06 Feb 2023

 The economy emerged strong from the effects of the COVID-19 pandemic, registering 11.8 per cent growth in 2021, the highest in Southern Africa.

This was said by Minister of Finance Ms Peggy Serame when  presenting the 2023/24 financial year budget proposals yesterday.

The growth, she said, showed that  government had made significant progress in building the foundation for continued economic recovery and future resilience.

“Our economic recovery has continued with strong GDP growth of 6.5 per cent year-on-year over the first three quarters of 2022,” the minister said.

Ms Serame said it was estimated that the economy grew by 6.7 per cent last year, one of the fastest-growing economies in Sub-Saharan Africa.

She said the growth had tangible results as unemployment fell from the post-COVID peak of 26 per cent in 2021 to 25.4 per cent in the fourth quarter of last year.

“In 2021/22 financial year, we achieved a broadly balanced budget, in contrast to the substantial deficit that was anticipated,” she said.

The balance led to savings in the Government Investment Account (GIA).

She said COVID-19 had become manageable and was no long posing the burden on the health system or costing lives.

However, Ms Serame warned that the external environment remained challenging as global growth has been impacted by the Russia-Ukraine war.

Domestically, although Botswana has improved in the Corruption Perception Index, moving from position 45 to 35 out of 180 countries in 2021 and 2022 respectively, it remained a major concern. 

Ms Serame said  government would continue to support all law enforcement agencies to curb corruption which was one of the major causes of poor project implementation as well as financial losses. 

About the 2023/24 budget, the minister said it had to balance  government’s objective of spurring economic activity and achieving higher growth while managing domestic and international challenges.

She explained that the development budget had been increased as government strove to fill infrastructure gaps and implement projects necessary  for  unlocking constraints to economic growth.“The budget will continue to address expenditure inefficiencies and weaknesses in revenue collection by strengthening tax audit capabilities, and leveraging on the Public Private Partnership (PPP) and Development Manager Model approaches,” she said.

Development budget has been increased by 27.88 per cent and the minister warned that this might pose another risk of corrupt practices in its execution.

However, she said government would put in place mitigating measures and also ensure that the law was effectively enforced.

“I also call upon the public to be vigilant and assist in safeguarding our national resources,” she said.

Through infrastructure projects, government wanted to promote private sector participation as well as that of women, youth and citizens.

Minister Serame said  government had also embarked on electricity projects citing the connection of Borolong and Kgatleng River villages to the national grid expected to be completed by March 2024.

Meanwhile the minister said her ministry would review measures introduced to mitigate the effects of high cost of living by reviewing items to be zero rated. ENDS