When 29-year-old Tshepang Katso received a WhatsApp message inviting her to join an “investment group,” she was promised effortless money-making opportunities. Like many others in Botswana, she soon discovered the dark truth behind what appeared to be an online goldmine.The scheme, operating under the guise of a legitimate renewable energy company, Ecoplexus, has left thousands of victims across Botswana with devastating losses, exposing the country’s vulnerability to digital Ponzi schemes.
How the Scheme Operated
The fraudulent operation used an imitation of the legitimate Ecoplexus name—a U.S.-based company engaged in renewable energy projects—to lure victims. Participants were first introduced to a “trial stage” that didn’t require any upfront payment but guaranteed small daily payouts. At this level, individuals were encouraged to refer others for commissions, a hallmark of classic Ponzi operations.
Once hooked, participants were asked to “upgrade” to higher levels that required investments ranging from P230 ($1,935). The promised returns were staggering—over 1,500% annually for the highest tier—enticing many to borrow or empty savings to maximize earnings. Alongside these daily payouts, the scheme flaunted incentives like referral bonuses, upgrade rewards, and raffles, further fueling its spread.
The Trap: Desperation and Lack of Awareness
While the unrealistic nature of the returns might appear obvious to some, the allure proved irresistible for many. Richard Harriman, a prominent consumer rights advocate, explained that desperation, limited financial literacy, and social media hype often drive people into such traps.“For most victims, it wasn’t just about the returns but about a chance to escape financial hardship,” Harriman said. “People desperate for any opportunity to make money will often overlook red flags.”Katso, like countless others, realized too late that her “investment” was doomed. “I borrowed over P3,000 thinking I could easily multiply it. At first, I received payouts, but it didn’t last long,” she shared.
The Collapse
By April, cracks in the Ecoplexus scheme began to emerge as participants reported delayed withdrawals. Those affected were directed to alleged “Regional Managers,” who offered inconsistent explanations and blamed banks for holding funds. In response, First National Bank Botswana (FNBB) issued a public statement denying any connection to the scheme and warning customers against fraudulent activities linked to its accounts.As withdrawal delays continued, it became clear that the system was collapsing. Harriman estimates that losses from the scheme could amount to tens of millions of pula, with many victims having invested large sums.
Law Enforcement and Consumer Protection
Local authorities, including Botswana’s Consumer Authority and the Serious Crime Squad, have launched investigations. However, cybersecurity experts like Dr. June Jeremiah caution that recovering the stolen funds may be unlikely. “These scammers are sophisticated. They move the money quickly, leaving no trace for victims or law enforcement to follow,” she explained.Unfortunately, scams like Ecoplexus are not isolated incidents. Similar operations, including “Berry Trading” and “RedCoin,” continue to target unsuspecting individuals, promising outrageous profits with little to no effort.
Social Media: A Double-Edged Sword
The viral spread of referral links through platforms like Facebook and WhatsApp played a significant role in the rapid growth of the Ecoplexus scheme. With over a million active social media users in Botswana, such platforms serve both as enablers for scams and potential tools for consumer education.Experts argue that proactive measures—including raising awareness, improving digital literacy, and swift intervention by law enforcement—are critical in combating such schemes. Yet victims also carry a role in sharing their stories to educate others and dispel the stigma of being deceived.
A Cycle of Desperation
For many victims, financial losses are compounded by a sense of helplessness. Botswana’s unemployment rate, which hovers around 25%, makes people particularly susceptible to schemes promising “easy money.”Katso, despite her experience, remains torn. “I know I was scammed, but if another opportunity like this comes up, I’ll just try to get in early and cash out quickly. I’ve been unemployed since 2017—what other choice do I have?”
Breaking the Chain
The Ecoplexus scheme is a stark reminder of how easily Ponzi operations can exploit financial desperation and limited awareness. Consumer advocates stress the importance of recognizing the warning signs of such scams: unrealistic returns, reliance on recruitment, and lack of clarity on products or services.While education and law enforcement efforts are essential, the fight against Ponzi schemes in Botswana remains an uphill battle—one complicated by systemic economic challenges and the human desire for a quick solution to financial hardship.
