UDC Govt advances Chinese Electric Vehicle assembly agreement

Several factors have influenced the ruling UDC government’s decision to continue with the assembly of Chinese electric vehicles (EVs) and buses in Botswana.Chief among them is that the initiative, originally introduced by the former BDP government, was a forward-thinking strategy aimed at creating jobs and economic diversification.Additionally, a binding agreement exists between Botswana and China, following China’s selection of Botswana as one of the countries it intends to expand its large-scale manufacturing footprint into as part of its global industrial push.Other contributing factors include growing interest from neighbouring countries such as South Africa and Namibia. Business leaders from these nations have either expressed willingness to invest through public-private partnerships or inquired when Botswana plans to scale up the programme.Namibia, in particular, has formally registered its interest, indicating a potential commitment to purchase Botswana-assembled EVs if the vehicles meet the required standards. South African fuel industry players have shown keen interest in investing in electric filling stations to support the growing demand for EVs.Meanwhile, Namibia has long expressed a desire to purchase EVs, especially since the components are transported through its ports. However, there were reported concerns about the potential implications if Botswana were to halt its EV programme, given that it currently holds exclusive production rights for EVs in the region.In an interview with Botswana Guardian, Minister of Communications and Innovation, David Tshere, addressed the issue, conceding that the electric mobility programme was initiated under the previous administration.“If you recall, the Ministry of Communications and Innovation acquired six EVs during the pilot phase. It’s important to note that those vehicles were fully assembled units,” he said.Tshere further explained that the second phase involved the procurement of equipment, which also came nearly complete. However, a presidential directive later called for the establishment of a localassembly plant to enable Botswana to assemble EVs domestically.According to the Minister, vehicle assembly can be understood in three stages. The first involves vehicles arriving nearly complete—with their mechanisms, bodies, and batteries already fitted—only requiring minimal fitting such as tires, lights, and seats.“This was the case with the initial batch of 20 SUVs and 30 electric buses,” he said, adding that these buses were originally intended for use during a major international conference.The second phase required the actual establishment of an assembly plant to handle semi-knockdown (SKD) vehicles.These vehicles arrive partially disassembled—usually as a frame with installed batteries, axles, and loose components like seats, which are delivered in boxes. Construction of the assembly facility began in April 2025.“As the UDC government, we opted to move forward with the project because the contract was already in place and actively running when we assumed office. We followed through and completed the installation of the semi-knockdown assembly facility at the designated warehouse,” Tshere added.After the installation of the assembly plant, the government began assembling the 30 vehicles that arrived as semi-knockdown kits, with parts delivered in boxes. However, the plant is not yet fully commissioned or certified.According to the Minister, the necessary processes are underway, including ISO certification to meet specific manufacturing standards and acquiring the relevant licenses.“This is still an ongoing process,” Tshere explained. “But as we speak, under a 12-hour shift, the plant can assemble an average of five vehicles per day under normal working conditions. If we were to extend operations to a 24-hour shift, we estimate the plant could assemble about 10 vehicles per day. That is the current capacity of the facility.”Explaining how the UDC government decided to move forward with the project, Tshere said it began with a proposal his ministry presented to Cabinet.“When I briefed the President and Cabinet, I made the case that—based on the available research and the stage we had reached—we were transitioning from trials into commercialisation, assembly, and production. Therefore, it would be prudent for the entire programme to be transferred to the Ministry of Trade and Entrepreneurship.”He added that for the now commercial undertaking, there is a need to attract investors to help scale the operation, and that responsibility falls more naturally under the Ministry of Trade.Minister of Trade and Entrepreneurship, Tiroeaone Ntsima, supported the transfer of the EVs programme to his ministry, noting that they are already receiving inquiries from South African business stakeholders.“We have been approached by South African counterparts, including businesspeople who have indicated that there is a large and growing market for electric vehicles in their country,” Ntsima said.“Their customers want to drive these vehicles into Botswana for various reasons, including tourism and other business opportunities. However, the major challenge is the lack of charging infrastructure in Botswana.”He explained that some of these stakeholders are proposing to invest in EV charging infrastructure in Botswana. Several of them already own fuel stations and are interested in converting one of their pump stations into an electric vehicle charging facility.Minister Tshere added that, considering these proposals and the fact that the EV programme has now transitioned into a commercial phase, Cabinet advised the President that it was both logical and prudent to place the programme under the Ministry of Trade and Entrepreneurship.Given the evident value of EVs for both economic growth and environmental sustainability, the government’s position is that the private sector should be actively engaged and invited to partner with the government to drive the rollout of electric mobility in Botswana.“This is now the official government position—we are pursuing a Public-Private Partnership (PPP) model to accelerate and grow electric vehicle assembly and manufacturing in the country,” Tshere emphasised.