Africa Financial Sector Responses to COVID-19 - Botswana
This page presents measures and initiatives by the government of Botswana, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.
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Instrument |
Institution |
Financing volume |
Description |
Support fund / guarantee |
Government |
USD 171 million |
(May 20, 2020) Economic stimulus measures: The Government is setting up a COVID-19 Pandemic Relief Fund into which it will inject Botswana Pula (BWP) 2 billion. An appeal has been made to the private sectorto contribute to the Fund. |
Monetary Policy |
Central Bank of Botswana |
N/A |
(April 30, 2020) The Bank of Botswana decided to reduce the bank rate by 50 basis points from 4.75% to 4.25%. |
Loan guaarantee |
Government |
USD 86 million |
(April 02, 2020) Government loan guarantees for 24 months total amount of Botswana Pula (BWP) 1 billion are available to private sector businesses. The guarantee is provided by Botswana export credit insurance (BECI) on behalf of the government. BECI will guarantee 80% of the loan, with 20% guaranteed by commercial banks. |
Rules and regulations |
Central Bank of Botswana |
N/A |
(April 01, 2020) Regulatory forbearance in relation to assessment of non-performing loans and determination of expected credit losses, while allowing the granting by banks of moratoria on loans with a good repayment history for up to 6 months, with the offer to restructure loans. |
Tax relief |
Government |
N/A |
(March 31, 2020) The Government of Botswana has published a series of measures on taxes for businesses affected by the pandemic: |