Coal market in Botswana

Earlier Report Observations

Between 2018 and 2020, Botswana's coal market experienced a contraction. Initial production in 2018 was supported by expanded capacity at the state-owned Morupule Coal Mine. However, the subsequent decline in both production and domestic market volume through 2020 aligned with a global pullback in financing for new coal projects, as international funders reduced support due to decarbonization commitments, dampening investment and activity in the sector.

The market volume recovered in 2021. By 2022, the global energy crisis triggered by Russia's invasion of Ukraine created a surge in international coal demand and prices. This enabled Botswana's producers to significantly increase exports for the first time via new rail access to Maputo and Durban ports. While this export growth supported production levels, it coincided with a reduction in coal available for the domestic market.

From 2023 into 2024, the sector navigated shifting conditions. Minergy Limited faced an 81% revenue drop in 2023 attributed to falling international coal prices. In response, the company resumed operations at its Masama mine in early 2024. The period also saw the entry of a new player, Maatla Resources, which invested $20 million to develop a coal mine targeting regional markets. Government policy actively helped local collieries exploit supply gaps in South Africa, and diversification initiatives such as coal liquefaction were explored.

Production coal in Botswana

In kind, 2017-2020, K t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

Botswana's coal production has declined for the second year in a row. In 2020, the country produced 1,924 thousand tons of coal, representing a moderate 8.9% decrease compared to 2019. Looking at the period from 2017 to 2020, production fell by 13.2%, with an average annual decline of 4.6%. The highest production level was recorded in 2018 at 2,482 thousand tons, which marked a 12.0% increase from the previous year. However, the largest decline occurred in 2019, when production dropped by 15.0%.

Annual dynamics of production in Botswana in kind, 2017-2020, K t

Exports coal from Botswana

Exports in kind, K t

Coal exports from Botswana have increased for the third consecutive year. In 2020, exports reached 360.7 thousand tons, showing a sharp 53.3% improvement compared to 2019. Over the 2017-2020 period, exports grew by 183.5%, with an average annual growth rate of 41.5%.

Annual dynamics of product's exports from Botswana in kind, 2017-2020, K t

From 2017 to 2020, South Africa remained the dominant export partner for Botswana's coal shipments in volume terms, accounting for 79.3% of total flows. Other markets collectively formed a long tail of smaller destinations.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Botswana in kind, 2017-2020

Exports in value, K $ US

Botswana's coal export value has risen for the third year in a row. In 2020, exports reached 15,930 thousand US dollars, marking a robust 15.0% year-over-year increase. Between 2017 and 2020, export value grew by 133%, equivalent to an average annual rate of 32.6%.

Annual dynamics of product's exports from Botswana in value, 2017-2020, K $ US

During the 2017-2020 period, South Africa absorbed 78.7% of Botswana's total coal export value, with the remaining share distributed across a wide range of smaller destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Botswana in value, 2017-2020

Imports coal to Botswana

Imports in kind, K t

The market showed significant volatility during these years. Imports peaked in 2017 and reached their lowest point in 2018, with a 3.2-fold difference between these two years. In 2020, Botswana imported 0.3 thousand tons of coal, which is 61.9% lower than in 2019. The smallest import volume was recorded in 2018 at 0.3 thousand tons, representing a 69.2% decline from the previous year. The largest increase occurred in 2019, when imports surged by 192.0%.

Annual dynamics of product's imports to Botswana in kind, 2017-2020, K t

Throughout 2017-2020, South Africa remained the almost exclusive supplier of coal to Botswana in volume terms, accounting for 95.0% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Botswana in kind, 2017-2020

Imports in value, K $ US

Botswana's coal import value has declined for the second consecutive year. In 2020, imports were recorded at 164 thousand US dollars, down 25.3% compared to 2019. Over the 2017-2020 period, import value decreased by 6.9%, with an average annual decline of 2.4%. The highest import value was recorded in 2018 at 250 thousand US dollars, which marked a 42.2% increase from the previous year.

Annual dynamics of product's imports to Botswana in value, 2017-2020, K $ US

From 2017 to 2020, South Africa dominated Botswana's coal import structure in value terms, consistently accounting for 98.9% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Botswana in value, 2017-2020