For decades, diamond revenues financed Botswana’s infrastructure, education, healthcare and national institutions. But the circumstances sustaining this model have changed.
Diamond revenues have weakened, fiscal buffers eroded and public debt risen, while demands on Government grow. We must confront a fundamental truth: Botswana cannot finance tomorrow’s economy using yesterday’s model.
This is not a call for Government to retreat from development. It is a call to redefine how it enables it. With public finances constrained, Government must move from being the principal financier of development to becoming a catalyst for investment and long-term growth. Commercially viable investments must attract private capital.
Capital follows credible opportunities, sound institutions and confidence in the future. Our task is to create those conditions and mobilise investment beyond what public resources alone can achieve.
Capital follows credible opportunities, sound institutions and confidence in the future. Our task is to create those conditions and mobilise investment beyond what public resources alone can achieve.
Botswana already has institutions such as BDIH, CEDA, NDB and BDC supporting entrepreneurship and industrial development. They must operate as a coordinated ecosystem, supporting businesses from early-stage financing to expansion.
A young Motswana with a viable business idea should not have to navigate the Government financing system to find help. We do not necessarily need more institutions. We need those we have to work better together.
Domestic institutions cannot meet our ambitions alone. We must mobilise capital from development banks, pension funds, commercial banks, private equity, venture capital. A proposed Fund of Funds, credit guarantees, blended finance and public-private partnerships can help unlock investment.
Financial innovation must be matched by fiscal prudence. Sound project appraisal, transparent risk allocation and strong oversight are essential. We must not mortgage the future through poorly structured financing.
Diversification happens when enterprises emerge, industries become competitive and products reach markets. Through the Botswana Economic Transformation Programme, opportunities are being advanced in agriculture, manufacturing, tourism, energy, mining, infrastructure, financial services and digital transformation. Our ambition is a diversified, export-driven, private-sector-led, high-income economy by 2036.
But a list of projects is not an investment pipeline. Projects must be commercially credible, technically prepared and supported by infrastructure, approvals and market access. Success must be measured by investment mobilised, enterprises established, exports generated and sustainable jobs created.
Investment must create employment, strengthen local value chains, generate exports and improve livelihoods. Botswana’s small domestic market makes regional competition essential. Its value lies not only in the enterprise established, but in the wider opportunities unlocked.
As Government’s principal investment arm, BDC must attract investors, pioneer viable industries and turn economic potential into productive enterprise. This requires strong governance, commercial discipline.
Institutional investors must participate more actively while retaining their independence and fiduciary responsibilities. Investment decisions must rest on commercial merit, never political pressure. Government must create opportunities that attract investment on their merits, not compel participation.
Investment must create employment, strengthen local value chains, generate exports and improve livelihoods. Botswana’s small domestic market makes regional competition essential. Its value lies not only in the enterprise established, but in the wider opportunities unlocked.
Our future cannot depend solely on the wealth beneath our soil. It must rest on the ingenuity of our people, competitive enterprises and our ability to mobilise capital. Capital must empower enterprise, enterprise must drive growth, and growth must deliver lasting prosperity for all Batswana nationwide.
