Botswana stands on the cusp of a digital revolution. The world’s digital economy is growing three times faster than traditional sectors. It now accounts for over 15.5% of global GDP. Botswana has a unique opportunity to redefine its economic future. Following its historic political transition in October 2024, the new government has an unprecedented mandate to accelerate transformation. Initiatives like the SmartBots Strategy and a young, educated population eager to contribute provide the foundation. These efforts could help Botswana unlock an almost $2 billion digital opportunity and emerge as a leader in Africa’s digital economy.
This vision aligns with the government’s commitment to preparing Botswana for the Fourth Industrial Revolution (4IR). This global movement emphasizes integrating advanced technologies like artificial intelligence (AI), robotics, and the Internet of Things (IoT) into economies. As the 2024 State of the Nation Address outlined, the President emphasized extending affordable high-speed internet nationwide. He also prioritized accelerating school connectivity programs and attracting global technology companies. These efforts aim to position Botswana as a regional digital hub for SADC countries.
This opportunity is immense. It is equivalent to nearly half of Botswana’s annual diamond exports, totalling $4.33 billion in 2023. This demonstrates the transformative potential of digital innovation. It can diversify the economy and reduce reliance on traditional industries like mining, building resilience for the future.
Progress So Far: Laying the Foundation
Botswana’s digital transformation journey is already underway. The SmartBots Strategy aims to connect 500 villages to broadband. It also includes plans to deploy a 12,000 km fibre optic backbone by 20253, a network of high-speed internet cables ensuring nationwide digital inclusion. The ICT sector grew by 4.1% in Q2 2024, showing steady expansion despite global challenges.
Mobile penetration exceeds the country’s population, with 4.6 million mobile subscriptions. This provides a strong base for a connected Botswana. The government’s Vision 2036 blueprint also sets clear goals. It envisions a knowledge-based economy where ICT contributes significantly to GDP.
These developments highlight Botswana’s progress. However, gaps remain. Addressing them will be key to fully realizing the nation’s digital potential.
The Challenges: Bridging Critical Gaps
Despite this progress, significant challenges persist.
- High Data Costs: Mobile data in Botswana remains among the most expensive globally, as 10GB of data can cost up to $103 - nearly equivalent to the country's minimum wage
- Digital Literacy and Skills Gaps: Youth unemployment stands at 38.2%. Many young people lack the technical skills needed for jobs in remote work or advanced ICT roles
- Connectivity Disparities: While internet penetration in Botswana has reached 77.3%5 of the population, a significant rural-urban digital divide persists, while rural areas like the Kalahari Desert see coverage drop as low as 35%
- Limited Support for Start-ups: Botswana’s innovation ecosystem is underdeveloped. A lack of venture capital (funding provided to start-ups and small businesses to scale) and inadequate support systems makes it difficult for start-ups to grow
If these gaps are addressed, Botswana’s digital economy could grow from 2.7% to 12.64% of GDP. This would unlock an additional almost $2 billion in economic value.
Charting a Digital Vision
A clear digital vision is the cornerstone of Botswana’s transformation. The government must define its long-term priorities, focusing on areas where the country has a comparative advantage. With a literacy rate of 88% and a young, educated population, Botswana is well-positioned to lead in remote digital services, such as content moderation, customer support, and software outsourcing.
To support this, the government should adopt a sector-specific digital strategy. This strategy would prioritize exportable digital services like IT outsourcing and AI solutions. It should also attract foreign direct investment (FDI), which refers to investments made by global firms into Botswana’s economy to help scale local players. Additionally, digital economy zones—areas offering special benefits such as tax breaks and subsidised infrastructure—could catalyse growth in key sectors.
Expanding Digital Infrastructure
Affordable and reliable connectivity is crucial for a thriving digital economy. The SmartBots Strategy has laid a foundation through planned fibre rollouts and village connectivity initiatives. However, more effort is required to make high-speed internet affordable and accessible to everyone.
Botswana will be partnering with providers like Starlink, a satellite-based internet service, to reduce broadband costs. It could also extend fibre optic coverage to underserved regions. Kenya’s National Optic Fibre Backbone Infrastructure (NOFBI) offers a blueprint. Kenya’s investment extended high-speed internet to rural areas. This empowered tech startups, fostered rural innovation, and improved access to critical services. Botswana can achieve similar outcomes by ensuring its infrastructure benefits all communities.
Strengthening Regulatory Frameworks
A robust regulatory framework is essential for attracting investment, fostering innovation, and building trust in Botswana’s digital economy. Implementing the Data Protection Commission to enforce the Data Protection Act and implement mechanisms like Binding Corporate Rules (BCRs) and Standard Contractual Clauses (SCCs) will facilitate secure cross-border data flows for digital trade and align Botswana with global standards like the EU’s GDPR.
The government could also introduce controlled environments for testing. These are areas where companies can safely experiment with technologies like AI or mobile payments without fear of violating regulations. Such initiatives would encourage innovation while maintaining oversight.
Developing a Future-Ready Workforce
Botswana’s youth need the right skills to thrive in the global digital economy. Initiatives like coding academies, digital literacy programs, and partnerships with tech firms are vital. Focused investments in cybersecurity, AI, and software development could prepare young people for high-demand jobs.
Ghana’s Digital Skills for Jobs program provides a useful model. This program has equipped unemployed youth with ICT skills, preparing them for digital careers. Botswana could adopt a similar initiative. Online platforms like Coursera could also help deliver specialized training programs.
Building an Innovation Ecosystem
To sustain digital growth, Botswana must develop a vibrant start-up ecosystem. Strengthening the Innovation Hub, a centre for supporting entrepreneurs and new businesses, is a key step. This could involve offering mentorship programs, funding initiatives, and partnerships with global investors.
The government could also establish a co-investment fund with development finance institutions. This would address the funding gap for start-ups. Lessons from South Africa’s Naspers, a global leader in e-commerce, show how fostering flagship companies can transform an economy. Botswana could similarly focus on sectors like fintech, agritech, and healthtech.
Conclusion: A New Era of Digital Leadership
Botswana’s digital economy represents an almost $2 billion opportunity to reshape the nation’s future. Strategic investments in infrastructure, workforce development, and innovation will be crucial to unlocking this potential. With clear priorities and decisive action, Botswana can establish itself as a competitive digital leader in Africa.
By Seabe Setshwaelo. Seabe is a Motswana digital strategy consultant based in Dubai, UAE.
Disclaimer: The GDP estimate for Botswana’s digital economy is based on regional benchmarks, projected growth rates, and an analysis of the country’s current ICT contributions. It represents a scenario-based projection designed to highlight the potential economic impact of targeted investments and policy actions in the digital sector. All views expressed in this analysis are my own.