Botswana - Economic Recovery Support Program

Botswana - Economic Recovery Support Program – Phase II (ERSP II)

Project Summary

Approval Date	30 Nov 2022
Planned Completion Date	31 Dec 2022
Last Disbursement Planned Date	31 Dec 2022
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Commitment	U.A 136,640,199.57
Status	Approved

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.

Project Objectives

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).

Beneficiaries

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.

Participating Organization

Funding

African Development Bank

Information

IATI identifier	46002-P-BW-K00-005
Last Update	22 Mar 2023

Export

Contact Details

Name	Baboucarr KOMA
Email	b.koma@afdb.org

Geographic Location

Country	Botswana

Coordinates	Location Name
-24.6545 25.9086	Gaborone

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	General Budget Support

Commitments

U.A 136,640,199

African Development Bank

U.A 136,640,199.57

Document Type	Language	Document
Appraisal report	en	viewer
Appraisal report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value
Fiscal deficit/GDP ratio	%	2022	-4.8
Country Policy and Institutional Assessment (CPIA) score for Economic Management	Rating (1=low to 6=high)	2022	5.5
Private gross fixed capital formation (% of GDP)	%	2022	27.4
Agriculture value added as a percentage of GDP	%	2022	2.9
Manufacturing value added as a percentage of GDP	%	2022	7.24
Domestic credit to the private sector (excluding parastatals) from banks and DFIs as a percentage of GDP	%	2022	13.5
Targeting of social protection schemes enhanced (% of beneficiaries uploaded to the Single Social Registry)	%	2022	75.8
Public Finance Management (PFM) Bill approved by Cabinet	None	2022	Yes
Automated appraisal, risk analysis, prioritization and sequencing methodology for public investment program developed	None	2022	Yes
Public Procurement Regulatory Authority established	None	2022	Yes
Tax Administration Bill designed to increase efficiency of tax collection approved by Cabinet	None	2022	Yes
Income Tax and VAT (Amendment) Bills designed to reduce tax leakages approved by Cabinet	None	2022	Yes
Enhanced cost recovery measures adopted (Number of ministries)	Number	2022	5.0
Revised National Policy on Agriculture Development to support the transformation of the sector and enhance private sector participation approved by Cabinet	None	2022	Yes
Botswana meat industry regulator established to guarantee competition and enhance private sector participation in the meat sector	None	2022	Yes
Cabinet approval to establish a research fund	None	2022	Yes
Investment Facilitation Law designed to attract private investments submitted to Parliament	None	2022	Yes
Approval of the Secured Transactions on Movable Property Bill providing for the establishment of moveable asset registry to increase secured lending	None	2022	Yes
Public Private Partnerships (PPP) Regulations issued by Cabinet	None	2022	Yes
Revised electricity grid code and licensing framework to support entry and development of IPPs adopted	None	2022	Yes
Technical Vocational Education and Training Policy approved by Cabinet	None	2022	Yes
National Productivity Blueprint to provide a holistic approach to improving productivity and competitiveness across all sectors of the economy approved by Cabinet	None	2022	Yes
Retirement Fund Bill allowing pension fund members to access funds from their pensions approved by Cabinet	None	2022	Yes
Full roll out of the single social registry to improve targeting of beneficiaries of social protection schemes	None	2022	Yes
Gender Equity Bill to enhance women’s economic empowerment approved by Cabinet	None	2022	Yes