As settlement talks continue over his cancelled P25 million contract, businessman Shadrack Baaitse has secured a new 25-year concession aimed at expanding Botswana Railways’ freight capacity.
GAZETTE REPORTER
Businessman Shadrack Baaitse and Botswana Railways (BR) are negotiating a settlement over the cancellation of a P25 million contract while his company, Life Compass Botswana, moves into a new 25-year arrangement with the state-owned rail operator.
Baaitse confirmed that the two sides were “engaged in discussions aimed at reaching a settlement” over the earlier deal, which was intended to assist BR with commercialisation, recapitalisation and investment in rolling stock.
SETTLEMENT TALKS
“Remember, we had already started work,” Baaitse said, adding that the discussions would have to take into account commitments and work undertaken before the cancellation.
Life Compass challenged the termination in August 2025 after BR argued that the agreement unlawfully transferred functions reserved for the railway operator under the Botswana Railways Act. Baaitse’s lawyers rejected that interpretation and maintained that the company was assisting BR to improve its commercial viability.
NEW CONCESSION
Against that backdrop, Baaitse has now secured a 25-year concession aimed at strengthening BR’s freight operations. He told The Botswana Gazette that Life Compass had been selected for the long-term arrangement and would work with partners from Africa, Europe and the Middle East.
“We will invest US$70 million into the project,” he said.
Documents seen by this publication show that the investment is expected to provide additional rolling stock and financial support while addressing maintenance and capacity constraints. The partnership will initially focus heavily on salt and soda ash traffic, where BR documents indicate existing market demand.
CAPACITY PRESSURE
The new arrangement is structured around private financing of rolling stock, with the consortium expected to recover its investment through charges linked to deployed assets and the revenue they generate. It also provides for profit-sharing, technical support, spare parts, employee training and maintenance systems.
BOARD RELATIONS
Baaitse has meanwhile praised BR’s current leadership as “more open, accessible and communicating”, while describing the former board as “arrogant”. His remarks follow President Duma Boko’s criticism of a previous BR board that he said frustrated investors seeking to help revive the railway.
Efforts to obtain comment from implicated former board members were unsuccessful. One former board member, who requested anonymity, said only that “party politics are actively at play”.