascom, and MTN, Brastorne has successfully scaled its services across different markets, showing how technology can drive social change. The company’s mission emphasises that digital inclusion is not merely an ideal but a practical and achievable reality. By providing essential services in formats that users can easily access, Brastorne has created inclusive solutions that resonate with the needs of marginalised communities, effectively bridging gaps in information and resources.
Botswana's compact economy offers a unique opportunity for rapid iteration and adaptation of innovative solutions. By nurturing local startups and encouraging them to develop products tailored for other African nations, Botswana can take advantage of shared challenges across the continent. This pan-African approach allows businesses to build upon successful models and create adaptations that cater to varying regional needs.
As digital infrastructure continues to improve, Botswana can lead initiatives to connect more users through collaborative networks. Enhancing partnerships will not only provide businesses with access to additional resources but also create a more integrated marketplace for innovative solutions that can address pressing social issues.
Whilst Brastorne’s success in impacting five million lives is commendable, the journey is just beginning. The goal is to expand its reach to 49 million lives in the coming years, continuously introducing innovative and tailored solutions to meet the evolving needs of marginalised communities across Africa. Plans to penetrate new markets and deepen existing partnerships underscore Brastorne's commitment to bridging the digital divide.
This vision of expansion highlights an essential truth: the potential for tech-driven social impact exists when technology and purpose come together. Through collaboration with its users, partners, and stakeholders, Brastorne is showcasing the tangible improvements that can be made in the lives of underserved communities. The successful narrative surrounding government-backed venture capital is not theoretical; it has been realised in countries like Israel, and it can be replicated within Botswana. By redefining its role as a supporter of venture capital funds rather than only a direct funder of startups, the government can unlock the full potential of its innovative ecosystem. This transformation paves the way for Botswana to evolve from merely a land of diamonds to a land of ideas, innovation, and opportunity.
Botswana’s political stability and governance provide a foundation for innovation that few African countries can emulate. The challenge lies in how to commercialise these strengths and leverage them in solving pan-African problems. With strong institutions and good governance, Botswana can attract foreign investment, partnerships, and talent, positioning itself as a leader in the African tech landscape.
For example, Botswana can use its stable environment as a testing ground for innovative solutions to pressing issues such as healthcare, agriculture, and education—all of which are common across many African nations. By creating adaptable and scalable technologies, Botswana can address approximately five percent of the continent's significant problems, thus positioning itself as a critical player in Africa's developmental narrative.
The success of the 'Asian Tigers' (South Korea, Taiwan, Hong Kong, and Singapore) illustrates how strategic government support and a focus on innovation can drive economic transformation. As Lee Kuan Yew, the founding Prime Minister of Singapore, famously said, "The only way to deal with the future is to function efficiently today".
In contrast, Botswana has the opportunity to embrace a distinctive vision that resonates with its unique context. A more evocative quote could be: "In an era of disruption, let Botswana chart its own course and become the architect of its own innovation renaissance." This sentiment encapsulates the nation’s potential to not only solve pressing African challenges but also to reaffirm its legacy as a beacon of hope for good governance and political stability. By fostering a culture of innovation and agility, Botswana can redefine its identity on the continent, becoming renowned not only for its stability but also for pioneering solutions that address the diverse needs of its people and its neighbours.
The question is not whether Botswana can achieve this transformation, but whether it will. The tools are available: a stable government, a young and dynamic population, and an increasing appetite for entrepreneurship. What is needed now is the audacity to take calculated risks, the patience to nurture long-term growth, and the vision to look beyond the horizon of traditional industries.
Botswana is called to abandon half-measures and incremental change. The time has come for a bold, transformative leap—one that redefines its economy, empowers its people, and secures its position in the global innovation race.
Envisioning a New Future Imagine a Botswana where rural farmers harness AgriTech to enhance yields and access global markets, where FinTech startups drive financial inclusion for the unbanked, and where HealthTech innovations bring life-saving care to remote communities. Picture a Botswana that exports not only diamonds but cutting-edge technologies and world-class talent.
This vision is not a distant fantasy; it is a tangible possibility—but only if the government, private sector, and citizens unite to make it a reality.
If Botswana fails to act decisively, it risks being left behind in a world where innovation is the new currency of power. Conversely, if it seizes this moment, it can emerge as a beacon of hope and progress, not only for its populace but for the entire African continent.
The choice is clear: stagnation or transformation, complacency or courage, the past or the future.
The question is: Will Botswana rise to the challenge? The time for action is now, and the world is watching. The journey from a resource-driven economy to a thriving hub of innovation requires collective effort, forward-thinking initiatives, and a commitment to nurturing talent and entrepreneurship.
As Botswana stands at this critical crossroads, it possesses the unique opportunity to rewrite its narrative—transforming its economy and society into a powerhouse of innovation that resonates across Africa and the globe. This journey starts today, and the implications for Botswana's future could not be more profound.
*Bakang Phuthego is an entrepreneurial specialist with research interests in global entrepreneurship, international business development, and impact investing
