Transcript The policy challenge and efficiency spending Session 4

BOTSWANA PRESENTATION
Mr Ponatshego Moemele
Botswana’s economy is dominated by the mining sector, mostly diamonds, which
accounts for about one third of GDP. The sources of growth in Botswana are not broad
based or diversified, leaving the economy open to external shocks with limited
opportunities for employment creation. Agriculture is one of the sectors that have
been identified as avenues for this diversification. A majority of people in Botswana is
fundamentally based in agriculture. Approx. 80% of the population earn their livelihood
from agriculture as farmers, Agric. Labours or both.
Majority of farmers in Botswana are subsistence and they account for most of the
cultivated land and livestock production. The agricultural sector spends less than 3% of
the national budget . The share of the agriculture sector to the country’s GDP has
remained relatively low, declining from around 5% in the 1990s to 1.9% in 2012. The
sector faces a number of challenges such as:
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Poor infrastructure
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Over dependence on rain fed agriculture
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Poor management of Agricultural land
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Weak Agro – Industries and poor linkages within the value Chain in Agriculturally
Products
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Diseases and pests threats (FMD outbreaks)
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Poor Extension outreach, Information dissemination and technology transfer
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Poor Agribusiness skills

Effects of Climate change
The following processes have been undertaken to reform the agricultural sector;
 Public Finance Management Reform
 Commercialization
 National Agricultural Master Plan for Arable Agriculture and Dairy Development – productivity
of farmers has improved from 5 litre/cow to 18 litre/cow. Cereal productivity is has
increased from 200kg/ha to 1.2ton/ha.
 Cluster initiatives: community farms to facilitate good ranch management have been
demarcated; cereal productivity has increased from 200 kg/ha to up to 4tonnes/ha in some
areas.
 Pandamatenga infrastructure development: improved accessibility within the production area.
 Weaner Production: Increased sales at the Botswana Meat Commission.
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ISPAAD: offers the following components to farmers; cluster fencing, free seed and free
ploughing and planting for field crops and horticulture
. Cereal production increased from about 56 000 Mt in 2008 000 Mt and increased to 62 000
Mt in 2011 however it went down to 53 000 Mt in 2012 due to drought. Horticulture:
Production increased from 36 000 2010 Mt to 41 000 Mt in 2012.
LIMID: Increase productivity of livestock subsector. Budget: P25 Million: outcome: 4 142
small stock projects (20 goats). ( 42 boreholes have been drilled, 9 purchased, 14
beneficiaries reticulated water).
Restructuring: to oversee all sub sectors of the ministry at the districts at the district level.
promoting production according agro – ecological zones outcome: Commodities have been
clustered according to agro- ecological climates.
RESULT ORIENTED / PERFORMANCE MEASURES
The following objectives will assist us in coming up with
performance measures;
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Improved food security
Diversified the agriculture sector
Reduction in prevalence of Disease outbreaks and pests
infestation
Environmentally sustainable production systems
Increased participation of disadvantaged groups in agricultural
programs
Ease access to markets for agricultural products
CHALLENGES
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Inadequate resources ( Budget limitation)
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Lack of Agricultural Investment plan to attract Donors
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Political will
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Modern Technology adoption
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Limited technical capacity/expertise and research specific to climate
change issues.
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Private sector participation
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Disease outbreaks
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Climate Changes
Public Finance Management:
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Institutional changes – PFM unit
Medium term fiscal framework which guides in preparation of realistic resource
envelope
Adoption of Medium –Term Fiscal framework – forecasting of expenditure will be guided
by policy priorities – this affects the issue of outcome based priorities
Accrual Accounting implementation – consultant come up with accrual approach
MINISTRY BUDGET VS NATIONAL BUDGET
FINANCIAL
YEAR
MINISTRY BUDGET (Pula)
NATINAL BUDGET (Pula)
MINISTRY SHARE
%
2010-2011
1,145,052,290
46,182,966,226
2.5%
2011-2012
1,303,427,030
38,270,706,861
3.4%
2012-2013
1,369,984,120
36,437,436,305
3.6%