Historic 5.5 billion-dollar deal
An ambitious 5.5-billion-dollar memorandum of understanding signed in Gaborone on 6 November positions Botswana to overhaul its power system and illuminate the wider Southern African grid. Government officials and Turkish conglomerate Ulsan Holding agreed to modernise coal plants while adding large-scale solar assets. Implementation talks begin this week.
Energy Minister Bogolo Joy Kenewendo, flanked by Ulsan president Fatih Gülsün and executives from Mercuria, IGI and Tfgl, called the accord “a strategic leap toward self-reliance”. The seven-year roadmap targets 1.5 gigawatts of new or refurbished capacity anchored at Morupule A and B.
Technical blueprint for Morupule and solar
Morupule’s twin thermal units presently supply about half of Botswana’s electricity but have been plagued by outages and aging boilers. Rehabilitation will introduce advanced emission controls, enabling what officials describe as “clean coal” capable of meeting stricter regional standards without sacrificing baseload stability.
Complementing the retrofit, Ulsan and partners plan to erect several photovoltaic fields in the Kalahari corridor, taking advantage of 3 000 annual sunshine hours. Kenewendo said preliminary studies indicate solar can be connected to Morupule’s existing sub-stations, reducing integration costs and transmission losses.
Export ambitions across the Southern African Power Pool
Export potential is central. With domestic demand hovering near 600 megawatts, the additional output could flow north and south through the Southern African Power Pool. “Botswana wants to move from net importer to competitive exporter,” remarked SAPP coordinator Ryno Smit in a phone interview.
Funding pathway and inclusive job creation
Financing details remain confidential, yet sector insiders point to a mixed model blending commercial debt, equipment vendor credit and carbon-offset instruments. Mercuria Investment Director Jianyun Sun predicted “financial close within twelve months provided feasibility milestones are met,” suggesting construction could start in late 2024.
Kenewendo, for her part, highlighted women’s representation across technical teams and promised local content clauses once engineering, procurement and construction contracts are drafted. Botswana’s Department of Gender Affairs confirmed it would monitor workforce composition, calling the project “an opportunity to mainstream inclusion in heavy-industry professions traditionally dominated by men”.
Ulsan’s growing African footprint
Beyond Botswana, the agreement highlights Ulsan Holding’s widening African footprint. Known initially for defence electronics, the Turkish group has diversified aggressively into minerals and energy, allocating 300 million dollars for projects on the continent between 2025 and 2026, with four-fifths channelled toward Congo-Brazzaville.
In the Congolese Mayombe range, Ulsan is advancing an iron-ore venture slated to start commercial output in 2026 at three million tonnes annually, ramping to five million by year three. Early works include reopening 465 kilometres of railway linking Mayoko mines to the deep-water terminal of Pointe-Noire.
The rehabilitation contract on the Congo-Ocean Railway is being executed alongside Turkish logistics group Albayrak, already responsible for day-to-day freight operations. Transport Ministry sources in Brazzaville say renewed rails and signalling will cut travel time to the coast from thirty-six hours to under twenty.
Integrated steel vision at Pointe-Noire
Ulsan is simultaneously negotiating a parcel within Pointe-Noire’s special economic zone to host an integrated plant turning local ore into pellets, direct-reduced iron and finished steel. A 120-megawatt clean energy facility, potentially gas-solar hybrid, would power furnaces while feeding surplus electricity into the national grid.
Government adviser Rodrigue Bemba welcomed the prospect, arguing it aligns with President Denis Sassou Nguesso’s industrialisation agenda that prioritises value addition before export. “Processing iron at home means jobs for Congolese engineers and shorter supply chains for regional fabricators,” he told this newspaper after touring Mayoko.
Environmental safeguards and governance
Analysts note that Ulsan’s cross-border strategy knits together coal, solar, rail and metallurgy, potentially creating synergies in procurement and project management. “Shared engineering teams can move from Botswana to Congo as schedules require, lowering overheads,” observed energy consultant Thapelo Molefe, citing previous multi-country programmes in West Africa.
Environmental campaigners, while supportive of solar builds, question the definition of “clean coal”. Kenewendo insists advanced scrubbers will cap sulphur dioxide and particulate emissions, while Ulsan says carbon capture proposals remain on the table. A detailed environmental and social impact assessment is due for public release early 2024.
Regional electricity traders observe that diversified baseload from Botswana could stabilise prices within the power pool, indirectly benefiting Congolese consumers during drought-induced hydro shortfalls. “We need complementary resources; this deal broadens the mix,” commented Clement Tshibanda, head of market operations at the Central African Power Exchange.
Next steps and regional implications
While the memorandum is non-binding until final investment decisions are signed, participants underscore the reputational stakes. Gülsün said the initiative reflects “Türkiye’s confidence in Southern Africa’s pragmatic regulatory climate”, adding that successful execution could unlock further defence-industry cooperation, a segment where Ulsan remains a recognised exporter.
Industry observers will watch the next quarter for feasibility outcomes and the issuance of procurement tenders. If milestones hold, Morupule’s first upgraded unit could return to service by 2027, with solar farms synchronised shortly after, marking a significant stride towards a more interconnected African energy landscape.