THE SECOND MEETING OF THE SECOND SESSION OF THE TWELFTH PARLIAMENT MONDAY 01 FEBRUARY 2021 ENGLISH VERSION - HANSARD NO: 201
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THE SECOND MEETING OF THE SECOND SESSION OF
THE TWELFTH PARLIAMENT
MONDAY 01 FEBRUARY 2021
ENGLISH VERSION
HANSARD NO: 201THE NATIONAL ASSEMBLY
SPEAKER
The Hon. Phandu T. C. Skelemani PH, MP.
DEPUTY SPEAKER
The Hon. Mabuse M. Pule, MP. (Mochudi East)
Clerk of the National Assembly - Ms B. N. Dithapo
Deputy Clerk of the National Assembly - Mr L. T. Gaolaolwe
Learned Parliamentary Counsel - Ms M. Mokgosi
Assistant Clerk (E) - Mr R. Josiah
CABINET
His Excellency Dr M. E. K. Masisi, MP. - President
His Honour S. Tsogwane, MP. (Boteti West) - Vice President
- Minister for Presidential Affairs, Governance and Public
Hon. K. N. S. Morwaeng, MP. (Molepolole South)
Administration
Hon. K. T. Mmusi, MP. (Gabane-Mmankgodi) - Minister of Defence, Justice and Security
Hon. Dr L. Kwape, MP. (Kanye South) - Minister of International Affairs and Cooperation
Hon. E. M. Molale, MP. (Goodhope-Mabule ) - Minister of Local Government and Rural Development
Hon. K. S. Gare, MP. (Moshupa-Manyana) - Minister of Agricultural Development and Food Security
- Minister of Environment, Natural Resources Conservation
Hon. P. K. Kereng, MP. (Specially Elected)
and Tourism
Hon. Dr E. G. Dikoloti MP. (Mmathethe-Molapowabojang) - Minister of Health and Wellness
Hon. T.M. Segokgo, MP. (Tlokweng) - Minister of Transport and Communications
Hon. K. Mzwinila, MP. (Specially Elected) - Minister of Land Management, Water and Sanitation Services
- Minister of Youth Empowerment, Sport and Culture
Hon. T. M. Rakgare, MP. (Mogoditshane)
Development
Hon. A. M. Mokgethi, MP. (Gaborone Bonnington North) - Minister of Nationality, Immigration and Gender Affairs
Hon. Dr T. Matsheka, MP. (Lobatse) - Minister of Finance and Economic Development
Hon. F. M. M. Molao, MP. (Shashe West) - Minister of Basic Education
- Minister of Tertiary Education, Research, Science and
Hon. Dr D. Letsholathebe, MP. (Tati East)
Technology
- Minister of Mineral Resources, Green Technology and
Hon. L. M. Moagi, MP. (Ramotswa)
Energy Security
Hon. P. O. Serame, MP. (Specially Elected) - Minister of Investment, Trade and Industry
- Minister of Employment, Labour Productivity and Skills
Hon. M. Balopi, MP. (Gaborone North)
Development
Hon. M. Kgafela, MP. (Mochudi West) - Minister of Infrastructure and Housing Development
- Assistant Minister, Presidential Affairs, Governance and
Hon. D. M. Mthimkhulu, MP. (Gaborone South)
Public Administration
- Assistant Minister, Local Government and Rural
Hon. K. K. Autlwetse, MP. (Specially Elected)
Development
- Assistant Minister, Local Government and Rural
Hon. S. N. Modukanele, MP. (Lerala -Maunatlala)
Development
- Assistant Minister, Agricultural Development and Food
Hon. B. Manake, MP. (Specially Elected)
Security
Hon. S. Lelatisitswe, MP. (Boteti East) - Assistant Minister, Health and Wellness
Hon. N. W. T. Makwinja, MP. (Lentsweletau-Mmopane) - Assistant Minister, Basic Education
Hon. M. S. Molebatsi, MP. (Mmadinare) - Assistant Minister, Investment, Trade and Industry
- Assistant Minister, Youth Empowerment, Sport and Culture
Hon. H. B. Billy, MP. (Francistown East)
Development
Hon. M. R. Shamukuni, MP. (Chobe) - Assistant Minister,Tertiary Education, Research, Science and
TechnologyMEMBERS OF PARLIAMENT AND THEIR CONSTITUENCIES
Names Constituency
RULING PARTY (Botswana Democratic Party)
Hon. L. Kablay, MP. (Government Whip) Letlhakeng-Lephephe
Hon. Dr U. Dow, MP. Specially Elected
Hon. P. Majaga, MP. Nata-Gweta
Hon. J. S. Brooks, MP. Kgalagadi South
Hon. C. Greeff, MP. Gaborone Bonnington South
Hon. T. Letsholo, MP. Kanye North
Hon. T. F. Leuwe, MP. Takatokwane
Hon. T. Mangwegape-Healy, MP. Gaborone Central
Hon. S. N. Moabi, MP. Tati West
Hon. T. Monnakgotla, MP. Kgalagadi North
Hon. P. K. Motaosane, MP. Thamaga-Kumakwane
Hon. O. Regoeng, MP. Molepolole North
Hon. J. L. Thiite, MP. Ghanzi North
Hon. P. P. P. Moatlhodi, MP. Tonota
Hon. A. Lesaso, MP Shoshong
OPPOSITION
(Umbrella for Democratic Change)
Hon. D. Saleshando, MP. (Leader of the Opposition) Maun West
Hon. M. G. J. Motsamai, MP. Ghanzi South
Hon. D. L. Keorapetse, MP. Selebi Phikwe West
Hon. Y. Boko, MP Mahalapye East
Hon. Dr K. Gobotswang, MP. Sefhare-Ramokgonami
Hon. C. K. Hikuama, MP. Ngami
Hon. K. K. Kapinga, MP Okavango
Hon. G. Kekgonegile, MP. Maun East
Hon. T. B. Lucas, MP. Bobonong
Hon. K. Nkawana, MP. Selebi Phikwe East
Hon. O. Ramogapi, MP. Palapye
Hon. Dr N. Tshabang, MP. Nkange
Hon. D. Tshere, MP. Mahalapye West
Hon. M. I. Moswaane, MP. Francistown West
(Botswana Patriotic Front)
Hon. T. S. Khama, MP. Serowe West
Hon. L. Lesedi, MP. Serowe South
Hon. B. Mathoothe, MP. Serowe North
Hon. M. Reatile, MP. Jwaneng-Mabutsane
(Alliance for Progressives)
Hon. W. B. Mmolotsi, MP. Francistown SouthTABLE OF CONTENTS
THE SECOND MEETING OF THE SECOND SESSION
OF THE TWELFTH PARLIAMENT
MONDAY 01 FEBRUARY, 2021
CONTENTS PAGE (S)
SPEAKER’S ANNOUNCEMENT............................................................................................................................1
Suspension of Standing Orders
Motion....................................................................................................................................................................1
GOVERNMENT BILL
Appropriation (2021/2022) Bill, 2021 (No. 2 of 2021)
First Reading..........................................................................................................................................................2
Second Reading.................................................................................................................................................2-17
TABLING OF PAPER
Financial Statements, Tables And Estimates of
The Consolidated And Development Funds Revenues 2021/2022.............................................................................2Monday 1st February, 2021 SUSPENSION OF STANDING ORDERS
Motion
Monday 1st February, 2021 SUSPENSION OF STANDING ORDERS
THE ASSEMBLY met at 2:00 p.m. Motion
(THE SPEAKER in the Chair) LEADER OF THE HOUSE (MR TSOGWANE):
Sorry Mr Speaker. Mr Speaker…
PRAY E R S
…Silence…
****
MR SPEAKER: Honourable Leader of the House,
SPEAKER’S ANNOUNCEMENTS Honourable Tsogwane.
