Botswana is considering merging some underperforming state-owned enterprises as part of efforts to reduce fiscal pressure and improve efficiency.
Permanent Secretary in the Office of the Vice President, Gape Kaboyakgosi, said government is reviewing the future of certain public enterprises under a new SOE Ownership Policy, including proposals to consolidate entities with overlapping functions.
Speaking during consultations with young people in Selebi-Phikwe, Kaboyakgosi said authorities would assess whether mergers could improve performance and address persistent challenges in the public enterprise sector.
The proposed reforms come amid growing concerns about the cost of supporting state firms that continue to rely heavily on government funding while generating limited returns.
Botswana’s state-owned enterprises play a significant role in sectors such as transport, utilities, communications, finance and economic development. Many were established to provide strategic services and fill gaps where private investment was limited.
However, concerns about efficiency, governance and financial sustainability have persisted, with several enterprises dependent on state support to remain operational.
Kaboyakgosi said the new policy would also review the appointment of SOE boards, with merit-based selection intended to strengthen governance and accountability, increase returns on public investment and reduce the burden on taxpayers.
