Botswana’s efforts to clamp down on illicit fuel trade and plug revenue leakages have taken a formal step forward with a new memorandum of understanding (MoU) between the Botswana Unified Revenue Service (BURS) and the Botswana Energy Regulatory Authority (BERA).
The agreement aims to unite BURS’s revenue collection responsibilities with BERA’s regulatory and technical oversight, particularly in managing fuel imports and border controls. Yet, BERA’s CEO, Dr. Never Tshabang, cautioned that signing the MoU means little if it simply “covers dust” without leading to real changes in how illegal fuel trade is detected and halted.
Acting BURS Commissioner General Phodiso Valashia described the agreement as a framework to safeguard national revenue, protect consumers, and ensure energy security. “The Revenue Service and BERA, we tend to sign a memorandum of understanding with a view to helping to ensure that there’s alignment with our constitutional mandate and drawing a formal framework of ensuring that as sister departments of the government, we in a very practical way make formal commitments in terms of protecting revenue, in terms of protecting consumers, ensuring that there is energy security in this country,” he said.
Valashia emphasized the urgency of this collaboration amid Botswana’s shifting economic landscape. With mineral revenues, once the backbone of the economy, no longer guaranteed, the country cannot afford revenue leakages. He warned that unpaid taxes ultimately reduce funds available for public services. “It is important that we close those revenue leakages because any one thebe that is not paid, when accumulated, it would mean that somebody somewhere does not receive required service,” he added.
The MoU holds particular significance given the dual challenges of petroleum trade: revenue collection and consumer protection. While BURS focuses on customs and compliance, BERA brings regulatory oversight and technical expertise. Together, they hope to identify discrepancies that one organization alone might miss.
Tshabang, however, offered a more sobering perspective, stressing that the true test of the MoU will be what follows the signing. “It has become a document covering dust. So we can celebrate signing, but what lies ahead is an enormous task,” he said.
The BERA chief underscored the need for tangible results, insisting the institutions must be able to look back and confirm they genuinely reduced illicit fuel trade, rather than just marking the establishment of another cooperation framework.
Illicit fuel trade is estimated to cost Botswana roughly P4 billion, an amount comparable to the budget of an entire government department. “The amount of revenue that we lose through illicit trade, sometimes it’s estimated to four billion,” Tshabang said.
This loss is not merely a customs issue but points to vulnerabilities across the petroleum supply chain, including declarations at entry points, product verification, border monitoring, and the movement of fuel allegedly destined for neighboring countries.
Tshabang highlighted under-declaration as one method of illicit trade, while also acknowledging BERA’s limited technical capability at the borders to verify whether imported fuel matches declarations. “There are so many ways of illicit trade. One, under-declaration. Two, BERA does not have the technical ability to test whether it is the right fuel or not. So we need their know-how,” he explained.
He also raised the troubling issue of fuel dumping, where consignments declared as bound for another country reportedly end up being sold within Botswana. “They tell us that this fuel is going to Zambia. They take in 50,000 litres of fuel. Two days later, the fuel is dumped in-country,” Tshabang said.
If true, these allegations expose a critical gap between border declarations and the actual distribution of fuel. They also illustrate why simply increasing paperwork is insufficient; authorities must be able to trace fuel beyond entry points and verify that declared destinations align with real movements.
Tshabang pointed out the difficulties faced at border posts, noting that officials should not have to rely on repeated calls between agencies when suspicious fuel transactions arise. “We need to collaborate and bring a system that will fight this illicit trade. And we believe that our collaboration can install that system, and it will give us fruits,” he said.
The MoU, therefore, is less about creating another bureaucratic link and more about closing a critical institutional gap. BURS holds the revenue and border enforcement mandate, while BERA brings sector-specific regulatory and technical expertise. Together, their combined efforts could make it harder for traders to exploit loopholes between customs declarations, regulatory compliance, and actual fuel movements.
Yet the staggering P4 billion figure raises pressing questions that the MoU signing does not answer. If losses are occurring at such a scale, authorities will need to show where the leakages are concentrated, how much revenue has been recovered, how many cases have been identified, and whether offenders have faced penalties.
The credibility of this agreement will hinge on results beyond the document itself. Success should be measured by more effective border verification, improved fuel tracing, faster information sharing, and clear reductions in illicit trade and revenue loss. For Botswana, the stakes go beyond petroleum. As the economy seeks to reduce its dependence on mineral revenues, protecting every legitimate source of public income becomes vital. The MoU may offer a framework for cooperation, but Tshabang’s warning about a “document covering dust” remains the ultimate challenge: will this partnership produce enforcement or just another signed agreement?