China’s Role in Infrastructure Development in Botswana

The document examines China's role in Botswana's infrastructure development, noting a shift from government-led aid to competitive public tenders. It highlights the competitive advantages of Chinese firms—such as low-cost bidding and hands-on management—while addressing challenges regarding quality standards and skilled labour shortages. It also introduces a new commercial financing model involving the Industrial and Commercial Bank of China and Standard Bank for the Morupule B Power Station project.

• Chinese construction firms in Botswana primarily operate through public tenders awarded by the Public Procurement and Asset Disposal Board (PPADB) rather than exclusively through Chinese government-funded aid projects.
• Chinese firms achieve a competitive advantage through a low-profit-margin strategy, typically working with margins of 10–15% compared to 30–50% for European or South African competitors.
• The presence of Chinese firms has reduced the cost of public infrastructure projects for the Botswana government by an estimated one fourth to one third.
• Chinese firms face significant challenges regarding the perceived and actual quality of their work, with some reports of substandard materials being used to reduce costs.
• There is a critical shortage of skilled local labour in Botswana, forcing Chinese firms to import staff from China despite higher overall costs for accommodation and travel.
• A new commercial financing model for African infrastructure is being implemented via the Morupule B Power Station project, involving a joint loan of $825 million from the Industrial and Commercial Bank of China (ICBC) and Standard Bank Group, backed by Sinosure and the Botswana Ministry of Finance.

APA

Chen, A. Y. (2009). China’s Role in Infrastructure Development in Botswana. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2009/10/Occasional-Paper-44.pdf

Chicago

Chen, Anna Ying. China’s Role in Infrastructure Development in Botswana. South African Institute of International Affairs, 2009. https://saiia.org.za/wp-content/uploads/2009/10/Occasional-Paper-44.pdf.

Wikipedia

{{cite report |last1=Chen |first1=Anna Ying |title=China’s Role in Infrastructure Development in Botswana |publisher=South African Institute of International Affairs |date=September 2009 |url=https://saiia.org.za/wp-content/uploads/2009/10/Occasional-Paper-44.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chen2009chinas, author = {Chen, Anna Ying}, title = {{China’s Role in Infrastructure Development in Botswana}}, institution = {South African Institute of International Affairs}, year = {2009}, month = sep, url = {https://saiia.org.za/wp-content/uploads/2009/10/Occasional-Paper-44.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }