The loan, announced over the weekend, is the first time Botswana has tapped the World Bank for funding and also marks a rare request for the government, which traditionally leans on its reserves in lean fiscal times. The traditional reluctance to borrow has protected government from conditions set by international financiers, which at times have been criticised bitterly by other African governments who have had to adjust their economic policies in order to secure loans.
“For the Bank, this marks an important opportunity to strengthen the policy dialogue in a country where we have not had policy-based lending in the past,” the World Bank stated in a concept note it released ahead of its decision to approve the loan.
