Serame sells AfCFTA to private sector
Companies have been urged to seize opportunities from the African Continental Free Trade Area Agreement ( AfCFTA), an agreement that connects 1.3 billion people across countries with a combined GDP of US$ 3.4 trillion, to grow the country’s economy.
Presenting the proposed national budget for the year 2024/ 2025, the Finance Minister Peggy Serame said the private sector needs competitiveness in regional value chains and cross border trade. She buttressed that government will continue to build the capacity of the local private sector to produce goods and services that are competitive in international markets, through initiatives such as Botswana Exporter Development Programme ( 2020 - 2024)
“Further, government will undertake a comprehensive review of business support products and funding models with a view to provide innovative and tailored financial solutions for the private sector to address the current implementation challenges, emerging issues and gaps that affect businesses at different stages of development,” said Serame. Serame however bemoaned that the on- going geopolitical tensions that continue to disrupt global economic prospects have strong negative spill over effects on Botswana’s growth. “This growth risk has the potential to lengthen the time required to reach the annual average growth rate of 6 percent needed to transform Botswana into a high- income country by 2036,” said Serame.
She further highlighted that the lower growth may also increase the revenue risk and compromise the government’s ability to provide critical services such as water, sanitation, education, health and some of the growth- enhancing physical infrastructure. The minister said revenue risk when combined with expenditure risks from increased demands on the government spending emanating from the rising wage bill and subventions to State- Owned Enterprises can widen the fiscal deficit and compromise fiscal sustainability. “This may delay the planned fiscal consolidation and compromise the current fiscal strategy of generating surpluses and rebuilding buffers and further reduce Botswana’s ability to respond to future shocks in a timely and effective manner,” said Serame. Despite these looming challenges, Serame said the proposed budget for the 2024/ 2025 financial year is a stimulus budget with an overall increase of 23.5 percent compared to the current year’s approved budget.
“In this context, a substantial budgetary provision amounting to P20.82 billion under both the development and recurrent budget is proposed for game- changing programmes and projects as well as high- value strategic Investments.” She said government will continue to stimulate growth, create employment and focus on sectors with great potential to transform the lives of Batswana.