Category: Sunday Standard

Parliament has been asked to raise the ceiling on Botswana’s government bond issuance programme from P55 billion to P85 billion, with Finance Minister Ndaba Gaolathe insisting the increase is about financing flexibility rather than a plan to borrow more.

Gaolathe told legislators that the proposed ceiling should not be interpreted as a borrowing target or an intention to use the full amount. Instead, it would set the maximum value of government securities that may be outstanding at any given time.

The existing programme is nearing its limit, with domestic government securities outstanding at P48.3 billion at the end of March 2026, equivalent to about 88% of the current ceiling.

Government’s financing requirement for 2026/27 is estimated at P26.35 billion, with about P12 billion expected to be raised through domestic bonds. External financing remains important but can involve lengthy negotiations and conditions beyond government’s control.

Gaolathe also pointed to the Retirement Funds Act of 2022, which requires pension funds to increase domestic investment and reduce offshore holdings. The resulting repatriation of pension assets could increase demand for government securities, which provide relatively safe investment instruments while supporting domestic liquidity management.

The bond programme was established in 2004, initially when government was running surpluses, to develop the domestic capital market and provide long-term investment instruments for pension funds. Its ceiling was subsequently increased to P15 billion, P30 billion and P55 billion in 2024.

Gaolathe said reforms including monthly auctions, published borrowing calendars and liability-management operations had strengthened the market and investor demand remained strong.

He stressed that raising the ceiling would not authorise additional government spending. Actual borrowing, he said, would remain determined by the budget, debt management strategy and debt-sustainability framework.

The higher ceiling would therefore give government additional headroom to finance approved priorities without relying excessively on more expensive short-term borrowing.

The World Bank has warned that Botswana’s public health system is facing a persistent essential medicines crisis. The bank says stockouts are being driven by systemic failures in forecasting, procurement, data management, warehousing and distribution.

The findings are contained in the Botswana Health Public Expenditure Review which paints a picture of a health system receiving relatively high budget allocations but struggling to convert public spending into reliable services for citizens. The report states bluntly that ‘challenges with stockouts of essential medicines in the public sector are a continuing concern.’

According to the World Bank, Central Medical Stores (CMS) tracks the availability of vital, essential and necessary medicines, but all three categories remained below the government’s 97 percent availability target during the three years for which data was available. The World Bank says previous assessments had already shown that CMS order-fill rates had been declining since 2014. The report identifies poor forecasting and quantification caused by poor-quality data, irrational medicine use, including prescribers’ preference for branded medicines, procurement processes that are not aligned with health-sector needs, and inadequate warehousing and distribution capacity.

The World Bank also takes aim at Botswana’s fragmented information management systems, warning that they may fail to provide government with timely, adequate and actionable information.

‘The absence of quality data undermines the ability of government and partners to plan, monitor, and evaluate health performance,’ the report states. The weaknesses extend to monitoring and accountability. The report highlights the lack of regular data-quality audits, inadequate capacity to synthesise and use strategic information and the absence of key structures such as a national monitoring and evaluation plan. District Health Management Teams also lack sufficient personnel dedicated to monitoring and evaluation, while accountability for programme data quality is largely concentrated among national-level programme leaders.

But the medicines crisis is only one symptom of what the World Bank describes as a broader problem of inefficiency in Botswana’s health expenditure. The report says weak budgeting and public financial management arrangements are contributing to poor performance, including weak links between annual work plans and budgets, insufficient decentralisation of spending responsibilities, poor budget execution and weaknesses in information used for planning. The World Bank cites evidence that in 2019 only 14 percent of the Vulnerable Groups Feeding Programme ration reached intended recipients, while in districts with the highest prevalence of moderate and severe underweight, the proportion was estimated to be as low as 7 percent.

Despite relatively high health allocations, Botswana’s public health expenditure is described as inefficient with recurring expenditure consuming 96 percent of total public health spending on average between 2017/18 and 2020/21, leaving development spending crowded out. The report also says spending is heavily skewed towards hospitals, which are generally less cost-effective than primary healthcare, while inadequate investment in medical equipment contributes to referrals to private providers locally and abroad.

Botswana is also spending heavily on private healthcare providers and specialists. Fees paid to private providers accounted for 7 percent of total public health expenditure, rising from about P524 million in 2017/18 to P958 million in 2021/22.The World Bank warns that the concentration of spending within the Ministry of Health further obscures accountability and makes it difficult to track resources against strategic health objectives. The report says the Department of Health Services Management accounted for about 87 percent of Ministry of Health expenditure, effectively creating what it describes as a ‘ministry within a ministry.’

