Govt returns to market, seeks to borrow P1.25bn
Friday, November 22, 2019
New broom:New Finance Minister,Thapelo Matshekais onthe look out for funds
The government, through Bank of Botswana, borrows quarterly from the local capital market mainly to develop the local market’s capacity, but also to fund gaps in the national budget.
The auctions of government notes are exclusively attended by primary dealers, who comprise some banks. The government paper represents risk free, solid returns for investment.
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...