The Umbrella for Democratic Change (UDC) government faces its biggest test yet – turning promises into delivery. Already under pressure over unfulfilled election pledges, it must now overcome Botswana’s long-standing implementation problem as it seeks billions of Pula from African Development Bank, money that will only flow when the government proves it can deliver results.
Documents seen by Sunday Standard reveal that Botswana is quietly negotiating a multi-billion Pula loan from the African Development Bank (AfDB) to bankroll an ambitious jobs programme that promises to tackle the country’s unemployment crisis through skills development entrepreneurship and enterprise financing.
While the programe is being sold as a transformative intervention capable of unlocking at least P16.08 billion worth of National Development Plan 12 (NDP12)-aligned economic activities, many of the critical details such as the total value of the loan, performance targets and disbursement conditions remain under negotiation.
Before Botswana can draw down a single Pula from the proposed multi-billion Pula AfDB loan, the government must first overcome a problem that has plagued the country for decades, implementation. Confidential Ministry of Finance documents reveal that unlike traditional development financing, the proposed facility will only release funds after Botswana proves it has delivered agreed results, turning the country’s chronic inability to execute projects on time and within budget from a governance weakness into a potential barrier to accessing desperately needed financing.
The documents also show that the initiative comes at a time when Botswana is battling persistently high youth unemployment, slowing private sector job creation and growing public pressure on President Duma Boko’s administration to deliver employment opportunities promised during the election campaign.
One of the documents gleaned from the Ministry of Finance explains that; ‘Once approved (loan) by the Bank and Government of Botswana (through Parliament), the Bank will provide financing, implementation support and monitoring for the Project.’
The document further states that for projects comprising multiple subprojects developed and implemented during the programme, the government must demonstrate to the Bank before project appraisal that it has the capacity to conduct appropriate environmental and social assessments and to prepare and implement the subprojects in compliance with both Botswana’s national laws and the AfDB’s Operational Safeguards (OS).
Unlike traditional development loans where money is released upfront, the proposed financing adopts AfDB’s Results-Based Financing model, meaning Botswana will have to demonstrate measurable progress before portions of the loan are disbursed.
According to AfDB documents, the programme’s expected results include ‘an estimated total of at least P16.08 billion of NDP12-related activities that could be considered broadly aligned to job creation in general.’
The documents also states that the programme seeks to ‘accelerate sustainable job creation in Botswana by strengthening demand-driven skills development, enterprise acceleration, sustainable access to finance, and institutional delivery capacity.’ The Bank says the programme is expected to contribute directly to reducing youth unemployment and the number of young people not in employment, education or training (NEET), while increasing enterprise survival, productivity and institutional capacity. The financing model also suggests that there will be a shift in how international lenders are engaging Botswana. Rather than establishing parallel implementation structures, AfDB intends to rely almost entirely on Botswana’s existing government systems. ‘The Bank’s role will be to provide financing, technical dialogue, and oversight that reinforce national systems and incentivise performance, rather than creating parallel delivery structures,’ the assessment states.
However, the programme’s success will depend heavily on whether government ministries can deliver complex projects efficiently-an area where previous government programmes have struggled. While the Ministry of Finance has experience managing projects financed by multilateral development banks, the Bank notes that Botswana continues to rely significantly on external consultants to manage environmental and social safeguards because of limited internal expertise.
The assessment report further reveals that several ministries expected to implement key components of the programme including the Ministries of Gender and Youth Affairs, Sport and Arts, Labour and Home Affairs, and Lands and Agriculture have no internal environmental and social safeguards capacity. To address these weaknesses, the Bank proposes creating a dedicated Programme Management Unit comprising a Programme Manager, Procurement Specialist, Financial Management Specialist, Monitoring and Evaluation Specialist, and an Environmental and Social Safeguards Specialist.
The unit would coordinate multiple ministries, parastatals, universities, commercial banks and private sector partners. Even then, AfDB acknowledges that institutional arrangements, verification systems and implementation mechanisms are still being refined. Rather than focusing on a single employment initiative, the programme attempts to build an entire employment ecosystem.
Annexures accompanying the AfDB documents list the stakeholders consulted by the Bank during a series of meetings held this year. They include the Ministry of Higher Education, the Ministry of Sports and Arts, the Ministry of Trade and Entrepreneurship, the Ministry of Communications and Innovation, the Local Enterprise Authority (LEA), and the Ministry of Agriculture and Lands, among others.
Documents indicate investments will span five major result areas: skills alignment, enterprise development, access to finance, digital transformation and institutional reforms. Among the flagship initiatives are: Construction and refurbishment of Youth Resource Centres across Botswana, Expansion of Rapid Skills Centres, Transformation of Technical and Vocational Education and Training (TVET) institutions, Capacity building programmes at the University of Botswana, BIUST and BUAN, Digital innovation hubs, Refurbishment of village centres into creative industry workspaces, Creation of Enterprise and Skills Development Centres, Establishment of MSME incubation and technology transfer centres, Recapitalisation of the Youth Development Fund, Development of intellectual property commercialisation programmes, Strengthening export promotion initiatives and a proposed internship programme expected to absorb 6,000 interns over four years.
The programme also proposes digital reforms including new labour market information systems, online internship management platforms and digitisation of business registration services.
Beyond training, the project includes significant infrastructure spending. The AfDB identifies Francistown, Palapye, Mahalapye and Pilane as major implementation hubs, while activities will extend across the country. Infrastructure projects include: New Youth Resource Centres in Lerala, Serowe, Maun, Francistown, Mochudi and other towns and refurbishment of centres in Gaborone, Mahalapye, Bobonong, Tutume and Mosojane. They also include upgrading Village Centres in Mochudi, Molepolole, Serowe, Maun, Kanye and Gantsi into creative workspaces, expansion of incubation facilities, development of digital content hubs, TVET Centres of Excellence and Public Employment Centres.
AfDB classifies the programme as Category 2, meaning projects are expected to pose moderate environmental and social risks. Site inspections found anticipated impacts would generally be ‘reversible and manageable.’ The Bank also says no involuntary resettlement is anticipated because government has indicated adequate land has already been allocated. However, it requested proof of land ownership and transfer documentation before implementation.
Perhaps the most striking omission from both the Ministry of Finance and AfDB documents is the value of the loan itself. Neither document discloses how much Botswana intends to borrow despite detailing an extensive national programme expected to unlock more than P16 billion in economic activities.
The proposed programme suggests that government recognises that unemployment cannot be solved through public sector recruitment alone. Instead, it seeks to stimulate private enterprise, entrepreneurship, skills development and innovation simultaneously. The programme argues that sustainable employment requires progress in four interconnected areas skills alignment, enterprise development, access to finance and digital transformation supported by institutional reforms. The Ministry of Finance and AfDB had not responded to Sunday Standard queries by press time.