06 Feb 2025

Various stakeholders are closely monitoring with keen interest the proposed allocations and policy directions from the new administration’s budget announcements on February 10.

The anticipation revolves around the hope that budgetary measures will not only tackle immediate economic challenges, but also create a sustainable foundation for growth moving forward.

Looking into strategic priorities for economic revitalisation, economist Mr Sennye Obuseng emphasised that President Advocate Duma Boko’s administration must prioritise social welfare programmes, skills development initiatives, and infrastructure projects to revitalise the economy.

These investments are essential for job creation and economic stimulation, particularly in light of the ongoing challenges posed by the pandemic, he said.

With an alarmingly high unemployment rate of 27.6 percent recorded last year, exacerbated by slow economic recovery, Mr Obuseng highlighted the importance of strategic policies that not only addressed unemployment, but also attracted investment and stimulated overall economic growth.

He raised concerns about the inclusion of Ipelegeng Workers in employment statistics, suggesting that this may obscure the deeper issues of underemployment and low wages.

One key area highlighted by Mr Obuseng was the necessity to engage private sector stakeholders to foster public-private partnerships, to enhance capital flow into the economy. He cautioned against overly optimistic budget projections and calls for a pragmatic approach reflecting current economic realities.

Additionally, he pointed that government efficiency remained a significant hurdle for economic growth, with government activities influencing about 16.7 per cent of GDP.

He suggested that government streamlined processes associated with new laws and regulations to encourage private sector investment across various industries. While the budget strategy might not prioritise it, Mr Obuseng underscored the importance of quality human capital as a long-term driver of competitiveness on a global scale.

He advocated for public sector reform and strategic partnerships to enhance the delivery of public services, particularly in health and education.

He proposed that government should facilitate access to quality health and education by exploring alternative service delivery models. The approach he said not only catered to those who could afford such services, but also ensured that resources were allocated towards supporting those in need.

Looking back at past government’s inefficiencies in procurement processes, Mr Obuseng stressed the necessity of improving efficiency of both recurrent and development spending.

He called for a review of past procurement models that often led to inflated prices and compromised project quality.

“By ensuring rigorous appraisal and selection processes, the new administration can enhance the effectiveness of public investment programs,” he said. ENDS