…Silence…
MR SPEAKER (MR SKELEMANI): Honourable
Members, can we please stand up and observe a moment MR TSOGWANE: Hello! Mr Speaker, can you hear
of silence to respect those of our fellow countrymen and me?
women who have departed. MR SPEAKER: …(Inaudible)…
…A MOMENT OF SILENCE OBSERVED… MR TSOGWANE: …(Inaudible)… The people who
were supposed to activate this from your side, did not
MR SPEAKER: Thank you Honourable Members, you
do it. So I could not unmute my computer this side. I am
may take your seats.
sorry. Can I continue Mr Speaker?
…Silence…
MR SPEAKER: Please.
MR SPEAKER: Honourable Members, because we
MR TSOGWANE: Thank you Mr Speaker. Mr
are starting to run the House virtually, I thought it
Speaker, I beg to move in terms of Standing Order 130.1
will be necessary to inform you that we have allowed
that Standing Orders 14.1, 40, 46, 51, 127 and 129 be
the Information Technology (IT) officers to enter the suspended for convenience of a virtual meeting. I thank
Chamber and Honourable Members’ houses or offices you and move accordingly Mr Speaker.
to assist …(Inaudible)…during the virtual meeting of
our Parliament. We saw it necessary to do so, so that MR SPEAKER: Thank you Leader of the House.
when you need help, it will be handy. Honourable Members, the question is that the Motion
be agreed to.
Honourable Members, there would be a virtual General
…Silence…
Assembly meeting tomorrow, Tuesday 2nd February
2021 at 8:30 a.m. Please try your best to attend on time MR SPEAKER: … you can show on your screens
because we are going to consider the Standing Orders either by hand or by… I am counting. Honourable
which we think will facilitate the virtual meeting of the Lucas, Honourable Kapinga, we are taking the count.
budget sitting; this meeting. …Silence…
According to Standing Order 7.3, I have received a MR SPEAKER: Honourable Members, this will take
correspondence from Honourable Lesaso, Member a little time because we are going to get the yes and the
of Parliament for Shoshong informing me that he has noes. Now, we are looking for the ayes.
resigned from the Umbrella for Democratic Change
…Silence…
(UDC) and joined Botswana Democratic Party (BDP).
MR SPEAKER: Honourable Tshere, I see you,
Honourable Members, we have been all affected
Honourable Kapinga, I see you, Lesedi, I see you,
by COVID, this scourge, we have no choice but for
Honourable Kablay, Leuwe, I have seen you. Honourable
Parliament to …(Inaudible)…virtually, this will require
Saleshando, are you holding your…(inaudible)… for
amendments in some of our Standing Orders to facilitate
voting? I wanted to see you. Hold it up or down so that
this Legislature. Let me now call upon the Leader of
it can …
the House, Honourable Vice President, Honourable
Slumber Tsogwane, to move for the suspension of some …Silence…
of the Standing Orders …(Inaudible)…
MR SPEAKER: The ayes; 30, the noes;13. The Ayes
…Silence… have it.
Hansard No 201 1Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
Question put and agreed to. was upbeat about the economic and financial prospects
for the 2020/2021 Financial Year. Such confidence, Mr
MR SPEAKER: Thank you Honourable Members. Speaker, was based on the positive global and domestic
…Silence… economic outlook at the time. This positive outlook
came against the backdrop of a fresh political mandate
TABLING OF PAPER and presented a golden opportunity to embark in earnest
on a pragmatic agenda to transform this country to high
The following paper was tabled: income status. Hence, my bold commitment to use the
FINANCIAL STATEMENTS, TABLES AND 2020/2021 Budget as a platform for implementing the
ESTIMATES OF THE CONSOLIDATED AND national priority areas of promoting export led growth,
DEVELOPMENT FUNDS REVENUES 2021/2022. ensuring more efficient Government spending and
financing, building human capital, and provision of
(Minister of Finance and Economic Development) appropriate infrastructure. These national priority areas
Mr Speaker, have not changed, and are clearly laid out
First Reading in the Mid-Term Review of National Development
Plan (NDP) 11 recently passed by this House for
PRESENTATION OF A GOVERNMENT implementation from 2020 to 2023.
BILL
However, Mr Speaker, the advent of COVID-19
The following Bill was presented and read a first time. pandemic in March 2020 threw everything into disarray
as countries the world over, including Botswana, moved
APPROPRIATION (2021/2022) BILL, 2021 (NO. 2
into survival mode. Both human and financial resources
OF 2021)
were channelled towards the fight and containment of
(Minister of Finance and Economic Development) COVID-19.
Second Reading-Forthwith. Mr Speaker, as part of the preamble for this Budget
Speech presentation, let me share a few insights on the
BILL impact of the COVID-19 pandemic on the domestic
economy. I will also touch on some key underlying
APPROPRIATION (2021/2022) BILL,
factors that underpin the 2021/2022 Budget.
2021 (NO. 2 OF 2021)
COVID-19 and the Economy
Second Reading
Mr Speaker, COVID-19 has brought a once-in-a-
MINISTER OF FINANCE AND ECONOMIC
century shock to Botswana, Africa and the entire world.
DEVELOPMENT (DR MATSHEKA): Mr Speaker,
Not only is it the largest health and economic challenge
let me start by first acknowledging the exceptional
in living memory, but it is also the first pandemic to hit
circumstances created by the COVID-19 pandemic as
the whole world indiscriminately.
evidenced in the virtual presentation of this Budget
Speech, which is however, unavoidable in order to Mr Speaker, the impact of the pandemic on economies
protect lives. In these same weeks and months, many around the world has also been devastating, with
Batswana have lost their lives to the pandemic. The rising a range of negative impacts, including reduced or
numbers of death touches all of us. In this instance Mr even negative economic growth, increased rates of
Speaker, I would love to express my deepest sympathy unemployment, poverty and balance of payments
to those that have lost their loved ones and urge all of us pressures. Notwithstanding the negative impact of this
to look after ourselves. pandemic, there are also opportunities that we could
take advantage of.