One step forward, two steps back. That is the story of one of Botswana’s most followed football teams Township Rollers as it seeks to build from the ruins of administrations gone by.

Beleaguered by debilitating debts, ‘Popa Popa’ or ‘the Blue Train,’ as the team is affectionately called, seemed to be building steam in the past couple of weeks. In the past few weeks alone, Rollers unveiled sponsorships and partnerships mounting to a couple of millions of Botswana pulas. These put the team in a position to pay some pressing debts and start rebuilding.

One of these debts, which haunted Rollers the most, was the P1.2 million in unpaid dues owed to former coach Abdelaziz Karkache. The debt, which is directly linked to the team’s recent past investor Tendai Sebata and the then team executive committee, led to a FIFA imposed transfer ban for Rollers.

With the team having lost a number of players, mostly first team starters, Rollers had to pay-up to allow for the team to register players. As expected, Rollers duly paid the debt and were preparing to start registering players.

But as the lyrics from one Notorious B.I.G’s ‘mo money, mo problems’ song go, ‘the more money we come across, the more problems we see.’ Now, two other debts and two new FIFA bans have put paid to Rollers plans.

The latest two transfer bans took effect from the 14th July 2026 and 28th August 2026 respectively. They emanate from the unpaid monies owed to two former players, South African forward Thabiso Mokenkoane and Congolese midfielder Ntambwe Wafauna Djo.

And if things continue as they are, more problems may be looming. Another former South African player, Thabo Rakhale, has also reportedly issued Rollers with a letter of demand over unpaid dues. In the demand letter, which came through the Football Union of South Africa, he has given the team ten days to resolve the matter or he also escalates his grievances to FIFA.

With the season already started and transfer bans now in place, Rollers will once again be compelled to pay up. This means dipping more into the already fast depleting pocket for Rollers. Failure to do such will mean the team will play the league season without needed players to compete. Speaking to this publication in the previous interview, team chairman Thapelo ‘Fish’ Pabalinga surmised that ‘these monies could have gone a long way in assisting Rollers prepare for the league.’

‘Unfortunately, whereas other teams are using their monies to build or strengthen to be more competitive, we find ourselves having to pay investor inherited debts. But it is what it is, we have to focus and get the team as ready as it can be for the coming season.’

In a press statement addressing the latest bans, Pabalinga said the team had already ‘engaged the legal representatives’ of the concerned players and is actively ‘working towards settling the outstanding debts.’

Of greater importance, the Rollers chairman says while they cannot wish away their past issues, they must however ‘learn from them and guard against such ever happening again in the future.’

With so many challenges to overcome, Pabalinga and committee will, more than ever before, have to rely on Rollers’ supporters’ backing. Whether it is showing gratitude to sponsors and partners, attending games, buying merchandise or helping in any way possible, supporters will have to be on board if the team is to rise again.

The Bank of Botswana has kept its Monetary Policy Rate at 5.5 percent, opting against further tightening despite inflation remaining well above the central bank’s target range.

The decision was taken by the Monetary Policy Committee (MPC) on Thursday as inflation fell from 10.7 percent in June to 9.4 percent in July. The rate remains significantly above the Bank’s 3-6 percent medium-term objective.

Bank Governor, Lesego Mosekio said that the reserve bank expects inflation to remain above target until at least the first quarter of 2027, with fuel prices, higher electricity tariffs and related cost pressures identified as the main risks.

For businesses and consumers, the decision means borrowing costs are unlikely to ease quickly. The Bank also maintained the moratorium on commercial banks’ prime lending rates, while keeping the Standing Deposit Facility at 4.5 percent and the Standing Credit Facility at 6.5 percent.

The central bank’s decision comes against a weak domestic economic backdrop. Real GDP grew by just 0.2 percent in the year to March 2026, although the contraction in mining slowed and some non-mining sectors, including manufacturing and agriculture, recovered.

The Ministry of Finance is forecasting stronger growth of 3.1 percent for 2026, supported by an expected recovery in mining and continued expansion in non-mining sectors. The MPC, however, flagged risks ranging from geopolitical tensions and changing trade patterns to livestock disease and climate shocks.

The inflation forecast has been revised down, with the Bank now projecting an average of 7.9 percent for 2026 and 4.9 percent in 2027. The lower forecast is largely attributed to the reduction in domestic fuel prices. The next MPC meetings are scheduled for October 29 and December 3.

