10 Aug 2015

For the past two years, the total spending on research and development as a per cent of Gross Domestic Product (GDP) by various ministries and parastatals was 0.59 per cent for 2012/13 and 0.43 per cent for 2013/14. 

When answering a question in Parliament, Minister of Finance and Development Planning, Mr Kenneth Matambo, said authorised expenditure for 2014/15 financial year on research and development was 1.06 per cent of the GDP.

He indicated that the bulk of expenditure was under the Ministries of Minerals, Energy and Water Resources, Education and Skills Development (eg UB and BIUST), Infrastructure, Science and Technology (eg BITRI and Innovation Hub), Transport and Communication, Agriculture and Finance and Development Planning (eg BIDPA).

Mr Matambo noted that there were other independent institutions within the country that undertook research and as such figures given were most likely to undermine the total national expenditure on research and development.

He further said in 2009, there was a survey that measured demand for and access to financial services, and the survey estimated proportion of unbanked adult population in Botswana at 59 per cent.

Another study, he added, was conducted in 2014 and its results showed that 50 per cent of the population was unbanked.

Mr Matambo said government recognised the importance of broadening cost effective access to banking and other financial services.

Again, he said government also continuously came up with policies and legislative reforms in effort to create conducive environment for banks and other financial service providers.

“This is intended to extend banking and other financial services in a cost effective manner to low income households, rural communities, the non-salaried cohorts and SMEs,” said the Minister.

He said banks had been encouraged to mobilise deposits from small savers and new clients, fostering the adoption and use of technology and other innovative channels such as e-wallet, cellphone, smart cards, among others.

“Commercial banks have already introduced some of these products and continue to take advantage of technological developments to provide more services to their clients,” he said.

He said it was difficult to provide values for illicit financial flows because they were illegal by nature.

“These flows are inherently difficult to measure and therefore cannot be disclosed in national accounts or balance payments and some estimates may be derived from discrepancies between countries in balance of payments and direction of trade statistics,” he said.

Nata/Gweta MP, Mr Polson Majaga had asked the minister to state what percentage of the country’s GDP was spent on research and development.

Mr Majaga also wanted to know the percentage of unbanked Botswana’s population, if the percentage was low and what steps had been taken to improve or nurture inclusion in the country and how much in United States of America dollar terms did Botswana lose in illicit financial outflows. ENDS