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

2. 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 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

3. 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 Mt in Mt and increased to Mt in 2011 however it went down to Mt in 2012 due to drought. Horticulture: Production increased from Mt to Mt in 2012.
LIMID: Increase productivity of livestock subsector. Budget: P25 Million: outcome: 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.

4. 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

5. 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

6. 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

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