According to the ratings and research agency, there is a possibility that “spending pressures ahead of elections may delay fiscal consolidation plans in Botswana.”
“Spending pressures ahead of elections may delay fiscal consolidation plans like in Botswana. Overall, we expect the pace of fiscal adjustments to remain gradual at best as growth implications, political considerations and budget rigidities complicate consolidation efforts,” said Moody’s.
Moody’s said it has however listed Botswana among countries that had limited election-related policy uncertainty, citing the country’s track record of political stability.
The southern African country is due to hold general elections in October.