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According to minister of Finance Ndaba Gaolathe, the Bank of Botswana is at an advanced stage of digitalizing government revenue collection. The project is expected to eliminate challenges associated with cash handling and reconciliation concerning government accounts.
In alignment with the National Digital Transformation Strategy, it will also expedite digital adaptation within the government sector and among users of government services. Some of the benefits to be derived relate to increased efficiency, reduced manual intervention, and facilitation of real-time processing of government transactions.
Botswana is also on track with the proposed National Retail Payments Switch (NRPS).
"This, Mr. Speaker, represents a significant step towards enhancing Botswana’s payment systems, contributing to economic transformation, as well as aligning with national and regional financial inclusion goals. This transformative initiative is central to the country’s efforts and commitment to leveraging technology for sustainable development and economic inclusion," said Minister Gaolathe in his inaugural budget speech.
Furthermore, the interoperable NRPS will enable real-time, seamless interconnectivity among banks, mobile money providers and other financial institutions.
The system is designed to lower transaction costs, improve access to financial services and support digital payments adoption.
More Digitalisation Initiatives
Still on digitalisation, government is also working to digitize the work and residence permit system, with the new digital platform expected to go live before the end of the current financial year.
BURS will also introduce VAT on digital trade which aims to broaden the VAT tax base within the rapidly growing digital economy and also seeks to promote fair taxation by ensuring a level playing field where both traditional and digital businesses are subject to the same tax obligations. The project is anticipated to be completed by September 2025.
The tax authority will also introduce the Electronic VAT Invoicing Solution as part of improving revenue collection efficiency. This project will enable real-time tracking of VAT transactions, benefiting both businesses and BURS by enhancing compliance and ensuring accurate reporting. The planned completion date for the project is March 2026.
The Public Procurement Regulatory Authority (PPRA) will also introduce the Public Procurement Data Portal which will serve as a centralized, real-time data sharing platform for the management and dissemination of procurement information, ensuring its accessibility to all stakeholders.