Mmegi

Gov't reserves break losing streak

Balancing numbers: Serame is hoping for a turnaround in the latter part of the financial year PIC: KENNEDY RAMOKONE
Balancing numbers: Serame is hoping for a turnaround in the latter part of the financial year PIC: KENNEDY RAMOKONE

Government’s savings, as housed in the Government Investment Account (GIA) managed by the Bank of Botswana, reached P6.5 billion in July, after reaching a post-pandemic low of P2.8 billion in June.

The central bank’s latest figures indicate that the GIA in July was at its strongest position since March when it was estimated at P7.2 billion.

While the Bank of Botswana statistical report did not give reasons for the improved GIA performance in July, Finance ministry officials have explained that the account rises and falls in line with government spending requirements throughout the year. Finance Minister Peggy Serame recently told Parliament that the steep drop in the GIA from P10.4 billion at the end of February to P5.4 billion at the end of April was due to recurrent and development funding commitments across the government required at the beginning of the financial year.

Editor's Comment
Micro-procurement maze demands urgent reform

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...

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