25 Aug 2026

Parliament has adopted a motion to raise the ceiling on the Government Bond Issuance Programme, from the current limit of P55 billion to P85 billion. Presenting the motion to legislators on Friday, the Minister of Finance also Vice President, Mr Ndaba Gaolathe said the proposal was about ensuring that government retained the flexibility required to finance national priorities, continued supporting economic recovery and further deepened Botswana’s domestic capital market while maintaining prudent and sustainable debt management. 

Mr Gaolathe said the programme had evolved alongside the country’s economic development and financing requirements, adding that Parliament successively approved increases in the programme ceiling to meet economic needs; from P5 billion to P15 billion, then to P30 billion and reaching P55 billion in 2024. He said each increase reflected the changing needs of the economy while remaining consistent with government’s objective of developing a strong and resilient domestic capital market. 

Mr Gaolathe said when Parliament approved an increase to P55 billion, government made commitments including more frequent government securities auctions, publication of annual borrowing strategies, introduction of liability management operations and improved transparency in borrowing. 

These commitments, he said, had largely been met, resulting in monthly auctions and enhanced investor engagement. 

The minister said the reforms had improved the domestic debt market and strengthened debt management practices, maintaining strong investor confidence in government securities, evidenced by robust demand and oversubscription of recent auction. 

The success of recent reforms, Mr Gaolathe saiid  Parliament’s approval for the P55 billion increase was justified and effective.

He therefore said the domestic capital market was increasingly vital to the government’s financing strategy, offering a reliable source of funds alongside external sources. 

The minister said currently, the programme was nearing its limits, with minimal room left, while the financing needs for the 2026-27 financial year were projected. 

Supporting the motion, MP for Chobe, Mr Simasiku Mapulanga said the increase should be for finance productivity and should have high return expenditure. 

He cautioned against over borrowing, saying it could have economic implications, which could even shake investor confidence if the debt was unsafe. 

Also in support of the motion was Bobirwa MP, Mr Taolo Lucas who said government should have a fiscal discipline to avoid reaching the P85 billion ceiling. 

Responding to the legislators, Mr Gaolathe said Botswana’s nominal ceiling remained lower compared to other countries and said adjustments were critical as diamond revenue downturn widened local deficits. ENDS