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
Gov’t must rectify recognition of Khama as Kgosi

While it is widely acknowledged that Khama holds the title of Kgosi, the government’s failure to properly gazette his recognition has raised serious concerns about adherence to legal procedures and the credibility of traditional leadership. (See a story elsewhere in this newspaper.) Recent court documents by the Minister for Local Government and Rural Development, Kgotla Autlwetse, shed light on the intricacies of Khama’s recognition process....

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