Finance Insights with Tshoganetso

Botswana faces a serious liquidity crisis, with just P700 million in its coffers and P5 billion in unpaid invoices. This article explores the causes, implications, and what the UDC-led government must do to fix it. The Alarming State of Botswana's Finances "Is Botswana broke?" That’s the question on everyone’s lips as news breaks that the government has just P700 million left in its account. To put it plainly: that’s not enough to cover civil servant salaries, let alone fund crucial government operations. Even more worrying, there's reportedly a P5 billion backlog in unpaid invoices to private sector suppliers. If this situation isn’t handled swiftly and decisively, it could spiral into a full-blown economic and social crisis. What Is a Liquidity Crisis? A liquidity crisis happens when an organization or government doesn’t have enough liquid cash to meet its short-term obligations. It doesn’t necessarily mean bankruptcy, but it signals a dangerous imbalance between in...

In its 2025 Macro Poverty Outlook, the World Bank warns that Botswana may breach its debt ceiling if fiscal deficits persist. Discover the causes, risks, and what it means for the economy. Botswana’s Debt Alarm Bells Are Ringing In its Macro Poverty Outlook 2025 , the World Bank has issued a sobering warning : "Unless fiscal deficits are reduced, there is a risk that the debt limit may be breached." This caution comes at a time when Botswana has secured two significant loans P4.1 billion from the African Development Bank (AfDB) and P3 billion from the Botswana Public Officers Pension Fund (BPOPF)  raising questions about the sustainability of the nation’s fiscal path. This development is not just another economic headline; it holds serious implications for the country’s macroeconomic stability, creditworthiness, and long-term development goals. What Is Botswana’s Debt Ceiling and Why Does It Matter? Understanding the Debt Ceiling Botswana’s debt ceiling is essentia...