Botswana has signed new energy agreements with Oman to develop solar power capacity and strengthen fuel supply, as the southern African nation seeks to cut reliance on coal and imported energy.
The deals were signed in Muscat during a ceremony attended by Botswana’s President Duma Boko and Oman’s ruler Haitham bin Tariq, marking a deepening of ties between the two countries.
Under the agreements, Oman will support the construction of a 500-megawatt solar power plant with battery storage, a major خطوة toward expanding Botswana’s renewable energy capacity.
The project will be led by O-Green, a state-owned Omani company responsible for designing, financing, building and operating the facility, which will be located in northwestern Botswana. Financial details and timelines have not yet been disclosed.
Fuel supply partnership
A separate agreement focuses on strengthening Botswana’s fuel security.
Oman’s state energy group OQ signed a framework deal with Botswana Oil Limited to explore cooperation in fuel storage and regional supply.
Botswana currently imports around 1.3 billion litres of fuel annually, leaving it exposed to supply disruptions and price volatility.
The planned partnership aims to expand storage capacity and improve supply chains, helping to stabilise the country’s energy system.
Reducing coal dependence
The agreements come as Botswana faces structural challenges in its energy sector.
Coal accounts for roughly 99 percent of electricity generation, while about half of the country’s power needs are met through imports, largely from South Africa via the regional grid.
This heavy reliance has raised concerns about energy security and sustainability, particularly as demand grows.
The government has set ambitious targets to increase the share of renewables to 30 percent by 2030 and 50 percent by 2036, with several solar projects already in the pipeline.
Economic pressures add urgency
Efforts to diversify the energy mix are also being driven by broader economic pressures.
Botswana’s economy remains heavily dependent on diamond exports, making it vulnerable to fluctuations in global demand.
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According to the World Bank, diamond revenues fell by more than 50 percent in 2024–2025, contributing to an economic contraction.
The International Monetary Fund has projected a further slowdown, alongside a widening fiscal deficit.
Credit rating agencies have also flagged rising risks. Moody’s Investors Service has revised its outlook on Botswana to negative, while S&P Global Ratings has downgraded the country with a negative outlook.
Strategic diversification
President Boko said the agreements represent a step toward greater energy independence, with potential to eventually export surplus power.
For Oman, the partnership aligns with efforts to expand overseas investments through its sovereign wealth strategy, as it looks to diversify beyond oil.
The collaboration highlights a broader trend of energy partnerships between resource-rich nations seeking to leverage expertise and capital to accelerate the transition to cleaner and more resilient energy systems.
For Botswana, the stakes are high: reducing dependence on coal and imports while building a more diversified and sustainable economic base.
