Botswana secures $503.75 million loan from AfDB
The new financing offers budget relief but raises questions about future revenue and debt repayment.
Botswana has secured a US$503.75 million loan, equivalent to P6.62 billion, from the African Development Bank (AfDB) approved last Friday, October 23. This new facility provides financial relief and is roughly a quarter of the P26.35 billion deficit projected for the 2026/27 financial year.
The latest loan follows a US$304 million facility approved on May 14, 2025, for the 2025/26 fiscal year, which was fully disbursed by June 2026. Finance Minister Ndaba Gaolathe had previously outlined a five-year grace period followed by 15 years of repayments for that loan, with a variable interest rate of 5.51 percent.
As of June 2026, Botswana's public debt stood at approximately P95 billion, or 32.12 percent of GDP, including government guarantees. Direct government debt, excluding guarantees, was P86.33 billion, with successive loans carrying their own repayment schedules.
Why it mattersBotswana's government is borrowing more money, increasing the national debt and raising concerns about its ability to repay.