09 Feb 2026

The proposed P23.38 billion development budget for the 2026/2027 is expected to prioritise projects premised on high return on investment, Finance Minister, Mr Ndaba Gaolathe has said.

Minister Gaolathe, who was delivering the 2026/27 national budget in Gaborone, yesterday, noted that the Ministry of Minerals and Energy was allocated the largest share of P5.23 billion, intended to stabilise electricity supply and strengthen the national grid’s resilience in the midst of rising demand and the challenges facing the regional electricity supply.

“The provision is intended to cover several critical allocations, including P2.270 billion for BPC power imports, P730 million to meet the loan obligations to the Industrial and Commercial Bank of China, P200 million for the Cross-Border Electricity Supply Project, and P100 million for the Power Distribution Network Reinforcement,” he explained.

He noted that the North-West Transmission Grid Phase, which will connect the Chobe District and enable exports to the ZIZABONA market, was among the major projects earmarked for the financial year at a cost of P1.37 billion. Furthermore, he said other priorities for the ministry included Rural Village Electrification and Network Extension, as well as the Integrated Resource Plan.

He said these projects were aimed at expanding access to electricity by rural communities as well as contributing to the country’s aspiration of achieving a 50 per cent renewable energy contribution by 2030.

Additionally, Mr Gaolathe said plans were underway to commission the expansion of the Francistown and Ghanzi Petroleum Depots in April and August respectively, in an endeavour to secure petroleum product supply as a key component in sustaining economic growth.

In alignment with the government’s commitment to transform the country into a regional transport hub, the second largest budget proposal of P3. 86 billion would be allocated to the Ministry of Transport and Infrastructure. In addition to improving the national road network, the budget would go towards developing the Mmamabula-Lephalale and Mosetse-Kazungula-Livingstone railway lines, as well as part of the Southern Sfrican Development Community (SADC)’s Strategic Plan of the North-South Corridor.

Mr Gaolathe said from the proposed ministry budget, a total of P3.02 billion was to be allocated to various ongoing road projects across the country, as well as those at various stages and phases. He said other infrastructure developments were also expected to benefit from this budget.

“The budget will also finance a range of Built Infrastructure projects, including the refurbishment of Tonota College of Education, Molepolole College of Education, Department of Building Maintenance Area Offices in Gaborone West, Department of Building Maintenance Area Offices in Broadhurst, DRTS Serowe office and refurbishment of Old Supplies in Gaborone. In addition, part of the ministry’s allocation will support the implementation of Rail and Aviation Infrastructure, ICT projects and Air Botswana Finances projects,” he noted.

With a budget allocation of P3.62 billion, the Ministry of Water and Human Settlement is expected to prioritise completion of major water supply and sanitation projects which are currently in their final stages. The projects include the North-South Carrier pipeline, Mmamashia Water Treatment Plant, Lobatse Water Supply Master Plan, Molepolole-Gamononyane NSC connection and Kanye Sanitation. The minister also underscored the urgent need to refurbish and expand the Mambo Wastewater Treatment Plant in Francistown, Maun Water and Sanitation Phase II, as well as the Kgalagadi North Water Supply and Molepolole Water

Suppply and Distribution, which are new water supply pipeline projects. He said the social housing projects, which include all Bonno housing components, was allocated P702.96 million.

Furthermore, he said a development budget of P2.86 billion was allocated to the Ministry of Local Government and Traditional Affairs for the implementation of various programmes and projects. He said while the Social Welfare Programmes accounted for 69. 9 per cent of the ministry’s total budget, there was need to expedite the implementation of the Single Social Registry (SSR) to avoid duplication.

“To enhance efficiency and reduce duplication across interventions, there is an urgent need to accelerate the rollout of the SSR, Proxy Means Testing as a targeting tool. The SSR project will be supported by the World Bank, which will undertake an assessment to identify bottlenecks, improve system performance and enhance citizen experience,” he noted.

He noted that 56.2 per cent of the Ministry for State President, Defence and Security’s P1.99 billion budget was directed towards the security organs, while P60 million would go towards the establishment of rehabilitation centres in Maun and Lobatse. He said P266 million would facilitate the creative industry, with the new Air Support project budgeted for P250 million.

Mr Gaolathe said the bulk of the P1.77 billion budget allocated for the Ministry of Lands and Agriculture would go towards supporting ongoing management projects across the country. He also said part of the budget was expected to fund emerging national priorities and programmes such as the Cannabis Production and Regulatory Framework.

He said in order to support the country’s food security and export goals, the government intended to invest in agricultural value chains and enhancing the commercialisation of livestock production. He further said the cultivation and use of industrial hemp and medicinal cannabis would be implemented in phases in an endeavour to diversify the economy.

He noted that the remaining P4.05 billion would be allocated through the rest of the government ministries and departments towards the construction and refurbishment of facilities in different sectors, while also funding research and innovation projects. ENDS