Abstract:
The paper considers the opportunities and risks associated with the development of Botswana’s steam
coal export sector. Given the very high coal prices on world markets achieved over the last decade
together with the growing demand in India and China for steam coal, Botswana with its massive
estimated potential coal deposits of 212 Bt, probably the largest in Africa, is in a position to develop
a new export sector which will further diversify the diamond dependent economy. However, the
potential to develop this export sector has a narrow window of opportunity because of the declining
relative price of renewable energy and the changing global setting with regard to fossil fuels. Unless
the necessary infrastructure is put in place soon, including a railway to the coast, the development of
national water grid and industrial policy to utilize the middlings and discard from coal exports, then
the sustainable development of an industry that could be part of the country’s diversification program
could well be put in jeopardy.
