Botswana, AfDB Strengthen Partnership for Private Sector-Led Growth
Botswana’s Vice President and Minister of Finance, Ndaba Gaolathe, has reaffirmed the country’s strong strategic partnership with the African Development Bank (AfDB) during a high-level meeting aimed at accelerating Botswana’s economic transformation.
The discussions, held on 15 April 2025, were led by Leila Mokaddem, the Director General for Southern Africa at the AfDB, and focused on key initiatives to transition Botswana’s economy from public sector dominance to private sector-led growth. Gaolathe emphasized the country’s priorities, which include digitization, agricultural commercialization, and revitalization of state-owned enterprises.
“Our focus is on shifting to private sector-led growth, ensuring a civil service that works, and diversifying our minerals sector,” Gaolathe stated. He also highlighted the potential for Botswana to emerge as a major player in the automotive industry, calling for more efforts to develop and expand this sector.
Mokaddem acknowledged the country’s ongoing progress and underlined the African Development Bank’s commitment to aligning its support with Botswana’s Vision 2036. She noted that key reforms, capacity development, and strengthening the private sector are critical to the country’s development, stressing Botswana’s potential to become a regional logistics and manufacturing hub.
“Our evaluation shows that Botswana has the means and capacity to lead in regional development,” Mokaddem said, emphasizing the AfDB’s continuous support for the country’s economic transformation.
Moono Mupotola, the Bank’s Deputy Director General for Southern Africa and Country Manager for Botswana, reinforced the partnership’s strength and the institution’s readiness to provide further support. The AfDB delegation presented several short- and medium-term initiatives aimed at bolstering Botswana’s economic targets, including the Governance and Economic Resilience Program (GERSP). This program seeks to enhance fiscal performance and increase private sector participation, with up to $1 billion in potential funding, including $304 million available this year.
Another significant initiative discussed was the Lesotho-Botswana Water Transfer Project, which aims to address critical water and sanitation needs by building a 700-km pipeline between South Africa and Botswana.
Additional interventions include support for Botswana’s transport sector, covering roads, railways, aviation, and energy, as well as feasibility studies for key transmission lines connecting Botswana to South Africa and Zambia.
Mokaddem also highlighted the importance of addressing issues like water, energy, and skills mismatches to foster private sector growth. She reassured Botswana that the African Development Bank would continue to leverage its expertise and resources to assist in the country’s diversification efforts.
The meeting also emphasized the success of previous African Development Bank investments, including the Lobatse Clay Works and Delta Automotive Technologies, which have demonstrated the potential for targeted economic support to drive sustainable development.
