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GIA plummets as deficit now seen at P29bn

Friday, May 09, 2025 | 900 Views |

Dicey times: The Finance Ministry is scrambling to keep government finances ticking over

Government has drawn down its savings housed in the Government Investment Account (GIA) to a meagre P250 million, as widening deficits force it to dig deep into its pockets to finance budgetary shortfalls — a crisis which has driven capital markets into a crunch.

With diamonds, the mainstay sector of Botswana’s economy, remaining protracted with no clear recovery in sight, government faces dwindling revenues that is burning up savings held by the Bank of Botswana (BoB) known as the GIA.

Government has been forced to draw down heavily on the GIA to meet its budgetary requirements, whilst also failing to replenish the account due to low mineral sales.

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GIA plummets as deficit now seen at P29bn

Government has drawn down its savings housed in the Government Investment Account (GIA) to a meagre P250 million, as widening deficits force it to dig deep into its pockets to finance budgetary shortfalls — a crisis which has driven capital markets into a crunch.

Govt inks $4bn renewable energy deal with Indian firm

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Citizenship isn't for sale—Mokgware

Intervene early, don't rely on death penalty—Boko

Micro-procurement maze demands urgent reform

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Micro-procurement maze demands urgent reform