From tenderpreneurship to true entrepreneurship

BAKANG PHUTHEGO

BUSINESS WITH BK

In the early years after independence, Botswana stood out as a model of stability and sound economic management in Africa. With its diamond wealth prudently managed and a strong political commitment to development, the government took deliberate steps to empower citizens economically. Central to this vision was the use of public procurement—tenders—as a tool for citizen economic empowerment. Billions of Pula have flowed through this system over the years, supporting thousands of citizen-owned businesses and redistributing wealth in an economy once dominated by foreign-owned firms. However, what began as a noble intention to build local capacity slowly morphed into a system heavily dependent on government contracts, giving rise to what is now referred to as tenderpreneurship. Unlike true entrepreneurship, which thrives on risk-taking, innovation, and building solutions for competitive markets, tenderpreneurship rewards access, connections, and paperwork. Many Batswana began to build businesses not around products or services, but around the next tender opportunity. The state, intended to be a stepping stone for emerging entrepreneurs, became the sole client and, in many cases, the only strategy.

This overreliance on tenders has led to systemic problems. Corruption found fertile ground where tender access became synonymous with financial success. Political proximity began to matter more than technical competence, and contracts were often awarded to the well-connected rather than the most capable. In many cases, tenders were tailored to specific companies, creating a culture of entitlement and rent-seeking. This has significantly driven up the cost-of-service delivery, with government frequently paying two to three times the market rate. Infrastructure projects balloon in cost, and yet still suffer from poor execution. The result is not just inefficiency, but a moral crisis as public resources meant for collective development are siphoned off through inflated invoices and substandard delivery. More dangerously, an entire generation of young entrepreneurs is being socialised into a model that sees public procurement as the destination, not the beginning of business growth. True entrepreneurship grounded in solving problems, exporting ideas, and building global businesses has been crowded out by transactional, short-term thinking.

But Botswana does not need to abandon its public procurement model; it needs to re-engineer  it. Tenders must evolve from being instruments of redistribution into platforms for innovation and national problem-solving. The government should begin issuing challenge-based tenders—where procurement is framed around problems to be solved rather than predefined products to be supplied. The United Kingdom’s Small Business Research Initiative (SBRI) has done exactly this, inviting innovators to tackle public challenges and funding those who present scalable ideas. Similarly, Botswana can redesign tenders to require capability-building elements. Contractors should not just deliver a service they should demonstrate how they are investing in technology, upskilling locals, or adopting more efficient methods. South Korea has embedded such capability development in its procurement policies, linking contracts to workforce training and technology transfer.

Furthermore, Botswana could establish innovation zones safe spaces for piloting new ideas through micro-sized tenders. Chile’s Start-Up Chile programme used this approach, allowing small firms to experiment and test public service solutions before scaling them nationally. Repeat government contractors should also be required to meet innovation milestones, such as increased productivity or export activity. Finland, for instance, has introduced innovation KPIs into public contracts, ensuring that vendors improve over time. Botswana could take this further by creating an Innovation Procurement Fund, which would support startups that offer transformative solutions to public problems. Israel’s Innovation Authority has a similar fund, which supports pilots and guarantees government uptake if the solution proves viable.

A major part of this reform must also be the professionalization of procurement officers. These individuals must be trained to evaluate proposals on the basis of impact, scalability, and innovation not just compliance. Rwanda has made strides here by digitizing procurement through its Umucyo system and embedding training for public officials, thereby reducing room for manipulation. Transparency is equally crucial. Botswana should digitize and publish all tender data—budgets, bidders, winners, delivery timelines—just as Ukraine has done with its world-class ProZorro system. This would allow citizens and entrepreneurs alike to spot inefficiencies, identify opportunities, and build data-driven solutions. Additionally, instead of awarding massive contracts to single players, tenders should be broken down into smaller lots, encouraging collaboration between large firms and startups.

