Vice President and Finance Minister, Ndaba Gaolathe has announced four interlinked strategic phases which the new administration will implement in order to rebuild Botswana’s ailing economy.
Delivering his maiden budget speech this week, Gaolathe reiterated that the state of the country’s public finances, by any standards, is in an undesirable place. He highlighted the economy’s severe fiscal constraints, declining government revenues, as well as slow and jobless growth.
“To be clear, we inherited a government machinery plagued by deeply entrenched systemic inefficiencies that have crippled progress and development.”
The four phases required will include, halting the financial haemorrhaging in government, stabilization and preparation for take-off, initial tangible steps of change and building a new Botswana.
In the initial phase that seeks to address the deteriorated state of the public financial management systems, Ndaba noted that supplementary budget requests, if any, will strictly cater for unforeseen requirements or emergencies, and that any such requests will be catered for by budget cuts in other parts of the existing budget. He said this approach will ensure that government not merely diverting taxpayer funds into a black hole, but instead, creating tangible value for every Pula expended.
He added that the general practice of issuing Commitment Letters instead of Government Purchase Orders (GPO) that goes against the philosophies of prudent financial management will be stopped forthwith.
“Government has made an undertaking to ensure timely payment of suppliers to protect and nurture local businesses thus, it is imperative that appropriate procurement principles are followed at all times during procurement of goods, services and supplies.”
Second to this phase he indicated they will focus on strengthening oversight institutions which will include revitalising the Public Procurement Regulatory Authority (PPRA). In addition, they will also be conducting specialised financial forensic audit to other oversight bodies, including the Directorate on Corruption and Economic Crime (DCEC), the Office of the Auditor General, Public Enterprises Evaluation and Privatization Agency and the Botswana Accountancy Oversight Authority.
Third, he said government is committed to dismantling artificial barriers that impede citizens access to lucrative sectors such as poultry, automobile, retail, franchising and distribution among others.
The second phase he said is to ensure value for every Pula allocated to State-Owned Enterprises (SOEs) by transforming them into high performance organizations that fully deliver on their mandates.
“We are also determined to transform them into engines of wealth creation for the larger population by reconfiguring and up-scaling some of them into becoming truly global players. Our posture also leans towards curtailing gross wastage and duplication that takes place at some of these enterprises.”
In The third phase Ndaba said government will generate meaningful employment as well as diversify the economy by expanding key sectors such as tourism, agriculture, manufacturing, information technology, and healthcare. Those will be in addition to diversify the mining sector and an aggressive drive for mineral beneficiation.
“Another important aspect of our diversification drive is the modernisation of the power sector, with a strategic shift towards a solar dominated energy industry. This will be coupled with unbundling of power generation, transmission, and related services, a move designed to enhance efficiency, competition and investment in the sector.”
He added that the new government is intensifying efforts to bridge Botswana’s critical infrastructure gaps by ramping up capacity to mechanise and execute mega projects such as rail, road networks, power and water and Information and Communication Technology (ICT) infrastructure. Further, government is also revamping to modernise housing designs, ensuring they are in line with current trends and best practices in the housing sector.
“In addition, Botswana Savings Bank (BSB) is preparing to launch a proof-of-concept designed to give opportunity to an ordinary Motswana who owns land but lacks the means to develop it”
In the fourth phase of building a new Botswana, Gaolathe said efforts are underway to create a new fully-fledged Sovereign Wealth Fund that will invest in sustainable domestic and foreign assets across various industries, thereby transforming resource wealth into financial wealth. “The fund will help to cushion against unforeseen disasters, create wealth for current and future generations. It will also enable future generations to have a foundation to realise their own ambitions.”
He added that they will also explore and reimagine the role of the CEDA and Botswana Development Corporation (BDC) with the possibility of creating a National Fund of Funds. “This initiative will mark a significant shift in our approach to economic development, fostering an environment where entrepreneurship thrives and where our investments yield maximum returns in terms of job creation, growth, and innovation.”
Gaolathe said they are also committed to a bold and transformative agricultural strategy geared towards optimal land use, enhancing labour productivity, food security and high value agriculture driven by adoption of technology and forging domestic and export competitiveness. “We will strengthen agriculture’s linkages with key sectors such as manufacturing to create value-added opportunities.”
