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Financing Public Private Partnerships (PPPs) in Botswana Through the Capital Market

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  • Kelesego Mmolainyane

    (Botswana Institute for Development Policy Analysis)

Abstract

In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.

Suggested Citation

  • Kelesego Mmolainyane, 2020. "Financing Public Private Partnerships (PPPs) in Botswana Through the Capital Market," Working Papers 75, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:75
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/160
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    References listed on IDEAS

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    More about this item

    Keywords

    PPPs; Capital market; Project financing; Botswana;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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