Botswana’s 2025/2026 Budget: Key Initiatives for Business and SMEs. On February 10, 2025, Botswana’s Finance Minister, Ndaba Gaolathe, delivered the 2025/2026 Budget Speech, outlining several initiatives aimed at bolstering the business environment, with a particular focus on small and medium-sized enterprises (SMEs).
Recognizing the nation’s heavy reliance on diamond revenues, the government emphasized the urgency of diversifying the economy. Minister Gaolathe highlighted plans to stimulate growth in sectors such as tourism, agriculture, manufacturing, and energy. These efforts are designed to create a more resilient economic foundation and open new avenues for business ventures.
The budget introduced measures to support SMEs, acknowledging their critical role in job creation and economic development. Initiatives include:
- Access to Finance: The government plans to enhance funding mechanisms to provide SMEs with easier access to capital, facilitating business expansion and innovation.
- Capacity Building: Programs will be implemented to offer training and mentorship, equipping small business owners with essential skills to navigate the competitive market landscape.
- Regulatory Reforms: Efforts are underway to streamline business registration and licensing processes, reducing bureaucratic hurdles and fostering a more conducive environment for entrepreneurship.
To support fiscal consolidation, the budget proposes a 1.5% increase in both corporate and individual marginal tax rates. Additionally, the government plans to introduce value-added tax (VAT) on digital transactions and implement electronic invoicing to enhance tax collection efficiency.
Significant allocations have been made for infrastructure projects, which are expected to benefit the business community. The Ministry of Transport & Infrastructure has been allocated P4.31 billion, focusing on modernizing transportation networks to improve the movement of goods and services.
The government is actively promoting PPPs as a strategy to leverage private sector expertise and investment in public projects. This approach aims to enhance service delivery and create opportunities for businesses to participate in national development initiatives.
The 2025/2026 budget reflects Botswana’s commitment to fostering a dynamic business environment, with targeted support for SMEs and strategic investments in key sectors. These initiatives are poised to drive economic growth and diversification, positioning the country for a sustainable future.
