AfDB offers $1bn loan to gov't

Pauline Dikuelo | Monday April 28, 2025 11:29

The African Development Bank (AfDB) has offered government a $1 billion (P13.7bn) loan facility, with about $304 million available this year, aimed at enhancing fiscal performance and boosting private sector participation.

The loan offer, under the Governance and Economic Resilience Programme, also offers technical assistance to address implementation challenges in Botswana’s public investment programme. The AfDB delegation also outlined short- and medium-term initiatives to support the country’s economic growth targets.

The loan and technical assistance offer emerged last week after a meeting between two AfDB officials and the Finance ministry.

Other possible areas of funding and technical cooperation include the Lesotho-Botswana Water Transfer Project which will address critical water and sanitation needs by building a 700km pipeline between South Africa and Botswana.

“Other interventions include comprehensive transport sector support involving roads, railways, aviation, logistics, and energy sector development, including funding for feasibility studies of key transmission lines connecting to South Africa and Zambia,” the AfDB said.

Vice President and Minister of Finance, Ndaba Gaolathe, reaffirmed Botswana’s strong partnership with the AfDB during the high-level discussions focused on accelerating the country's economic transformation agenda.

Gaolathe highlighted national priorities, including digitisation, agricultural commercialisation, and the revitalisation of state-owned enterprises, emphasising a shift from public sector dominance to private sector-led growth. He noted the government’s commitment to a functional civil service, investment in transformative infrastructure, and diversification of the minerals sector.

“We are well-positioned to deepen our relationship with the African Development Bank to support private sector initiatives,” Gaolathe said, underscoring Botswana’s potential to emerge as a key player in the automotive industry. “I greatly admire the bank’s continued growth and modernisation, and I look forward to our ongoing partnership in driving economic transformation.”

AfDB Vice President and Director General for Southern Africa, Leila Mokaddem, reaffirmed the Bank Group’s commitment to supporting Botswana’s development path in line with Vision 2036.

“Our assessment highlights reforms, capacity development, and private sector enhancement as crucial to Botswana’s economic development,” she stated, adding that the country has the potential to become a regional logistics and manufacturing hub.

Moono Mupotola, Deputy Director General for Southern Africa and Country Manager for Botswana, echoed the strength of the partnership and affirmed the institution’s readiness to continue supporting Botswana.

The meeting last week also highlighted the impact of past AfDB investments, including Lobatse Clay Works and Delta Automotive Technologies, which showcase the potential of targeted economic support.