27 June 2023
The World Bank has approved a $150 million Development Policy Loan (DPL) for Botswana, aimed at supporting the country’s efforts to stimulate inclusive, resilient and low-carbon recovery and development. The $150 million Economic Resilience and Green Recovery DPL II is the second loan provided by the World Bank – following the disbursement of a $250 million loan in June 2021 – to support Botswana’s recovery following the compounded impacts of the COVID-19 pandemic, the global energy crisis, and economic shocks that have come as a result of Russia’s invasion of Ukraine.
“The development policy financing provides important fiscal space and technical support to the Government of Botswana’s policy efforts under the Economic Recovery and Transformation Plan,” stated Peggy Serame, Minister of Finance for Botswana, adding, “We are glad to work with the World Bank as a trusted partner to create a more resilient and inclusive economy that benefits Botswana.”
Awarded to the Government of Botswana and in alignment with the nation’s Country Partnership Framework, the loan will be used to boost the private sector’s contribution to economic growth; drive sustainable development initiatives; improve access to finance by micro-, small- and medium-sized-businesses, and transition the economy towards a low-carbon recovery.
“The effects of the COVID-19 pandemic and other global shocks have made the need to diversify the economy, create more jobs, and rebuild fiscal buffers more urgent.
We are pleased to support the Government’s efforts to put Botswana on a more inclusive, resilient, and low-carbon growth path,” stated Marie Francoise Marie-Nelly, World Bank Country Director for Eswatini, Botswana, Lesotho, Namibia and South Africa.
The loan will be adopted under three pillars, with Pillar 1 of the DPL poised to drive social protection and improve the Government’s responsiveness to social spending, particularly in response to climate change. Under Pillar 2, the loan will enable access to credit for private sector development while increasing confidence in the credit information ecosystem. Meanwhile, Pillar 3 will support the Government’s efforts towards driving the country’s energy transition.
Source: https://energycapitalpower.com/world-bank-approves-150m-loan-for-botswana/
