Gaolathe warns against costly project failures
Pini Bothoko | Monday February 16, 2026 10:13
Presenting the 2026/2027 Budget Speech earlier this week, Gaolathe said repeated cost overruns, inflated budgets, and poor project execution had in the past undermined development outcomes and eroded public confidence in government institutions.
He said a comprehensive review of major projects had revealed unacceptable inefficiencies, particularly under the development manager (DM) model, which was introduced in 2023 to improve project delivery and coordination.
“These cost differentials are unacceptable. Government would no longer tolerate wasteful practices that compromise fiscal sustainability,” Gaolathe said.
According to the minister, projects implemented under the DM model were significantly more expensive than those delivered through conventional methods. He revealed that the construction of new primary schools under the model was about 34 % more costly, while a principal hospital project recorded a cost variance of more than 56 %, amounting to over P630 million. Road projects were, on average, 11% more expensive.
Following a comprehensive review, he said only 16 projects were found to be sufficiently advanced and currently under implementation, while 132 projects were suspended at the conceptual stage.
Gaolathe attributed the shortcomings to ad hoc decision-making, weak cost-benefit analysis, poor project appraisal, limited institutional capacity, and inadequate adherence to established control frameworks.
In response, he said the government had adopted a more structured and evidence-based approach to project execution under the Botswana Economic Transformation Programme (BETP). Under the programme, he stated that strategically significant projects are subjected to rigorous analysis involving government and private sector stakeholders, leading to agreed implementation models, risk-sharing arrangements, and credible cost estimates.
He said this new approach would ensure that major projects are delivered efficiently, transparently, and in full compliance with the public finance management legal framework.
“These projects must be executed correctly, at the right cost, and in full compliance with the law,” he said.
Gaolathe further reaffirmed the government’s commitment to transformational initiatives, including the Chobe-Zambezi Water Transfer Scheme, rail infrastructure projects, upgrading of the A1 highway, and the National Digital ID programme.
Beyond project management, the minister reported significant progress in strengthening Botswana’s public financial management systems, saying recent reforms had helped curb wasteful spending, improve expenditure discipline, and restore fiscal credibility.
He said the government had made decisive strides in addressing long-standing weaknesses in financial controls that had previously resulted in persistent losses and poor accountability.
A key reform, he noted, was the commitment to restrict supplementary budget requests to genuine emergencies and unforeseen circumstances. He said this pledge had been honoured over the past two financial years.
“I am pleased to report that over the last two financial years, 2024/25 and 2025/2026, no supplementary budget requests have been approved,” Gaolathe said.
Where ministries required additional resources, he said they were compelled to reprioritise within their existing budgets, marking a clear departure from past practices where supplementary budgets had become routine.
“This marks a decisive break from past practices, where supplementary budgets had become routine, with damaging consequences for fiscal sustainability,” he said.
The minister also highlighted major improvements achieved through stricter control of government purchase orders (GPOs) and the discontinuation of commitment letters, which had previously contributed to the accumulation of unfunded obligations.
He revealed that from July 2025, issuance of GPOs was temporarily centralised under the Ministry of Finance to enhance oversight and prevent unnecessary commitments. Before the move, Government spending through GPOs averaged P1.14 billion per month between April and June 2025, with total commitments reaching P3.41 billion.
Following centralisation, he said average monthly spending dropped to approximately P584 million between July 2025 and January 2026, representing a 49 percent reduction.
“This decision has had a demonstrable and material impact on expenditure control,” Gaolathe said.
He added that the decline reflected tighter commitment controls, reduced non-essential procurement, and improved financial discipline across the government. Further savings were realised through a travel moratorium on both domestic and international travel, as well as stricter controls on overtime payments.
“These measures underscore the tangible impact of disciplined expenditure management,” he said.
Gaolathe said the immediate cost-control measures were being reinforced by long-term structural reforms aimed at modernising public procurement. In line with reforms announced in the 2025 Budget Speech, Cabinet approved the National e-Procurement Strategy in June 2025.
The strategy outlines a transition from manual procurement systems to fully digital platforms. He said implementation was progressing steadily, with the system expected to be fully operational before the end of the 2026/2027 financial year.
Once completed, he said, the system would strengthen governance, enhance transparency, improve efficiency, and ensure value for money throughout the procurement cycle.
“This flagship reform will significantly strengthen governance, restore transparency and integrity, and enhance efficiency,” he said. The minister acknowledged that progress on the efficiency in processes initiative, introduced as a key pillar of fiscal consolidation, had been uneven. While gains had been made in integrating revenue systems and strengthening institutional capacity, he said, challenges remained.
“Notwithstanding these challenges, the government remains steadfast in advancing this reform,” he said.
As part of the initiative, extensive consultations were held with nine ministries during the preparation of the 2026/2027 Budget. These discussions led to revised user fees, updated service charges, and the introduction of new cost-recovery measures. He said the reforms were guided by principles of fairness and value for money and were expected to strengthen revenue mobilisation and reduce leakages.
Gaolathe also cautioned against complacency in the use of Public-Private Partnerships (PPPs), noting that while they reduce upfront capital requirements, they create long-term fiscal obligations. Under most PPP arrangements, the government is required to repay private sector investments over periods ranging from 15 to 30 years.
“These obligations must be transparently budgeted for and prudently managed,” he said.
He stressed that discipline, transparency, and accountability in project selection and execution were non-negotiable. The minister said the strategic projects identified under the BETP would help institutionalise best practices and foster a new culture of delivery anchored on integrity and results.
Addressing officials, implementing agencies, and investors, he urged them to prioritise national interests over personal or institutional gains. He also called on stakeholders to reflect on the transformative potential of properly executed projects for current and future generations, invoking Botswana’s early nation-building spirit.
“With limited resources but a profound sense of duty, they built institutions, infrastructure, and trust,” he said.
Gaolathe acknowledged that some of that spirit had been lost over time and called for renewed accountability and commitment to good governance.
“Let us therefore hold one another accountable and recommit ourselves to a standard of governance worthy of the people we serve,” he said.