AFDB FUNDS RECOVERY OF ECONOMY approves P1.5 billion loan for Botswana
As uncertainties continue to punctuate the local economy, the African Development Bank (AfDB) has approved a $137 million (approximately P1,5 billion) loan to support the local economy’s recovery from the COVID-19 pandemic.
According to the bank, the funds will be used to enact multi-sector reforms that will increase spending efficiency, create jobs and drive inclusive growth.
“The African Development
Bank is providing support for reforms to enhance private sector-led agriculture, and transformation of the industrial sector,” said Leila Mokadem, Director General of the Southern Africa Regional Development and Business Delivery Office. “Agriculture value addition can serve as a springboard for industrialization and job creation,” she added.
AfDB said the project has three components which include enhancing domestic resource mobilization and mitigating fiscal risks to enhance macroeconomic performance and create fiscal space for spending on social safety nets; supporting private sector-led agriculture and industrial to bolster productivity and value addition.
In addition, this will increase job opportunities and offer business development services to micro and small enterprises to advance social protection and gender equity.
The three components are expected to reinforce one another.
The bank’s latest agriculture project in Botswana aligns with the AFDB’s tenyear strategy (2013-2022) and its high five strategic priorities, particularly to industrialize Africa, and improve the quality of life of the people of Africa.
Meanwhile, the bank’s active portfolio in Botswana amounts to $81.9 million (approximately P897.85 million) and comprises four projects with the financial sector accounting for the largest share of the portfolio by sector at 97.1 percent, followed by agriculture and industrial at 1.7 and 1.2 percent respectively.