Category: Sunday Standard

Botswana’s public debt position has edged higher, driven largely by a sharp rise in domestic borrowing, according to the Annual Statements of Accounts (ASA) for the financial year ended 31 March 2023. in 2024, the Accountant General Office also raised concerns about the government’s borrowing practices highlighting a significant rise in total outstanding debt for the fiscal year 2021/22.

Accountant General Tebogo Tumango has now warned that while debt levels remain within manageable thresholds, the composition and pace of accumulation point to growing fiscal pressure, particularly on the domestic market.

‘There was a slight increase in total outstanding debt during the 2022/23 financial year, driven by growth in both external and domestic borrowing,’ Tumango noted in the report.

By the end of March 2023, total gross debt, including guarantees, stood at P50.90 billion, reflecting a 4 percent increase compared to the previous financial year. The rise was largely shaped by increased domestic financing needs, even as external debt recorded a modest decline.

External debt outstanding fell by 5 percent to P21.9 billion. The decrease was attributed to repayments exceeding new disbursements during the period under review, signalling a continued effort to manage foreign exposure and limit external vulnerabilities.

In contrast, domestic debt surged significantly, rising by 16 percent to P28.92 billion. The increase was driven by the continued rollout of the P30 billion Note Issuance Programme, which also saw Government intensifying its presence in the domestic capital market through more frequent auctions, shifting from quarterly to monthly issuances.

The programme was expanded following a 2019 review that identified structural constraints in the local bond market, leading to an increase in its ceiling from P15 billion in 2020. Authorities have since relied more heavily on domestic instruments to finance budgetary requirements.

Despite the increase in borrowing, Botswana’s debt ratios remain relatively low by international standards. The total debt-to-GDP ratio stood at 19.60 percent at the end of the 2022/23 financial year. External debt accounted for 8.46 percent of GDP, while domestic debt stood at 11.13 percent.

Government has also intensified revenue-enhancing measures in response to fiscal pressures. These include the revision of user fees and service charges, with the Ministry of Finance and Economic Development authorised to adjust charges annually in line with inflation or other applicable rates, following consultation with relevant ministries.

Consultations were ongoing during the 2022/23 financial year in preparation for the third phase of revised fees and charges. Officials say the measures form part of broader fiscal consolidation efforts aimed at widening the domestic revenue base and ensuring long-term fiscal sustainability amid rising expenditure demands.

In the space of a single week in late March and early April 2026, four separate government communications highlighted a recurring and deepening pattern in Botswana’s public administration: the use of press releases, and in one striking case a verbal presidential announcement, to give effect to measures that appear to carry regulatory force, rather than following the formal statutory procedures laid down by law. While the intent in each case is commendable, the method raises serious questions about legal certainty and the rule of law. A press release cannot create binding obligations where legislation requires action through statutory instruments published in the Government Gazette. Neither, it follows, can a statement made at a press briefing.

The first instance followed the Botswana Energy Regulatory Authority’s adjustment of fuel prices, effective 28 March 2026. On 27 March, the Ministry of Trade and Entrepreneurship issued a press release asking retailers to apply a temporary fuel surcharge at the point of sale to protect consumers. No details were provided on how the surcharge should be calculated, its duration, or the precise legal basis for enforcement. The communication was issued outside the framework of the Trading Margins Regulations.

On 31 March 2026, Government Notice No. 307 of 2026 was published under the Road Transport (Permits) Act (Cap. 69:03), revising public transport passenger fares with effect from 1 April. The new fares attracted immediate public concern. In response, the Ministry of Transport and Infrastructure issued a press release suspending implementation, directing operators to revert to the previous fare structure ‘until further notice’. While a corrigendum later appeared in the Gazette, the initial suspension was conveyed solely through the press statement – raising questions about whether the Minister’s intervention aligned with the statutory allocation of authority under the Act.

On 2 April 2026, the Department of Veterinary Services notified the public, via press release, of a Foot and Mouth Disease outbreak in the Goodhope District, imposing detailed movement restrictions stated to take ‘immediate effect’. No accompanying order had been published in the Gazette under the Diseases of Animals Act (Cap. 37:01), which requires the Director to declare infected areas and prohibit movement ‘by order published in the Gazette’. A binding statutory instrument was only published days later. As with the transport fares, the legal instrument followed the public announcement – when the constitutional order of things requires precisely the reverse.

