The ICT & Telecommunications Industry in Botswana 2023

Introduction

Botswana’s telecoms industry, including mobile, fixed telephony, internet and broadband, and the infrastructure that supports them, is a catalyst in driving government’s Vision 2036. The industry is growing as operators continue to roll out innovative products to cater for increased demand.

The major players include the three big operators - Mascom Wireless, Orange Botswana and BTC - and several internet service providers. Internet is largely accessed by individuals through smartphones, while fixed internet services are used by businesses and a small number of households. Mobile money services continue to grow with subscription growth increasing by more than 10% in 2022. Telecoms companies face a major challenge as the population is small and sparsely populated, making it difficult to achieve economies of scale to extend services to, and to fully service, remote areas that have few inhabitants and a lack of connectivity.

Opportunities

Operators or ISPs can lease the use of network systems from other local players.

Continuous rollout of new products. Expansion of fibre networks. Fibre to business and home connections will increase internet demand. Growth of mobile money platforms will result in increase of subscriptions, data, and internet connectivity. Modernisation of infrastructure.

Outlook

Botswana’s economic growth was expected to slow in 2023 and accelerate from 2024-2027, driven by the services and mining sectors.

The expected uptake of 4G and 5G subscriptions will open digital marketing and retail channels to more consumers and increase smartphone demand and sales. Increased demand for consumer electronics is likely to benefit the budget smartphone category in particular. There is a positive outlook for disposable incomes over the medium term, a favourable young demographic profile and a concentration of consumers around Gaborone, providing opportunities for operators in wireless internet and fibre.

Report Coverage

This report is on the telecoms industry in Botswana, including mobile, fixed telephony, internet and broadband, and the infrastructure that supports them. It includes information on the notable players, corporate actions, and developments in broadband, fibre, mobile and mobile money,

There are profiles of 20 companies including state-owned BoFiNet which provides wholesale infrastructure and services to internet service providers, the major players Mascom, BTC and Orange, fibre network providers such as Liquid Telecommunications and Paratus, and retailers such as 3GMobile and Huawei.

Strengths

A liberalised telecoms industry.

Government support of ICT industry. High number of mobile subscribers. Prudent economic management. Reasonably developed telecoms infrastructure that covers much of the country. Significant mineral wealth. Upper-middle-income country.

Threats

Cyber security.

Economy is vulnerable to external shocks. High incidents of vandalism, theft of batteries and solar panels from base stations. Potential network equipment price increases. Slow economic growth caused by unexpected disasters such droughts can lower customer spending.

Weaknesses

Access to electricity particularly in rural areas and settlements remain an issue as subscribers are often offline. Decline in mobile voice calls over social media platforms such as WhatsApp. High advertising costs. High electricity tariffs. Lack of serviced land for transmission sites. Limited coverage of electricity in rural areas contributing to low penetration of fixed line telephony and broadband. Small and sparsely populated population. There is inconsistent access to high speed services. Various technical skills are lacking.