30 Mar 2026

Government has engaged several commercial banks to secure funding for immediate liquidity pressures and to finance critical projects planned for the 2026/2027 financial year. 

Such engagements are driven by the need to ensure that government functions remained uninterrupted, development did not stall and aspirations of the people were not further delayed. 

Presenting the several Loan Authorisation Bills to Parliament recently, Vice President and Minister of Finance, Mr Ndaba Gaolathe said it was within such context that government had to make decisions based on responsibility rather than convenience. 

 Minister Gaolathe said in light of current challenges, government took proactive steps to safeguard economic stability and ensure continuity in service delivery. 

The several Loan Authorisation Bills included the Standard Chartered Bank Botswana for P750 million, Stanbic Bank Botswana Limited facilities at US$ 90 million (about P1.236 billion), Standard Chartered Bank Botswana at €200 million (about P3.174 billion), Standard Chartered Bank Botswana at €400 million (about P6.348 billion) and the Syndicated Loan of P216.67 million. 

 Under the Standard Chartered Bank Botswana Limited (Loan Authorisation) Bill of 2026, the minister highlighted that the financing was urgently required to address a backlog of outstanding government invoices. 

“One of the key facilities that government has successfully secured is the € 400 million facility from Standard Chartered Bank Botswana, featuring an interest rate of 4.19 per cent and a 15-year tenure. 

This facility is supported by a guarantee from the World Bank Group through the Multilateral Investment Guarantee Agency (MIGA).  In simple terms, this guarantee acts as an insurance mechanism on the loan,” he explained.  

An important feature of such loan, he said was the five-year grace period, would provide the breathing space necessary to implement fiscal reforms.  

Mr Gaolathe added that proceeds would also be directed toward strategic infrastructure, particularly three major water projects and one key energy project, which were selected based on their readiness, inclusion in the 2026/2027 budget as well as alignment with the objectives of financing partners. 

He indicated that key projects included the Kanye and Moshupa water supply distribution network rehabilitation at an estimated cost of P1 billion and was ready for procurement as well as the Molepolole water supply network rehabilitation and sanitation for a duration of 24 months and currently at the tender evaluation stage. Another project is the Francistown (Mambo) Waste Water Scheme with a 36-month duration and was ready for procurement. 

The North-West Transmission Grid Connection (NWTG II) is also among the key projects, which the minister highlighted as critical to the country’s economic transformation and a high-impact initiative designed to expand power capacity in northern Botswana. Mr Gaolathe emphasised that the NWTG II project was formally included in the Botswana Economic Transformation Programme and the Botswana National Energy Compact, underscored by its importance to energy security and regional integration. 

The minister indicated that all projects were slated for implementation during the 2026/2027 financial year and were expected to improve service delivery, stimulate economic activity and support long-term development. ENDS