On 6 April 2026, President Duma Boko announced at a national briefing that the government had waived the requirement for motorists to renew vehicle licences and driver’s licences, citing failures in the renewal system. The Road Traffic Act and its subsidiary regulations are unambiguous: renewal is mandatory and failure to renew attracts daily penalties. Those provisions were not amended. No Statutory Instrument was gazetted. The obligation was suspended by a spoken statement – an instrument that carries no legislative authority whatsoever. This is perhaps the starkest example: a verbal announcement purporting to override an Act of Parliament.

These requirements are not mere administrative formalities. The Statutory Instruments Act (Cap. 02:11) is clear: every statutory instrument must be published in the Gazette and laid before the National Assembly. Botswana’s Constitution embeds the rule of law through its structure – Section 3 affirms fundamental rights including protection of the law, Section 10 guarantees access to an independent court, and Section 86 vests legislative power in Parliament, requiring that executive action remain within statutory bounds. Legal certainty requires that laws be clear, accessible and predictable. When obligations are created or suspended through press releases and verbal announcements, citizens cannot reliably know their legal position, and enforcement risks arbitrariness.

The practical consequences extend beyond individual cases. Unclear pricing rules, unresolved transport costs, and motorists unsure whether their expired discs are lawfully excused all create real exposure for citizens and businesses. Investors rely on stable, transparent legal processes when assessing risk. Repeated reliance on informal communications erodes confidence in the predictability of governance.

None of this suggests bad faith. The pressures of rapid response are real, and public communications serve an important role. Yet they cannot lawfully substitute for the instruments Parliament has prescribed. Where an Act or regulation requires a Gazette order, that instrument must be issued – promptly if necessary – with the press release used to supplement, not replace, it. Legal certainty is not an obstacle to effective governance; it is the foundation that makes governance legitimate and sustainable.*

Roughly 500,000 people in Botswana are experiencing insufficient food consumption, according to real-time monitoring by the World Food Programme (WFP). In a country of just over 2.5 million, the figure represents a substantial share of the population and a stark contradiction to its upper-middle-income status.

The World Food Programme’s Hunger Map indicates that most districts are currently experiencing ‘moderately high’ levels of insufficient food consumption.

Ngamiland records the highest prevalence of insufficient food consumption in the country, at 24.07%, equivalent to an estimated 41,100 people struggling to meet basic dietary needs. Across Botswana, insufficient food consumption rates cluster in a narrow but elevated band of 20% to 25%, underscoring the breadth of the crisis. Ranked from highest to lowest, North East District leads at 24.01% (42,300 people), followed by Kgalagadi District at 23.71% (13,300), Kgatleng District at 23.56% (24,800), and Chobe District at 23.18% (6,400).

Close behind are Central District at 22.98% (154,500), Southern District at 22.93% (53,200), Ghanzi District at 22.78% (12,000), and Kweneng District at 22.7% (83,300). At the lower end, though still above one-fifth of the population, South-East District posts 21.38% (84,200).

While the root causes of Botswana’s food consumption shortfalls are both domestic and external, the pressure is mounting at a particularly difficult time of renewed global food stress. International markets are tightening again, and last week the WFP warned that the Middle East war ‘will inevitably lead to rising food prices and food insecurity.’

For a country like Botswana, where the food system leans heavily on imports, that warning carries real weight on the ground. When global prices rise, the impact is felt quickly in input costs, retail food prices and, ultimately, household budgets. The burden, as the WFP noted, will fall hardest on vulnerable and import-dependent economies, translating locally into higher food inflation and reduced purchasing power for many households.

According to WFP Hunger Map, food insecurity in Botswana is structural rather than episodic, with ‘import dependency’ standing at ‘47.0%’, exposing the country to persistent external supply shocks.

According to the most recent government-backed survey (2022/23, which feeds into the 2024/25 policy cycle), nearly half of Botswana’s population (49.4%) faced moderate or severe food insecurity in 2022/23, underscoring structural constraints in access to adequate nutrition. At the extreme end, 20.2% of the population experiences severe food deprivation, reflecting acute vulnerability tied to income instability and rising living costs.

While government policy responses are scaling up, the persistence of hunger at this scale suggests deeper structural reform may be required particularly in rural livelihoods, food systems, and income distribution.

The government is edging cautiously into one of its most sensitive social debates, as it reviews marriage laws while maintaining an officially neutral stance on homosexuality.

Serowe South MP Leepetswe Lesedi asked the Minister of Labour and Home Affairs, Pius Mokgware whether the government might legalise same-sex marriage and how it is responding to growing calls for broader LGBTQ acceptance.

The minister’s reply reflected a government balancing legal precedent with political caution. Botswana, Mokgware said, has not adopted a position with regard to homosexuality, but operates within the framework set by the courts. A landmark 2021 ruling by the Court of Appeal of Botswana upheld the decriminalization of same-sex relationships, striking down colonial-era provisions that criminalized same-sex intimacy as unconstitutional.

