AGRICULTURE DIALOGUE The Policy Challenge and Efficiency Spending BOTSWANA PRESENTATION Mr Ponatshego Moemele

BACKGROUND AND RATIONAL FOR THE AGRICULTURAL REFORM Botswana’s economy is dominated by the mining sector, mostly diamonds, which accounts for about one third of GDP. The sources of growth in Botswana are not broad based or diversified, leaving the economy open to external shocks with limited opportunities for employment creation. Agriculture is one of the sectors that have been identified as avenues for this diversification. A majority of people in Botswana is fundamentally based in agriculture. Approx. 80% of the population earn their livelihood from agriculture as farmers, Agric. Labours or both. Majority of farmers in Botswana are subsistence and they account for most of the cultivated land and livestock production. The agricultural sector spends less than 3% of the national budget . The share of the agriculture sector to the country’s GDP has remained relatively low, declining from around 5% in the 1990s to 1.9% in 2012. The sector faces a number of challenges such as: Poor infrastructure Over dependence on rain fed agriculture Poor management of Agricultural land Weak Agro – Industries and poor linkages within the value Chain in Agriculturally Products Diseases and pests threats (FMD outbreaks) Poor Extension outreach, Information dissemination and technology transfer Poor Agribusiness skills Effects of Climate change

THE PROCESS The following processes have been undertaken to reform the agricultural sector; Public Finance Management Reform Commercialization National Agricultural Master Plan for Arable Agriculture and Dairy Development – productivity of farmers has improved from 5 litre/cow to 18 litre/cow. Cereal productivity is has increased from 200kg/ha to 1.2ton/ha. Cluster initiatives: community farms to facilitate good ranch management have been demarcated; cereal productivity has increased from 200 kg/ha to up to 4tonnes/ha in some areas. Pandamatenga infrastructure development: improved accessibility within the production area. Weaner Production: Increased sales at the Botswana Meat Commission. ISPAAD: offers the following components to farmers; cluster fencing, free seed and free ploughing and planting for field crops and horticulture . Cereal production increased from about 56 000 Mt in 2008 000 Mt and increased to 62 000 Mt in 2011 however it went down to 53 000 Mt in 2012 due to drought. Horticulture: Production increased from 36 000 2010 Mt to 41 000 Mt in 2012. LIMID: Increase productivity of livestock subsector. Budget: P25 Million: outcome: 4 142 small stock projects (20 goats). ( 42 boreholes have been drilled, 9 purchased, 14 beneficiaries reticulated water). Restructuring: to oversee all sub sectors of the ministry at the districts at the district level. promoting production according agro – ecological zones outcome: Commodities have been clustered according to agro- ecological climates.

RESULT ORIENTED / PERFORMANCE MEASURES The following objectives will assist us in coming up with performance measures; Improved food security Diversified the agriculture sector Reduction in prevalence of Disease outbreaks and pests infestation Environmentally sustainable production systems Increased participation of disadvantaged groups in agricultural programs Ease access to markets for agricultural products

CHALLENGES Inadequate resources ( Budget limitation) Lack of Agricultural Investment plan to attract Donors Political will Modern Technology adoption Limited technical capacity/expertise and research specific to climate change issues. Private sector participation Disease outbreaks Climate Changes

Outcomes Public Finance Management: Institutional changes – PFM unit Medium term fiscal framework which guides in preparation of realistic resource envelope Adoption of Medium –Term Fiscal framework – forecasting of expenditure will be guided by policy priorities – this affects the issue of outcome based priorities Accrual Accounting implementation – consultant come up with accrual approach

MINISTRY BUDGET VS NATIONAL BUDGET FINANCIAL YEAR MINISTRY BUDGET (Pula) NATINAL BUDGET (Pula) MINISTRY SHARE %   2010-2011 1,145,052,290 46,182,966,226 2.5% 2011-2012 1,303,427,030 38,270,706,861 3.4% 2012-2013 1,369,984,120 36,437,436,305 3.6%