“Namibian officials have already visited Botswana to assess our assembly plant, with a view to possibly purchasing EVs assembled locally,” he said.Tshere explained that the basis of Namibia’s inquiry lies in the agreement Botswana signed with China when procuring the EV assembly equipment."According to that agreement, Botswana was designated as the sole distributor of these electric vehicles in this region. We hold the exclusive rights to assemble and distribute the vehicles, which was the original intent behind establishing the EV assembly plant in Botswana,” he said.He noted that Namibia is ready to place substantial orders once they are satisfied that all required standards are met.“They simply want to confirm compliance before committing. Other countries in Southern Africa have also expressed interest in purchasing EVs assembled in Botswana.This is why, as the Ministry of Communications and Innovation, we recommended the transfer of the entire EV programme—including the plant and any unspent funds—to the Ministry of Trade and Entrepreneurship. That process is now at an advanced stage.”Tshere said that the cabinet’s guidance was that the Ministry of Trade would conduct its assessment of the project's viability and determine how best to transition it into a full commercial enterprise, primarily by bringing in private sector players to scale up operations.“That’s the official government position,” he added. “During our recent visit to the plant, together with the Assistant Minister, we observed that the current facility is too small to meet future demand. We may have to explore partnering with private operators to secure a larger facility capable of handling the scale of production needed to fulfil anticipated orders”.Tshere added, “As Botswana, we are fully committed to continuing with the assembly and production of electric vehicles within our borders.”Tshere was cautious about revealing Botswana’s next steps regarding the development of a permanent E-assembly plant.When asked whether Botswana would build such a facility, he responded: “At this stage, it’s not for me to say—that decision rests with the Ministry of Trade. However, what I can share is that they will assess the potential for scaling up operations and evaluate incoming investment opportunities.”For now, the immediate priority is to establish EV charging infrastructure—not just for locally assembled vehicles, but also for EVs from neighbouring countries visiting Botswana.“We must facilitate the installation of charging stations in Gaborone and along major highways, towns, and villages, where users will need to recharge,” he said.Giving a practical example, Tshere mentioned that two EVs are currently with the Ministry.“Just yesterday (Thursday), we drove one of them to a lodge in Lobatse via a gravel road to test its performance. It handled the journey well, although we arrived with only 36 percent battery remaining and had to recharge.”He explained that there are various types of EV charging systems: superchargers, which can fully charge a battery in about 30 minutes; semi-fast chargers, which take one to two hours; and slow chargers, like the standard 240-volt household outlets currently in use due to the absence of dedicated infrastructure.“Using this method, a full charge takes the whole night,” he noted.Regarding the already assembled electric buses, Tshere confirmed that the Cabinet has decided to transfer them—along with the entire EV programme—to the Ministry of Trade and Entrepreneurship.“They will now conduct a feasibility study to determine the best way forward in terms of utilising the buses and other assets,” he said.Tshere also confirmed that the government has initiated the process of vacating the initial location where the EVs were assembled.“On our part, the Ministry of Communications and Innovation has been facilitating the handover, including forming a joint technical team with the Ministry of Trade. These teams have been actively collaborating and sharing information.”Importantly, Tshere assured that the government does not intend to lay off the staff who were involved in the original assembly project.“It would be wise to retain the personnel who have already been trained to assemble these vehicles,” he said.“Of course, the final decision on staffing will depend on whether the Ministry enters into a partnership or joint venture with an investor under the Public-Private Partnership (PPP) model.”He concluded, “Even though I cannot say for sure whether that partnership will happen, retaining trained staff makes sense—it avoids restarting from scratch. Unless, of course, a future partner prefers to use their own trained personnel instead.”Tshere confirmed the existence of a binding contract with the Chinese, stating that the agreement covers the establishment of the assembly plant and the supply of necessary equipment.“When the UDC government assumed office, we found that these contracts were already active. We chose not to interfere with them, which is why we proceeded with the implementation of the assembly plant. The actual setup began and was completed between April and May 2025,” he said.He also confirmed that Minister of Trade and Entrepreneurship, Tiroeaone Ntsima, visited China and met with key stakeholders. “I had provided him with the necessary contacts, and during his visit, he informed our Chinese counterparts about the government's decision to transition the project toward commercialisation.”Tshere noted that the Chinese were supportive of this move.“They understand and welcome the fact that the Ministry of Trade is now taking steps toward commercialising the plant. They remain very interested in seeing their electric vehicles enter the regional market, and we share that enthusiasm. This is why we are pushing to scale up the project under the Ministry of Trade and Entrepreneurship.”However, Tshere acknowledged certain challenges facing the EV sector.“The primary issue is cost. At the initial stage, EVs are significantly more expensive compared to traditional fuel-powered vehicles. A standard fuel-powered SUV might cost around P400,000, whereas an equivalent EV could go for approximately P700,000,” he explained.

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UDC Govt advances Chinese Electric Vehicle assembly agreement