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Gov’t mulls inflation-linked bonds

Partners: Serame and Pelaelo at the launch of the government auction calendar and borrowing programme this week PIC: PHATSIMO KAPENG
Partners: Serame and Pelaelo at the launch of the government auction calendar and borrowing programme this week PIC: PHATSIMO KAPENG

Government and the Bank of Botswana are looking at the possibility of introducing inflation-linked bonds, which would represent a more attractive fundraising instrument for a local capital market that has largely snubbed the state’s P30 billion debt programme.

The central bank’s monthly auctions of treasury bills and bonds have nearly all missed their debt targets since Parliament doubled government’s note issuance programme to P30 billion in September 2020.

With its own savings only just recovering from the pandemic’s impact, government has largely looked to the domestic capital market to fund budget deficits widened by COVID-19 spending.


Editor's Comment
Botswana must not be a flag of convenience for rogues

‘A man’s country is not a certain area of land, of mountains, rivers, and woods, but it is a principle and patriotism is loyalty to that principle’.- George William CurtisAccording to the report carried in this publication, the fraudsters operating the so-called “dark fleet” have selected Botswana’s flag as their cover of choice. This is a direct assault on our country’s most valuable asset, the good name.For decades, Botswana has...

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