As part of the World Bank’s technical support to Botswana under the Economic Diversification and Competitiveness program, the World Bank is overseeing the development of cross-border value chain studies in three of the priority sectors. This project focused on the transport and logistics sector. Transport and logistics is a potential export sector in its own right, but it is also an important enabler to other sectors. This is particularly the case in the context of global and regional value chains, where parts and components increasingly move across firms and across borders in multiple stages before reaching end customers. Efficient transport and logistics is critical to ensuring cost and timeliness in value chains; as such it has become an important source of potential competitive advantage (or disadvantage) for countries. With its central location in Southern Africa and its relatively good infrastructure, Botswana has the potential to be a hub for transport and logistics in the region. At the same time, Botswana’s advantages of centrality are offset by being landlocked, relatively far from ports, and lacking economies of scale. In this context, Botswana faces some challenges in developing a competitive transport and logistics sector.

This study aimed to understand the current state of the transport and logistics sector in Botswana, its competitiveness, positioning, and relationship with the wider SACU transport and logistics sector, and the opportunities and requirements for establishing a competitive position in the sector.

The specific objectives of study were to understand the current structure of the transport and logistics value chain in Botswana and across SACU, assess the determinants and barriers to competitiveness in different parts of the value chain, identify specific opportunities for investors in Botswana to leverage their comparative advantage to exploit opportunities in relevant parts of the value chain and identify the main constraints preventing Botswana from taking advantage of these opportunities and recommend policies to address these constraints.