9th February 2026
Own Correspondent
The over-reliance on diamonds poses a significant risk to economic stability and so the Government has developed the Botswana Economic Transformation Programme (BETP) by identifying 186 projects across six economic priorities and three social sectors revealed the Vice President and Minister of Finance Ndaba Gaolathe when presenting Budget Speech on Monday.
The programme aims to unlock BWP 514 billion in cumulative investment and create 512,000 jobs by transitioning Botswana towards a high-income, export-driven economy by 2036.
BETP emphasizes productivity, competitiveness, and innovation, shifting the growth engine towards a private sector-led economy supported by sound policies.
“The government also plans to allocate P1.31 billion in the 2026/2027 financial year to support MSME financing, with the Fund expected to be operational by 2027/2028,” said Ndaba Gaolathe, Vice-President of Botswana and Minister of Finance.
A Government-to-Government arrangement with the UAE is in progress to stabilize the health supply chain post-emergency. The outbreak of Foot and Mouth Disease (FMD) has prompted a national response, with P97 million allocated for containment efforts.
The groundwork for a Botswana Sovereign Wealth Fund is allegedly underway, including the enactment of a legislative framework for governance and investment policies. This Fund aims to stabilize revenues during economic volatility and ensure growth of national wealth for future generations.
It will serve as a strategic instrument to advance economic diversification and stimulate job creation.
The fresh citrus exports have increased by over 390%, with access secured to 17 international markets and ongoing trade negotiations aim to broaden access for various agricultural products.
The government facilitated the allocation of five tourism sites in Ngamiland and Makgadikgadi National Park, attracting P362 million in investment and creating over 500 jobs.
Fast-tracking eleven lease renewals for 27 lodges in Ngamiland has unlocked an estimated P800 million in investment and safeguarded 1,500 jobs.
“The Botswana Economic Transformation Programme (BETP) aims to reposition tourism as an investment-led sector through 21 high-impact projects to diversify products and expand employment,” said Ndaba Gaolathe, Vice-President of Botswana and Minister of Finance.
He said, “The budget anticipates a deficit of P26.35 billion, 8.9% of GDP, with a significant reliance on domestic borrowing. Total public debt is projected to reach 44.66% of GDP by the end of the 2026/2027 financial year.”
The need for a recalibration of statutory debt ceiling is likely to be required to ensure fiscal sustainability. Botswana’s tax-to-GDP ratio stands at a low 13.4%, significantly below the SACU average of 20.5%. The focus should be on improving tax collection efficiency rather than increasing tax rates.
Digitization of revenue systems and integration of databases are essential for reducing tax evasion. A shift from blanket subsidies to targeted support is necessary to assist the most vulnerable effectively.
Dumelang Saleshando, leader of main opposition Botswana Congress Party(BTC)“Developing Special Economic Zones focused on tourism can enhance economic activity and infrastructure. The need for policy alignment and regulatory reform to unlock the potential of underutilized sectors is highlighted.
Agriculture in Botswana has been viewed as a subsistence sector, limiting GDP contribution.
Saleshando believes that a shift towards agro-industrialisation is essential for growth, with special focus on production, processing, and export readiness and value addition in beef and horticulture.
The response by Honourable Dumelang Saleshando critiqued the 2026 budget speech, emphasizing the urgent need for economic reform and accountability in governance.
