The African Development Bank approved a loan of 503.75 million dollars, or 6.62 billion pula, for Botswana on 23 October. The operation is designed to help the country cushion the energy shock and finance reforms to support private investment and employment.
The programme provides three months of additional monthly payments for around 279,000 elderly, disabled or vulnerable people, according to the AfDB.
The programme is also intended to support small and medium-sized enterprises. The AfDB targets 3,292 active SMEs and 3,935 direct jobs in the 2027/2028 fiscal year, with a large majority of beneficiary businesses owned by women.
The energy component supports the goal of universal electricity access by 2030, up from 79.5% of households in 2025/2026. It provides for new solar and wind capacity as well as an extension of the Francistown fuel depot.
The slowdown in diamonds, which accounts for about 30% of GDP and nearly 80% of exports, contributed to economic contractions in 2024 and 2025, according to the AfDB. The loan is the first phase of a two-year programme, also funded by the OPEC Fund for International Development to the tune of 170 million dollars.