23/09/2026
Botswana Urged to Strengthen Capital Mobilisation for Economic Diversification
Botswana must strengthen its ability to mobilise capital and channel it towards productive investment as the country accelerates efforts to diversify its economy, Acting President and Minister of Finance, Mr Ndaba Nkosinathi Gaolathe, has said.
Speaking at the Finance and Investment Pitso yesterday, the Acting President said Botswanaās next phase of development requires increased investment in infrastructure, industry and emerging sources of economic growth.
He noted that reducing the countryās dependence on diamonds has become increasingly urgent amid continued weakness in the global diamond market. The Botswana Economic Transformation Programme (BETP) remains central to this agenda, providing opportunities for greater private-sector participation in agriculture, manufacturing, tourism, financial services and other high-potential sectors.
On the economic outlook, Mr Gaolathe noted that Botswanaās economy contracted by 2.8 percent in 2024 and 0.7 percent in 2025, before recording year-on-year growth of 3.5 percent in the first quarter of 2026. Diamond production also recorded a significant increase in the second quarter of 2026.
He said Government is pursuing fiscal consolidation through measures aimed at strengthening domestic revenue mobilisation and exercising expenditure restraint. The revised 2026/27 budget deficit is projected at P9.26 billion, equivalent to 3.1 percent of GDP, down significantly from the original projection of P26.35 billion, or 8.9 percent of GDP.
Parliament has also approved an increase in the Government Bond Issuance Programme ceiling from P55 billion to P85 billion. Mr Gaolathe clarified that the revised ceiling represents an authorised borrowing limit and should not be interpreted as a borrowing target. The increase is intended to provide greater financing flexibility while supporting the continued development of Botswanaās domestic capital market.
The Finance and Investment Pitso brought together Government, investors and financial-sector stakeholders to discuss challenges and opportunities relating to liquidity, capital mobilisation, market infrastructure and the development of bankable investment opportunities.
Mr Gaolathe urged participants to translate discussions into practical, time-bound actions, emphasising that Botswanaās investment proposition must be underpinned by credible policies, sound institutions, viable projects and effective ex*****on.
