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.