BPC owes small contractors over P3.7m

Botswana’s monopoly power supplier, Botswana Power Corporation (BPC), continues to face cash-flow challenges, with outstanding invoices amounting to more than P3.7 million owed to small contractors dating back to 2020.

According to the Minister of Minerals and Energy, Bogolo Kenewendo, the delayed payments to some suppliers stem from mounting financial pressures, largely driven by elevated power import costs over the past several years. She told Parliament when responding to Tati East legislator, Thabologo Furniture’s question.

Furniture had asked the minister to apprise Parliament on the failure by BPC to pay creditors; state the number of contractors owed by BPC since 2019; the total amount owed; and what is being done to normalise operations and pay contractors on time.

Kenewendo said for the 2022/23, 2023/24 and 2024/25 financial years, there were no corresponding electricity tariff adjustments despite sustained increases in the cost of generation and supply. This structural misalignment between revenue and operating costs has placed considerable strain on BPC’s liquidity position, thereby affecting its ability to consistently meet supplier obligations within the prescribed time frames.

“Notwithstanding these challenges, BPC remains committed to restoring financial stability, strengthening internal controls, and improving payment turnaround times”.

Kenewendo said as of 31 October 2025, BPC confirms that there were no outstanding invoices dating back to 2019. “Should any supplier provide evidence of invoices from that period, BPC stands

ready to investigate and resolve the matter promptly”.

“BPC acknowledges outstanding invoices relating to the period 2020 to 2023, valued at BWP 3.72 million, owed to five Small Works Contractors”. She attributed delays in concluding these payments to unresolved technical issues encountered during project commissioning, which have prolonged the verification and final acceptance processes required prior to payment.

The Corporation has instituted a suite of interventions aimed at improving its financial position and normalising payment performance, including, implementation of cost-containment measures, and targeted expenditure reductions across the business.