Local authorities are being urged to reduce reliance on central government transfers and strengthen own-source revenues, with municipal bonds emerging as a possible long-term financing tool as councils face rising service delivery demands, particularly in peri-urban and rural areas.
However, Botswana Stock Exchange Chief Executive Officer Aupa Monyatsi said access to capital markets would depend on whether municipalities can meet strict governance and institutional requirements. Drawing on international experience, he said municipalities can obtain independent credit ratings and raise infrastructure financing, but only if the structures are properly designed and insulated from political administration.
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