‘Consensual same-sex intimacy is therefore not proscribed,’ Mokgware said, adding that public confusion persists over what the judgment permits. In essence, he said, the ruling simply means such relationships are no longer criminal offences.

Marriage, however, remains defined in more traditional terms. The current law recognises unions only between a man and a woman. Yet the government has begun reviewing the Marriage Act, a process that could open the door, at least procedurally, to reconsidering that definition.

‘My ministry is currently reviewing the Marriage Act in line with the Constitution of Botswana,’ Mokgware said, adding that consultations with stakeholders would include ‘issues such as this one’, a cautious reference to same-sex marriage.

The government appears reluctant to move faster than public opinion. It keeps no official data on sexual orientation, Mokgware said, arguing that such matters fall outside the remit of civil registration systems. Nor has it embarked on a centralised campaign to promote LGBTQ acceptance, framing the issue instead as ‘cross-cutting’ and requiring dialogue across society.

That leaves country in a familiar position, legally progressive by regional standards but socially and politically incremental. The courts have dismantled criminal penalties, yet the state has stopped short of endorsing broader recognition.

Stanbic Bank Botswana kept earnings largely unchanged in 2025, as strong growth in trading and fee income offset a sharp squeeze on lending margins in a year defined by tight liquidity and elevated funding costs.

Profit before tax edged up to P951.7 million from P949.7 million, while profit after tax rose slightly to P709.7 million. Stability at the headline level masked significant shifts in the bank’s income mix.

Net interest income fell 21.7 percent to P1.07 billion, as interest expenses surged 86.1 percent to P957.2 million, reflecting intense competition for deposits. The net interest margin narrowed to 3.7 percent from 4.9 percent, underscoring the pressure on traditional lending.

Non-interest income provided the offset. Revenue from trading, fees and commissions rose 62.5 percent to P941.6 million, driven by stronger performance in Global Markets, higher trade volumes and increased foreign exchange activity.

The shift was partly supported by changes in currency market dynamics after the Bank of Botswana widened the pula trading band in July 2025, boosting interbank foreign exchange activity and reducing reliance on the central bank.

Balance sheet growth remained subdued. Total loans and advances declined 9 percent to P21.3 billion, while customer deposits fell 2.1 percent to P22.7 billion, reflecting a more cautious approach to lending in a high-cost funding environment.

Asset quality showed some strain, with credit impairment charges rising to P84.6 million, though cost discipline improved. The cost-to-income ratio fell to 48.6 percent, and operating cash flow strengthened significantly.

The results highlight a shift in earnings drivers, with market activity increasingly compensating for pressure on core lending in a constrained liquidity environment.

Energy minister, Bogolo Kenewendo this week told parliament that high connection costs are limiting the pace of rural electrification, even as government maintains a longer-term commitment to expanding access.

Kenewendo said it remains economically unviable in some areas to extend electricity infrastructure, particularly to ploughing fields and sparsely populated zones where demand is low and distances are significant.

The minister’s response to MP Taolo Lucas underscores a structural challenge facing the country’s electrification drive: balancing universal access ambitions with the high capital costs of grid expansion. Officials indicated that, for now, reducing connection costs in such areas is not feasible, pointing instead to a phased approach.

Kenewendo said that the government will continue to extend electricity access progressively, while encouraging those with financial capacity to co-invest in connections where possible. The model reflects a shift toward shared funding mechanisms in cases where public investment alone may not be sufficient to justify rollout.

In parallel, the government is also focusing on institutional capacity building. ‘A new electricity-related training and certification programme has received approval from the Human Resource Development Council, with curriculum development at an advanced stage. The course is expected to combine theoretical and practical components, aimed at strengthening technical skills in the energy sector’, Kenewendo said.

Meanwhile the dual approach, targeted infrastructure expansion alongside skills development, highlights the government’s attempt to address both supply-side limitations and workforce readiness.

While electrification remains a policy priority, the update signals that near-term progress will likely be uneven, shaped by cost realities and the need for alternative financing models in low-density areas.

Only 10% of Botswana workers say they are thriving in life, while workplace engagement remains stagnant at 20%, according to the State of the Global Workplace: 2026 Report released in April 2026 by Gallup.The findings, based on data collected between January and December 2025, paint a mixed picture of working life in Botswana, where low life satisfaction contrasts with relatively moderate levels of workplace stress compared to regional averages.