Mr Speaker, I have the honour this afternoon to present
to the National Assembly, the Budget Proposals for the Mr Speaker, Botswana has experienced a large negative
2021/2022 financial year. economic shock as a result of the pandemic. Our
economy contracted by nearly one quarter in the period
Mr Speaker, when I stood before this House last year at from March to June 2020, and over the year as a whole
around this time to present the 2020 Budget Speech, I will experience a deep recession. Besides slower growth
2 Hansard No 201Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
Mr Speaker, the economic impact manifested in balance are down as economic activity, and incomes have fallen
of payments and fiscal deficits, and the drawdown of and tax payments have been deferred to ease cash flow
the foreign exchange reserves and Government savings. pressures on businesses. On the other hand, expenditures
Fortunately, our past record of prudent macroeconomic are up as Government spends on controlling the disease
management meant that we had accumulated financial and supporting firms and households. The resultant
buffers that enabled us to respond quickly and mitigate budget deficits need to be financed, whether from
the negative economic impact of the pandemic. These domestic or external sources, while guarding against the
buffers Mr Speaker, have now been depleted, and need risks of excessive debt accumulation.
to be rebuilt so that we are well-placed to deal with
potential future shocks. As a result, Mr Speaker, we need to improve the
effectiveness and efficiency of our public finance
Mr Speaker, many sectors of the economy have been systems. We need to modernize our tax collection
adversely and severely impacted by public health systems and make them more efficient; raise some tax
restrictions that had to be instituted to fight the spread rates, and explore new sources of tax revenue. I will
of the disease. Indeed, some sectors such as tourism, the present more detailed proposals on these later in this
entertainment and arts sectors, including bars and liquor speech, Mr Speaker.
outlets were closed right from the onset of the pandemic,
and activities such as meetings and conferences, which We also need to review our public service delivery
are key for the hotel industry have not been taking place model to ensure that taxpayers and citizens are getting
as regularly as would have been the case under normal value-for-money. To this end, it is essential that we
circumstances. The mining and transportation sectors, address issues relating to wastage and inefficiency,
and some personal services, also suffered a major blow. poor productivity in the public sector, and inefficient
procurement processes. We also need to improve the
In recognition of these unprecedented challenges Mr selection and management of public investment projects.
Speaker, Government acted decisively and launched In doing so, we intend to open up for the private sector to
a series of fiscal and financial packages to address the play a much stronger role. We can improve public sector
health emergency needs, to ease liquidity pressures on project management by utilising private sector skills
businesses, and to safeguard jobs and household incomes. and techniques to ensure that projects are implemented
Ultimately, Government launched a comprehensive on-time and within budget. In the coming year, we will
Economic Recovery and Transformation Plan (ERTP) also be creating opportunities for the private sector to
to fast track recovery and transformation, as well as actually deliver some major investment projects. At
enhance medium to long-term economic resilience. the same time expecting Ministries, Departments and
Agencies (MDAs) to deliver on their commitments in
Mr Speaker, the pandemic has also shown us that
the future without expecting additional resources each
“business as usual”, is not a sustainable strategy going
year.
forward. We have to change and transform the way we
have been running our economic affairs. In the past, Mr Speaker, let me reiterate the fact that there will
we have perhaps been slow to implement the changes continue to be much uncertainty about many issues
required, but COVID-19 has dramatically shortened relating to our own economic pathway. However, this
the period available to us and made the challenge of Government’s key objective is to ensure that economic
transformation much more urgent. policy does not compound these uncertainties, but rather
help to manage and mitigate the economic impact of
Background to the 2021/2022 Budget
the economic slowdown on households and businesses
Mr Speaker, the 2021/2022 Budget was prepared under throughout the country.
extraordinary circumstances. A Budget Speech, Mr
Nevertheless, Mr Speaker, I would like to reassure
Speaker, is fundamentally about public finance and the
the nation that as a responsible Government, we are
Government’s intentions regarding public spending,
tackling these challenges with great determination and
generating the revenues to pay for that spending, and
zeal to ensure that this situation does not turn into a
financing any deficit that results. Currently, the public
catastrophe.
finance challenges facing most countries including
Botswana, are more acute than ever before. Revenues This Mr Speaker, will be made possible by our good
Hansard No 201 3Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
record of prudent macroeconomic management, the a totally new approach to project implementation.
support and solidarity of the nation, and, more than
anything else, the hard work, dedication and resilience Monetary Policy and Exchange Rate Policy
of Batswana. Developments
(II) MACROECONOMIC REVIEW AND Inflation and Monetary Policy
OUTLOOK In December 2020, headline inflation was 2.2 per
Mr Speaker, the International Monetary Fund (IMF)’s cent and has been below the lower end of the Bank of
January 2021 World Economic Outlook estimated Botswana (BoB) objective for more than a year. This
that global output contracted by 3.5 per cent in 2020. low inflation rate is mainly a reflection of reduced
However, the global economy is projected to recover domestic fuel prices, following a fall in international
and grow by 5.5 per cent in 2021, underpinned by a oil prices, combined with subdued domestic demand
gradual recovery in consumption and investment. and sluggish economic activity. In the medium term Mr
Speaker, inflation is expected to remain within the Bank
The IMF further estimates that output in Sub-Saharan of Botswana’s objective range.
Africa contracted by 2.6 per cent in 2020, compared
Mr Speaker, since the advent of the pandemic in the first
to a growth of 3.2 per cent in 2019. Moreover, fiscal
quarter of 2020, the bank rate has been reduced twice
deficits worsened in 2020. As a result Mr Speaker, debt in an effort to boost economic activity, as the cost of
levels for most countries are forecast to increase. In line borrowing is lowered. The decision came as a result of
with these developments, the general standard of living the current state of the economy and the outlook for both
in many countries was expected to deteriorate, with a domestic and global economies.
lower per capita Gross Domestic Product (GDP) in 2020
than in 2019. Balance of Payments and Foreign Exchange Reserves
However, Mr Speaker, growth in Sub-Saharan Africa is Mr Speaker, for the first nine months of 2020, the
anticipated to recover modestly to 3.2 per cent in 2021. balance of payments recorded an overall deficit of P14.8
Key drivers of this growth range from an improvement billion, compared to a deficit of P5.8 billion in the same
in exports and commodity prices as the world economy period in 2019. The significant deterioration of the
recovers. overall balance of payments was largely driven by a fall
in the level of exports of goods and services, which were
On the domestic front, Mr Speaker, the hardest-hit valued at P35.21 billion over this period, compared to
sectors were mining, trade, hotels and restaurants, P50.83 billion in the first nine months of 2019.
