Botswana is considering merging some underperforming state-owned enterprises (SOEs) as part of efforts to reduce fiscal pressures, improve operational efficiency and increase returns on public investment, a senior government official has said.
Permanent Secretary in the Office of the Vice President, Gape Kaboyakgosi said government was 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 help address persistent challenges within the public enterprise sector.
The proposed reforms come as Botswana seeks to strengthen fiscal discipline amid growing concerns about the cost of supporting state-owned enterprises that continue to rely heavily on government funding while generating limited returns.
Kaboyakgosi said the policy would also review the appointment of SOE boards, with merit-based selection intended to strengthen governance and accountability.
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, drive national development and fill gaps where private investment was limited.
However, concerns about efficiency, governance and financial sustainability have persisted in recent years.
Several public enterprises have depended on state support to remain operational, prompting calls for reforms aimed at improving commercial performance and reducing the burden on taxpayers.
JN/APA