Botswana faces tighter fiscal space, weaker buffers
Lesedi Mkhutshwa | Wednesday February 4, 2026 06:00
Speaking at the Budget Pitso, Gaolathe said Botswana's economic model, heavily reliant on diamonds and government intervention, can't sustain the country in the same way it has for decades.
Gaolathe highlighted global uncertainty, market volatility, and uneven growth as contributing factors. 'The era of ample fiscal buffers, healthier reserves, and the confidence to design and fund reforms has passed,' he said.
He emphasised the need for leadership that's precise, not performative, and for rebuilding stability through discipline and reforms that work.
Local leadership is crucial, Gaolathe said, as it drives national confidence and unlocks pathways for businesses and communities. He urged local authorities to prioritise maintenance, readiness, and value for money, making it easier for enterprises to operate. The 2026–2027 Budget should be a pivot, Gaolathe said, stabilising the economy, protecting the vulnerable, and directing resources into high-impact actions.
“You are not implementers at the bottom of a chain. You are co-architects of the future we are trying to build. That is why we are here to consult, to listen, and to learn from you as we finalise preparations for the 2026–2027 Budget,” he added. Additionally, Gaolathe stated that for too long, planning, budgeting, procurement, and delivery have sometimes run in parallel rather than as one performance system.
The result is that money can be spent without impact being felt, projects can exist without completion, and citizens can be asked for patience without seeing progress, he added. Therefore, he said that the 2026–2027 Budget must be more than a financial document. He indicated that it must be a pivot, stabilising the economy, protecting the vulnerable, and directing limited resources into the highest-impact actions, those that raise productivity, create jobs, expand exports, and rebuild confidence.
He stated that what the country needs from local authorities is leadership that strengthens delivery and confidence, leadership that prioritises maintenance over prestige, readiness over ribbon-cutting, value for money over delay, and service over procedure. Leadership that makes it easier for an enterprise to operate through practical planning, disciplined execution, and predictable local systems, he elaborated.
Secondly, Gaolathe stated that what local authorities must demand from national leadership is clarity, coherence, and support, clearer prioritisation, more coordinated implementation, faster removal of bottlenecks that hold back local economic activity, and a budget that is honest about trade-offs, so that local leaders are not left to explain contradictions.
“This is why your feedback on the Budget Strategy Paper matters right now. We need your candour on what is blocking delivery, your guidance on what reforms will work in practice, and your insight on which local investments will yield the greatest returns. We need your view on how to build local economies that are productive, investable, and export capable,” he continued.
Gaolathe emphasised that they must hear local authorities not defensively, but respectfully, because the nation’s success depends on the quality of the partnership between national strategy and local execution. He also spoke about hope, which he said is not pretending that everything is fine. “Hope is being honest about the challenge and still choosing the work. Hope is building a country where performance is measured, where projects are finished, where entrepreneurs build industries, where young people see pathways into work, and where local communities feel the economy turning, not in speeches, but in jobs, services, and opportunity,” he said.
He stated that Botswana has done difficult things before, as it built stability where it was not guaranteed. Gaolathe indicated that they must move to transforming the economy to be productive, diversified, export-led, and resilient because the world has changed.