Gov't engages on credit ratings
Mbongeni Mguni | Thursday June 25, 2026 16:13
In a statement, the ministry said the UN team was helping to strengthen Botswana’s capacity and readiness to engage effectively with international credit rating agencies. The engagement comes after both Moody’s and S&P’s lowered the country’s sovereign credit ratings, although these remain in the investment category.
This week at the engagements with UNDP, Accountant General, Tebogo Tomango, acknowledged the prevailing economic challenges facing the country, which she said could potentially result in further downgrades if not adequately addressed.
The UNDP Resident Representative, Lovita Ramguttee, reaffirmed the urgency of the mission and reiterated the organisation’s commitment to supporting Botswana in strengthening its sovereign credit rating engagements.
UNDP Chief Economist, Raymond Gilpin, noted that the organisation has assembled a consortium of 15 credit rating experts to support African countries in navigating the sovereign credit rating process and enhancing fiscal space for sustainable development financing.
Meanwhile, the Bank of Botswana (BoB) has also warned of the risk of a downgrade when the next reviews are done in the third quarter. Acting Director of Research and Financial Stability Department, Matlhodi Serero, told an economic briefing on Wednesday that there was a high risk of further downgrades if the measures that government agreed to implement with the agencies are not seen to have been done by the appointed time.
The key issues revolve around fiscal consolidation, high public sector wages and delayed economic diversification. Serero described the situation as “uncomfortable,” noting that in previous years, the country enjoyed substantial fiscal buffers to support the high sovereign credit ratings.