GABORONE,
(CAJ News) – AN economic slump, magnified by the downgrading of Botswana’s long-term local and foreign currency ratings, has made it imperative for the government to diversify its revenue base and stop financial commitments that are draining state coffers.
Such obligations emptying the public purse include some state-owned enterprises (SOEs) beset by poor financial performance.
Botswana has more than 40 SOEs.
The Southern African country has suffered a major blow after the ratings agency, Moody’s, downgraded its long-term local and foreign currency ratings.
The downgrade is from A2 to A3.
“The downgrade to A3 reflects the deterioration in fiscal strength exacerbated by the shock induced by the coronavirus pandemic,” Moody’s explained.