The World Bank approved a loan of $ 250 million to Botswana on Monday (June 14th). This amount will be used to finance its development policy support loan program (DPL). This plan is also designed to support reforms aimed at strengthening private sector development and promoting green recovery.
“The Covid-19 pandemic has placed a heavy burden on the country’s economy, its people and its businesses. With this operation, the World Bank will support government reforms to ensure that social spending reaches the poorest and helps Batswana people who are most affected by Covid-19, ”said the World Bank’s country director for the ‘Eswatini, Botswana, Lesotho, Namibia and South Africa, Marie Françoise Marie-Nelly. This operation, she said, will also support reforms aimed at attracting private sector investment, help diversify exports and increase employment opportunities towards a green economy.
DPLs are used by the World Bank to support a country’s political and institutional reform agenda to accelerate inclusive growth and poverty reduction. The pandemic caused Botswana’s real gross domestic product (GDP) to contract 7.9% in 2020 – the largest in the country’s history.
This situation also led to the depletion of existing fiscal buffers. This limited revenue collection, reduced government capacity and resources needed to accelerate the implementation of structural reforms, and threatened to reverse progress in downsizing. of poverty.