Most importantly, Botswana must shift the narrative. Public procurement should no longer be seen as a cash-out opportunity but as an engine of national transformation. Singapore has done this effectively using public contracts not just to support local firms, but to prepare them for global competition. Firms that begin by solving problems for the government are supported to scale, export, and go regional. Botswana can mirror this by tying procurement benefits to export-readiness, opening up SADC markets, and ensuring that public spending builds companies with global ambition. Estonia has taken this even further by showcasing government-backed startups that grew into global tech players, creating a culture where innovation is seen as patriotic.

The issue is not public procurement itself, but how Botswana uses it. If left unchanged, tenderpreneurship will continue to breed dependency, inefficiency, and corruption. But if transformed, tenders can become a powerful mechanism for entrepreneurship, innovation, and national development. It requires bold policy reform, digitisation, transparency, capacity building, and a total reimagining of what it means to do business with the state. Botswana has the talent, the peace, and the public finance to get this right. The goal must now be clear: move from transactional contracts to transformational outcomes. When procurement becomes a tool for solving problems, scaling businesses, and building the future, Botswana will not just empower its people it will inspire the continent

Global & Regional Context

• The African Union has estimated that Africa loses over $148 billion annually to corruption, much of it through public procurement.
• According to the World Bank, public procurement accounts for 15–30% of GDP in developing countries, and an estimated 20–25% of that is lost to corruption.
• In South Africa, the Zondo Commission on State Capture estimated that over R500 billion (~USD 26 billion) was lost to procurement corruption over a decade

Applying This to Botswana

Botswana’s national budget is approximately P80–P90 billion per year, with 30–50% spent on procurement of goods, services, and infrastructure. This equates to around P25–P40 billion annually in tenders and contracts.

If we apply conservative World Bank corruption loss estimates (10–20%), then:

• P2.5–P8 billion per year could be lost or misused due to corruption in the tender system.
• Over a 10-year period, this equates to P25–P80 billion, which is more than the entire annual national budget.

These losses often manifest as:

• Overpriced contracts (often 2x–3x real cost).
• Non-delivery or partial delivery of services.
• Ghost companies or politically connected middlemen winning tenders with no capacity.
• Kickbacks and bribes that influence decision-making.

Ultimately, though, we must re-anchor our development model around true entrepreneurship, not tenderpreneurship. Why? Because entrepreneurship is the most sustainable engine for growth, innovation, and inclusive wealth creation. Entrepreneurs solve real problems, not just for government, but for society. They create jobs that last beyond the contract period. They innovate products and services that can be sold beyond our borders. They build brands that inspire industries that grow, and solutions that scale. Unlike tenderpreneurship, which is largely extractive and short-term, entrepreneurship is additive and long-term. It builds resilience into the economy. It encourages exports, brings in investment, and helps Botswana compete globally. It promotes skills, creativity, and ownership rooted in real value—not access or politics

As President Duma Gideon Boko navigates one of the most complex models in our public procurement system, the vision for Botswana must now be sharpened with resolve and clarity. If Botswana is serious about building an inclusive, future-oriented, and resilient economy, then our ambitions must go far beyond local contract fulfilment. We must ask ourselves honestly: can some of the tenders we issue such as procuring pencils, bottled water, or routine catering ever scale outside of Botswana? Are these innovations we can proudly export to the world? Or are we trapped in a comfort zone of redistributing low-value activities while the world races ahead in green energy, biotech, fintech, and manufacturing? The current model must evolve. Let us stop merely consuming and start creating. Let us build not just suppliers but inventors. The future must belong to those who build real value, not just fill forms.

Botswana must choose. Do we continue down a path where success is determined by access to state resources? Or do we build an ecosystem where bold ideas, execution excellence, and market solutions define the future? The true transformation of this country will not come from another tender, but from another builder. Tenders must empower entrepreneurs, not replace them. That is how Botswana will not only empower its people but truly inspire the continent.

Bakang Phuthego is an entrepreneurial specialist with research interests in global entrepreneurship, International business development and Impact Investing.