Water Pricing and Policy in Botswana

Abstract

This paper examines water pricing in Botswana for both ground and piped surface water. In Botswana it has long been recognized that the use of ground water for large scale mining is unsustainable. This paper argues the need to impose a price for ground water for large abstracters like mining companies that reflects its opportunity costs. The paper also considers the prices of piped surface water. Botswana was one of the most expensive countries in SADC for purchasing piped water. The price of water had not been increased from 2003 until May 2012, and the paper considers ways to protect the interest of low income groups and business as Botswana moves to achieve marginal cost pricing, which is the Government of Botswana's stated pricing objective in the 9th National Development Plan.