Botswana Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in botswana, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Botswana’s digital economy is rapidly expanding, driven by government initiatives and investments in digital infrastructure. The new administration recognizes digital infrastructure as a catalyst for economic growth, innovation, social inclusion, and access to essential services.  The government’s openness to satellite-based service providers has fostered competition, encouraging innovative products, efficient service delivery, and reduced data costs.  Satellite services also enable connectivity in remote areas where terrestrial networks are difficult to deploy due to challenging terrain.

For the FY 2025/2026 budget, the government allocated $66.8 million (966.37 million pula) to the Ministry of Communications and Innovation to support digital transformation and innovation.  This funding will accelerate the implementation of the National Digital Transformation Strategy (SmartBots), which aims to connect 500 schools to the internet, close connectivity gaps through the SmartBots Village Connectivity Programme , expand private research and education networks via the Botswana Research and Education Network, and roll out the Digital Competency Framework to enhance digital literacy.  Efforts are also underway to bring government services online. As of March 2024, Botswana achieved 98.2 percent 4G coverage and 41.89 percent 5G coverage, with mobile penetration exceeding the population, reaching 4.43 million subscriptions.

The Bank of Botswana is advancing the digitalization of government revenue collection to address challenges associated with cash handling and account reconciliation.  This initiative aligns with the National Digital Transformation Strategy and aims to expedite digital adoption within the government sector.  Additionally, Botswana’s Digital and Innovation Hub (BDIH) supports entrepreneurs and startups in developing innovative products and services aligned with the UN Sustainable Development Goals (SDGs).

A major milestone in Botswana’s digital transformation journey was the launch of BOTSAT-1, the country’s first satellite.  This achievement symbolizes Botswana’s entry into the global space community and its commitment to becoming a knowledge-based economy.  The Botswana International University of Science and Technology (BIUST) led the satellite’s development, supported by the Ministry of Communications and Innovation.  BIUST collaborated with local universities, government ministries, and international companies such as EnduroSat, SpaceX, Dragonfly Aerospace, Exco Launch, and Malakana Enterprises to maximize the benefits of space technology across various sectors.  These partnerships have enabled BIUST to engage 10 postgraduate students in satellite data applications and sponsor students for advanced training abroad.

Market Challenges  

Botswana’s digital sector faces several challenges that hinder its growth and adoption.  High data costs and slow internet services from local providers remain significant barriers, though improvements are expected as competition increases with the entry of new providers.  A shortage of technical skills among young people limits their ability to pursue digital careers, while access to financing for startups and innovators remains a persistent challenge.
Service providers also contend with frequent theft and vandalism of site equipment, which disrupts network maintenance and affects service quality.  Additionally, cybersecurity threats are a growing concern, and Botswana’s cybersecurity framework is still in its early stages, leaving critical infrastructure and digital systems vulnerable.

Regulatory environment 

Botswana’s regulatory environment is evolving to support the growth of its digital economy, with a focus on fostering innovation, protecting consumers, and ensuring transparency and security in digital services.  The government encourages start-ups, tech entrepreneurs, and developers to create digital tools and services that address local needs and drive economic growth.  At the same time, regulations aim to build public trust by safeguarding user data and ensuring service providers operate efficiently and securely.


On August 14, 2025, Botswana’s Parliament passed the Digital Services Bill and the Cybersecurity Bill, marking significant steps in advancing the country’s digital framework.  The Digital Services Bill promotes equitable access to affordable, high-quality digital services, particularly in underserved communities.  It establishes a comprehensive framework for expanding access to digital platforms, strengthens service regulations, and transforms the Digital Transformation Office into the Digital Services Authority.  The Cybersecurity Bill focuses on creating resilience in cyberspace by protecting critical infrastructure, enhancing network security, and combating cybercrime.  It also establishes the National Cyber Security Authority, a state-owned entity dedicated to cybersecurity oversight.
Botswana’s existing regulatory framework includes key legislation such as the Electronic Communications and Transactions Act, Cybercrime and Computer Related Crimes Act, Data Protection Act, Virtual Assets Act, Consumer Protection Act, Bank of Botswana Act, Banking Act, and Financial Intelligence Act.  These laws collectively ensure financial stability, security, and consumer protection within the digital economy.
BOCRA oversees the communications sector and plays a critical role in assessing and approving regulatory instruments to meet the demands of digital transformation.

Digital Trade Barriers  

Botswana faces significant challenges in creating a conducive environment for a thriving digital economy.  Despite years of effort, the government has been slow to transition to digitization, with limited interconnectedness between government systems, resulting in continued reliance on paper-based processes and inefficiencies.  The country also struggles with a shortage of skilled workers in the tech industry, which hampers e-commerce adoption and digital trade.
The economy remains heavily reliant on cash, limiting opportunities for digital transactions.  Restrictions on licensing for certain business operations reserved for Botswana companies, coupled with excessive red tape for licenses and permits, further constrain growth.  Additionally, the high costs and inconsistent performance of internet services pose barriers to digital trade and innovation.

