Botswana creditworthiness upheld

Matambo
Matambo

Ratings agency, Moody’s has reaffirmed Botswana’s credit ratings, a wecome development for monetary and fiscal authorities that are looking to finance part of the P6 billion budget deficit for 2016 through borrowings from domestic and foreign markets. In a statement released on Friday, Moody’s Investors Service said it has reviewed and reaffirmed, for 2016, Botswana’s credit rating of A2 for foreign and domestic bonds. Botswana’s stable outlook was also upheld.

This followed a review that took account of the commodity price shock and impact on the country’s economic and fiscal strength.

“Moody’s noted that the current economic and fiscal challenges, emanating from the external environment, are appropriately captured by the A2 rating.  “The rating is underpinned by Botswana’s continued fiscal resilience, which is supported by the current level of foreign exchange reserves, relatively low public debt and a track record of prudent rule-based fiscal policy, as well as a strong institutional framework,” stated the ratings agency.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

Have a Story? Send Us a tip
arrow up