Briefing journalists following his budget presentation to Parliament, Matambo on Friday assured the nation that when Botswana takes loans from China it does within the boundaries of the law.
“We do that under strict observation. We cannot exceed beyond legal parameters. We ensure that browsing terms are farouble to the nation. There have been loans from China before. This is not the first, Matambo told reporters.
He added that “When you borrow, you have to observe what the law says. You can’t borrow beyond what the law says; you should know and accept that. It’s a lot of money but we need it.”
According to the minister they “have to ensure that the terms are right. We are working with a team that ensures that the best interest of Botswana is protected. There is an agreement that needs to be signed but we have negotiated,” said Matambo.
He said they negotiate with the Chinese “and this team here won’t allow that (debt trap) it will do its best to protect the interest of the country.”
Masisi recently moved to allay fears that loans from the world’s second largest economy China are a debt trap for African countries like his own.