Africa-Press – Botswana. Acting President Ndaba Gaolathe has indicated that Botswana’s fiscal policy is under considerable strain due to declining government revenues, persistently high public expenditure and widening fiscal deficits.
Mr Gaolathe made the remarks in Parliament on Friday, saying the situation presented a macro-fiscal challenge as the country continued to require substantial investment toward key enabling sectors.
He said leveraging Public-Private Partnerships (PPPs) promised to be an important part of mobilising the resources needed to accelerate the government’s transformation agenda and deliver projects effectively.
Government, he said was at an advanced stage of creating a legal framework for better management of PPP projects to reduce the strain on the budget and improve growth-investment nexus.
“We are in the process of finalising the draft Bill on PPP for consideration by Parliament. This is an essential tool to foster a strong private sector partnership and provide a platform for domestic and international consortia to optimise the full benefit of the PPP delivery model,” he said.
He said government was also considering alternative and innovative financing solutions.
“These include asset recycling, blended finance, green bonds and asset-backed securitisation during the NDP 12. Such approaches combine public and private capital to monetise existing assets and reinvest the proceeds into new projects, often leveraging private sector expertise and risk-sharing mechanisms,” he said.
He stated government determination to transform the nation’s mindset to transition from a consumption mindset to a long-term wealth creation one.
The Acting President said this meant a more intentional way of saving some of the revenues, particularly mineral revenues towards investment in sustainable domestic and foreign assets across various industries and transforming resource wealth into financial wealth.
“We have started putting in place a Sovereign Wealth Fund mechanism whose components should take shape towards this aspiration. This model should create long-term macroeconomic stability, fostering intergenerational equity by preserving sufficient assets and wealth for future generations,” he said.
He said government would explore the possibility of creating a National Fund of Funds mechanism, which would enable the design of modernised and high-impact investment models to allocate resources strategically, targeting priority sectors in line with the national development objectives and also allowing disruptors and innovators including the creative industry to access funding.
Also, he cited government intent to empower citizens, particularly women and youth. Through this approach, he said government was keen to create an environment where entrepreneurship thrived communities prospered and national investments deliver maximum returns in jobs, growth and innovation.
Henoted that to create a supportive and modern financial environment during NDP 12 government would thus introduce several key policy and legal reforms as part of the plan to strengthen the financial sector, promote innovation, enhance consumer protection and align Botswana’s financial systems with international best practices.
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