Digging starts for New Botswana City

Botswana has broken ground on one of the largest foreign direct investment projects in the country’s history – and it has nothing to do with mining. A $1.9 billion mixed-use urban project, the “New Botswana City”, is being financed by Dubai construction and infrastructure company Albaddad, according to Botswana Development Corporation (BDC) managing director Oteng Keabetswe. BDC is providing the land adjacent to the Sir Seretse Khama International Airport (SSKIA), while “using other people’s capital”, given a drop in revenues from diamond sales, he told the media at the ground breaking ceremony. The megaproject will span 1.26 million square metres in a Special Economic Zone and aims to transform Botswana into a premier regional destination for international trade, business tourism and global exhibitions, according to the developers. BDC will initially hold a 5% stake in the project, which it plans to increase to 26% over time. The development will include a trade and exhibition centre, office towers, retail space, residential properties and five hotels, and will be solar powered. Work has started with the Botswana World Trade Centre. The new city and neighbouring airport development will support an estimated 37 500 jobs across the different sectors once fully developed. It will provide the physical infrastructure required for local processing and value- adding industries to meet the African Continental Free Trade Area (AfCFTA) rules of origin requirements and is designed to position Botswana as a regional trade and manufacturing hub. Keabetswe described Botswana as “a safe haven” for investors that “provides the security [and] no exchange controls […] that are important to global capital”. The deal is the latest in a series of African investments by companies based in the United Arab Emirates (UAE). They have become major investors in sectors ranging from ports and logistics to mining, energy and real estate. Emirati firms have invested in mining projects in Ethiopia, Mali, Ghana and Zambia, while logistics giants such as DP World and AD Ports have expanded operations across Central and West Africa as Gulf states seek access to critical minerals and trade corridors. The New Botswana City is the first major investment by UAE companies in the country. Botswana is also reported to be in discussions with the UAE and Oman about securing support for a potential acquisition of a larger stake in De Beers as Anglo American sells its 85% share in the world’s largest diamond producer. Botswana already owns a 15% stake. ER