PREVIEW
Investments worth up to $12 billion should help government plug deficit
President Duma Boko is hoping that pledged Qatari investments worth up to US$12 billion will help plug a hefty deficit left by his predecessor and boost his bid to buy a controlling stake in diamond giant De Beers. But no timeframe for the disbursement has been made public yet.
The deal signed on 21 August between Al Mansour Holdings and the state-owned Botswana Development Corporation will focus on sectors including infrastructure, energy, mining, diamond refinement, agriculture, tourism, cybersecurity and defence. It will ‘accelerate our national development goals,’ Boko said.
Al Mansour is owned by Qatari royal Sheikh Mansour bin Jabor bin Jassim al Thani.
Boko inherited an economy that slumped 3% in 2024 on the back of a downturn in the diamond market. He made pre-election promises to increase wages and pensions that are forecast to result in a budget deficit of 22bn pula ($1.6bn), equivalent to 7.6% of GDP (AC Vol 66 No 6, Boko’s team hikes spending but diamond market falters & Vol 65 No 23, Boko wins big).
‘This historic move will be enough to address immediate challenges facing the country,’ said Boko.
The funding could also be vital to the Boko government’s plan to purchase a portion of the 85% stake in De Beers that Anglo American is selling. The company wants to divest quickly, with Chief Executive Officer Duncan Wanblad telling journalists earlier in August that the ‘commitment to exit De Beers is unwavering,’ and suggesting that the sale could be concluded within six months.
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