Botswana’s Ministry of Finance is embarking on a significant digital transformation, requesting parliamentary approval for P8.83 billion under the Twelfth National Development Plan (NDP 12). This substantial investment signals a strategic shift towards leveraging technology to enhance fiscal discipline, modernize tax collection, and foster private sector expansion.
Finance Minister Ndaba Gaolathe, during the Public Investment Programme (PIP) presentation, highlighted that these funds are crucial for establishing a ‘new economy.’ The allocation covers both ongoing and new initiatives, with a substantial portion dedicated to projects aligned with the Botswana Economic Transformation Programme (BETP).
Modernizing Revenue Collection
The Botswana Unified Revenue Service (BURS) is set to receive the largest share of this investment, totaling P4.13 billion. Key initiatives include the implementation of electronic VAT invoicing, digital taxation for online services, and upgrades to border infrastructure. These measures aim to broaden Botswana’s tax base and improve compliance, thereby enabling more sustainable funding for social and infrastructure programs.
Driving Digital Innovation
Technology and digital systems are at the core of the ministry’s agenda. P486 million is allocated for various ICT development projects. These include the development of a national payment switch, an upgraded government accounting and budgeting system, and the creation of a regulatory sandbox to foster fintech innovation. An e-procurement platform is also planned, intended to enhance efficiency and curb corruption.
Strengthening State-Owned Enterprises and Infrastructure
State-owned enterprises are slated to receive P2.3 billion for restructuring efforts. A notable initiative involves transforming the National Development Bank into an agricultural lender to better support the sector. Additionally, P1.29 billion is earmarked for infrastructure development, which includes constructing new offices for critical financial institutions.
Minister Gaolathe emphasized the transformative potential of this plan, describing it as a pathway to ‘dignity, opportunity, and hope.’ The objective is to build an economy that generates employment, rewards innovation, and ensures the efficient utilization of public funds for the benefit of all citizens.
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