Govt to trim investment barriers

Government intends to remove policy investment barriers possibly limiting the country to shift its status quo from a middle income to a high income country. Addressing bankers attending the 31st edition World Savings and Retail Banking Institute (WSBI) African Regional Group Meeting, Vice President Ndaba Gaolathe who doubles as Finance Minister said the government will modernise laws and institutions to ensure investment flows swiftly.He said the decision will further ensure that opportunities open widely and innovation thrives. Gaolathe said the country must evolve through reforms ensuring that Botswana’s economy becomes a gateway to opportunity rather than a barrier to progress. The VP emphasized that the vision must be matched with reform. “Immigration, land, procurement, and state-owned enterprises, once barriers, are being turned into gateways.” In June, Business Botswana, the country business community apex body announced that it was engaging constructively with the government to promote policy reforms and a conducive business environment.The organisation urged for rapid implementation of ease of doing business reforms, which are critical to attracting private sector investment.” The business community also said the reforms will stimulate business activity, unlock economic opportunities, and place the country on a sustainable path to recovery, growth, and the achievement of high-income status by 2036, in line with the national vision. Bolstering the government’s intended shift, the VP said is the Botswana Economic Transformation Programme’s adoption of the internationally recognised PEMANDU’s Big Fast Results (BFR) methodology to translate national ambitions into executable plans. “For too long, our challenge has not been ambition, but execution. The BETP, through the BFR, represents our commitment to closing this gap, to prepare not just our people for the future, but also the future for our people.“Unlike many frameworks that emphasise policy design, BFR is unapologetically delivery-oriented, embedding accountability, measurable milestones, and timely outcomes.” Gaolathe said in choosing BFR, government has signaled a decisive shift from being known or sound policy to being respected for effective execution. “This is how we will restore confidence among citizens, investors, and partners that Botswana not only dreams boldly but also delivers consistently. “With BFR’s built-in accountability and measurable milestones, we are building not only a culture of delivery but also reaffirming Botswana as a low-risk, high-integrity investment destination.”Meanwhile, government has announced that measures taken to address the ailing economy are bearing results. Over the past 10 months government has been operating on a shoe-string budget due to economic challenges made worse by the low diamond sales, grossly affecting the country’s foreign reserves. However, Gaolathe says a silver lining is on the horizon. “Concrete signs are increasingly emerging on how we are navigating the process of turning around this economy.We have started to bring rigour and discipline in our fiscal policy conduct,” said Gaolathe addressing local investors. Citing preliminary data, Gaolathe said the spending levels in the 2024/25 financial year were lower when compared to the 2023/24 financial year. He said the lower spending demonstrate deliberate efforts towards expenditure restraint despite unavoidable obligations. “Furthermore, our first round of cost-containment measures, which include the centralisation of government purchase orders (GPOs) have revealed a widespread systematic gross mismanagement of control measures across ministries, departments and agencies,” said Gaolathe reflecting commitment and shifting of gears to improve the country’s fiscal position.“Around the clock, our teams are ensuring that every Pula spent goes strictly towards essential goods and services,” he emphasized. Gaolathe further indicated that additional fiscal reforms such as payroll audit, wage bill management, government fleet management and the process of repairing and restoring discipline in the process of supplementary budgets are currently underway. “These efforts will be unpacked in the upcoming mid-term budget review statement.”The VP has indicated that the government intends to broaden the tax base, citing the government took a strategic decision to amend the Value Added Tax Act, to introduce taxation of remote services and to mandate electronic invoicing. “These provisions are expected to enhance collection of value added tax.” In the pipeline to complement these efforts, according to Gaolathe, scheduled for November parliament sitting are legislations which include the comprehensive review of the Income Tax Act and the Value Added Tax Act and development of a new Tax Administration Act.

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Govt to trim investment barriers