Botswana Reviews State-Owned Enterprises as Government Considers Mergers

Botswana Reviews State-Owned Enterprises as Government Considers Mergers. Botswana’s government is considering mergers and reviews of selected state-owned enterprises (SOEs) as it seeks to reduce fiscal pressures, improve operational efficiency and strengthen returns on public investment.

Permanent Secretary in the Office of the Vice President, Dr Gape Kaboyakgosi, disclosed the proposals during consultations with young people in Selebi-Phikwe on the SOE Ownership Policy.

Kaboyakgosi said government had received proposals to merge certain public enterprises, which would be assessed to determine whether consolidation could improve their performance. He also indicated that government intended to review appointments to SOE boards, with merit serving as the guiding principle in selecting members.

The proposed measures form part of a broader policy response to challenges affecting the performance of state-owned businesses. Public Enterprises Evaluation and Privatisation Agency (PEEPA) Acting Chief Executive Officer Ishmael Joseph said government continued to provide substantial financial support to SOEs, despite low returns from many entities.

He warned that continued underperformance, operational inefficiencies and dependence on public funding posed fiscal risks, particularly where enterprises failed to generate adequate returns on public investment.

The SOE Ownership Policy seeks to address several structural and governance challenges, including outdated business models, weak competitiveness, limited innovation and overlapping mandates.

Proposed interventions include enforcing shareholder compacts, reviewing legislation governing public enterprises, implementing rationalisation recommendations and addressing outstanding government debts.

Joseph emphasised that the reform programme was not limited to reducing government funding. He said stronger corporate governance, commercial discipline and accountability were also important to improving the performance of state-owned enterprises.

The consultations in Selebi-Phikwe provided an opportunity to discuss the policy with young people as government considers changes to the management and oversight of public enterprises.

While mergers remain among the proposals under consideration, the government has not identified the specific entities that could be consolidated.

The reform agenda forms part of broader efforts to strengthen fiscal discipline, improve value from public investment and support private-sector-led economic growth in Botswana.