According to the report, employee engagement in Botswana stands at 20%, matching the global average and slightly above the Sub-Saharan Africa average of 19%. However, this figure reflects a five-point decline from the previous three-year rolling average, suggesting a downward trend in workforce motivation.

The report states: ‘Employee engagement in Botswana reflects stagnation, with no significant improvement over global benchmarks and a noticeable decline from previous averages.’

Despite lower stress levels compared to regional peers, broader wellbeing indicators remain weak. Only 10% of employees in Botswana are thriving in their overall lives, significantly below the Sub-Saharan Africa average of 18% and the global average of 34%. The report notes: ‘Life evaluation in Botswana remains among the lowest observed globally, indicating persistent challenges in overall wellbeing and life satisfaction among employees.’

On a more positive note, 26% of employees reported experiencing high stress the previous day, well below the regional average of 46% and the global average of 40%. Daily emotional strain also appears comparatively moderate, with 16% reporting anger, 22% reporting sadness, and 24% reporting loneliness. However, loneliness remains slightly above the global average of 22%.

Job market confidence is also subdued. Only 42% of employees believe it is a good time to find a job in their local area, compared to 50% regionally and 52% globally. This reflects a two-point decline from the previous rolling average, suggesting weakening labour optimism.

The report highlights: ‘Perceptions of job availability in Botswana are lower than both regional and global averages, signalling reduced confidence in local labour market conditions.’

While stress and anger indicators show slight improvements over time, the broader picture remains concerning, with stagnating engagement and low life evaluation suggesting deeper structural issues in workplace satisfaction and economic confidence.

The report suggests that the combination of low thriving rates and declining engagement may point to a disconnect between employment and quality of life, even as Botswana continues to outperform parts of the region on day-to-day stress indicators.

Overall, the 2026 findings also suggest a labour market that is stable in participation but struggling to translate employment into meaningful wellbeing gains for many workers.

Citizen Entrepreneurial Development Agency (CEDA) ramped up funding to small businesses while tightening collections, as government leans on the institution to drive citizen-led growth amid fiscal pressure.

Figures tabled in Parliament show the agency invested P696 million in 1,716 businesses by the end of the third quarter of the 2025/2026 financial year, creating 3,109 jobs and sustaining a further 1,569.

On the revenue side, CEDA collected P814 million in loan repayments and generated P207 million in income, reflecting an increased focus on recoveries as liquidity constraints weigh on the public purse.

The agency continues to position itself as a development finance vehicle, offering loans ranging from P500 for micro enterprises to as much as P50 million for large-scale projects, with subsidised interest rates for priority sectors such as manufacturing, agriculture and tourism.

A five-year strategy, branded ‘Katlego ya Mogwebi,’ is now guiding operations, with emphasis on sustainability and SME growth. Key interventions include restructuring distressed firms, particularly in manufacturing, and rolling out a ’60/40′ funding model that channels capital into high-impact projects while reserving a portion for inclusion-focused ventures.

CEDA is also diversifying its approach through digitisation, equity participation and sector-specific products, including financing for horticulture, poultry and livestock under the A-Di-Tsale programme.

However, officials acknowledge that government liquidity challenges continue to affect the agency’s portfolio performance, prompting a renewed push to improve collections and reduce non-performing loans.

The data underscores CEDA’s dual role as both a catalyst for enterprise development and a balance-sheet-sensitive lender navigating tightening fiscal conditions.

Botswana is moving to overhaul its public sector employment framework through the proposed Public Service Bill, 2026, a sweeping reform that aligns government labour practices with international standards while tightening administrative control.

The Bill, set to repeal the current Public Service Act, introduces a structured system for hiring, promotion and discipline across the civil service. It formalises multiple employment categories including fixed-term, part-time and casual work while placing limits on their use to prevent long-term job insecurity.

A key shift is the codification of worker protections. The legislation mandates equal treatment across employment types, outlaws workplace discrimination and harassment, and expands leave provisions to include paternity, adoption and commissioning parental leave. It also strengthens safeguards for pregnant employees, including restrictions on termination during maternity leave.

For government, the reforms centralise authority. The Permanent Secretary to the President retains broad oversight of the public service, including powers over senior appointments and performance management. A performance contract system is extended across senior roles, signalling a push toward accountability and measurable output.

The Bill also reshapes labour relations. It entrenches the right of public servants to unionise, participate in collective bargaining and undertake lawful industrial action, while establishing a Public Service Bargaining Council to formalise negotiations.

Economically, the changes could raise the government wage bill in the short term due to expanded benefits and compliance costs. However, authorities argue the reforms will improve efficiency, reduce disputes and modernise the state’s role as an employer.

