Serame tests appetite for hard currency bond
Friday, October 13, 2023 | 350 Views |
Reaching out: Serame is in Morocco this week
Governments float foreign currency bonds in order to raise debt from global investors. Foreign currency bonds give governments protection against inflation and – for countries with high sovereign credit ratings such as Botswana – can represent lower borrowing costs. They can also be used to match currency inflows with outflows.
In a statement on Wednesday, the Finance ministry confirmed that Serame and her team would hold an investor roadshow on the sidelines of the International Monetary Fund and World Bank annual meetings taking place in Morocco.
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...