7 February 2024
Botswana sees a recovery in economic growth this year and plans to increase spending on infrastructure development in a “stimulus” budget, its finance minister said on Monday.
The southern African country’s economy was hit by a decline in demand for diamonds last year. The gems generate about 30% of its revenue and 70% of its foreign exchange earnings.
Finance Minister Peggy Serame said in a budget speech that growth was estimated at 3.2% in 2023, lower than a previous forecast of 3.8%, picking up to 4.2% this year and 5.4% in 2025 premised on the world economy recovering.
Serame said the 2024/25 fiscal year’s budget deficit was estimated at 8.69 billion pula ($631 million), higher than the current fiscal year’s estimated 7.13 billion pula deficit.
“The proposed budget will address a wide range of infrastructure gaps,” she said, citing projects planned in the water, transport and energy sectors. Overall, spending on infrastructure development would rise more than 33% in 2024/25.
The government will seek to mobilise additional resources by issuing instruments such as inflation-linked bonds and green bonds, she added.
($1 = 13.7741 pula)
