Government Prioritizes SME Growth with New Funding and Policy Reforms. In the 2025/2026 Budget Speech, Botswana’s Vice President and Minister of Finance, Mr. Ndaba Gaolathe, reaffirmed the government’s commitment to strengthening Small and Medium Enterprises (SMEs) as a key driver of economic growth and job creation. The budget outlines targeted financial support, policy reforms, and capacity-building initiatives to ensure SMEs can thrive in a competitive business environment.
A major highlight is the introduction of an SME Development Fund aimed at improving access to credit for small businesses. The government will work with financial institutions to ensure favorable loan terms and streamlined application processes. Additionally, tax incentives will be provided to ease the financial burden on startups and growing enterprises.
To create a more business-friendly environment, the government is set to reduce regulatory bottlenecks that often hinder SME growth. Measures include simplifying business registration, reducing licensing fees, and enhancing legal protections for small business owners. These reforms aim to encourage entrepreneurship and formalize more businesses.
Recognizing the need for skills development, the budget allocates funds for SME training programs focused on financial literacy, digital marketing, and operational efficiency. The government also plans to enhance SME participation in national and regional supply chains by facilitating partnerships with larger corporations and public sector procurement opportunities.
Investments in transport, digital infrastructure, and innovation hubs will help SMEs expand their reach. Businesses adopting technology-driven solutions will receive incentives, ensuring Botswana’s SME sector remains competitive in an increasingly digital economy.
