Bank of Botswana data shows government drew a further P2.8 billion advance from the central bank in November, highlighting ongoing cash-flow pressure as weaker diamond revenues disrupt the timing of inflows against spending needs.
Diamond receipts, which typically account for about 30 percent of total government revenue, have remained subdued amid a prolonged global downturn. The slowdown has reduced the pace at which funds flow into the fiscus, increasing reliance on short-term liquidity tools to meet routine obligations.
The November advance followed closely on the repayment of a P2.5 billion facility in September, which briefly eased pressures before advances reappeared on the balance sheet. The pattern points to tight cash management rather than a one-off funding gap.
To bridge financing needs, the Ministry of Finance has increasingly turned to domestic lenders. Government has already secured a P3 billion loan from the Botswana Public Officers Pension Fund. According to a recent report by Econsult, authorities are also exploring raising an additional P5 billion from commercial banks and pension funds.
External buffers continue to thin. Foreign exchange reserves fell to P52.6 billion in November 2025 from P55.3 billion in October, and were below levels recorded a year earlier. Within reserves, the Government Investment Account rose to P2.4 billion from P1.64 billion in October, but remains weak by historical standards. The finance ministry has warned the account could be depleted by March without stronger inflows or financing.
For 2025/26, total revenue and grants have been revised down to P68.7 billion, while expenditure is projected at P77.9 billion. The resulting deficit of P9.2 billion, or 3.3 percent of GDP, continues to weigh on cash balances.