Botswana: Finance Minister Peggy O. Serame outlines government's spending priorities

Botswana's economic outlook appears bright as Finance Minister Peggy Serame outlines the country's spending priorities and budget strategy for the upcoming financial year. In a recent interview with CNBC Africa, Minister Serame highlighted the key themes driving the budget allocations, focusing on digital transformation, business environment reform, infrastructure development, value chain development, sustainable livelihoods, and climate change. These priorities are crucial in realizing Botswana's vision of becoming a high-income, knowledge-based economy by 2036. The Minister reported a robust economic growth of 6.7 percent in 2022, with expectations to maintain a steady growth trajectory of 4 percent in 2023 and an average of 5.7 percent in the following years. To fuel this growth, infrastructure development takes center stage as a critical enabler for various sectors. By emphasizing the importance of partnerships with the private sector, the government aims to overcome past implementation challenges and accelerate infrastructure projects, particularly in transportation, ICT, and energy. In terms of funding, Minister Serame acknowledged the limitations of government resources and emphasized the need for private sector participation in infrastructure development. By leveraging public-private partnerships and engaging with other stakeholders, Botswana aims to expedite project implementation and address key infrastructure requirements. The Minister highlighted investments in feasibility studies for projects like railway lines, setting the stage for collaboration with private entities to drive economic expansion not only within Botswana but also across the region. Beyond infrastructure, the budget allocates significant funds to value chain development and business environment reforms. With an emphasis on enhancing value chains in agriculture, diamonds, and participating in global value chains, Botswana aims to strengthen its economic diversification efforts. The dedicated budget of 540 million pounds for value chain development underscores the government's commitment to fostering a more resilient and competitive economy. Regarding business reforms, Minister Serame elucidated plans to review legislation and streamline regulations to create a conducive environment for business growth. With an earmarked budget of 421 billion pounds for these reforms, Botswana seeks to enhance its regulatory framework and facilitate smoother business operations. While Botswana has historically maintained budget surpluses, the recent deficits are attributed to global and regional economic challenges. Minister Serame expressed optimism about returning to surpluses in the medium term, provided external factors remain favorable. The Minister also shared insights on Botswana's experience with zero-based budgeting, emphasizing the need for patience, capacity building, and ongoing reforms to optimize cost estimates and revenue management. In conclusion, Minister Serame's budget presentation underscores Botswana's commitment to sustainable economic growth, infrastructure development, and value chain enhancement. By aligning financial policies with long-term development goals, Botswana aims to solidify its position as a high-income, knowledge-based economy by 2036.