22/12/2025
Manufacturers have condemned the Botswana Power Corporationβs (BPC) electricity tariff increase tariff application.
The Botswana Exporters and Manufacturers Association (BEMA) said the proposed electricity tariff increase for the 2026/27 financial year will have a heavy knock on manufacturers,
βWe are deeply concerned that the proposed tariff increase will have severe and unintended consequences for Botswanaβs industrial and manufacturing sectors,β said Botswana Exporters and Manufacturers Association (BEMA) Chief Executive Officer, Mmantlha Sankoloba.
She said the tariff increase will have an impact on manufacturing competitiveness citing that electricity is a critical production input for manufacturing and industrial activities.
βA significant upward adjustment in electricity tariffs will directly increase production costs, making locally manufactured goods less competitive in both regional and international markets,β said Sankoloba.
The Association said its members face high operational costs linked to logistics, imported raw materials, compliance requirements and financing.
βThe proposed increase risks eroding already narrow profit margins and undermining national efforts to promote local value addition and industrial growth.β
Sankoloba further warned of job losses and reduced industrial output highlighting that manufacturing remains one of the most labour-absorbing sectors of the economy, with strong potential for semi-skilled and skilled employment.
βIncreased electricity costs will likely force manufacturers to reduce output, postpone expansion plans, or retrench workers to survive. Small and medium-sized manufacturers will be disproportionately affected, potentially resulting in factory closures and significant job losses at a time when unemployment, particularly among the youth, remains a critical national challenge.β
BEMA has called on the Ministry of Trade and Entrepreneurship to engage closely with the energy regulator, industry stakeholders and BPC to explore alternative solutions.
βThese may include phased tariff adjustments, differentiated tariffs for energy-intensive industries, protection for export-oriented manufacturers and incentives for investments in energy efficiency and renewable energy. Such measures would help balance the sustainability of the power sector with the need to protect jobs, investment and industrial growth.β
Sankoloba said a stable, affordable and predictable electricity pricing framework is essential for sustaining Botswanaβs industrial base and achieving long term economic transformation.
BPC is proposing an upward average tariff adjustment of 46 percent.