construction and manufacturing. On a more positive
note, several sectors experienced a subsequent recovery, Mr Speaker, the fall in the level of exports reflects the
such that GDP was only 6 per cent smaller in the third slowdown in global diamond sales, as well as a fall in
quarter of 2020 than in the same period in 2019. Overall, global and regional economic activity more generally.
the domestic economy is projected to contract by 7.7 The non-diamond exports have also been growing
per cent in 2020 as a whole, mainly due to significant more slowly than GDP as a whole for some time. This,
contraction in the tourism and mining sectors. in turn, indicates that Botswana has a competitiveness
challenge, which needs to be addressed as a matter of
Mr Speaker, the outlook for the domestic economy urgency. Despite this Mr Speaker, Government remains
is, however, positive, with growth rate of 8.8 per resolute in pursuing the policy priority of export-led
cent projected for Botswana in 2021. Achieving this growth, as it continues to be critically important.
positive growth will depend on the trajectory of the
recovery of the global economy and indeed a successful In support of export-led growth, Government has made
implementation of policies, programmes and projects key commitments for both international and domestic
outlined in the Mid-Term Review (MTR) of National firms, including improving the issuance of work permits
Development Plan (NDP) 11. With the implementation for investors and skilled employees to reflect business
of the Economic Recovery and Transformation Plan needs and provide firms with the certainty required to
(ERTP) and Government initiatives, we should achieve support investment, production and trade. The issuance
a robust recovery in 2021. This Mr Speaker, will require of visas for short-term visitors will also be improved
4 Hansard No 201Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
through the implementation of online visa issuance These include tertiary education financing at P2.26
system (e-Visas) that is currently being developed. billion, National Service Scheme at P135.72 million,
Youth Development Fund at P104 million, and Internship
Mr Speaker, as at the end of November 2020, the Programme at P98.83 million, to mention just a few.
official foreign exchange reserves amounted to P58.7
billion, equivalent to 10.9 months of import cover. Mr Speaker, according to the Quarterly Multi-Topic
This represented a 10 per cent decrease from P65.2 Household Survey, the unemployment rate for the
billion in December 2019. The substantial decline quarter ending December 2020 was 24.5 per cent. This
was largely a result of the drawdown on the foreign is slightly higher than the 23.2 per cent unemployment
exchange reserves attributable to payments for imports, rate recorded in the first quarter of the year. Hence
Government external obligations and net capital flows. unemployment has only risen slightly as a result of the
As at November 2020, the Government Investment lockdown periods and other disruptions experienced
Account portion of the reserves was valued at P5.6 during the course of 2020.
billion, compared to P17.8 billion as at the end of 2019.
Mr Speaker, I had mentioned in my previous Budget
I want to repeat this one, as at November 2020, the Speech that my ministry was developing a National
Government Investment Account portion of the reserves Employment Policy (NEP) in order to deal with this
was valued at only P5.6 billion, compared to P17.8 developmental challenge. The draft Policy has been
billion as at the end of 2019. undergoing intense interrogation within my ministry
to assess its adequacy in promoting productive, gainful
Exchange Rate Movements and decent employment for Batswana based on national
Mr Speaker, consistent with our exchange rate policy Employment Policy will be finalised in the first half of
objective, Government adjusted the downward rate of 2021.
crawl of the Pula exchange rate from 1.51 per cent to
Population and Development
2.87 per cent per annum, in May 2020. The Pula basket
weights were maintained at 45 per cent for the South Mr Speaker, the national Population and Housing
African Rand and 55 per cent for the IMF’s Special Census planned for August 2021 has been postponed to
Drawing Right for the duration of 2020. After a review
next year, due to the movement restrictions in place to
of these exchange rate parameters, a decision was taken
control the pandemic. However, I would like to assure
to maintain them for 2021.
the nation that given the importance of the census to
Mr Speaker, the Real Effective Exchange Rate (REER) our development planning and democracy, Government
depreciated by 1.5 per cent in the twelve months to will strive to undertake the exercise mid-next year and
November 2020. The depreciation of the REER suggests provide the results by the end of the year.
that some gains could be made in Botswana’s export
competitiveness, which may contribute to economic Mr Speaker, following the Demographic Dividend
growth and employment creation. Nevertheless, study carried out in 2018, my ministry is developing
concerns remain over the competitiveness and low a Demographic Dividend Roadmap, which will
productivity of Botswana firms, given the slow growth identify priority projects to help Botswana harness
of non-diamond exports. the demographic dividend. The study recognises four
focus areas being; Employment and Entrepreneurship;
Employment and Human Resources Education and Skills Development; Health and
Wellbeing; as well as Human Rights, Governance and
Mr Speaker, one of the major developmental challenges
Youth Empowerment. Appropriate interventions will be
facing this country is the high rate and level of
critical in enabling us to harness the benefits of a bulging
unemployment, especially among the youth. The Youth
working-age population, and to unleash the potential of
Empowerment Drive continues through investment in
the youth. The roadmap will be completed during 2021.
education and the implementation of a number of national
schemes targeting this group. The sizeable investments Performance of State-Owned Enterprises
in this category, amounting to approximately P2.6 billion
in total during the coming financial year, demonstrates Mr Speaker, last year, I mentioned that Government
Government’s unwavering commitment to invest in the would undertake a comprehensive review of parastatals
youth of this country. and State-Owned Enterprises (SOEs), with a view to
Hansard No 201 5Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
addressing some of the shortcomings in their governance have been considerable achievements in terms of
and performance. I am pleased to report Mr Speaker, implementing aspects of the 2020 budget.
that a comprehensive rationalisation strategy covering
all parastatals has been developed. Implementation of Amongst these achievements, Information,
the strategy will address issues such as duplication of Communication and Technology (ICT) infrastructure
activities and overlapping mandates. Some parastatals has been expanded, with an additional 2,202 Fibre-
have also been identified for privatisation, while to-the-Premises connections achieved nation-wide,
others could be closed. This will reduce undoubtedly bringing the total number of connections to 5,953. The
Government spending on these entities. The review will National Cyber-Security Strategy was also approved in
also make proposals for improvements in SOE corporate October 2020. Furthermore, Mr Speaker, there has been
governance. It is my intention that decisions will be a substantial reduction in the price of mobile broadband
made on rationalising, restructuring, privatisation and in 2020, making Botswana one of the most competitive
liquidation of SOEs in the first half of 2021. countries in Africa in terms of mobile data pricing.
