02 Mar 2026

Vice President and Minister of Finance, Mr Ndaba Gaolathe has told Parliament that Botswana has currently transitioned from economic diagnosis to a phase of active recovery and growth. 

Mr Gaolathe emphasised that government was now focused on execution and structural transformation rather than just identifying problems.

He was responding to deliberations from Members of Parliament on the proposed Ministry of Finance’s P1 billion budget for the 2026/27 financial year and also addressed concerns from Maun West MP, Mr Caterpillar Hikuama, who had opined that government was ‘all talk and no action,’ citing the poor performance of State-Owned-Enterprises (SOEs). 

While MP Hikuama suggested merging the National Development Bank (NDB) and Botswana Savings Bank (BSB) to save funds, the Minister explained that government was aiming higher, saying instead of merging entities simply to cut costs, the goal was to transform them into large and global competitors. 

He said NDB was currently profitable and expanding its mandate beyond agriculture into tourism and the new legislation was being drafted to allow the bank to work with large corporations beyond Botswana’s borders. 

On the Botswana Vaccine Institute (BVI), the minister said the entity was also undergoing expansion to compete in international markets. 

Mr Gaolathe further acknowledged points raised by the Leader of the Opposition, Mr Dumelang Saleshando, regarding the need for measurable targets. 

He said the Botswana Economic Transformation Programme now monitored targets on a weekly basis, with a promise of regular public updates. 

On other issues regarding combating financial wastage, the minister announced that the current centralisation of Government Purchase Orders (GPOs) was temporary and a new e-Procurement system would soon be introduced to modernise the process. 

Legislators also heard that a review of the government payroll to eliminate ‘ghost employees’ was nearing completion, with disciplinary measures expected to follow. 

Addressing remarks by Bobonong MP, Mr Taolo Lucas, Minister Gaolathe confirmed that government had successfully implemented a P4 000 living wage for public officers by utilising a system of allowances. 

However, he noted that the private sector had not yet been able to match this due to ongoing cash flow challenges. 

He emphasised that government’s long-term strategy was to build a robust economy capable of sustaining this wage across all sectors, though he cautioned that the transition would take time. 

The minister also updated Parliament on the Sovereign Wealth Fund, stating that the Ministry of Finance was currently drafting the governing Act. 

“This work is being done in coordination with the Ministry for State President, Defence and Security to ensure a solid foundation for the nation’s future savings. Subsequently, Parliament approved the Ministry of Finance’s budget estimates for the 2026/27 financial year. ENDS