Transport Sector’s robust contribution to Botswana’s economy: A 2023 overview

Admin3 weeks ago43845 min

In a testament to its enduring growth trajectory, Botswana’s transport sector has once again underscored its pivotal role in the national economy. Recent data released by Statistics Botswana reveals that the sector contributed a remarkable P5.97 billion to the economy in 2023, up from P5.6 billion in the previous year. This impressive growth pattern has been consistent over the past decade, with contributions escalating from P2.5 billion in 2014 to nearly six billion pula today.

Road Transport: A Dominant Force

The road transport subsector emerged as the powerhouse of the transport sector, delivering a substantial 1.92 percent to the economy in 2023. In monetary terms, this translates to an infusion of approximately P5 billion. The burgeoning growth in road transport is mirrored by an uptick in vehicle registrations, which climbed from 601,081 in 2022 to 619,953 in 2023. Passenger cars dominated this sector, constituting 64.3 percent of all vehicles, while vans accounted for 19 percent. Notably, privately owned vehicles represented a staggering 97.9 percent of the total, reflecting a steady average annual growth rate of 4.2 percent since 2014. In 2023 alone, the number of privately owned vehicles increased by 3.1 percent, reaching 607,049, with the exception of buses, which saw a marginal decline of 0.2 percent.

A noteworthy 38,912 vehicles were registered for the first time in 2023, marking a 21.6 percent surge from the previous year. Passenger cars made up the bulk of these new registrations at 73.9 percent, with vans comprising 10 percent. Motorcycles, however, trailed with a mere 0.5 percent. The majority of these newly registered vehicles were used, accounting for 77 percent, while brand-new and rebuilt vehicles constituted 22.9 and 0.1 percent, respectively. Japan emerged as the leading origin for these vehicles, contributing to 66.4 percent of the total, with 99.6 percent being used vehicles. South Africa and Botswana followed, with 23.9 and 4.1 percent, respectively. The Toyota brand continued to dominate the scene, representing 25.1 percent of first-time registrations, trailed by Mazda, Honda, and VW at 16.5, 15.8, and 11.7 percent, respectively.

Beyond road transport, the storage and transport support services sector contributed P399 million, while postal and courier services added P283 million to the economy in 2023.

Rail Transport: A Steady Contributor

The rail transport subsector contributed P158 million to the economy, buoyed by an 8.8 percent increase in the volume of goods transported via rail, climbing from 977,094 net tonnes in 2022 to 1,062,590 tonnes in 2023. Notably, imports from Botswana’s northern regions surged by over 100 percent, while transit goods rose by 46.2 percent. Local goods distribution also experienced a 29.5 percent increase. However, exports to the north and south saw declines of 36.7 and 6.1 percent, respectively.

Air Transport: Soaring Heights

The air transport subsector amassed P67 million in 2023. Aircraft movements witnessed a 9.4 percent rise, from 63,911 in 2022 to 69,900 in 2023, with 78.5 percent being domestic flights and 21.5 percent international. Passenger movements surged by 17.1 percent, reaching 763,809, with international passengers forming 54.9 percent of this figure. International movements increased by 19.2 percent, while domestic rose by 14.7 percent. Although Gantsi and Selebi Phikwe airports reported decreased passenger traffic, others like PG Matante, Maun, and Sir Seretse Khama International recorded significant growth of 26.6, 18.1, and 16.4 percent, respectively. A total of 1,496 tonnes of cargo was transported by air in 2023.

In essence, Botswana’s transport sector continues to be a cornerstone of economic vitality, showcasing robust growth across road, rail, and air transport sectors.