The problems in the SOEs space are unfortunately Mr Speaker, the reduction of mobile broadband prices
confirmed by the continued poor financial performance is consistent with the aspirations of the Broadband
of many of them. Even though some SOEs registered Commission for sustainable development, making
profits in the 2019/2020 Financial Year, these were in Botswana one of the most competitive countries in
most cases lower than in the previous year, the exceptions Africa in terms of mobile broadband internet. Mr
being the Botswana Housing Corporation and the Speaker, these initiatives will enhance our ability to
Botswana Communication Regulatory Authority. harness and take full advantage of ICT in the era of
COVID-19. They will not only support our priority
Some State-owned Enterprises continued to register of enhancing efficient Government spending, but will
unsustainable losses. These include Botswana Power also promote efficiency in the provision of Government
Corporation, Botswana Post and Botswana Agricultural services.
Marketing Board (BAMB). The BPC’s loss reflected Mr Speaker, in order to improve access to, and ensure
increased power imports due to the poor performance reliability in the power supply, Government has
of Morupule B power station, whereas Botswana Post’s completed some key transmission and distribution
loss was due to a rise in other operating expenses, and infrastructure projects. These include the extension of
comes even after Government paid substantial grants the high voltage transmission grid to the North West
to Botswana Post to support the post office network of the country, as well as transmission reinforcement
nationwide, whereas BAMB’s loss was attributable to works in Ramotswa and Gaborone. The North West
an impairment loss and substantial increase in cost of project will unlock mining investments that have been
sales. suppressed due to lack of access to power grid, in
addition to reducing dependency on power imports from
Mr Speaker, these results indeed illustrate the critical
the neighbouring countries.
importance of restructuring the SOEs sector, including
potentially closing down perennial loss-makers, as we Mr Speaker, a draft National Energy Policy has been
cannot continue bailing out these companies from our prepared and is ready for submission to Parliament
scarce tax revenues. In future, SOEs will be required to for adoption. In addition, an Integrated Resource
follow the best principles of corporate governance, for Plan (IRP) for electricity sector development has
instance by providing audited accounts on time. been developed and was launched in December 2020.
The IRP provides a roadmap for achieving a reliable,
REVIEW OF THE 2020 BUDGET
safe and affordable electricity supply, with a target
IMPLEMENTATION
of achieving a 15 per cent contribution of renewable
Mr Speaker, the COVID-19 pandemic has had a energy by 2030, from the current 2 per cent. You can say
major impact on the implementation of the 2020/21 it is an ambitious programme. Implementation of these
budget. Inevitably, it forced us to adjust our spending two documents will ensure energy security of supply to
plans, and re-think our priorities going forward. support economic growth, and will also see Botswana
Nevertheless, despite this and the difficulties posed transforming from being a net importer of electricity to
for the implementation of development projects, there being a net exporter.
6 Hansard No 201Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
Mr Speaker, the 600 megawatts Morupule B Power organisations in the public sector, parastatals and Non-
Plant is currently undergoing comprehensive remedial Governmental Organisations (NGOs).
works to address deficiencies, which are scheduled for
completion by 2023. As per the agreed schedule for the Mr Speaker, an amount of P1.3 billion was approved in the
remedial works, the first unit should have been handed Supplementary Budget for the Industry Support Facility
over to Botswana Power Corporation in September (ISF), which provides soft loans for existing businesses
2020. However, the process suffered delays on account across the economy. The loans are administered through
of travel restrictions which affected the movement of Citizen Entrepreneurial Development Agency (CEDA),
contractors from China. The work is largely complete National Development Bank (NDB) and Botswana
and will be commissioned in June 2021. Development Corporation (BDC), depending on the
size and sector of the borrowing enterprises. Of the
Mr Speaker, in the agricultural sector, Government total, P900 million is provided for general industry,
continued to finance various activities and programmes. while there are dedicated sums of P200 million for
However, results have been mixed, and high levels of tourism enterprises and P100 million for agricultural
agricultural spending have not yielded the anticipated enterprises. An additional P100 million has been made
results in terms of increased output and efficiency. available to provide small grants to informal sector and
Therefore, there is an ongoing review and evaluation of micro enterprises registered with the Local Enterprise
agricultural subsidy schemes such as Integrated Support Authority (LEA).
Programme for Arable Agricultural Development
(ISPAAD) and the Livestock Management and Mr Speaker, updates on the implementation of the ISF
Infrastructure Development (LIMID) Programme. It is by the relevant organisations will be provided as part of
anticipated that going forward, subsidies and support the Committee of Supply presentations by the respective
will be tied to the achievement of output rather than ministries.
simply subsidising inputs and support for commercially- IV. STRATEGIC INITIATIVES FOR THE
focused agriculture. 2021/2022 FINANCIAL YEAR
Meanwhile, Mr Speaker, in order to promote agribusiness Mr Speaker, there is need for a new line of thinking,
and food self-sufficiency, import restrictions have been borrowing largely from key deliverables of the Mid-
imposed. These are facilitated through border closures Term Review of NDP 11 and ERTP. Specifically, I
and regulation of imports of grains and cereals through would like to focus on what is achievable during this
local purchase requirements thresholds. The coverage coming financial year. I will give particular attention to
and threshold of these regulations are reviewed from policy measures and growth strategies that will support
time to time, considering the production capabilities of the restoration of economic activity and incomes, as
local producers. well as economic transformation.
Mr Speaker, this Government is committed to continue Mr Speaker, the problem of “poor value-for-money”
its quest to provide employment opportunities, associated with some ministries has featured prominently
especially for the youth. To this end, several initiatives in previous Budget Speeches, and is worth repeating
have been put in place to create employment. As stated here. Public Expenditure Reviews are useful ways of
in the 2020 State if the Nation Address (SONA), 1,954 identifying means of improving spending efficiency and
jobs were created through the Youth Development will be acted upon. Coupled with this, is the issue of
Fund (YDF), and an additional 1,918 jobs were created poor expenditure outcomes; for example, an assessment
through other youth funding programmes, while of Public Investment Management by the International
Citizen Entrepreneurial Development Agency (CEDA) Monetary Fund (IMF) in 2017 revealed that 37 per cent
and Botswana Investment and Trade Centre (BITC) of public expenditure on infrastructure goes to waste in
created 3,883 and 4,382 jobs, respectively. Government Botswana.
continues to provide a platform for graduates to
acquire work skills to enhance their marketability Mr Speaker, as a way of enhancing the efficiency of
and employability, through the National Internship Government spending, my ministry introduced the
Programme and National Service Scheme (Tirelo Zero-Based-Budgeting (ZBB) approach during the
Sechaba) by placing them in various departments in preparation of the 2021/2022 budget. This has provided
Hansard No 201 7Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
a framework to assist Thematic Working Groups 2021. Once completed, the grain silos will enhance
(TWGs) and Ministries, Departments and Agencies the capacity of grain management and storage to meet
(MDAs) to work out their funding needs from scratch domestic demand.
