Business

El-Niño adds P1.3bn blow to budget woes

Heavy blow: The country’s delicate fiscal position will be further hurt by the need to finance drought relief measures
 
Heavy blow: The country’s delicate fiscal position will be further hurt by the need to finance drought relief measures

In June, President Mokgweetsi Masisi declared an “extreme agricultural drought” noting that 16,000 livestock deaths had been recorded countrywide over the summer, while cereal production dropped to just six percent of national demand.

The dry conditions associated with El Niño also caused 1,170 outbreaks of wildfires, affecting 855,861 hectares of land, an area more than 50 times the size of Gaborone city.

This week in Parliament, assistant Local Government and Rural Development minister, Mabuse Pule, told legislators in order to fund the P1.3 billion cost of the drought, the different ministries were expected to redirect part of their 2024–2025 budget.

The ministries will get back the redirected funds in the third quarter of the financial year through a supplementary budget to be tabled by the Finance ministry.

“In the face of severe drought conditions in Botswana during the 2023–2024 season, the well-being of elderly individuals and children in hotspot areas has emerged as a critical concern,” he said in response to Kanye North legislator, Thapelo Letsholo’s question. “These populations are particularly vulnerable due to factors such as reduced mobility, limited access to resources due to lack of rain for ploughing and pre-existing health conditions. “The prolonged drought has exacerbated these challenges, leading to increased food and water insecurity, heightened health risks and deteriorating living conditions,” he said.

Interventions to be implemented under the emergency drought declaration include government paying 85% of seasonal loans farmers received from state financiers, providing a 30% livestock feed subsidy and increasing the national labour-based social support programme by 30,000 new slots.

The government will also provide double food rations to moderately and severely underweight children up to five years old, while also providing double rations to other vulnerable groups such as expectant mothers. An extra meal a day is being considered for children in government primary schools countrywide, while elderly people previously dependent on agriculture will also receive a food basket for 12 months.

Botswana and the rest of southern Africa was hit by a severe lack of rain in the cropping season that in some areas caused the worst drought in 40 years. In May, the Southern African Development Community launched a $5.5 billion humanitarian appeal to help an estimated 61 million people affected by El Niño drought and floods in the region.

For Botswana, the costs of the drought relief come at a time when fiscal authorities are battling with the impact of a steep diamond downturn on the national budget. Finance minister, Peggy Serame, recently said she had secured approval to trim some recurrent spending such as extraneous travel and conferences, while spending on some projects could be slowed to later in the financial year when the revenue situation has improved.