Standard Chartered Botswana Urges Fiscal Discipline Amid Rising Debt

Standard Chartered Botswana Urges Fiscal Discipline Amid Rising Debt. Standard Chartered Bank Botswana Board Chairman Solomon Sekwakwa has issued a strong call for fiscal discipline and prudent financial management as the country faces declining revenues and mounting public debt.

Speaking during the announcement of the bank’s 2025 full-year financial results, Sekwakwa — a former Permanent Secretary in the Ministry of Finance — warned that maintaining high levels of expenditure despite reduced income is unsustainable and risks deepening Botswana’s fiscal challenges.

He noted that the country’s financial buffers, once supported by reserves built to absorb economic shocks, have been significantly eroded. “One of the reasons we had strong reserves was to absorb shocks. But when revenues went down, spending did not adjust accordingly,” Sekwakwa explained.

The imbalance between income and expenditure, he said, has contributed to growing fiscal strain, underscoring the need for policymakers to realign national spending with current economic realities. Drawing a parallel with household financial management, Sekwakwa stressed that governments, like individuals, must learn to live within their means.

In addition to concerns over spending, Sekwakwa cautioned against excessive reliance on borrowing as a solution to fiscal deficits. He warned that increasing debt without corresponding revenue growth could trap the economy in a cycle of dependency. “If borrowing continues while revenues decline, you will inevitably find yourself needing to borrow even more,” he said.

While acknowledging that borrowing can be a useful tool for financing development, Sekwakwa emphasized that it must be approached with caution and supported by clear strategies to grow income. He urged government to prioritize the identification and development of sustainable revenue streams to bridge the widening gap between expenditure and earnings.

His remarks reflect growing concern among financial leaders about Botswana’s long-term economic stability, highlighting the urgent need for decisive action to safeguard resilience and future growth.