Electricity Generation Slump Pulls Water and Electricity Sector into Sharp Q3 Contraction

Electricity Generation Slump Pulls Water and Electricity Sector into Sharp Q3 Contraction. Botswana’s Water and Electricity sector recorded a significant contraction in the third quarter of 2025, emerging as one of the weakest-performing sectors in the economy and weighing on overall growth.

According to the latest data, real value added in the sector declined by 30.1 percent to P553.4 million, compared with P791.9 million in the same quarter of 2024. The downturn was largely driven by a sharp fall in electricity generation, which outweighed modest growth recorded in the water sub-sector.

Electricity output dropped by 46.3 percent during the quarter, marking a sharp reversal from the 44.8 percent expansion recorded in the corresponding period last year. The decline reflects a substantial reduction in domestic power generation, with local electricity production contracting by 38.6 percent over the period.

To compensate for the shortfall in local generation, electricity imports increased sharply. Imported electricity surged by 120.7 percent during the quarter, highlighting the growing role of external power sources in meeting domestic electricity demand.

In contrast to the electricity segment, the water sub-sector showed a more resilient performance. Real value added in water services increased to P256.0 million in the third quarter of 2025, up from P238.3 million in the same period last year. This represents a year-on-year increase of 7.4 percent.Despite this growth, the expansion in the water sub-sector was not sufficient to offset the steep decline in electricity production. As a result, the overall Water and Electricity sector remained in contraction.

The combined performance of the sector points to ongoing challenges within the energy segment. While increased electricity imports helped to partially cushion the impact of reduced domestic output, the sharp decline in local generation underscores weaknesses within the domestic electricity supply.

The third-quarter figures show that developments in electricity generation continue to play a decisive role in shaping the performance of the broader Water and Electricity sector, with movements in power output having a significant influence on overall economic activity during the period.