- Tsaone Segaetsho
Business Botswana, the apex private sector body, has voiced deep concern over the current fiscal and expenditure challenges confronting the Government of Botswana, cautioning that these constraints are having far-reaching implications for both public service delivery and private sector confidence.
In a statement issued this week, Business Botswana noted that these challenges are seriously impacting government operations and household welfare, while also weighing heavily on private sector sentiment. As a result, investment decisions may be deferred or scaled down, with negative consequences for economic growth and job creation.
The Government has publicly acknowledged that it is operating under a tight budget in the current financial year, with a strained fiscus largely attributable to the downturn in diamond revenues. As the cornerstone of the national economy, diamonds account for approximately 25% of GDP, 80% of export earnings, and a third of total government revenue.
In light of the worsening fiscal outlook, Business Botswana underscored the urgent need for sound fiscal stewardship and reiterated the importance of supporting the private sector through coherent policy measures.
“We urge renewed focus on fiscal responsibility, transparent communication, and strategic collaboration. It is imperative that the Government adopt policies that foster a stable and predictable economic environment in which businesses can thrive despite prevailing financial headwinds,” the statement read.
Business Botswana further stressed that these measures are essential for maintaining macroeconomic stability, ensuring the continuity of critical public services, and restoring confidence among businesses and consumers alike.
The organisation also called on government ministries and agencies to prioritise efficiency and productivity within their allocated budgets. It recommended reducing the cost of government operations, channelling resources towards high-impact infrastructure projects with strong economic multipliers, streamlining bureaucratic processes, and enhancing the strategic allocation of resources to address pressing socio-economic challenges and revitalise Botswana’s economic trajectory.
In addition, Business Botswana proposed several initiatives to improve operational efficiency and reduce public sector costs. These include the consolidation of e-Government services, the outsourcing of routine maintenance functions, the streamlining of permitting and licensing processes, and the migration of routine applications and service requests to online platforms.
Reaffirming its commitment to constructive engagement, the business community pledged to work alongside government to advance policy reforms and foster a more enabling business climate.
“We particularly advocate for the swift implementation of ‘ease of doing business’ reforms, which are vital to unlocking private sector investment. These reforms will invigorate economic activity, expand opportunities, and place Botswana on a sustainable path to economic recovery and long-term prosperity—anchored in the country’s aspiration to achieve high-income status by 2036, in line with Vision 2036,” the statement concluded.
