Botswana is negotiating AfDB financing for skills and enterprise development, but the project document gives little detail on the borrowing amount, repayment terms or fiscal burden.
GAZETTE REPORTER
Botswana is negotiating a loan from the African Development Bank (AfDB) to support job creation through skills development, entrepreneurship and enterprise growth.
The proposed financing is for the Botswana Skills, Entrepreneurship and Enterprise Acceleration for Job Creation in Priority Sectors (RBF) Project, according to its Environmental and Social Management Plan (ESMP).
The government is seeking the financing as unemployment and dependence on diamonds continue to drive pressure for economic diversification.
Approval Pending
The ESMP states that Botswana is “currently negotiating a loan” with the AfDB.
The financing would proceed only after approval by the bank and the government through Parliament.
The project targets skills development, entrepreneurship and enterprise acceleration in priority sectors, with support intended to create employment opportunities.
The ESMP provides little detail on the proposed loan’s size, repayment terms or financial burden on government.
Borrower’s Obligations
As the borrower, Botswana would remain responsible for meeting the environmental and social requirements attached to the financing, even where entities outside the Project Management Office carry out implementation.
The government would also have to monitor implementation and report progress to the AfDB in accordance with the ESMP and the eventual financing agreement.
The bank would monitor and assess progress and completion of the required measures throughout implementation.
The ESMP allows requirements to be revised where project changes, unforeseen circumstances or performance assessments make adjustments necessary.
Safeguards Required
For projects involving multiple subprojects, Botswana would have to demonstrate its capacity to undertake appropriate environmental and social assessments and comply with national laws and the bank’s operational safeguards.
The proposed borrowing forms part of the government’s effort to accelerate employment through productive sectors rather than rely solely on public-sector jobs.