The Botswana Meat Commission (BMC) has slaughtered significantly more cattle at its Lobatse plant this year despite continued disruption to the livestock sector caused by Foot and Mouth Disease (FMD).

The plant processed 12,378 cattle between January and July 2026, an increase of 6,892 head compared with the same period last year.

The rise comes as restrictions on cattle movement and other disease-control measures continue to disrupt supply chains and limit the movement of livestock in affected areas.

Lobatse Mayor Aron Mosimanegape Ganakgomo said the continued threat of FMD placed greater responsibility on farmers and livestock owners to comply with movement restrictions and cooperate with veterinary authorities. The increase in slaughtering comes as the BMC pushes ahead with several projects at Lobatse, although some remain some distance from completion.

The new cattle entrance is 95 percent complete, while the Meat Value Addition and Secondary Processing Plant is 63 percent complete. The Lobatse Tannery is 89 percent complete and is expected to be commissioned in September.

The projects are intended to expand processing capacity and allow more livestock products to be processed locally. The tannery, for example, could increase the domestic processing of hides, rather than leaving them as a largely unprocessed by-product.

For the beef industry, however, the immediate challenge remains FMD. The government has allocated P97 million towards containing the outbreak, including vaccination and other interventions, while movement restrictions have been imposed in affected areas.

The stronger slaughter numbers at Lobatse therefore come against a difficult operating backdrop. Whether the increase can be sustained will depend partly on the availability of cattle and the extent to which disease-control measures continue to restrict movement.

With Botswana’s beef industry already facing disease and market-access pressures, the performance of the Lobatse plant offers a useful measure of how much activity remains possible under the current constraints.

Botswana’s heavy spending on HIV/AIDS has failed to translate consistently into better health outcomes across the country. This is the finding by the World Bank which raises questions about resource allocation, programme management and the efficiency of the country’s HIV response by Botswana.

The assessment is contained in the World Bank’s Botswana Health Public Expenditure Review. It warns that Botswana’s health system is suffering from low efficiency, with the HIV/AIDS programme providing some of the clearest evidence of weaknesses in the way public resources are converted into health outcomes. According to the report, there is a weak correlation between HIV expenditure at district level and actual results, including HIV awareness, condom use, the proportion of people receiving treatment and HIV prevalence. The World Bank says the findings raise the possibility of inefficiencies and disparities in the implementation of HIV programmes across districts, despite Botswana’s substantial investment in the fight against HIV/AIDS.

‘With higher investment in HIV programs, one would expect greater HIV awareness, more people on treatment, and lower HIV prevalence. However, this link does not seem to hold true across all districts in Botswana,’ the report states. The finding is striking because Botswana has long invested heavily in combating HIV/AIDS making the disconnect between expenditure and outcomes a major concern for policymakers. The World Bank points to Kweneng and Greater Gaborone as examples.

The two districts recorded some of the highest HIV expenditure, yet their performance on key indicators was far from exceptional. The report says they recorded average levels of HIV awareness and treatment coverage, while condom use was among the lowest reported.

The report identifies several possible explanations, including poor resource distribution, differences in programme management effectiveness, varying local health determinants and inconsistencies in data quality. The World Bank also found that Botswana spends more on HIV/AIDS programmes than its regional peers, suggesting significant room to improve efficiency. Evidence from the National AIDS Spending Assessment (NASA), according to the report, shows that Botswana’s spending on key inputs per patient receiving antiretroviral treatment is higher than in countries including Zambia, Mozambique and South Africa. This means Botswana is spending more to achieve outcomes that should warrant closer scrutiny of procurement, treatment protocols and the design of its HIV services. The World Bank recommends examining procurement arrangements for antiretroviral medicines, including the possibility of pooled procurement, reviewing patient testing guidelines and reassessing the HIV/AIDS Basic Services Package.

The report also warns that Botswana’s HIV response remains vulnerable because of its dependence on external funding.In 2019/20, external sources accounted for 37 percent of total HIV/AIDS expenditure, compared with 61 percent from domestic public sources.The United States President’s Emergency Plan for AIDS Relief (PEPFAR) alone accounted for 30 percent, 32 percent and 33 percent of total HIV/AIDS financing in the 2017/18, 2018/19 and 2019/20 financial years respectively.

The World Bank calculates that replacing PEPFAR funding would require Botswana to increase its own expenditure by about 50 thebe for every P1 currently spent on HIV/AIDS. With Botswana facing slower economic growth, fiscal pressures and declining mineral revenues, the report warns that such a burden could prove difficult to sustain.

