• Oman supports 500 MW solar plant with battery storage
• Fuel storage deal aims to strengthen energy security
• Botswana still relies heavily on coal and imports

Oman is stepping into Botswana’s energy sector with plans to support solar development and strengthen fuel security, as the southern African country looks to reduce its reliance on coal and imports.

The two countries signed agreements on April 13 in Muscat, during a ceremony attended by Botswana’s President Duma Boko and Oman’s Sultan Haitham bin Tariq.

Under the deal, Oman will back the development of a 500 MW solar power plant equipped with battery storage. The project will be led by O-Green, a state-owned Omani company tasked with designing, financing, building, and operating the facility in northwestern Botswana. The investment size and timeline have not yet been disclosed.

A second agreement focuses on fuel supply. OQ, another Omani state-owned firm, signed a framework deal with Botswana Oil Limited (BOL) to explore cooperation in fuel storage and regional supply. The aim is to improve energy security in a country that imports about 1.3 billion liters of fuel each year.

President Boko said the agreements mark a step toward energy self-sufficiency and, over time, export capacity. For Oman, the deals align with the international investment strategy of its sovereign wealth fund, according to Oman Investment Authority chief Abdulsalam Al Murshidi.

The partnership comes as Botswana faces structural challenges in its energy sector. Coal still accounts for about 99% of electricity generation, while roughly half of the country’s power consumption is imported, mainly from South Africa through the Southern African Power Pool.

The government has set targets to raise the share of renewables to 30% by 2030 and 50% by 2036, with an initial pipeline of 335 MW already under development.

The urgency is also economic. Botswana’s heavy reliance on diamond revenues has become a vulnerability. According to the World Bank, diamond income fell by 50.7% in 2024–2025, contributing to a 3% contraction in GDP in 2024.

The International Monetary Fund expects a further contraction of 0.4% in 2025, alongside a budget deficit of 9.2% of GDP. Credit rating agencies have also flagged rising risks, with Moody’s revising its outlook to negative and S&P downgrading the country to BBB with a negative outlook.

Against this backdrop, the new agreements highlight Botswana’s push to diversify both its energy mix and its economic base.

Abdel-Latif Boureima