Chamwe Kaira
Botswana is moving ahead with major power generation projects to improve energy security and support economic growth, finance minister Ndaba Nkosinathi Gaolathe said in the 2026 budget speech.
Gaolathe said implementation of the 600 MW Mmamabula coal-fired power plant is on track. The first 150 MW is expected by December 2026, with the full 600 MW scheduled for completion by June 2029.
The government has commissioned a 100 MW solar photovoltaic plant in Mmadinare, along with three smaller grid-tied solar projects in Bobonong, Shakawe and Ghanzi. The 100 MW Jwaneng solar PV plant is expected to be commissioned in March 2026. Further small-scale solar projects are planned over the next 24 months.
Large-scale solar projects are also progressing. The 600 MW Maun solar project is under procurement, while procurement preparations are under way for the 400 MW Letlhakane solar PV project. The 400 MW Isang solar PV project has been brought forward for implementation in 2026.
To meet baseload demand and maintain system reliability, the government will prioritise the rehabilitation of Morupule B Power Station and pursue additional coal-fired generation capacity. Gaolathe said these investments will strengthen energy security and create opportunities for electricity exports through regional power purchase agreements.
On public finances, total revenue and grants for the 2026/27 financial year are projected at P77.22 billion. Southern African Customs Union receipts remain the largest revenue source at P26.79 billion. Non-mineral income tax is projected at P19.76 billion, while VAT collections are estimated at P15.10 billion.
It is anticipated that mineral revenue will amount to P12.21 billion, with P3.36 billion coming from grants and other sources.
Total expenditure and net lending for 2026/27 are projected at P103.58 billion. Recurrent expenditure is estimated at P80.32 billion, while development expenditure is projected at P23.38 billion. Net lending is expected to be minus P121.92 million.
Statutory expenditure for the 2026/27 financial year is estimated at P27.26 billion. Gaolathe said this represents a 20% increase from the revised P22.70 billion allocation for 2025/26.