and thus, enabling them to determine the full cost of
their budgetary requirements. This will also assist in Mr Speaker, Pandamatenga is one of the Special
appropriately prioritising spending plans by directing Economic Zone projects that are expected to attract
resources to where their greatest areas of need are, both domestic and foreign investment and diversify
guided by what Government can afford. the economy and export base beyond mining, thereby
creating job opportunities. In Gaborone, the development
Furthermore, Mr Speaker, in responding decisively to the of the Sir Seretse Khama International Airport Special
adverse economic impact of COVID-19, Government Economic Zone has commenced, with the construction
proposed that P14.5 billion be allocated as additional of the 1.8 kilometer three lane Boulevard One road,
fiscal resources for the ERTP, with P7 billion budgeted which is expected to be completed in May 2021.
for the 2021/2022 financial year. To ensure that our
efforts are focused and aligned to the identified priorities, Mr Speaker, concerning road infrastructure development,
spending will be channelled towards the development of the completion of the Kazungula Bridge across the
economic clusters, such as agriculture, tourism, creative
Zambezi and the Okavango Bridge in Mohembo are
industry and manufacturing. Furthermore, projects …
expected to boost the economy by facilitating both
(Inaudible)… expected to be completed by May 2021.
In addition, Government will develop the platform transit trade and domestic trade. A number of new
for on-line applications for Botswana passports in the projects will be implemented in the 2021/2022 financial
new financial year. The computerisation of borders is year, on which I will provide more details under the
ongoing as well. To this end, Government is currently relevant ministries’ Development Budgets. Plans are
carrying out computerisation of six Border Posts (Two however underway, for developing tourism facilities
Rivers, Bokspits, Makopong, Paarshalt, Zanzibar and around dams such as Gaborone and Thune Dams, as well
Mabolwe), which will be completed this financial year. as, upgrading existing dry ports in Gaborone (Gabcon),
Procurement of equipment for the six border posts has Francistown (Francon) and Palapye (Palcon) and a new
been done, and installation of the Passport and Border dry port will be established in Kasane.
Control System (PBCS) will be carried out during the Mr Speaker, in terms of water supply, the following
current financial year. The automation of all border large scale water and sanitation projects will be executed
posts in Botswana will ensure compliance with the in the next financial year, with the largest share which
requirements of the Public Key Directory (PKD) with is 22 per cent, of the Development Budget allocated
the International Civil Aviation Organisation (ICAO) to water and sanitation. Among the major projects
and hence validate the authenticity and integrity of include; Lobatse Water Supply Master Plan, Masama-
e-passports of other PKD member states. Mmamashia 100 kilometer Water Pipeline; Connection
of Tswapong Villages to Mahalapye (Phase 2); Moshupa
Mr Speaker, digitalisation will also be carried out
Sanitation and the North South Carrier (NSC) 2.3, which
in schools, through procurement of Information and
consists of a water transfer scheme from Mmamashia
Communication Technology (ICT) learning devices
to Gaborone; as well as the upgrading of the existing
for all learners and teachers from Standard 5 to Form 5
Gaborone Water Supply Network.
level. Connectivity to all schools, developing e-learning
material and training teachers and school managers on Mr Speaker, in order to meet our national electricity
basic ICT skills will be carried out. demand at least cost and in an environmentally
responsible manner, Government through the newly
Mr Speaker, the experience of the last year with
approved Integrated Resource Plan, will implement the
restrictions on cross-border trade has demonstrated the
following green technology projects; 100 MW of Solar
need for improved domestic food production to achieve
Power Plants (currently under procurement); the tender
a higher degree of self-sufficiency in selected products.
will be awarded to the successful bidder(s) in the first
To this end, the design and construction of 12 steel
quarter of 2021 and commercial operation is scheduled
grain silos with an overall storage capacity of 60,000
for third quarter of 2022. The two 50MW power plant
metric tonnes is underway at the Pandamatenga Special
sites are located in Selebi-Phikwe and Jwaneng. In
Economic Zone and will be completed by August
8 Hansard No 201Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
addition, a 12 Grid-tied Solar Photovoltaic (total 35 during the year.
MW) by 2022 would also be implemented. Tender
awards are scheduled for the first and second quarters Projected non-mineral income tax revenue has also been
of 2021 and commercial operation to commence in the revised downwards, by P2.37 Billion, reflecting tax
first quarter of 2022. These projects Mr Speaker, will deferment concessions granted to alleviate the impact
be at Kasane, Molepolole, Tutume, Ghanzi, Tsabong, of COVID-19. Revenue from the Bank of Botswana, on
Maun, Serowe, Bobonong, Shakawe, Lobatse, Mamuno the other hand, increased by P2.96 Billion, from P1.16
and Kang. Billion to P4.12 Billion, due to an increase in the Bank’s
distributable net income in 2019. This was, however,
In order to ensure national security of fuel supply, a once-off event, rather than indicating a sustained
construction of Ghanzi and Francistown Petroleum increase.
depots at 30 Million and 60 Million liters capacities
respectively, will be undertaken in the coming financial Mr Speaker, total expenditure and net lending for
year, 2021/2022. 2020/2021 is projected at P69.36 Billion, against the
original budget of P67.62 Billion. This includes P57.20
BUDGET REVIEWS Billion for recurrent expenditure (both ministerial and
statutory), while P12.23 Billion is for the Development
2019/2020 Budget Outturn Budget. This is expected to result in a revised budget
Mr Speaker, the overall fiscal balance for the 2019/2020 deficit of P21.03 Billion, or 11.61 per cent of GDP,
Financial Year was a deficit of P11.10 Billion, or 5.6 in 2020/2021. This represents an extremely serious
per cent of Gross domestic product (GDP), compared deterioration in our fiscal position and has resulted in a
to a projected deficit of P7.93 Billion in the revised rapid depletion of Government accumulated savings in
budget. The deterioration in the budget balance is the Government Investment Account. It has also resulted
mainly attributed to underperformance of total revenues in an increase in borrowing through the Bond Issuance
and grants, which came in at P54.30 Billion, or 10.56 Programme, which was approved by this House as well.
per cent below the revised budget figure of P60.71 The trend in the overall fiscal position is therefore not
Billion. Total expenditure and net lending for the period sustainable and it is essential that it is reversed in the
ending 31st March 2020, on the other hand, amounted 2021/2022 financial year.
to P65.40 Billion, or 95 per cent of the revised budget 2021/2022 BUDGET PROPOSALS
estimate. While recurrent expenditure was largely in
line with the revised budget, development expenditure Mr Speaker, for the financial year 2021/2022, another
underperformed by P3.39 Billion. However, the deficit is anticipated. In that regard, financing measures
underperformance of the development budget was need to be specified in advance. It is anticipated that this
outweighed by that of revenues, resulting in a budget deficit will be financed through the issuance of
significantly larger deficit than originally budgeted. domestic Government bonds and securities, together
with external borrowing.
