Botswana’s fiscal savings account has staged its strongest rebound in more than a year, but fresh data suggests government remains heavily reliant on central bank support as the aftershocks of the diamond downturn continue to ripple through public finances.
New figures from the Bank of Botswana show the Government Investment Account (GIA) rose to P1.66 billion in January 2026, nearly doubling from P846 million a month earlier and marking a sharp recovery from the record low of P251.3 million recorded at the end of 2024. The account consists of P1.16 billion held in the Pula Fund and P500 million in the Liquidity Portfolio.
The rebound offers a rare bright spot for government finances after years of depletion. The GIA, which represents government’s share of foreign reserves, once stood at more than P37 billion during the peak years of diamond revenue inflows. Since then, budget deficits, economic shocks and weaker mineral receipts have steadily eroded the account.
Yet the latest figures also reveal the limits of the recovery.
At the same time that the GIA improved, advances from the Bank of Botswana to government remained at P3.2 billion, unchanged from December, indicating that the state is still relying on temporary central bank financing to manage cash flow pressures.
The data points to a government attempting to rebuild savings while simultaneously borrowing to bridge revenue shortfalls.
Meanwhile, Botswana’s foreign assets increased to P53.6 billion in January from P47.4 billion in December, helped by gains across reserve portfolios. The Pula Fund alone rose to P28.8 billion from P27.9 billion.
While the GIA’s recovery is encouraging, it remains a fraction of its historical levels, underscoring how far Botswana’s public finances have yet to travel.