Inside Gaolathe’s plan to revive the economy

Vice President Ndaba Gaolathe has unveiled a sweeping reform plan aimed at reviving Botswana’s ailing economy. The proposals include the introduction of a mid-year budget review, an overhaul of the Public Finance Management (PFM) system, and the restructuring of key social welfare programs.

The ambitious proposals are outlined in a “Letter of Development Policy” authored by Gaolathe and dated March 14, 2025. Addressed to African Development Bank (AfDB) President Dr. Akinwumi Adesina, the letter outlines the government's commitment to “fundamentally structural reforms” aimed at achieving inclusive, climate-resilient growth. The letter also forms part of Botswana’s formal application for a P3 billion loan from the continental lender. It acknowledges growing concerns around governance weaknesses, inefficiencies, and rising corruption.

“This Letter of Development Policy details our resolve to pursue fundamentally structural reforms that will revive and transform the economy as well as drive inclusive and climate-resilient growth,” Gaolathe wrote.

He added that the loan, “if approved, will go a long way in facilitating the implementation of impactful development projects, hence help revive and reform the economy.”

Gaolathe noted that Botswana is “in the process of finalising the twelfth National Development Plan (NDP12), which will underpin the Government’s ambitious reform and development agenda for the period 2025–2030.”

He acknowledged that “Government recognizes the rise in corruption and its detrimental impact on development.”

“Various initiatives are underway to combat corruption, including reviewing procurement, revamping the procurement process by leveraging digital technologies in line with the E-Procurement Strategy, enhancing transparency, supporting a free press, and revising the National Anti-Corruption Policy,” Gaolathe said. He added that “corruption audits and lifestyle audits in the public service have been intensified.”

“To tackle Public Finance Management (PFM)-related challenges and improve accountability, efficiency and use of public funds, in the FY2025/26, Government will introduce a mid-year budget review, strengthen the medium-term fiscal framework, reform social welfare programmes , conduct Public Expenditure Reviews (PERS), and complete the review of the Public Finance Management Act,” he said.

Gaolathe said the Government will implement a multi-stage project appraisal process, supported by the Development Programme Monitoring System (DPMS), to improve the management of the public investment lifecycle.

“This will help address bottlenecks in submission, review, and approval of project proposals, as well as in the execution and monitoring of projects,” he said.

He noted that steps are also being taken to improve the business environment and encourage private investment.

“These include reforms geared towards improving the regulatory framework to attract investments through Public-Private Partnerships (PPP) and Independent Power Producers (IPPs), with a view to bridging the country’s huge infrastructure funding gap,” the letter reads in part.

He added that “a PPP Bill is under development and the PPP Unit has been relocated from the Ministry of Finance to the Office of the President.” The reason for the move was not disclosed.

Gaolathe said the Government remains committed to supporting Micro, Small and Medium Enterprises (MSMEs), particularly in addressing challenges such as limited access to finance and markets. He said there are ongoing efforts to improve access to global and regional markets through entrepreneurial development and promotion schemes.

Plans are also underway to launch incubation programs for MSMEs.

To address the persistent mismatch between available skills and job market demands, Government will roll out the Integrated Digital Labour Market Information System to improve access to and analysis of labor market data.

“Meanwhile, Government is also committed to combating Gender-Based Violence and will intensify efforts for gender mainstreaming and gender-responsive budgeting. In this area, a Revised National Policy on Gender and Development that will serve as a blueprint for gender mainstreaming in the country is being developed,” he said.