Govt raises P545m debt
Tuesday, March 30, 2021
Hunting funds: The Bank of Botswana holds auctions on behalf of government every month PIC: MBONGENI MGUNI
Each month, the Bank of Botswana raises debt for government through the issuance of bonds and treasury bills of varying maturities at auctions exclusively attended by some commercial banks.
At the last auction held on Friday, the central bank offered three bonds looking to raise P1 billion. Results of the auction indicate that bond BW013, which carried the shortest term on offer, attracted the most aggressive bidding, with a total amount allotted of P359 million against the P300 million on offer.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...