Digital Trade Opportunities 

Botswana’s emerging digital sector offers vast opportunities, fueled by its strategic location, expanding digital infrastructure, and favorable trade agreements.  As a member of regional trade organizations such as SACU and SADC, and a signatory to the AfCFTA, Botswana gains access to a larger African market of approximately 1.4 billion people, creating significant potential for e-commerce and digital trade.

Key opportunities include training personnel to develop digital skills, enabling businesses to capitalize on digital trade and offering IT outsourcing services such as software development and content moderation.  Partnerships with development finance institutions can help address funding gaps for startups and support the growth of the digital economy.  Additionally, the limited presence of angel investors in Botswana presents an opportunity to provide startups with alternatives to traditional bank loans, fostering innovation and entrepreneurship in the digital sector.
Botswana’s favorable trade environment and untapped digital potential make it an attractive destination for investment and collaboration in the digital economy.

Cross-sector Enabling Technologies 

Artificial Intelligence (AI): While Botswana’s government is still developing a framework for AI, its FY 2025/2026 research and development priorities include advancements in manufacturing and AI.  The government is also creating a robust Technical and Vocational Education and Training Policy that incorporates AI.  Some local companies, such as those in mineral prospecting, are already leveraging AI technologies like Planetary AI’s Xplore system, which uses semantic technology and machine learning to identify subsurface mineral patterns.  AI has significant potential to improve service delivery in government sectors, including e-government portals and digital records management, as well as in healthcare, education, and agriculture.  This remains a largely untapped market with substantial opportunities for U.S. companies.
 

  • Internet of Things (IoT): Botswana’s IoT market is projected to reach $135.94 million by 2025 according to Statista report, driven by increased investment in digital transformation, rising internet penetration, and growing mobile subscriptions.  IoT applications can enhance operational efficiency, optimize resource management, and improve customer experience in sectors such as agriculture, logistics, and retail. U.S. companies can play a key role in developing these solutions.
     
  • E-commerce and Online Retail Platforms: With access to regional markets through initiatives like the African Continental Free Trade Area (AfCFTA), there is growing demand for e-commerce platforms that enable businesses to expand their customer base, streamline operations, and offer a wider range of products and services.
     
  • Mobile Payments and Digital Banking Solutions: Mobile payment systems are critical to supporting e-commerce and online retail by enabling seamless transactions, improving financial inclusion, and providing easy access to banking services.  According to BOCRA’s 2024 annual report, the value of mobile transactions increased from $1.83 billion (26.5 billion pula) in March 2023 to $2.31 billion (33.5 billion pula) in 2024, reflecting strong consumer demand for mobile payment solutions.
     
  • Data Analytics: Data collection and analysis are essential for effective policy formulation and planning, yet Botswana’s government sector remains underdeveloped in this area.  Opportunities exist for U.S. companies to provide data collection and analytics tools that deliver valuable insights, predict trends, and optimize processes across various sectors, including government and business.
     

Botswana’s digital economy offers significant opportunities for U.S. companies to contribute innovative solutions in AI, IoT, e-commerce, mobile payments, and data analytics, supporting the country’s ongoing digital transformation.

Specific Industry Sub-sectors  

Cybersecurity Solutions: The Ministry of Communications and Innovation has identified a growing number of cyber threats and is actively developing a cybersecurity framework to ensure resilient, safe, and secure cyberspace.  This presents significant opportunities for U.S. companies offering advanced cybersecurity solutions.
Fintech: The Bank of Botswana (BoB) is prioritizing the development of financial technologies and next-generation payment systems, dedicating a chapter in its 2024 annual report to exploring growth opportunities in this sector.  Fintech is a promising area for innovation and investment.

Artificial Intelligence (AI) Solutions: AI technologies offer transformative potential across various sectors, particularly healthcare.  Botswana faces critical medicine shortages due to procurement challenges and inefficient logistics management.  AI-driven solutions, such as just-in-time ordering systems, could address these issues and improve distribution efficiency.  U.S. companies with expertise in AI can play a pivotal role in advancing these applications.

Digital Economy-related trade events

  • Botswana Tech Summit & Expo: Held annually in August in Gaborone, this event serves as a major cross-sector platform focused on leveraging technology for national transformation. Topics include digital infrastructure, artificial intelligence, cybersecurity, green innovation, and more.
     
  • Fintech Festival: The annual Fintech Festival in August organized by Bank of Botswana, is a premier platform to explore how financial technology is transforming the industry with faster, accessible, and customer-focused solutions.  It highlights fintech’s role in driving innovation, creating business opportunities, boosting economic productivity, and promoting inclusion by extending financial services to underserved communities.
     
  • Global Expo Botswana: Scheduled for October 8–11, 2025, in Gaborone, this is Botswana’s premier business-to-business multi-sectoral expo.  Managed by the Botswana Investment and Trade Centre (BITC) on behalf of the government, it attracts businesses and exhibitors from Botswana, the region, and around the globe.

 

 


 

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