Patience: Key to Botswana’s renewal
Tsaone Basimanebotlhe | Monday November 9, 2026 09:31
Director of Governance in the Office of the President, Lucas Modimana, says the frustration amongst citizens over unemployment, rising living costs and challenges in the public health system is understandable. However, he maintains that the reforms currently being implemented are laying the foundation for sustainable economic recovery. Modimana said patience should not be mistaken for passivity, arguing that the country's renewal requires time for changes to take root. “Two years into a new chapter, the frustration on our streets is real. But the foundations being laid now are what tomorrow’s jobs, lower prices and better clinics will stand on,” he told Mmegi in an interview on Tuesday.
Furthermore, he argued that the new administration led by President Duma Boko inherited an economy and public institutions weakened by years of structural challenges when it assumed office in November 2024. Also, Modimana said, Botswana's heavy dependence on diamonds had left the economy vulnerable to fluctuations in global demand. The precious stone accounts for approximately a third of government’s revenue and three-quarters of the country's foreign earnings. Consequently, the collapse in global diamond demand pushed Botswana into its first consecutive annual recessions, with economic output contracting in both 2024 and 2025. Moreover, the country's financial buffers had been significantly depleted, leaving government with limited resources to cushion the economic shock. The Government Investment Account, which stood at a peak of P37.2 billion in 2014, had dwindled to P2.91 billion by November 2025. Meanwhile, he said the health sector is also facing deep-rooted operational challenges.
“The Minister of Health had previously described a system on the brink of dysfunction, characterised by procurement inefficiencies and fragile supply chains,” he stated. According to Modimana, these challenges provide important context for understanding the scale of the task facing the new administration. Against this backdrop, he said government had opted to prioritise structural reforms rather than pursue short-term interventions that might offer temporary relief without addressing the underlying problems. He revealed that the focus was on strengthening institutions responsible for delivering public services and ensuring that economic recovery is sustainable. Modimana, however, said amongst the major interventions is the new 25-year Debswana mining licence and 10-year sales agreement, which provide greater certainty for Botswana's diamond industry, the country's main source of revenue.
In addition, he said government together with De Beers Group has established the Diamonds for Development Fund, which has an independent board and initial capital of approximately P1 billion. “The initiative is intended to channel diamond proceeds into economic diversification and the development of new industries rather than recurrent expenditure,” he stated. Futhermore, he said government is also introducing a new governance and ownership framework for state-owned enterprises to strengthen accountability and ensure that public resources deliver tangible results. Similarly, he said the Central Medical Stores is undergoing an overhaul aimed at addressing persistent procurement and medicine-supply challenges. Modimana believes these interventions, although not immediately visible to ordinary citizens, are essential to building institutions capable of delivering long-term results.
On the economic front, he pointed to signs of recovery, citing figures from Statistics Botswana showing that real economic output grew by 8.7 percent in the second quarter of 2026 compared with the corresponding period last year. Meanwhile, he said the Ministry of Finance projects economic growth of 3.1 percent for 2026, while the International Monetary Fund has forecast a more optimistic 4.4 percent. However, he acknowledged that the recovery remains largely driven by the diamond sector, while other industries yet to experience the full benefits. He said it is against this background that the Botswana Economic Transformation Programme is expected to play a critical role in diversifying the economy and creating alternative sources of growth. For instance, he said the expansion of the Khoemacau Copper Mine is expected to create up to 5,500 jobs at the peak of construction. In the tourism sector, he said new concessions in Ngamiland and the Makgadikgadi have attracted planned investments worth P362 million and are expected to create more than 500 jobs.
Additionally, he said lease renewals have safeguarded over 1,500 existing jobs. Modimana argued that employment opportunities would increasingly emerge as investment confidence improves, adding that investors require stable institutions, predictable policies and assurance that government commitments will be honoured. Nevertheless, he said the government recognises that economic recovery figures mean little to households struggling with rising prices. “Inflation stood at 7.8 percent in September. Bank of Botswana expecting it to return to the target range in the first quarter of 2027,” he explained, adding that the central bank has taken measures to contain inflation. The apex bank is also seeking to protect borrowers, including directing commercial banks not to transfer its interest rate increase to their prime lending rates. Furthermore, he said government has introduced a P4,000 monthly living wage aimed at improving the earnings of the lowest-paid workers. Modimana maintained that sustainable relief from the rising cost of living would ultimately depend on Botswana's ability to produce more goods and services locally. He said localisation would reduce reliance on imports and limit the country's exposure to inflationary pressures in international markets.
Meanwhile, he acknowledged that the health sector remains one of the most pressing concerns for ordinary Batswana, particularly patients who continue to experience medicine shortages and service disruptions. Following the declaration of public health emergency, he said government approved P250 million for emergency medicine procurement and enlisted the Botswana Defence Force to assist with the distribution of medical supplies. “Deliveries to districts and health facilities are now taking place twice monthly,” Modimana said. However, he acknowledged that shortages of some chronic medication, including drugs for hypertension, diabetes and asthma, have persisted, adding government was also pursuing longer-term reforms to prevent a recurrence of the crisis.
“These include strengthening the governance and procurement systems of Central Medical Stores and introducing an electronic logistics system to track medicines from warehouses to health facilities. The system is expected to identify potential shortages before stocks run out,” he said. Additionally, he said government is pursuing government-to-government supply agreements and supporting local pharmaceutical manufacturing to reduce dependence on international suppliers. Modimana added the ultimate objective was to ensure that patients do not suffer because of weaknesses in the country's medicine procurement and distribution systems.