10 May 2016

Minister of Finance and Development Planning, Mr Kenneth Matambo says projections indicate a moderate economic growth of 4.4 per cent for the next six years of National Development Plan (NDP) 11.

A draft NDP 11 is being discussed by the finance ministry and stakeholders including government ministries, parastatal organisations, private sector, non-governmental organisations and academia. 

The development plan will run from next year until 2023, with an over-arching goal of striking a balance between economic, social and environmental issues.

Addressing a stakeholders’ conference on NDP 11 at Gaborone International Convention Centre on May 9, Mr Matambo stated that the economy was expected to grow at an annual rate of 4.4 per cent during NDP 11 compared to the average of 3.8 per cent for the current NDP 10.

He said the 4.4 per cent average growth was insufficient to address the development challenges of unemployment, poverty, and income inequality. 

The minister challenged stakeholders to find measures to increase growth of the economy beyond the projected 4.4 per cent average rate.

According to the minister, total revenue was projected at P372.3 billion for the next development plan. 

“Mineral, customs and exercise, and non-mineral income tax would account for over 90 per cent of the total. Such continued narrow base is unsustainable, hence the need to deliberate on alternative revenue sources to diversify the revenue base,” the minister said.

Further, he told the gathering that government has projected to spend around P370.2 billion over the entire plan period.  

This budget will include the three years of implementing Economic Stimulus Programme.

The minister warned about shortage of resources in the coming plan period saying:  “despite the anticipated improvement in economic output, the situation of constrained resources will continue to be a challenge during NDP 11. 

As such it is important for both the public and private sector to deliver value for money in any projects they undertake,” he said. 

Welcoming participants at the meeting, permanent secretary in the ministry, Mr Solomon Sekwakwa, said government was faced with challenges of growing the economy, reducing poverty, addressing income inequality, and fighting youth unemployment.

He asked the meeting to devise ways on how those issues would be actively addressed during NDP 11.

He said the ministry would hold further stakeholder meeting with members of local authorities, members of Ntlo ya Dikgosi and Members of Parliament during its bottom-up planning process for NDP 11. ENDS