For Botswana, the legislation marks one of the most comprehensive updates to public sector labour law in decades, with implications for fiscal management, workforce stability and investor perceptions of governance.

China Railways Seventh Group, a company owned by the Chinese government which was engaged by the Botswana government to build Thapama Interchange also known as the ‘Spaghetti Interchange’ in Francistown has lost a P3.7 million lawsuit against its former sub-contractor, Dry Landers (Pty) Ltd. The case was recently heard by Justice Lot Moroka at Francistown High Court. Dry Landers (Pty) Ltd was the Plaintiff in the case, while China Railways Seventh Group was the Defendant.

The lawsuit stemmed from a written subcontract between the two parties on or about the 25th of June 2015, where the Plaintiff was subcontracted to perform engineering works for the Defendant. The engineering works as outlined in court documents, included steel fixing, boiler making, steel engineering, threading and fixing water flow pipes, punching, drilling and bolting the Interchange structure. The Defendant failed to uphold the terms of the contract.

During trial, the Managing Director of Dry Landers (Pty)Ltd Gothatamang Reineetse testified that on the 25th of July 2015, the Plaintiff and the Defendant entered into a written contract which the Plaintiff began work on as agreed. The Defendant was represented by its Project Manager Mr Chang and a site Manager during this agreement. Despite several copies of the contract being signed, the Defendant’s Principals residing in China where the company’s headquarters are located, were supposed to review it and sign it. The Plaintiff’s Managing Director agreed in good faith to this arrangement but was not given a copy of the contract. Subsequently work commenced while awaiting final approval from China. The Plaintiff’s Director stated that they performed work in accordance with the contract and the Defendant’s Site Manager signed a daily log sheet acknowledging the work done.

The agreed contract between the parties amounted to P53, 863 000.00 for a 16-month duration. However, while work was on-going the Plaintiff’s Director was confronted with a new contract presented by a new manager named Wang, who was not part of the original negotiations. Wang insisted on a reduced price of P400,00 per ton which the Plaintiff refused to accept. The Plaintiff claims that this new Manager was aggressive, gave him an option to sign the revised contract or leave the site. Instead, the Plaintiff presented their claim for payment in accordance with the original figures. The Defendant refused to pay in accordance with the figures presented by the Plaintiff and insisted on the reduced price at the rate of P400.00 per ton. As a result, a dispute arose between the parties resulting in the lawsuit. The Plaintiff demanded a total sum of P3 771 329.60 in court as cost for damages. According to the Plaintiff, this disagreement led to a financial strain, affecting their ability to meet financial obligations such as paying wages and material supplies.

In response, the Defendant’s Commercial Manager, Yudong Sun, argued in court that no written contract was signed, and parties only agreed on a rate of P400 per ton, pending approval from China. Sun claimed that negotiations were still ongoing, and the Plaintiff reneged on the agreement by refusing to sign the revised contract.

In the Final Pre-Trial Order, the parties agreed that the Plaintiff successfully constructed 543 piles at a cost of P1,303,200. The Plaintiff’s Director also presented evidence of work done on the eastern column for P2 000,000, supported by photographic evidence and signed log sheets.

Justice Moroka ruled in favour of the Plaintiff, stating that they had proven their case on a balance of probabilities. The Judge highlighted that it is worthy to note that the Plaintiff s witness told court that when the Defendant negotiators informed them that the signed contract had to be sent to China for approval, it was clear that the parties agreed in lieu of the contract. The Defendant would then write a letter confirming the existence of the contract embodying some salient aspects of the contract. The letter formed part of the court documents.

‘The letter was written by the Defendant’s site Manager. In this letter, he says that the letter serves as a shadow of the main contract; a letter signed by both parties. This confirms the Plaintiff’s testimony that the parties did sign an agreement. This therefore means that the unsigned contract that was presented to the Plaintiff by a new manager is not the signed copy that was sent to China.’

‘It is a revised version as it had no signatures. The other difficulty is that suddenly, the persons with whom the Plaintiff dealt with were withdrawn and new persons introduced on the side of the Defendant. None of the persons could speak to the letter that was written in lieu of the contract and the contract itself,’ said the Judge.

The Judge criticized the Defendant for failing to call key witnesses who could have shed light on the negotiations and performance of the contract. He noted that the signed log sheets provided substantial evidence of the Plaintiff’s performance.

‘Most importantly, over and above the evidence of the Plaintiff’s Director, the signed log sheets are evidence of performance of the contract by the Plaintiff in specified quantities on the price averred by the Plaintiff,’ said Judge Moroka in his ruling.

The Judge agreed to the relief sought by the Plaintiff.