2020/2021 Revised Budget Estimates
Given the reliance on debt funding, going forward,
Mr Speaker, in the current fiscal year, 2020/2021, total there should be a conscious effort to gradually reduce
revenues and grants are projected to be P48.33 Billion recurrent spending and allocate more resources to
in the revised budget, which is P14.06 Billion below development spending, whilst improving the quality
the original budget of P62.39 Billion, approved by this and impact of that development spending. This is going
House. The decrease is largely due to the near collapse to be very important.
of mineral revenues, which dropped by P13.46 Billion,
or a decline of 67.2 per cent, from P20.02 Billion in the Total Revenues and Grants
original budget to only P6.56 Billion. The revised budget
for Customs and Excise, on the other hand, showed an Mr Speaker, in 2021/2022, total revenues and grants are
increase of P1.12 Billion, from P15.38 Billion to P16.50 budgeted at P64.58 billion. Mineral revenue is estimated
Billion. Value Added Tax (VAT) decreased from P8.55 at P23.20 billion or 36.33 per cent of total revenues,
Billion to P7.1 Billion, given reduced consumption which is significantly higher than the revised budget
primarily due to lockdown measures implemented of 2020/2021 of P6.56 billion. Non-Mineral Income
Tax is estimated at P13.78 billion, which is the second
Hansard No 201 9Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
major source of revenue. Customs and Excise revenue of the Basic Education Sector Public Expenditure
is estimated at P13.52 billion, while Value-Added Tax Review, the ministry will be expected to deliver on its
(VAT) is estimated at P10.67 billion. commitments in the future without expecting additional
resources each year; instead, it must address the clearly-
Total Expenditure and Net Lending identified inefficiencies and like the whole of the public
sector, do more with less.
The Total Expenditure and Net Lending for 2021/2022 is
projected at P70.61 billion. This includes P56.05 billion Mr Speaker, the proposed budget for the Ministry
proposed for recurrent expenditure (both ministerial of Defence, Justice and Security is P8.39 billion, or
and Statutory), while P14.75 billion is proposed for the 16.6 per cent of the total, making it the second largest
Development Budget. recommended Ministerial Recurrent Budget allocation.
However, this represents a decline of P172.81 million
Statutory Expenditure or -2.0 per cent over the 2020/2021 approved budget.
The recommended budget mainly comprises spending
The recommended budget for Statutory Expenditure
commitments for the Botswana Defence Force (BDF),
for the 2021/2022 financial year is P9.20 billion, which
Botswana Police Service (BPS) and Prisons and
is a reduction of P1.40 billion or -13.2 per cent from
Rehabilitation Services. The substantial allocation
the current year’s budget. The decrease is because demonstrates Government’s continued commitment to
no Government bonds are due to mature in the next ensuring adequate national security and maintenance of
financial year, unlike in the previous financial year. This the rule of law as the necessary elements for national
recommended budget is intended to fund normal public development as well as being supportive of the business
debt servicing obligations, Government’s pension environment. Other major cost drivers are service
contribution for civil servants to the Botswana Public charges, aviation fuel, maintenance of aircrafts, food
Officers’ Pension Fund (BPOPF) and other statutory rations, maintenance of facilities and equipment, as well
commitments such as Specified Officer’s remuneration. as other operational costs for the security forces.
Ministerial Recurrent Budget Mr Speaker, the third largest share of the proposed
Ministerial Recurrent Budget of P7.90 billion or 15.6
Mr Speaker, the proposed total Ministerial Recurrent per cent, is recommended for allocation to the Ministry
Expenditure for the financial year 2021/2022 is P50.66
of Health and Wellness. The ministry has recorded
billion, which is an overall decline of P714.74 million
a growth of P165.32 million or 2.1 per cent over the
or -1.4 per cent over the current year’s approved budget.
current financial year approved budget. The proposed
This is shared among ministries and departments as
budget mainly covers the cost of the provision for drugs,
follows:
dressings and vaccines, including antiretroviral therapy
Mr Speaker, the Ministry of Basic Education has programme and laboratory supplies. Other substantial
been allocated the largest share of 18.8 per cent of budget items include medical specialist fees, budgetary
the proposed ministerial recurrent budget amounting provision for the Public Officers’ Medical Aid Scheme
to P9.52 billion. The amount represents a growth of and service charges as well as maintenance of health
P510.84 million or 5.7 per cent over the current year’s facilities.
approved budget. The growth mainly comprises the
Mr Speaker, additional funding has been included to
budgetary provisions for creation of a total of 1 751
further support Government’s response and interventions
positions of teachers to align with COVID-19 protocols
to contain the pandemic and to mitigate the risks of
in terms of reducing class size and social distancing
new infections, spreading or resurgence of the disease.
in schools across the country. This proposed budget
The funding comprises personal protective equipment
is mainly driven by personal emoluments for teachers
for public health personnel and other support frontline
and service charges, especially water and electricity in
workers, medicines for the fight against the pandemic,
schools. Other costs associated with schools include
quarantine costs and acquisition of vaccines in line
provision of food, text books, materials for practical
with the agreement with the World Health Organisation
subjects as well as stationery. Having said that, Mr
(WHO).
Speaker, I must emphasise that, in line with the findings
10 Hansard No 201Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
Mr Speaker, the proposed budget for the Ministry of subventions for the financial year 2021/2022. This will
Local Government and Rural Development is P7.14 hopefully incentivise local authorities to prioritise their
billion, which represents the fourth largest share of internal revenue generation efforts and reduce costs.
14.1 per cent of the proposed Ministerial Recurrent
Budget. This represents a minor decline of P12.34 Mr Speaker, the Ministry of Tertiary Education,
million, or -0.2 per cent, over the current financial year. Research, Science and Technology’s budget allocation
The recommended budgetary provision is to support for the financial year 2021/2022 is P4.60 billion. The
among others, initiatives to improve local governance, recommended budget represents the fifth largest share at
strengthen social development and promote local 9.1 per cent of the proposed Ministerial Recurrent Budget.
economic development. The main cost driver for the It is likely driven by the tertiary students’ sponsorship
recommended budget is Revenue Support Grants (RSG) programme which entails allowances, tuition fees and
to district and urban councils, which accounts for 57.6 medical expenses for Government-sponsored students
per cent of this ministry’s proposed Recurrent Budget. enrolled in both public and private tertiary institutions.
The proposed budget also includes interventions such The proposed budget also includes staff and operational
as preventative measures at primary schools and the costs of tertiary institutions and parastatals under the
provision of psycho-social support services to the ministry. The proposed budget allocation is geared
general public in response to the effects of COVID-19, towards providing appropriate education and training
such as the rising number of Gender Based-Violence
to students so that upon completion of their studies,
(GBV) incidents against women and children. The
they could become active players in the transition of the
recommended budgetary provision for Old Age Pension
country to a knowledge-based economy.
