Africa-Press – Botswana. Government has raised a budget support loan of approximately US$ 100 million from the Organisation of the Petroleum Exporting Countries (OPEC) Fund.
A loan agreement was signed between the two parties in Gaborone yesterday following the conclusion of negotiations last September.
Briefing the media at the signing, Minister of Finance Ms Peggy Serame said the loan’s overall objective was to fund the strengthening of government’s pandemic and crisis response, addressing regulatory constraints for private sector recovery as well as building the foundation for a sustainable green economy.
She explained that COVID-19 had forced a drawdown on government reserves which meant the budget had to be financed through borrowing from both the domestic market as well as externally.
Ms Serame said government continued to look for different sources of financing for development programmes taking into account the terms of borrowing.
She said her ministry was tasked with sourcing loans for government at the lowest possible cost and consistent with an acceptable degree of risk.
The latest agreement with OPEC Fund lived up to the standard, said the minister.
Ms Serame applauded ministries which had contributed to the acquisition of the loan through compilation of policies included in the economic policy matrix agreed upon with OPEC Fund.
She disclosed that the OPEC Fund delegation would have a few meetings with key ministries to review the status of ongoing projects financed by the organisation and explore future financing opportunities.
Ms Serame said the fund had financed a number of development projects in Botswana including the Mahalapye-Serule Road to the tune of US$1 million, Middlepits – Bokspits Road, US$7.87m, Sir Seretse Khama International Airport upgrading and expansion, US$20.59m and most recently, the 2019 Botswana Integrated Transport Project, US$40 million.
Cumulatively, the fund had provided financial support of about US$92 million to Botswana’s developmental agenda, stated Minister Serame.
On the side of OPEC Fund, its director general, Dr Abdulhamid Alkhalifa said the loan was directed mainly at helping the country recover from COVID-19 and to enhance private sector development policies as well as to assist in attaining the green economy.
Pointing out that COVID-19 had devastating predicaments which had to be dealt with, Dr Alkhalifa said it was important for his organisation to extend a helping hand to Botswana’s recovery strategy.
Among those present at the signing were Ministry of Finance permanent secretary, Mr Olesitse Masimega and other senior officials from the ministry.
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