Assembling a strong council of advisors by the Vice President and Minister of Finance Ndaba Gaolathe marks the first step towards taking Botswana out of its economic woes. The team includes Absa senior economist Naledi Madala and the Commissioner General of BURS Jeanette Makgolo and will work closely with the Permanent Secretary of the Ministry of Finance Tshokologo Kganetsano to devise radical economic, monetary and fiscal reforms aimed at delivering Botswana from a decline made worse by plummeting prices on the international diamond market where the lustre of the natural stones is being stolen by lad-grown synthetics
LETLHOGILE MPUANG
The Vice President and Minister of Finance Ndaba Gaolathe has been working round the clock to assemble a team of economic advisors to help address Botswana’s financial challenges.
Sources say the advisory team consists of local and international experts.
Since the Umbrella for Democratic Change (UDC) assumed power in late 2024, Botswana has faced significant economic hurdles.
The country’s reliance on diamond exports, which account for 90% of foreign exchange earnings, has made it vulnerable to market fluctuations.
High unemployment
A downturn in the diamond market has led to declining revenues, causing foreign exchange reserves to drop from P63.9 billion in September 2023 to P52.8 billion a year later.
Economic growth has also slowed, with GDP projected at just 1% for 2024, down from 2.7% in 2023 and 5.5% in 2022. High unemployment remains a major concern, reaching 27.6% in early 2024, with youth unemployment even higher.
One of Gaolathe’s first major moves was appointing former Bank of Botswana (BoB) deputy governor Tshokologo Kganetsano as Permanent Secretary (PS) at the Ministry of Finance.
Seasoned monetary policy expert
Officially appointed on 31 December 2024, Kganetsano replaced Olesitse Masimega, who was reassigned to the Ministry of Trade and Entrepreneurship.
A seasoned monetary policy expert, Kganetsano had been with BoB since 1995, holding senior roles such as Director of Research and Financial Stability and Deputy Governor.
His expertise in financial stability and exchange rate policy is expected to be instrumental in shaping Botswana’s fiscal direction.
Broader economic expertise
Gaolathe has also enlisted Absa senior economist Naledi Madala as a Senior Policy Advisor. Madala specialises in macroeconomic analysis, fiscal policy, and financial sector research, with a strong background in infrastructure development and investment strategies.
In addition, reports say that Gaolathe is consulting with former South African finance minister, Trevor Manuel. Although the government has not officially confirmed his involvement, sources say Manuel is advising on economic reforms.
Widely credited with stabilising South Africa’s economy, Manuel served as his country’s finance minister from 1996 to 2009, driving foreign investment and reducing national debt.
Key role in diamond deal
Another key figure in Gaolathe’s advisory circle is Permanent Secretary to the President, Emma Peloetletse. While there is speculation about her possible departure, she remains an influential economic strategist.
Peloetletse played a key role in the recent diamond deal negotiations with De Beers and advised the new government against making drastic changes to the agreement.
Additionally, Gaolathe is said to be impressed by the Commissioner General of Botswana Unified Revenue Service (BURS), Jeanette Makgalo. Under her leadership, tax revenue collections have surged.
Maiden budget speech
BURS has set an ambitious revenue collection target of P70.5 billion for the 2024/25 financial year – an increase of P11.4 billion from the previous year – signalling the government’s commitment to stronger tax compliance and reduced reliance on mineral revenues.
Gaolathe is set to deliver his maiden budget speech next Monday. The public awaits in hope, looking for solutions to economic hardships and the fulfilment of the UDC’s campaign promises.