INTERNATIONAL MONETARY FUND DEPUTY MANAGING
DIRECTOR, MR TAO ZHANG, VISIT TO BOTSWANA
Welcome Remarks
by
Moses D Pelaelo
Governor, Bank of Botswana
July 25, 2018
Distinguished Guests, I am privileged to welcome you to this special
dinner, hosted by the Bank of Botswana, in honour of our esteemed
guest, the Deputy Managing Director of the International Monetary Fund,
Mr Tao Zhang. On behalf of the Board, Management and Staff of the
Bank, we very much appreciate your honouring the invitation and your
presence tonight. Thanks to you all.
In welcoming the Deputy Managing Director, I wish to observe that,
coincidentally, his visit to Botswana comes shortly after the conclusion of
the annual Article IV Consultation that took place just over a month ago.
It is also two weeks after the Workshop on Fintech, Payments and
Financial Inclusion, jointly organised by the Bank of Botswana, the
International Monetary Fund and the Bank of Canada. Thus, the visit
reinforces the beneficial relationship between Botswana and the
International Monetary Fund.
Mr Zhang is accompanied by his Advisor, Mr Steven Allen Barnett, Mr
Gelbard, the Mission Chief for Botswana's IMF Article IV
Enrique
consultations, who is quite familiar to several of us; and Mr
Abdulqafar Abdullahi, Advisor to the Executive Director for the Africa
Group 1 Constituency at the IMF, to which Botswana belongs.
Tonight Mr Zhang will address the global, regional and Botswana
connections with respect to economic and policy developments.
Previously, in 2007, the then Deputy Managing Director, Mr
Takatoshi Kato, while visiting Botswana dealt with challenges and
opportunities for growth in Sub-Saharan Africa, with special focus on
Botswana. In 2011, Mr Naoyuki Shinohara discussed challenges relating
to the management of natural resources and developmental
Mr Zhang's immediate predecessor,
opportunities in Botswana. In 2016,
Mr Min Zhu, eloquently articulated technological progress and evolving
industry arrangements that nations, such as Botswana, can harness to
take development to the next level.
Honourable Minister, Distinguished Guests, given the high level attention
given to Botswana by the IMF, it is fitting to briefly highlight the benefits
of being a member and working with the IMF since 1968. First, the
capacity of the IMF to analyse global developments and potential
transmission channels and spillover to various regions and countries is
key to timely responses to harness opportunities and/or mitigate risks.
Second, the regular consultations, on the main through the Article IV
Missions, enables dialogue with local stakeholders in the policy arena,
industry, as well as economic analysts and civil society. This enables an
understanding of the unique situation of Botswana and the interaction
with global and regional developments; thus, structural evolution and
trends, developmental aspirations and needs that inform policy priorities
and key data trends. In turn, such exchange of information enables
evaluation of prospects and policy options, going forward.
Third, the Bank, as well as institutions such as the Non-Bank Financial
Institutions Regulatory Authority and Statistics Botswana, benefit from
targeted technical assistance and skills development provided by the
IMF from the headquarters in Washington DC or through the Regional
Technical Assistance Centres, such as AFRITAC South based in
Mauritius, to which Botswana is affiliated. This technical assistance
enables improvements in areas such as legislation, macroeconomic
policy frameworks and formulation, regulatory approaches, as well as
structuring and governance of institutions as necessary. In addition to
improving operational competencies, access to training and skills
development also encompasses interaction with other practitioners
globally to share experiences.
Distinguished Guests, it is clear, therefore, that the IMF facilitates
access to resources that members can opt to tap into subject to
evaluation and assessment of their needs. In this regard, sustained
judicious and prudent management of resources and the economy, as is
the case in Botswana, enables a wider range of choices and options with
respect to policies, prioritisation of resource allocation, as well as the
timing of implementation to achieve the desired objectives.
Distinguished Ladies and Gentlemen, you will be aware that Botswana
desires to transit from upper middle income status to high income status,
and globally this transition is judged to be challenging, as it requires
substantial structural transformation and shifts in growth strategies and
policies. For Botswana, it is estimated that this requires annual GDP
growth rates of 8 percent over a six year period to leap from the current
per capita income of just under USD8 000 per annum to above USD12
000.
As a country, in the recent years, we noted challenges of slower growth
rates compared to when we graduated from low-income status, slower
than desired rate of economic diversification, as well as relatively high
level of unemployment. In this respect, it is expected that, going
forward, our relationship with the IMF will focus on drawing on their
expertise and sharing of experience of other countries to support
transformation policies and strategies to enable Botswana to fulfil its
aspirations for a high-income status on a sustainable basis.
Distinguished Guests, Ladies and Gentlemen, I thank you for your kind
attention.