Wednesday, April 24, 2024
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Botswana’s finance minister, Peggy Serame, announced plans for economic recovery and increased infrastructure spending in the country’s budget speech. Botswana, whose economy heavily relies on diamond exports, experienced a downturn in economic growth due to decreased demand for diamonds last year.

Serame indicated that economic growth in 2023 was estimated at 3.2%, lower than the previous forecast of 3.8%. However, growth is expected to rebound to 4.2% in 2024 and further to 5.4% in 2025, assuming a global economic recovery.

For the fiscal year 2024/25, Botswana forecasts a budget deficit of 8.69 billion pula ($631 million), higher than the estimated deficit for the current fiscal year. To stimulate economic growth and address infrastructure gaps, the government plans to increase spending, particularly in the water, transport, and energy sectors. Infrastructure development spending is projected to rise by more than 33% in 2024/25.

To mobilize additional resources for these projects, Botswana intends to issue various financial instruments, including inflation-linked bonds and green bonds. These measures aim to support Botswana’s economic recovery and development initiatives amidst the challenges posed by the decline in diamond revenue and the global economic environment.

(1 US dollar = 13.7741 Botswana pula)

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