The World Bank further questions the government’s ability to translate approved HIV/AIDS budgets into actual funding. On average, only 68 percent of the approved HIV/AIDS budget under the Ministry of Health was released during the period reviewed. This compares sharply with the National AIDS and Health Promotion Agency (NAHPA), which received about 96 percent of its allocated funding over the same period. The discrepancy, according to the World Bank, creates serious challenges for effective budget execution and ultimately service delivery. Ironically, despite weak releases, overall HIV/AIDS budget execution averaged 93 percent during the period under review.

The report says NAHPA’s lower execution rate was partly linked to its practice of sub-warranting funds to other implementing organisations, potentially creating inefficiencies where additional funding depends on performance reports.

Botswana Tennis Association (BTA) is reaping the benefits of hosting international tournaments for its upcoming young aces.

This is demonstrated by the improvement in world rankings for the country’s young tennis players from the first ITF J30 Gaborone alone. More improvements in rankings are expected when new rankings are published early this coming week.

Speaking in an interview with this publication, BTA vice president technical Nonofo Othusitse said the return on investment is visible. During the recent ITF J30 Gaborone, Botswana had eight (8) boys and seven (7) girls in the main draw. Most of the players were under the age of 14 years.

‘Two of our players emerged as World Tennis Tour Juniors doubles champions. That is Martin Seetso (boys) and Angel Chakanyuka (girls). Two other players, 13-year-old Reene Sebego and 14-year-old Rerotlhe Kgannyeng gained their first ever international rankings.’

Of greater importance, a number of our players are improving their rankings. Martin Seetso jumped 440 places to move to a world ranking of 2222 while Angel jumped 206 places to 1691 ranking.

‘We are happy with the performances. We have two Champions and a number of players improving their rankings. If you look at the round robins some of our players won 2 matches out of 3.’

‘We are expecting to see an improvement in terms of players performances in both singles and doubles. We are expecting more players to improve their rankings. The ROI is definitely there.’

This was all achieved while at the same time reducing expenses for parents who pay from the pocket to take their young players to compete in international tournaments.

‘When we host, we offset international travel cost for our players. This can be a limiting factor for most players. So, with six tournaments hosted, we ensure that at minimum our players get to play 6 tournaments a year.’

Due to the improvement in the rankings for young local players, Botswana has maintained her position in the CAT Nations Trophy. Botswana is currently ranked 8th in Africa in the 2026 African Tennis (CAT) Nations Rankings. In the Southern African region, the country is ranked third, just behind neighbours South Africa and Zimbabwe.

The rankings are compiled from the results of players in the African Junior Championships across the U14, U16 and U18 age groups. The rankings take into account both singles and doubles performances.

Nonofo says the improvement in rankings for the players and the country points to a good investment made to help sports stars. He pointed out that the rankings also show ‘the country’s consistency in terms of participation and competing in the Continental championships.’

Away from the players, the BTA vice president technical says hosting helps the BTA to build capacity. From hosting, ‘administrators and officials are gaining necessary skills and experience.’

‘When hosting, we give our officials an opportunity to organise and run these events. We are therefore building capacity in terms of administrative and technical officials.’

He elaborated that as Botswana tennis, they dream of hosting ATP and WTA events in the future. As such, having as many administratively and technically capable officials will ease the processes of hosting.

Botswana’s vehicle market started 2026 on a weaker footing, with first-time registrations falling sharply and the composition of purchases pointing to a market still heavily reliant on imported used cars.

A total of 8,119 vehicles were registered for the first time in the first quarter, down 18.3 percent from 9,942 in the final quarter of 2025, according to Statistics Botswana. The decline was recorded across most vehicle categories, with the exception of trucks.

The latest figures extend a downward trend from the high levels recorded in 2024 and early 2025. First-time registrations stood at 11,583 in the first quarter of 2025, meaning the latest quarterly total was substantially lower year on year.

Passenger cars continued to dominate the market, accounting for 74.7 percent of registrations. Vans represented 7.7 percent and trucks 5.5 percent. The composition of imports is equally notable. Used vehicles accounted for 79.6 percent of all first-time registrations, while new vehicles represented just 20.3 percent.

Japan remained the dominant source, supplying 70.3 percent of all first-time registrations. Almost all Japanese vehicles – 99.4 percent – were used. South Africa, meanwhile, accounted for 18.8 percent, with new vehicles making up 76.1 percent of its registrations.

The figures underline the continued importance of the second-hand vehicle trade to Botswana’s automotive market.

