Botswana is set to fundamentally reshape its agricultural landscape with the adoption of a comprehensive National Agriculture Financing Strategy. The plan, which shifts government support from input subsidies to incentivizing output and productivity, is seen as critical to diversifying an economy historically over-reliant on diamonds.
The move comes as the once-proud agriculture sector, which contributed around 40% to GDP at independence, now accounts for less than 2%. The nation’s food import bill has surged to P14.7 billion in 2024, while the national cattle population—key to its beef export market—has plummeted from over 2.6 million to under 1 million since 2010.
Vice President and Minister of Finance Ndaba Nkosinathi Gaolathe announced the transformative strategy during the 2025 National Budget session, emphasizing a focus on optimal land use, enhanced labor productivity, and high-value agriculture powered by technology.
The new strategy, developed with technical support from the Food and Agriculture Organization (FAO), is designed to be the blueprint for a competitive and self-reliant agri-food system.
Blended Finance and De-Risking
A core feature is a blended finance model, combining government resources, private capital, and climate-focused funding to support scalable, high-impact projects. Crucially, the plan establishes risk-sharing mechanisms aimed at protecting financial institutions and smallholder farmers, thereby creating safer pathways for private investment into the sector.
“This strategy presents a unique opportunity to position Botswana as a leader in sustainable agricultural transformation,” said Acting Minister of Lands and Agriculture Edwin Dikoloti during the inception meeting in Gaborone on August 7, 2025. “By blending traditional farming practices with cutting-edge global innovations, we can diversify the economy and establish Botswana as a food basket regionally and globally.”
The strategy also emphasizes a comprehensive approach to value chain development, coordinating investments from production and processing to distribution and market access.
Addressing Food Security and Climate Challenges
The government is prioritizing the urgent need to address rising food and nutrition insecurity, particularly for low-income populations facing high inflation. FAO Representative Carla Mucavi highlighted that the strategy will “unlock financial resources to de-risk agriculture and facilitate investment and access to capital by farmers and agripreneurs, including the Youth.”
Furthermore, the plan integrates solutions for pressing environmental challenges, including sustainable wildlife management and water issues, which are vital for long-term agricultural productivity.
As Botswana races to align this plan with its upcoming Economic Transformation Programme, the success of the new financing strategy will be paramount in unlocking the sector’s potential and securing the country’s economic future beyond diamonds.
