Government is looking to bolster regional and international trade to diversify Botswana’s revenue streams and open new markets for goods and services, President Advocate Duma Boko has declared. Delivering his maiden State of the Nation Address (SONA) on Tuesday in Parliament, Boko said in an interconnected world, Botswana must strengthen her national security and develop strategic regional and international partnerships.
Speaking to accessing international capital, Boko said Botswana will begin to engage with international credit markets to raise capital for government development projects.“This will help us address fiscal deficits, finance infrastructure projects, and promote Botswana as a favourable destination for investment,” said Boko.
Moreover, Boko said the government’s focus in its first 100 days will be on governance and accountability ,which include the launch of comprehensive financial audit, strengthen anti-corruption institutions, enhance transparency in government and prioritise human dignity through civil service reforms.
NDP 12
Boko also emphasized the need to promote trade partnerships, adding that the government will work closely with neighboring countries and international organizations to explore new trade opportunities. To that end, the president said the high-level government visits will be organized to strengthen ties with key trading partners and attract foreign investment to our priority sectors.
Economic observers note that the move by government to source funding abroad could be necessitated by the declining government revenues due to subdued domestic economic performance as diamonds revenue is down.
Independent economist Lame Bothata said it is important for government to exercise caution while approaching international financiers, adding that domestic capital mobilization should be priority too.
According to him, government could be also pressed to borrow internationally to raise capital for the National Development Plan (NDP 12) that is expected to commence in the 2025-26 financial year.
“A new government has huge mandate to implement NDP 12 and fast-tracks other pending important national development projects. The Developer Manager Model should also be put to test to gauge its effectiveness in projects,” said Bothata.
The previous Botswana Democratic Party (BDP) administration deferred the NDP 12 and put in place the second Transitional National Development Plan (TNDP) running for two financial years of 2023-24 and 2024-24 respectively.
TNDP was allocated a budget of P64 billion approved by the Parliament and it is focusing on the development projects being implemented through the Public Investment Programme (PIP).
Diversification
Meanwhile, Economics lecturer at BA ISAGO University, Dr Lovemore Taonezvi said the 2024 SONA lays out initiatives to drive Botswana’s economic recovery and attract investment, with diversification being a central focus.
He said diamonds, which have historically contributed over 80% of export revenue, are declining in reliability. “The government’s pivot to renewable energy, tourism, and manufacturing capitalises on Botswana’s natural strengths, such as its abundant solar energy potential, placing it among the highest globally with 3,200 hours of sunlight annually,” he added.
Dr Taonezvi also said efforts to streamline bureaucracy and modernise legal frameworks aim to improve Botswana’s rank of 87th on the World Bank’s Ease of Doing Business Index.
He noted that the establishment of a National Development Fund and incentives for high-potential sectors further enhance investor confidence, supported by a stable BBB+ credit rating issued by S&P Global Ratings in March 2024.
According to him, infrastructure projects in energy and digital connectivity, bolstered by partnerships like SpaceX’s Starlink, are expected to reduce structural barriers and boost productivity. “These initiatives align with the IMF’s projected GDP growth of 4.2% for 2024, provided robust policy implementation occurs. Coupled with governance reforms and targeted youth employment strategies, Botswana positions itself as a competitive investment destination with long-term resilience,” he added
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