Gaolathe, who is also the Vice President, aligns his strategy with President Boko’s vision of transforming Botswana into a Southern African transport hub which could foster local construction capacity. By appointing Madala, Gaolathe has chosen a big-picture economist to spearhead ambitious initiatives focused on job creation. This decision reflects his broader goal of balancing employment growth with deficit reduction following months of economic stagnation caused by unchecked, election-induced spending.
One of the key policies under consideration is fiscal tightening, aimed at closing the financial leaks that have strained the countryโs resources and reviving the struggling economy. The appointment of economic policy advisors requires a careful match to current challenges. Madalaโs global experience, coupled with her pragmatic approach, positions her as a steady hand to help steer the government back to growth. Notably, she is the first woman to hold such a Senior Policy Advisor role in the Ministry of Finance, bringing expertise from renowned institutions such as BIDPA and the Urban Institute in Washington, DC.
Madala joins a distinguished line of economists who have held the Senior Policy Advisor role, including Dr. Wilfred Mandlebe and Dr. Keith Jefferis. Known for her developmental pragmatism, Madala has a deep understanding of economic transformation, drawing inspiration from the successes of the Asian Tigers and Australia.
Throughout her career, she has championed infrastructure as a key driver of economic growth. She believes that without reliable transport systems, energy, and water services, businesses face higher costs, reduced efficiency, and slower growth. The new governmentโs infrastructure plans include major road network improvements to boost regional trade and increased investments in railways to support the mining sector, particularly coal and iron ore.
The government also recognises the need to enhance air transport infrastructure, as limited long-haul connections hinder the development of key industries such as tourism, finance, and business services. According to the budget strategy paper, a regional and spatial planning approach to infrastructure development will be adopted. This strategy aims to position Botswana as a transport hub for the Southern African Development Community (SADC) region.
These investments are expected to improve Botswanaโs competitiveness, particularly in the ICT sector, enabling the country to better integrate into global markets. While Madala sees immense potential in Botswana’s central location, she remains pragmatic about the challenges ahead.
Ahead of the budget speech, Madala is mindful of the economic headwinds threatening infrastructure plans. For the 2024/2025 financial year, total revenues and grants are estimated at P77.2 billion, significantly impacted by a sharp drop in mineral revenue. The latest data indicates that as of September 2024, mineral revenue stood at P3.84 billion, far below the P12.59 billion initially projected.
Given this financial reality, Madala is expected to advocate for strategic planning. The budget strategy paper outlines interventions for the 2025/2026 financial year to steer the budget toward sustainability. These include improving project appraisal, design, costing, and implementation, which she has repeatedly lobbied for.ย
A recurring issue in Botswanaโs infrastructure development is the reliance on government spending and PPP projects. Infrastructure remains a priority as pension funds are repatriated and experts recommend investing them in development projects. Private markets have also created opportunities, with infrastructure investments remaining popular for their capacity to handle large-scale projects and deliver significant impact.
Madala has always supported greater private-sector involvement in infrastructure development. Botswana can draw lessons from successful models in Europe and the United States that it could adapt. While collaboration with the government can be challenging, the private sector has expressed willingness to invest if the environment is conducive.
Gaolathe has promised to finalise and submit the PPP Bill to Parliament. The bill is expected to provide a clear legal framework for PPPs, boosting private-sector confidence and participation in infrastructure projects. Madala, who has long advocated for fast-tracking this legislation, believes its absence has hindered development.
She has frequently cited Australia as a model, where federal and state governments have streamlined their balance sheets by selling infrastructure to private investors. This approach has established infrastructure as an asset class, supported by financial institutions like IFM, which have developed expertise in managing these assets.
However, a major challenge to the new government is the lack of skilled workers. Infrastructure projects require specialised expertise, but domestic construction companies often lack the capacity to lead large-scale developments. Fitch Solutions has noted that expatriate workers are frequently needed to fill the gap.
China has played a dominant role in Botswana’s infrastructure development, with state-backed companies executing major projects. Madalaโs vision of Botswana has been to adopt a similar approach by leveraging the Botswana Development Corporation (BDC) to establish a construction subsidiary capable of competing with international contractors.
Madala knows the importance of developing local construction companies to handle projects domestically and expand into regional markets. She previously argued that as Botswana seeks to reduce its reliance on diamonds within the next years, the focus has to shift to upgrading critical infrastructure, including roads and power systems, to attract diverse businesses.
But budget constraints remain a significant hurdle, requiring careful planning and prioritisation of spending on vital infrastructure projects.
However, Madalaโs leadership and vision provide hope for navigating these challenges and unlocking Botswana’s economic potential. She joins forces with PS Dr. Tshokologo Alex Kganetsano who brings in technical expertise to shape and drive Botswanaโs economic policies mobilising and managing financial and economic resources for the achievement of inclusive and sustainable socio-economic development, and overall national prosperity. As the Ministry of Finance finalises the NDP 12, the think tanks will be confronting the battle of balancing government promises and rebuilding savings and earning foreign currency.ย
