BY TSAONE SEGAETSHO
The Botswana Government’s financial year has just begun, and the business community has received it with high expectations, geared towards the standard of its offerings. The 2024/25 Budget accompanies Botswana’s economic recovery, prompting increased spending on infrastructure development.
“Development” was the most frequently used term in Finance Minister Peggy Serame’s package during the iconic Budget Speech. This term was widely embraced across all sectors of the economy, as ongoing analysis this week reveals. Serame discussed growth estimated at 3.2 percent in 2023, a significant shift from the previous forecast of 3.8 percent, with a surge to 4.2 percent this year and 5.4 percent next year. There is a positive focus on planned infrastructure development, which is one of Botswana’s major, if not the primary, fiscal priorities.
The 2024/25 budget has witnessed a 41 percent increase in the development budget, sparking considerable interest from the business community.
“Amidst challenging conditions, it is commendable to see a bold increase in the Development Budget by 41%. Timely and effective implementation will be the litmus test for the theme – Transformation Now and Prosperity Tomorrow,” recently stated accounting firm Grant Thornton’s managing partner, Kalyanaraman Vijay, regarding the 2024/25 budget.
Serame’s speech underscores the priority of Infrastructure Development and Spatial Planning, focusing on:
(i) The National Spatial Plan, central to infrastructure development, as an integral part and foundation for NDP 12. (ii) A significant development budget of P17.0 billion is proposed to drive economic growth, facilitating job creation and attracting investment. (iii) Electricity connection fees for low-income households have been reviewed, and ready-made boxes will be provided free to households without wiring. (iv) Tshele Hills Petroleum Storage, Ikaegeng XTL, and the Reclamation and Treatment of Gaborone wastewater will be implemented using the Public-Private Partnership model.
Much priority is on water infrastructure, with the Ministry of Lands and Water Affairs receiving the lion’s share of the development budget, P8.01 billion, representing 27 percent of the budget. Top projects include North South Carrier 2.2, Maun water and sanitation project, Goodhope water supply scheme phase 2.2, and the Molepolole wastewater treatment plant.
The second-largest share, 13% of the budget, is allocated to the Ministry of Transport and Public Works for road infrastructure projects such as Traffic Signal Modernisation and Central Traffic Control for greater Gaborone.
With significant investments in infrastructure development through new and ongoing projects, a substantial increase in job opportunities is expected, thereby propelling economic growth. Successful implementation and completion of projects should also enhance service delivery in the middle-income economy.
