31 Mar 2026

Government remains committed to restoring balance to the fiscus, strengthening revenue performance and ensuring that financing is directed primarily toward productive investments and critical infrastructure projects that drive growth and support economic diversification.

 This was stated by the Vice President and Minister of Finance, Mr Ndaba Gaolathe, when presenting the Standard Chartered Bank Botswana Limited (Loan Authorisation) Bill of 2026, which sought parliamentary authorisation for a loan amounting to P750 million at a fixed interest rate of 13.7 per cent and a five-year tenure. Minister Gaolathe noted that the facility was contracted to finance critical budget-related expenditure, including eligible infrastructure projects and to support financing of fiscal deficits arising from approved budgetary allocations. 

“This means that the resources will go directly toward sustaining the functioning of government, ensuring that the commitments we have already made to our people are honoured.

   It is about ensuring that the services our citizens rely on are not disrupted,” he said.  He stated that the loan would provide the breathing space urgently needed to maintain government operations while work continued toward restoring fiscal stability and economic recovery. 

He explained that the Ministry of Finance undertook daily cash management, which involved closely monitoring balances in the Government Investment Account (GIA) and making difficult decisions on which obligations can be met at any given time. 

“This is not a routine administrative exercise, it is a constant balancing act where

priorities must be set under constrained conditions,” he said. 

He further noted that SACU revenues had become the country’s largest source of income, though they often fell short of total accumulated obligations.

 To address government’s immediate liquidity requirements, Mr Gaolathe also presented the Bridge Financing Loan Stanbic Bank Botswana Limited (Loan Authorisation) Bill of 2026, which he described as a short-term, six-month facility urgently required to ensure that government can meet its obligations and maintain continuity in its operations.  

“This is a practical and necessary intervention, one that allows us to bridge pressing liquidity gaps while broader fiscal measures continue to take effect,” he said. 

He added that the public debt-to-GDP ratio stood at 34.16 per cent as of February, which he said was projected to rise to approximately 39.42 per cent with the inclusion of the new facilities.

  “While this is close to the previous statutory limit of 40 per cent, the limit was recently revised to 60 per cent,” he added. Furthermore, he emphasised that Botswana had consistently maintained and continued to maintain a relatively low debt-to-GDP ratio when compared to many other countries in the region. ENDS