Government says it is continuously considering new and more flexible approaches that are necessary to open up access to a wider range of sources of investment finance for both the public and private sectors.
This was said by Senior Policy Advisor, Dr Keith Jefferis at the recent Botswana institutional Investors forum and stated that it also includes, but is not limited to, the Public-Private Partnership (PPP) framework, which covers a wide range of potential financing models. He added that these may be implemented through various kinds of Special Purpose Vehicles or private entities implementing projects for Government or State-Owned Enterprises on a long-term contractual basis. He said on their part, they are aiming to improve the ease of entering into such PPPs and ensure an appropriate distribution of risk between the public and private sectors.
“I wish to challenge all of us to change our mind-set and use this opportunity to explore these alternative sources of investment, in order to boost the economic recovery and leave a long-lasting legacy for the future generation,” said Jefferis.
He further stated that it is a key pre-requisite for implementing sound macroeconomic policies that contribute to prudent economic management and stability. He said therefore, the complexity and the uniqueness of the economy provides them with a challenge to continuously find alternative sources that are not only relevant, but are forward-looking and responsive to the needs of the population at large. He is of the view that it is in this regard, that this in-country Forum is of paramount importance as it provides us with a platform to explore solutions and broaden their understanding of alternative investment options that can be tailor-made for the economy.
“According to the latest IMF World Economic Outlook, the global economy contracted by 3.1 percent in 2020 before recovering to 6.1 percent growth in 2021. But in 2022 and 2023, global growth is projected to slow to 3.2 percent and 2.9 percent, respectively,” said Jefferis.
He also stated that some ideas will help contribute towards a strong and resilient recovery, which is consistent with their policy priorities as espoused in key documents such as the Economic Recovery and Transformation Plan, the Reset Agenda, the upcoming 12th National Development Plan and their long-term Vision 2036 blueprint. He added that however, such a recovery plan cannot be achieved with the traditional investment model alone. He believes that a changing economy requires flexible, innovative and diversified investment options that are contextualized to the economic growth framework outlined in these documents.
Jefferis stated that the global economy is faced with serious economic headwinds due to the lingering effects of the COVID-19 pandemic and the on-going Russia-Ukraine conflict. He observed that these events have not only affected the global economy, but they have also had adverse effects on the domestic economy.