11 Dec 2022

The National Assembly has approved approximately P1.4 billion Botswana COVID-19 Crisis Response Emergency Support Loan from the Japan International Cooperation Agency (JICA).

Tabling the bill Tuesday night, the Minister of Finance Ms Peggy Serame requested Parliament to approve the 15 billion Japanese Yen loan, an equivalent of just over P1.4 billion from JICA for the purpose of providing budget support for the COVID-19 Crisis Response Emergency Support Programme.

She said the support programme was intended to strengthen social protection for the vulnerable, enhance social inclusion and promote private sector development in response to the COVID-19 pandemic and promote green recovery after COVID-19 in Botswana.

Ms Serame revealed that there were significant budget financing challenges resulting in deficits that required financing through borrowing.

“It is against the backdrop of limited budget resources that my ministry solicited budget support financing from JICA. I should emphasise that the terms on which the proposed loan from JICA will be raised are highly favourable, with a long maturity and grace period as well as a fixed rate of interest of only 0.01 per cent annually, far below what government typically pays on external and domestic borrowing,” Ms Serame said.

Speaking in support of the bill, the Minister of Environment and Tourism Ms Philda Kereng said the economic pressures brought about by the COVID-19 pandemic had depleted government coffers through necessary interventions such as food relief and wage subsidies.

She said government was still expected to continue cushioning individuals and businesses in the aftermath of the pandemic and thus financial support was necessary.

Vice President Mr Slumber Tsogwane said the loan was necessary to supplement government coffers in the aftermath of the COVID-19 pandemic which saw a significant reduction of the funds in the Government Investment Account.

He said government needed the loan for development projects that would transform lives and in line with President Dr Mokgweetsi Masisi’s Reset Agenda which pledged to save people’s lives from COVID-19 and protect their livelihoods.

Mr Tsogwane said lessons learnt from the pandemic proved that government in the long term sought to replenish foreign reserves to be able to provide import cover of 10 months or more to protect the economy from external shocks.

Some Members of Parliament, among the Francistown South legislator Mr Wynter Mmolotsi and Mahalapye West MP Mr David Tshere were against debating the bill insisting it was late into the night and felt there was a need for financial issues to be discussed earlier when MPs were not tired. ENDS