Botswana and EU launch program to boost economic diversification

24 Nov 2022

The government of Botswana and the European Union have unveiled the Multi-Annual Indicative Program (MIP) to boost green transformation and economic diversification in Botswana.

The program, covering the period between 2021 and 2027, has a preliminary grant of €16 million.

During the launch event in the Botswana capital of Gaborone, the country’s Minister of Finance, Peggy Serame said the main priorities of the MIP are green transformation and economic diversification in the southern African country.

The initial €16 million euro grant will be utilised to fund various initiatives between 2021 and 2024. A second allocation for 2025 – 2027 will be agreed following a review in 2024, say reports.

The Minister of Finance went on to add that despite Botswana’s middle-income status, the country is still facing several challenges. These include the need for economic diversification as well as the issue of high unemployment, especially amongst graduates.

According to the Ambassador of the European Union to Botswana and Southern African Development Community (SADC), Petra Pereyra, the principal objective of this program is to help the African nation to shift from a natural resource-based to a knowledge-based economy.

“Botswana has enormous potential for renewable energy, in particular by developing solar energy. It has enormous potential if it invests in its youth to make them the driving force behind the diversification and development of the economy, and the country,” the ambassador stated.