Botswana: Debt Crisis Govt Borrowing Surpasses P56 Billion
Botswana's domestic and external debt has risen significantly, reaching a combined total of over P83 billion. Government officials and economists attribute this to subdued mineral revenues and the need to fund national development projects.
Why it matters
The rising debt levels reflect the economic challenges faced by commodity-dependent nations and the potential long-term fiscal risks for Botswana.
Vice President and Minister of Finance Ndaba Gaolathe has revealed that Botswana's domestic debt doubled from P27.2 billion to P56.06 billion; a development that economic observers say will worsen over time as the economy remains subdued with no sign of positive recovery in the short to medium term.
Gaolathe revealed the government's domestic borrowing level in Parliament this week during question time, adding that the external debt also grew from P16.4 billion in 2022/23 to P27.88 billion in the 2025/26 financial year.
He said the growth of external debt was largely reflecting the disbursement of budget-support loans from the multilateral development allies, including the African Development Bank [ADB] and the OPEC Fund. Taken together, these two borrowing components amount to P83.94 billion, he explained.
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