Africa Financial Sector Responses to COVID-19 - Botswana

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: 
* VAT credit refund on VAT returns will be processed within 21 days instead of the usual 60 days for small businesses; 
* Larger businesses, above Botswana Pula (BWP) 250 million annual turnover, will have to apply for a similar fast credit repayment.
*Deferral of 75% of any two self-assessment tax quarterly payments due between March and September 2020, with payment of the deferrals to begin from March 2021.