30 Oct 2016

The Minister of Finance and Economic Development, Mr Kenneth Matambo, says the Bank of Botswana contracted De la Rue International for the printing of banknotes for a five-year period that commenced on May 1, 2012 and will expire on April 30, 2017.  

Responding to a question from Gaborone North MP, Minister Matambo said the contract was awarded following a selective tender amongst reputable currency printers in accordance with the bank's procurement regulations and procedures.

The minister said it was not true that Bank of Botswana had ordered banknotes that would last for over 15 years in circulation.

He said the bank had adopted a currency management framework that stipulated, inter alia, minimum threshold for banknotes fit for re-circulation, withdrawal of soiled or torn banknotes from circulation and target re-stocking levels.

Mr Matambo said the guideline was for maintenance of currency stocks that would cover a maximum period of five years.

He said the arrangements for the printing and procurement of banknotes is not informed by any political circle.

The currency management framework adopted by the Bank has taken cognisance of the fact that there may be circumstances and other considerations that could necessitate changes in the design of the currency, particularly banknotes.

The minister said in the current family of banknotes, the portrait of the State President appears only on the face of the lowest banknote denomination, currently P10.

He said Bank of Botswana would continue to evaluate the appropriateness and provide professional advice on the composition, denomination structure and design of the country's currency, taking into account prevailing economic circumstances, demand for currency, threat of counterfeits, cost-effectiveness of the procurement programme as well as any social and other needs of the country.

Gaborone North MP, Mr Haskins Nkaigwa had asked the minister to state the length of the contract between Bank of Botswana and the company that manufactures bank notes and the manner in which it was awarded.

He further asked if it is true that BoB has procured enough bank notes to last over 15 years in circulation without having to order new stock and the minister to state the implications of procuring new stock that lasts for over 15 years should there be a change of government in 2019.

MP Nkaigwa further asked whether the new President of the country will be able to have his or her portrait in the bank notes with so much stock in place. ENDS