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geg-africa-dp-sekakela-april-2018-final-web-51caaf92c0cbc805.pdf

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This research paper examines Botswana's experience with multilateral development banks (MDBs) in financing infrastructure, specifically focusing on the African Development Bank (AfDB). It identifies systemic delays in loan processing and procurement as primary challenges while highlighting the success of non-lending knowledge services. The document also evaluates alternative financing sources, such as public-private partnerships (PPPs) and domestic bond markets, noting that while these exist, they have not yet replaced the need for MDB lending.

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  • Multilateral development banks (MDBs) have become the primary source of external financing for Botswana since 2009, as the government finds their loan pricing, maturity, grace periods, and technical expertise more attractive than bilateral options.
  • The loan processing cycle for investment loans in Botswana is perceived as a significant burden, with the time from processing to actual disbursement potentially taking up to five years.
  • 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 financing projects.
  • Procurement and financial processes of MDBs, specifically the AfDB, are viewed as slow and not fully aligned with Botswana's own robust auditing and public procurement systems.
  • While Botswana established a PPP Policy and Framework in 2009 to attract private sector investment, activity remains limited due to weak institutions, short-staffed units, and limited capacity in both public and private sectors.
  • Official Development Assistance (ODA) plays a marginal role in economic infrastructure, as 81% of total ODA distributed to Botswana in 2015/16 was directed toward health and population sectors due to the HIV/AIDS epidemic.

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APA
South African Institute of International Affairs (n.d.). geg-africa-dp-sekakela-april-2018-final-web-51caaf92c0cbc805.pdf. https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf
Chicago
South African Institute of International Affairs. geg-africa-dp-sekakela-april-2018-final-web-51caaf92c0cbc805.pdf. n.d. https://saiia.org.za/wp-content/uploads/2018/04/GEG-africa-DP-sekakela-APRIL-2018-FINAL-WEB.pdf.
Wikipedia
{{cite report |author=South African Institute of International Affairs |title=geg-africa-dp-sekakela-april-2018-final-web-51caaf92c0cbc805.pdf |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{southafricaninstituteofinternationalaffairsndgegafricadpsekakelaapril2018finalweb51caaf92c0cbc805pdf, author = {{South African Institute of International Affairs}}, title = {{geg-africa-dp-sekakela-april-2018-final-web-51caaf92c0cbc805.pdf}}, institution = {South African Institute of International Affairs}, 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} }

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