Gaolathe Says GABS Has Been Fixed After Major Overhaul
Minister of Finance and Vice President, Ndaba Gaolathe, this week told parliament that the Government Accounting and Budgeting System (GABS), which had been plagued by technical issues since early 2024, is now fully operational. The system’s sluggish performance, caused by outdated hardware, Gaolathe said, has been resolved with the installation of state-of-the-art Oracle Supercluster servers.
“Since migrating GABS to these upgraded servers in December 2024, system stability and efficiency have significantly improved,” Gaolathe revealed. He added that government technical teams, alongside Oracle specialists, continue to enhance the system through continuous updates, monitoring, and long-term improvements. A dedicated team, the minister said, has also been assigned to address any remaining technical issues, ensuring seamless financial transactions across government departments.
Looking ahead, the ministry plans to review Botswana’s financial management systems in the 2025-2026 financial year. This includes upgrading the Integrated Financial Management Systems (IFMIS) for better budgeting, procurement, and reporting processes. “These efforts are aimed at restoring GABS to full functionality, ensuring uninterrupted financial transactions and improved service delivery,” Gaolathe emphasized.
In addition to improving efficiency in State-Owned Enterprises, the minister said that the National Development Bank (NDB) is transitioning into a fully-fledged Agri Bank, with a completed contextual assessment currently underway. The new NDB will focus on agricultural financing, renewable energy, green climate initiatives, and food security.
Gaolathe said that the country’s financial sector has remained stable in the current financial year, attributing that to the Non-Bank Financial Regulatory Authority (NBFIRA)’s interventions and stakeholder engagement. NBFIRA has developed the Domestic Systematically Important Institutions (D-SUFIs) Framework for insurance, evaluated the country’s Retirement Funds Industry, and established corporate governance rules. Additionally, automation and technology are being leveraged to combat money laundering, terrorism financing, and proliferation financing.
The minister also announced the promulgation of the Non-Bank Lenders Act, which aims to create a unified regulatory framework for micro-lenders, pawnshops, finance companies, and leasing firms. “The Insurance Industry Act (2015) is under review to enhance regulatory effectiveness and strengthen policyholder protection. A key reform under consideration is the establishment of a Policy Protection Fund, designed to safeguard insurance payouts in the event of an insurer’s insolvency, ensuring greater financial security and trust in the industry,” he said.
In a bid to address customer complaints and streamline the operations of medical aid schemes, the Medical Aid Funds Amendment Bill will be presented to Parliament during the winter session. The legislation is aimed at enhancing governance, financial stability, and consumer protection, ensuring that medical aid funds operate transparently and sustainably.
Despite these advancements, the ministry is facing challenges in revenue collection, having collected approximately P68 billion (90.52% of the target) against a goal of P75 billion. Slow spending, Gaolathe says, has also resulted in an unspent budget of P619 million, affecting key projects such as the NDB restructuring (P150 million), Chema Chema (P219 million), and Temo Letlotlo (P300 million). The ministry has been allocated P3 billion for the recurrent budget and P864.5 million for the development budget.
