Botswana - Economic Recovery Support Program (ERSP)

The proposed project is a loan of One hundred and thirty-seven million United States Dollars (USD 137,000,000.00) to the Republic of Botswana to finance the Economic Recovery Support Program (ERSP). The operation is designed in response to a request submitted by the Government of the Republic of Botswana (GRB) in November 2020. The ERSP is designed as a programmatic series of two consecutive General Budget Support (GBS) operations covering the fiscal years 2021/22-2022/23. The proposed loan is the first of the two-year series of the Program Based Operation (PBO). Designed as a two-year programmatic operation, the ERSP will help address immediate macroeconomic challenges as well as medium to long term challenges facing Botswana. The long-term tenure of the Government’s borrowing for this operation will help to improve the reserve position and extend the maturity profile of Government debt. The package of reforms under the proposed program is organised around three mutually reinforcing and complementary components. Component 1, Improving Fiscal Efficiency and Sustainability. Component 2, Supporting Private sector-led Agriculture, and Industrial Sector Transformation. Component 3, Enhancing Economic and Social Inclusion. Program implementation will be strengthened through the complementary ongoing and planned technical assistance supported by development partners.