## Botswana: 2022 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Botswana

_IMF Staff Country Reports, July 27, 2022_

## Source details

**Canonical URL:** [Botswana: 2022 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Botswana](https://www.imf.org/en/publications/cr/issues/2022/07/25/botswana-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-521327)

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## Bibliographic details
- Published: July 27, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400218156.002

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### Key findings
- A successful vaccination campaign, prudent macroeconomic management, and strong demand for diamonds have allowed Botswana to recover to its pre-pandemic output level.
- Implementing the planned medium-term fiscal consolidation will rebuild buffers and financial assets for future generations.
- The consolidation plan will achieve fiscal surplus over the medium term and rebuild the Government Investment Account to shield the economy against shocks and build an asset base.
- Bringing inflation back within the Bank of Botswana’s objective range will require additional monetary tightening.
- In the absence of further tightening, the broad-based rise in inflation risks de-anchoring inflation expectations and requiring even sharper tightening later with negative effects on growth.
- Successful implementation of the Reset Agenda will enhance Botswana’s resilience and ensure sustained high-job rich growth.
- Implementation of the Reset Agenda will diversify the economy toward financial services (facilitated by fintech), manufacturing, and tourism, and transform Botswana into a high-income status as per Vision 2036.

### Fiscal policy and medium-term consolidation
- Planned medium-term fiscal consolidation is central to rebuilding buffers and financial assets for future generations.
- The consolidation plan targets a fiscal surplus over the medium term.
- Rebuilding the Government Investment Account is a specific objective to shield the economy against shocks and build an asset base.

### Monetary policy and inflation management
- Additional monetary tightening is required to bring inflation back within the Bank of Botswana’s objective range.
- Failure to tighten further risks de-anchoring inflation expectations and could necessitate sharper tightening later with negative effects on growth.

### Structural reforms and the Reset Agenda
- The Reset Agenda aims to enhance resilience and secure sustained high-job rich growth.
- Structural transformation priorities include:
  - Diversification toward financial services (facilitated by fintech), manufacturing, and tourism.
  - Enhancing accountability, competition, and governance.
  - Deepening trade integration.
  - Accelerating the energy transition.

### Subjects and keywords
- Subjects: Expenditure, Fiscal policy, International organization, Monetary policy, Prices.
- Keywords: Botswana authorities, Botswana's economy, Fiscal consolidation, Fiscal stance, Global, government ministry, import bill, Inflation, monetary policy transmission, Sub-Saharan Africa.

*IMF Staff Country Report No. 2022/247; July 27, 2022.*

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_Source: https://www.imf.org/en/publications/cr/issues/2022/07/25/botswana-2022-article-iv-consultation-press-release-staff-report-and-statement-by-the-521327_