President Boko's First Promises

Following his party, the Umbrella for Democratic Change's astounding victory in the 2024 Botswana general elections and swift swearing-in as the country's 6th head of state, President Duma Boko held his first address as the head of state to the nation on 1 November.

As expected and anticipated, President Boko's first point was how he would address the state of Botswana's economy. Six decades of over-reliance on diamonds, whose prices are down by 30% over the last 3 years, have rendered the economy on the brink of what some experts call an imminent collapse.

Earlier in the year, former president Masisi touted his negotiation of a new deal with diamond giant De Beers as one of the core achievements of his administration. The deal would see Botswana getting more rough diamond supply from the joint Debswana operation and the establishment of a diamond development fund, which would accrue P10 billion over the next decade. 

However, although an agreement in principle was in place, the actual deal itself is yet to be signed, according to reports.

In his address, Boko said diversifying the economy was the starting point as his administration sought to protect the country from the economic shocks brought about by the diamond market's feeble nature."We can only do this by creating a conducive environment for investor satisfaction and confidence," President Boko said. 

But what does that environment look like exactly? President Boko did not get into the details, which is understandable as it was an impromptu engagement in what must have been a hectic last couple of days, but when the dust settles, it would be in the interest of the nation for the details of this "conducive environment" to be clearly laid out.

On the issue of the P4000 minimum wage, one of the ruling UDC's sell points on the campaign trail, President Boko's response was that a well-paid workforce is bound to reach the optimal levels of production. After clarifying that the minimum wage would initially apply to government, President Boko said in an environment where people were paid a decent minimum wage, it would also stoke economic activity, boosting all other sectors of the economy in progress.

For the private sector, President Boko said if the economy allows industries to be able to pay decent wages but they choose not to, then perhaps their ability to operate in the country ought to be looked at.

President Boko also laid out his plan to ensure that the country's regulatory environment did not impede the country's ability to move away from over-reliance on government. The example he gave was the monopoly of the Botswana Power Corporation in the supply of electricity in the country. In his address, President Boko said because of the current regulatory framework, independent power producers (IPPs) had to sell whatever power they could not use only to the BPC at rates dictated by the power provider. 

As a potential solution, President Boko touted the expansion of the electricity distribution network of electricity in the country to create room for more players beyond just the BPC. Instead of the BPC having a monopoly on distribution, IPPs would also have a chance to join the downstream of the power provision market, perhaps stoking more competition for the BPC, whose existence has been subsidised by government bailouts and tariff increases.

There was also another promise from the incoming president on a point which most opposition, including the UDC, had campaigned on; the former government's notoriety for advancing party interests over national interests, which manifested by past presidents appointing what most considered party loyalists to cabinet, instead of using the Specially Elected Members of Parliament (SEMPs) provision of the constitution to appoint capable and non-partisan personalities.

Responding, President Boko said although he could not make promises on the makeup of his yet-to-be-announced cabinet, meritocracy would prevail over partisan affiliation. “We want merit, we want capability, regardless of which political party you belong to,” he said. With his first parliament expected in the coming days, whether this promise will come to fruition remains to be seen.

Politicians are known to overpromise and underdeliver. That is, unfortunately, the "nature of the game." But it would be unfair to judge an incoming administration on that premise before they have even moved their stationary into the corridors of the Government Enclave. Botswana currently finds herself in a position she has never found herself in her 58 years of self-determination, so it is best to give the incoming administration the benefit of the doubt.

The new administration offers hope to a citizenry which has, over the last 15 years, felt its heydays were gradually fading away. To investors, both present and prospective, Boko assured that those willing to abide by the country's rules were very much welcome in Botswana. But change, to those who mostly see the glass as half empty rather than half full, also brings its fair share of anxiety. It is the new leadership's responsibility to simmer down those anxieties, armed with the surety that the whole nation is marching right behind them.