15 Jul 2026

Government has supported a newly sealed loan and grant agreement with the Arab Bank for Economic Development in Africa (BADEA) as a vital lifeline as Botswana pivots toward a private-sector-driven economy.

Speaking at the second meeting of BADEA’s Board of Directors in Gaborone, Vice President and Minister of Finance, Mr Ndaba Gaolathe said the funding came at a crucial time when the global economy was experiencing tight fiscal conditions.

The Vice President said to nnavigate these pressures, there was need for bold thinking and long-term financial solutions.

“While our central financing philosophy is to shift from a public sector to a private sector economy, infrastructure gaps remain significant. Our financing framework will reflect this transition with 60 per cent of projects expected to be privately led and financed, while government focuses on enabling investment through public infrastructure and social inclusion,” Mr Gaolathe said.

Meanwhile, the newly signed package channels fresh capital directly into local enterprise development and academic research, featuring a €110 million (P1.705 billion) mixed credit facility awarded to the

Botswana Development Corporation (BDC) to drive industrial growth and create sustainable employment opportunities.

Additionally, a €500 000 (about P7.75 million) grant was extended to the Botswana University of Agriculture and Natural Resources (BUAN) to support agricultural research, skills development and knowledge sharing.

Mr Gaolathe commended the enduring relationship, pointing to previous high-impact BADEA interventions that continued to support the nation’s key gateways, including a recent US$10 million (P135.8 million) facility through the National Development Bank (NDB) to support large-scale food production in the Pandamatenga area, a US$10 million (P135.8 million) terminal upgrade facility at Sir Seretse Khama International Airport (SSKIA) and an US$8 million (P108.6 million) package providing essential airport equipment and runway extensions for Kasane International Airport.

“BADEA’s interventions have strengthened gateways in our economy and supported production of our agricultural sector. They demonstrate how development finance can connect markets, expand enterprise, and strengthen national resilience,” he added.

For his part, BADEA board chairperson, Dr Fahad Aldossari indicated that the agreement reflected more than 40 years of mutual trust and development cooperation.

“Our long-standing partnership showcases our support to Botswana’s development priorities particularly in infrastructure, private sector development, re-finance and human capital development. Our goal is to deliver practical results that support sustainable development and an overall improved quality of life,” Dr Aldossari said. ENDS