04 Jul 2021

Finance and Economic Development Minister Ms Peggy Serame will ask Parliament to consent to Botswana’s request for a P2.6 billion loan from the World Bank.

 Minister Serame told BOPA in an interview that the World Bank had already approved the facility dubbed Programmatic Economic Resilience and Green Recovery Development Policy Loan (DPL), but that Parliament must consent before it could be disbursed to Botswana. Government approached the World Bank for the loan after the midterm review revealed a budgetary deficit. 

Minister Serame said the country needed the loan to offset the budget deficit, which threatened to derail its Economic Recovery and Transformation Plan (ERTP). She noted that owing to the COVID-19 pandemic, Botswana’s Real Gross Domestic Product (GDP) contracted by 7.9 in 2020.

 That led to the depletion of existing fiscal buffers, therefore constrained revenue collection, reduced government capacity and resources needed to accelerate implementation of structural reforms, besides potential reversal of progress thus far made in poverty reduction.

Minister Serame thus indicated the loan would support implementation of Botswana’s ERTP since it was designed to strengthen COVID-19 pandemic relief while bolstering resilience to future shocks. It would as such support response to the COVID -19 pandemic, strengthen private sector development as well as promote a resilient green recovery. 

She said she was hopeful that Parliament would give its consent. 

The Minister said she would also table the Collective Investment Undertaking Bill, which aimed to amend the Collective Investment Undertaking Act into a financial services statute in terms of the Non-Banking Financial Institutions Regulatory Authority Act. 

She said the amendment would give the regulatory authority powers to license, exempt and recognise collective investment undertakings. 

It would also provide for the supervision and regulation of collective investment undertakings to enhance protection for investors, and to provide for related matters. 

Minister Serame said she would also table a Credit Information Bill that would seek to provide for the regulation of the credit reporting system, licensing as well as regulation and supervision of credit bureaux by the Bank of Botswana. Ends