‘Reserves ringfencing’ debate stirs as GIA falls
Friday, July 05, 2024 | 460 Views |
![Advising: Technocrats at the BoB are engaging government on the reserves PIC: MORERI SEJAKGOMO](https://cdn4.premiumread.com/?url=https://www.mmegi.bw/mmegi/uploads/images/2024/07/06/113519.jpg&w=800&q=72&f=jpg)
Advising: Technocrats at the BoB are engaging government on the reserves PIC: MORERI SEJAKGOMO
Since at least 2020 when government dug deeply into the reserves to finance the COVID-19 budget response, the central bank has been advocating for a portion of the savings to be set aside or “ringfenced”. The Pula Fund, which houses the country’s savings comprising decades of budget surpluses and diamond revenues, took a beating during the pandemic and has been gradually recovering since, as the economy has gathered momentum.
Government’s own savings, as housed in the Government Investment Account (GIA), managed by the Bank of Botswana, sank to P3 billion during COVID-19 before recovering to a peak of P18.6 billion last April helped by the strong diamond rebound in 2022. However, since then, the GIA has been sliding due to higher budget spending, reaching a post-COVID low of P5.2 billion in April 2024.
These roads, which are vital conduits for trade and tourism, have long been in dire need of repair. However, while this development is undoubtedly a positive step, it also raises questions about broader issues of infrastructural management and road safety that deserve closer scrutiny.The A3 and A33 roads are not just any roads, they are critical arteries that connect Botswana to its neighbours and facilitate the movement of goods and people...