For dealers and other businesses exposed to vehicle demand, the latest decline raises questions over whether the slowdown is temporary or indicative of a more sustained cooling in household and business demand.

The Government Investment Account (GIA) has staged a sharp recovery in the first half of 2026, rising nearly 88 percent to P3.13 billion by June, although the account remained highly volatile amid persistent pressure on government finances.

The GIA, held with the Bank of Botswana, increased from P1.66 billion in January after plunging to a record low of just P106.5 million in February – its lowest level in more than two decades. It subsequently surged to about P8.7 billion in March following the central bank’s P7.3 billion dividend payment, before falling to P6.1 billion in April and P3.13 billion by June.

The recovery coincided with a broader strengthening of Botswana’s foreign exchange reserves. Total foreign assets increased 10.4 percent to P59.12 billion at the end of June from P53.56 billion in January. In US dollar terms, reserves rose 6.1 percent to $4.16 billion.

Over the year to June, foreign assets climbed 31.5 percent from P44.96 billion, although the stronger Pula also supported the Pula-denominated increase. The Transactions Balances Tranche, representing the more liquid portion of reserves, rose to P12.70 billion from P9.67 billion, while the Pula Fund increased to P30.82 billion.

Another key improvement was the full repayment of the government’s temporary advance from the central bank. The facility stood at P3.20 billion in January but had been cleared by June, removing a significant sign of immediate fiscal cash-flow stress.

However, the improvement comes as Botswana continues to grapple with weak diamond revenues. Government remains reliant on borrowing and SACU transfers, meaning the stronger reserves and GIA provide relief but do not yet signal a durable turnaround in the country’s fiscal position.

A considerable number of children are feared to have been exposed to a food safety risk after dead rodents were reportedly found inside packaged Tsabana products.

Tsabana is a government-supplied food product manufactured by Sefalana Holding Company Limited’s subsidiary, Foods Botswana (Pty) Ltd.

The discovery has triggered an urgent food safety alert and raised serious questions about food safety controls at the Serowe-based manufacturer.

Foods Botswana is wholly owned by Sefalana Holding Company Limited, a company listed on the Botswana Stock Exchange.

The company produces Tsabana and Malutu exclusively for the government feeding scheme.

The affected product is 2.5kg Tsabana with batch number A16326 which was manufactured on 12 June 2026 and due to expire on 12 October 2026.

A savingram issued by the Kweneng District Council on 3 August 2026 described the matter as an ‘urgent food safety alert.’

The document states that dead rodents were identified in a packaged Tsabana product manufactured by Foods Botswana at Newtown Ward, Serowe.

‘This savingram serves as an urgent notification of a suspected food safety alert requiring coordinated multi urgency action,’ the council states.

Sources at the government enclave have expressed concern because Tsabana is produced for the government feeding programme. The product is distributed to children through public feeding schemes.

The Kweneng District Council called for immediate action to determine whether the affected batch had already reached other districts.

‘As a precautionary action, your esteemed office is requested to engage with all District Councils to establish availability of the food product in their jurisdiction,’ the savingram states.

Kweneng District Council also indicated that it was engaging Foods Botswana to obtain information on the distribution and traceability of the affected batch.

Reports also indicate that the incident has raised questions about how a dead rodent could allegedly end up inside sealed food packaging. It also raises questions about the effectiveness of hygiene, pest control, inspection and quality assurance systems at the manufacturing plant.The savingram calls for a coordinated response and immediate tracing of the affected product.

Contacted for comment, the Ministry of Health referred questions to the Ministry of Local Government and Traditional Affairs.

Ministry of Health spokesperson Christopher Nyanga told Sunday Standard that the matter was already being handled by the latter ministry.

‘We have noted your enquiry; however we advise that you engage the Ministry of Local Government and Traditional Affairs, which is currently seized with the matter at hand and is best placed to provide the relevant information and clarification,’ Nyanga said.

He said the Ministry of Health would only act after receiving a report from the responsible ministry.

‘The Ministry of Health will, at a later stage, receive a report from the Ministry of Local Government and Traditional Affairs whereupon any action or advice as to the way forward, could be made,’ he said.

Despite repeated attempts by Sunday Standard to obtain the company’s response, Sefalana had not responded by press time. The company was asked to explain how the alleged contamination occurred, whether the affected batch had been recalled, how much of the batch was produced and distributed, and whether other products had been affected. It was also asked to clarify what pest-control and quality assurance measures were in place at Foods Botswana’s Serowe facility.

The Ministry of Local Government and Rural affairs also had not responded by press time.