INFRASTRUCTURE FINANCING IN BOTSWANA

The research paper examines infrastructure financing in Botswana, focusing on the role of multilateral development banks (MDBs) like the African Development Bank (AfDB) and the World Bank. It highlights that while MDBs provide competitive financial terms and valuable non-lending services, their processes are often hindered by slow loan approvals and procurement systems that are not fully aligned with national systems. The paper also explores alternative financing sources, such as domestic bonds and public-private partnerships (PPPs), noting that their current uptake is limited, leaving MDBs as a critical source of external funding for Botswana's energy, water, and transport sectors.

• Multilateral development banks (MDBs) have been the primary source of external financing for Botswana since 2009, outperforming bilateral organisations due to competitive loan pricing, longer maturity and grace periods, and technical expertise in project preparation and monitoring.
• A significant barrier to MDB lending is the slow pace of loan processing and disbursement; the time from processing to actual disbursement for investment loans can reach five years, creating a high opportunity cost for the country.
• The African Development Bank (AfDB) has successfully used non-lending activities, such as analytical and diagnostic work, as a re-engagement strategy to strengthen its partnership with the Botswana government and secure more projects.
• There is a misalignment between MDB procurement processes and Botswana's own robust auditing and public procurement systems, leading to delays in contractor selection and paperwork.
• While Botswana established a PPP Policy and Framework in 2009 to attract private sector investment, activity has remained limited due to weak institutions, short-staffed PPP units, and limited capacity in both public and private sectors.
• Official Development Assistance (ODA) plays a marginal role in economic infrastructure, with 81% of total ODA distributed to Botswana in 2015/16 directed toward health and population sectors due to the HIV/AIDS epidemic.

APA

Sekakela, K. (2018). INFRASTRUCTURE FINANCING IN BOTSWANA. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf

Chicago

Sekakela, Kedibonye. INFRASTRUCTURE FINANCING IN BOTSWANA. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf.

Wikipedia

{{cite report |last1=Sekakela |first1=Kedibonye |title=INFRASTRUCTURE FINANCING IN BOTSWANA |publisher=South African Institute of International Affairs |date=April 2018 |url=https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sekakela2018infrastructure, author = {Sekakela, Kedibonye}, title = {{INFRASTRUCTURE FINANCING IN BOTSWANA}}, institution = {South African Institute of International Affairs}, year = {2018}, month = apr, url = {https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }