Project General Description
Remaining consistent with the original program approved by the Board of Directors on 8 September 2021, the goal of ERSP II is to support resilience and post-COVID 19 pandemic inclusive economic recovery through improved governance and real sector structural reforms. The three components continue to be: Component 1: Improving Fiscal Efficiency and Sustainability; Component 2: Supporting Private sector-led Agriculture, and Industrial Sector Transformation; and Component 3: Enhancing Resilience and Social Inclusion.
The key outputs of the Program are (i) Efficiency of public spending improved (PFM Bill approved; Public Procurement Regulatory Authority established); (ii) Domestic resource mobilization enhanced (Tax Administration Bill approved); Income Tax (Amendment) Bill approved; cost recovery measures adopted);(iii) Climate-smart agriculture sector productivity and value addition, and job creation enhanced (Revised National Policy on Agriculture Development and Transformation approved); Meat Industry Regulatory Authority Bill approved; Industrialization framework strengthened (Cabinet approval to establish a research fund); Enabling environment for private investment improved Secured Transactions on Movable Property Bill approved; PPP Regulations approved; Revised electricity grid code and licensing framework approved); MSME development framework and capacity strengthened (Technical Vocational Education and Training Policy approved; National Productivity Blueprint approved by Cabinet); Social protection and gender mainstreaming enhanced (Retirement Fund Bill approved; single social registry fully rolled out; Gender Equity Bill approved).
The program’s direct beneficiaries are the various Ministries, Departments and Agencies whose reforms are being supported by the operation. These are the Ministry of Finance; Ministry of Minerals and Energy; Ministry of Agriculture; Ministry of Education and Skills Development; Ministry of Trade and Industry; Ministry of Youth, Gender, Sports and Culture; Ministry of Local Government and Rural Development; Ministry of Communication, Knowledge and Technology; Botswana Unified Revenue Services; and the Public Enterprise Evaluation and Privatization Agency (PEEPA). The private sector will benefit from improved investment opportunities in agriculture and manufacturing. As well as PPP opportunities. The MSMEs will benefit from improved policy framework and access to affordable finance, markets, and business skills, as the economy recovers from the negative impact of the COVID-19 pandemic. Ultimately, the program will indirectly benefit all Batswana as enhanced fiscal performance will help to expand fiscal space for development and pro-poor social spending. On account of pre-existing gender-based inequalities, youth and women will likely have experienced more difficulty during the pandemic. The program will help to address some of these challenges.