In a bid to revive its economic fortunes, Botswana charts a path of recovery, unveiling ambitious plans for increased infrastructure spending in a groundbreaking "stimulus" budget, as revealed by Finance Minister Peggy Serame on Monday.
Last year's economic downturn, fueled by a wane in diamond demand, dealt a blow to Botswana, with these precious gems contributing 30% of its revenue and a staggering 70% of its foreign exchange earnings. Serame, in her budget speech, projected a growth rate of 3.2% for 2023, slightly below the initial 3.8% forecast. However, optimism abounds as the minister anticipates a robust upswing to 4.2% this year and an impressive 5.4% in 2025, contingent on a global economic resurgence.
Highlighting the fiscal landscape, Serame disclosed a projected budget deficit of 8.69 billion pula ($631 million) for the 2024/25 fiscal year, surpassing the current year's estimated deficit of 7.13 billion pula.
"The proposed budget is a comprehensive approach to bridging various infrastructure gaps," asserted Serame, outlining transformative projects earmarked for the water, transport, and energy sectors. The game-changing move entails a substantial increase of over 33% in infrastructure development spending for the 2024/25 period, signaling Botswana's unwavering commitment to fortifying its economic foundation.