Air Botswana has been facing growing operational problems owing to its ageing aircraft fleet.
Early indications showed that refleeting would require a massive investment amounting to hundreds of millions of Pula and, as a result, the government decided upon a strategic alliance.
The Botswana government indicated that, of the eight companies that initially expressed interest, Airlink was found to be the most suitable bidder.
In response to concern that Airlink's proposal was based on a different model of privatisation than had been originally anticipated, the Botswana government reassured that it was taking the necessary steps to protect the country’s interests.
This comes after concern over the Airlink proposal, which would involve the setting up of a new joint venture, instead of selling shares in Air Botswana as a going concern,prompted the Botswana Parliament to pass a motion calling for the cessation of ongoing negotiations.
“Among other things the transaction agreements are expected to provide for an employee share ownership scheme and an investment trust fund to facilitate citizen investment,” the Botswana government said in a statement.