The Botswana National Productivity Centre (BNPC) has called upon the government to implement policies, programs, and interventions aimed at fundamentally transforming and enhancing Botswana’s current growth trajectory. The objective is to realise the goals outlined in Vision 2036.
After Finance Minister Peggy Serame’s recent delivery of the 2024/5 budget speech in Parliament, the BNPC has conducted an assessment of various categories of government expenditure. In their analysis, they have identified several budget allocations that have the potential to enhance productivity and competitiveness. The BNPC believes that these enhancements are crucial for spearheading the transition of Botswana into a high-income country.
BNPC said such areas include education, health, research and development, digital transition, and infrastructure.
“Although the government’s heavy investment in these areas is commendable, there are still a few issues that need to be addressed in order to reap maximum benefits,” the organisation said. From now on, BNPC noted, it is also essential to address challenges related to project implementation.
The BNPC highlights the heavy investment in education by the Botswana government as a significant aspect of enhancing productivity and competitiveness. They note that substantial amounts have been allocated to education, with P1.71 billion designated for development expenditure and P26.89 billion for recurrent expenditure in the 2024/25 budget.
However, the BNPC expresses concern that despite this substantial investment, the expected results are not being realised. They point out issues such as the state of educational facilities, textbook shortages, and other instructional resources. Additionally, they note high levels of unemployment among individuals with tertiary qualifications.
The BNPC emphasises the need for regular review of Botswana’s education spending to ensure it is directed towards programs aligned with the needs of the labour market. This suggests a call for greater efficiency and effectiveness in allocating education resources to address the mismatch between educational outcomes and employment opportunities.
“There is also a need to strengthen the entrepreneurship training offered in the education system as this would reduce unemployment of graduates,” it says.
BNPC says like the education sector; the health sector also has several challenges that hinder its performance. Despite the government of Botswana’s commitment to ensuring that all Batswana have access to health care services of the highest standard and quality, there is an outcry of poor service delivery in public health facilities from both the media and the public.
Some of the widely cited problems are the long waiting time to acquire services, long waiting list to see a specialist, shortage of certain medication and lack of medical facilities and equipment maintenance, amongst other things. Whilst the massive funding in this sector is critical, emphasis should also be placed on solving these challenges to ensure value for money. This is highly pertinent as the productivity of the entire workforce is highly dependent on a functional and high-performing health sector.
BNPC emphasises the importance of prioritising the digital transition, highlighting its role in boosting productivity, competitiveness, and overall growth. They note that Botswana has recognized digital transformation as a crucial factor even before the onset of the COVID-19 pandemic.
According to BNPC, substantial government funds have been allocated to strengthen the ICT backbone infrastructure. This includes investments in connections to the East and West Africa Cable Systems, aiming to leverage these advancements for economic progress.
The BNPC’s stance underscores the significance of embracing digital technologies as a means to drive innovation, efficiency, and economic development in Botswana. By investing in digital infrastructure and capabilities, the country aims to position itself for future growth and competitiveness in the global digital economy.
Regarding Research and Development, the BNPC states that despite ample evidence of its significant impact on productivity growth, Botswana’s budgetary allocation in this area has been less than satisfactory over the years. To achieve similar results, the BNPC recommends increasing and sustaining government spending in Research and Development in the long term. Additionally, they suggest introducing incentives to encourage private-sector investment in R&D.
Despite significant investments, the BNPC notes that IMD ranked Botswana’s infrastructure as 61st out of 64 middle and high-income countries, with a competitiveness score of 17.50 out of 100 in 2023. According to the report, Botswana’s weaknesses include the quality of air transport (ranked 56th), internet bandwidth speed (ranked 64th), energy infrastructure (ranked 51st), and road density (ranked 56th).
“These rankings are extremely problematic as the African Development Bank indicates that Africa’s investments in infrastructure in the past have accounted for more than half the continent’s economic growth. Hence, the prevailing challenges under this factor need to be urgently addressed to make Botswana more productive and competitive,” the organisation says.
