30 July 2026
The World Bank has urged Botswana to pursue bold structural reforms aimed at reducing the state’s footprint in the economy while creating a more enabling environment for private sector-led growth and economic diversification.
In its latest Botswana Economic Update report, the World Bank says the country should transition to a more fiscally sustainable and efficient economic model.
The institution notes that this approach has been advocated for years and is now central to the Botswana Economic Transformation Programme (BETP), adopted in 2025. According to the report, Botswana must restore fiscal stability by strengthening domestic revenue mobilisation, containing the public sector wage bill, and redirecting government spending towards national priorities.
It also recommends improving public expenditure efficiency through stronger procurement systems and better public investment management. The World Bank further calls for a reduction in the state’s economic footprint through the divestment of state-owned enterprises (SOEs) and stronger governance and oversight of those that remain under government control.
To stimulate private sector growth, the report recommends simplifying business regulations, lowering barriers to market entry, opening sectors currently dominated by the state, expanding access to finance, and improving physical and digital connectivity to regional and global markets.
It also encourages Botswana to capitalise on its competitive advantages in the mining and agriculture sectors while developing targeted opportunities in business and personal services. The report also stresses the importance of investing in human capital by improving the effectiveness of education, healthcare and social protection systems, with a stronger emphasis on measurable outcomes and value for money.
In addition, the World Bank urges Botswana to harness its natural resources for sustainable growth by strengthening water security, accelerating investment in renewable energy, particularly solar power, and promoting climate-smart livelihoods in rural communities.
Source: The Projects Magazine via Facebook
