15 Dec 2021

Botswana’s good repayment record to financiers continues to allow the country to enjoy adequate access to loans from the same.

Debating the bill through which the Ministry of Finance and Economic Development seeks parliament’s authorisation to secure a loan from the African Development Bank (AfDB), Tonota Member of Parliament, Mr Pono Moatlhodi indicated that the country had undertaken most of its developmental projects through loans.

Supporting the bill, Mr Moatlhodi said Botswana had repeatedly exhibited a sterling record of repayments, hence Parliament should give the bill its full backing to enable the country to cover the 2021/22 budget deficit as well as to finance the economic recovery support programme.

Also in support of the bill, Takatokwane MP, Mr Tshoganetso Leuwe said if secured, the AfDB loan would allow the country to achieve a lot, especially in the areas of job creation and rendering support to the agricultural sector.

Mr Leuwe requested that Botswana’s good credit rating be maintained so that more loans could be secured in future to push the country’s development agenda.

While he also supported the securing of the loan, Kgalagadi South lawmaker, Mr Sam Brooks cautioned against making borrowing a habit.

He requested for the prudent use of the loan, saying sectors such as agriculture and tourism should be developed and supported adequately to allow them to reach their full potential in contributing to economic growth.

Similarly appealing for the support of the tourism sector, Kgalagadi North MP, Ms Talita Monnakgotla said since the sector had been dealt a hard blow by COVID-19, it was crucial that part of the funding that would be secured be channeled towards its resuscitation.

Ms Monnakgotla noted that with Botswana still having a long way to go in terms of developments, the country should not shun seeking loans from financiers.

She, however, called for effective public expenditure and asked that it be reviewed frequently so as to allow for challenges to be identified on time, thereby leaving room for remedial measures to be effected timeously.

Bobonong Member of Parliament, Mr Taolo Lucas also lent his support to the bill, however, cautioning against over-reliance on borrowing. He said it would in the long-term be detrimental to the country’s economy.

Mr Lucas conversely expressed hope that the concerned ministry was certain that in the worst case scenario of perhaps the COVID-19 pandemic persisting for several years, the country would still be in a position to service the loan as required.

On the one hand, he pleaded that the long-standing problems surrounding the implementation of projects and mismanagement of public funds be addressed since they constantly bled the economy.
Palapye legislator, Mr Onneetse Ramogapi rejected the bill.

Mr Ramogapi said the pinch of constant borrowing by government would ultimately be felt by ordinary Batswana upon whom government was likely to shift the burden through taxes.

He added that if the country did not tread carefully, its loans would eventually push the economy to its knees.

The member pointed out that the country having a good credit rating should not be motivation to keep borrowing.

Mr Ramogapi indicated that Botswana was likely to end up saddled with massive debt that it would struggle to break free from.ENDS