Scheme which has registered a rising growth from the
increase in the number of beneficiaries by 11.2 per cent The Ministry of Transport and Communications
from 124,078 in 2020/2021. recommended budget of P1.82 billion includes fuel
Mr Speaker, with regard to subventions to local and lubricants, road maintenance, computer systems
authorities, it is important to acknowledge that there has consumables and maintenance, postal charges and
been insufficient attention paid to maximising potential agency fees, office equipment maintenance and sub-
contracted repairs. Mr Speaker, the funding will mainly
revenue collection by local authorities. For example,
cover the operational costs of the ministry in order to
urban councils should exercise due diligence in collecting
drive the development and utilisation of Information
the property rates due to them, instead of relying on
and Communications Technology (ICT) and integrated
subventions from central Government to bail them
transport services in Botswana. The budget also includes
out. This is not sustainable and local authorities will be
subventions to Civil Aviation Authority of Botswana
expected, in future, to cover more of their expenditures
(CAAB) and to meet the Universal Service Programme
from revenues that they generate themselves. This
obligations, which entail Government support for loss
ministry which is the Ministry of Finance and Economic
making post offices under Botswana Post. I must also
Development has also engaged the Ministry of Local
add, Mr Speaker, that the CAAB also needs to become
Government and Rural Development on revenue
less dependent on Government subventions and should
maximisation initiatives by councils. Follow-ups are
devise means to generate more revenues and reduce
being made to ensure that the local authorities are
costs.
intensifying their revenue collection efforts, including
property rates, Self Help Housing Agency (SHHA) Mr Speaker, the Ministry for Presidential Affairs,
loan repayments, and fees from recreational or other Governance and Public Administration has been
facilities. The ministry will also undertake a valuation allocated a proposed Ministerial Recurrent Budget
exercise for eligible properties outside of towns and of P1.58 billion. The budget allocation is aimed at
cities, which will assist the effort to extend the rateable supporting the ministry in its quest to safeguard and
property base and collect appropriate rates. promote good governance as well as to guide sustainable
socio-economic growth and development for the benefit
Mr Speaker, in order to compel local authorities and
of all citizens. The budget will mainly cover operational
land boards to play their part in budget sustainability, a
costs for Office of the President and it has been slightly
5 per cent efficiency factor was applied to reduce their
augmented to cater for the envisaged Constitutional
Hansard No 201 11Monday 1st February, 2021 APPROPRIATION (2021/2022) BILL, 2021
(NO. 2 OF 2021) Second Reading
Review exercise. Included in the proposed allocation is accounts for 57.8 per cent, covering mainly the wage bill
the budgetary provision for Directorate on Intelligence and other running costs. These supports Government’s
and Security (DIS). Other costs include subscription commitment to ensure access and availability of land
costs for access to the television satellite and maintenance through demarcation and allocation of plots to support
of transmitter contracts, as well as subventions to the economic development and growth.
Botswana Red Cross, 2036 Vision Council and Public
Enterprises Evaluation and Privatisation Agency Mr Speaker, the remaining P5.41 billion is to be shared
(PEEPA). among the rest of the ministries and extra-ministerial
departments.
Mr Speaker, the proposed amount of the Ministerial
Recurrent Budget for the Ministry of Agricultural Development Budget
Development and Food Security is P1.39 billion, which
A sum of P14.75 billion is proposed for the Development
is intended to support the agriculture sector in pursuit of
Budget in the 2021/2022 financial year. The proposed
improved domestic food production to achieve a higher
degree of self-sufficiency in agricultural products. budget will finance programmes and projects crucial
The proposed budget mainly comprises subventions for restoration of economic growth. My ministry has
to Botswana University of Agriculture and Natural ensured that the proposed programmes and projects
Resources (BUAN) and National Agricultural Research are aligned to the Mid-Term Review of the National
and Development Institute (NARDI). The latter Development Plan (NDP) 11 and Economic Recovery
includes both Department of Agricultural Research and Transformation Plan (ERTP), as well as the
(DAR), National Veterinary Laboratory (NVL) and approved Strategic Thrusts.
National Food Technology Research Centre (NFTRC),
which are really a merger of the institution. Mr Speaker, Mr Speaker, in order to alleviate pressure on the
the recommended budget also covers costs of Foot and Government budget in the short to medium term,
Mouth Disease (FMD) vaccinations, operational costs other forms of project delivery, such as Public Private
for Botswana Meat Commission (BMC) Maun and Partnerships (PPPs), continue to be pursued to deliver on
maintenance of existing facilities, including camps, planned projects. With respect to engaging of the private
plant and equipment and computer systems such as the sector in the implementation of projects using the PPP
Botswana Animal Information and Traceability System model, several ministries have already identified some
(BAITS). suitable projects. The Ministry of Land Management,
Water and Sanitation Services has invited the private
With regard to the Ministry of Investment, Trade and sector to undertake the Reclamation and Treatment
Industry, Mr Speaker, it has been allocated an amount of of the Wastewater project at Glen Valley, while the
P975.03 million. The recommended budget comprises Ministry of Mineral Resources, Green Technology and
mainly transfers to parastatals under the ministry, Energy Security has already pre-qualified bidders for
which accounts for 76.8 per cent of its recurrent budget. the Coal to Liquid Project. Private sector partners will
These includes funding for the Citizen Entrepreneurial be contracted, in the coming financial year, to finance,
Development Agency (CEDA) in the implementation of construct and operate these projects.
its revised guidelines, and improved support for Citizen
Economic Empowerment (CEE) under the Local Mr Speaker, in addition, requests for Expressions
Enterprise Authority (LEA). of Interest (EOI) to build, finance and operate the
following projects on a PPP basis will be issued in the
In terms of the allocation to the Ministry of Finance and coming financial year: the Zambezi Agro-Commercial
Economic Development, it amounts to P966.92 million, Development project and the Chobe-Zambezi Water
which includes operational costs for the ministry as well Transfer Scheme; Tshele Hill Bulk Fuel Storage Facility;
as grants, subventions, other transfers to parastatal and Sepopa Prison Farm; headquarters for Botswana Prison
other organisations under this ministry, which accounts Services; Serowe Magistrate Court; the Offender
for 33.5 per cent of its recurrent expenditure. Rehabilitation Centre in Lobatse; the Francistown-Nata
road; Maun-Mohembo road; and the Mmamabula-
Mr Speaker, the Ministry of Land Management, Water
Lephalale and Mosetse-Kazungula railways. These
and Sanitation Services is allocated a Ministerial
are projects that we expect the private sector to join
Recurrent Budget of P963.95 million. The budget mainly
Government in delivering.
covers transfers to land boards across the country, which
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