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Its not you, its me: an analysis of Multilateral Bank Finance in Botswana
Multilateral Devebelopment Bank debt is hailed for its positive relationship to economic growth, represented by Gross Domestic Product. Botswana has a long history of demonstrating many positive attributes at macro and micro economic level that would typically attract multilateral bank funding, howe...
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| Format: | Thesis |
| Language: | English English |
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Graduate School of Business (GSB)
2025
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| _version_ | 1867613258525966336 |
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| access_status_str | Open Access |
| author | Keseabetswe, Lorato |
| author2 | Alhassan, Abdul Latif |
| author_browse | Alhassan, Abdul Latif Keseabetswe, Lorato |
| author_facet | Alhassan, Abdul Latif Keseabetswe, Lorato |
| author_sort | Keseabetswe, Lorato |
| collection | Thesis |
| description | Multilateral Devebelopment Bank debt is hailed for its positive relationship to economic growth, represented by Gross Domestic Product. Botswana has a long history of demonstrating many positive attributes at macro and micro economic level that would typically attract multilateral bank funding, however the country maintains one of the lowest debt to GDP ratios on the continent. This study investigates the whether there is a direct relationship between Multilateral bank finance and key macro indicators in Botswana. Using Qunatitative research methodology, the research uses annual time series data from 1986 to 2023, and estimation techniques such as Autoregressive Distributed Lag (ARRDL) cointegration model, Unit Root, Error Correction Model and other diagnostic tests. The study's findings reveal a nuanced relationship between Botswana's macroeconomic conditions and its MDB debt accumulation. In the long run, trade balances significantly impact external borrowing, while economic growth, foreign exchange reserves, and government expenditure remain insignificant. In the short run, economic growth and trade balances exhibit statistically significant effects on borrowing, whereas foreign exchange reserves and government expenditure remain insignificant. These findings reinforce the role of external trade conditions in Botswana's debt accumulation while highlighting the country's cautious fiscal approach. Unlike many developing nations where economic growth, public expenditure, and foreign reserves directly influence external borrowing, Botswana's multilateral bank financing patterns are primarily shaped by its trade balance and counter-cyclical debt policies. The findings of this study have important policy implications and recommendations for Botswana, which are targeted towards diversification of its export base, efficient use of its resources including reserves, and finally, better negotiated positions with MDB loan terms given the country's strong credit rating. Botswana's approach to multilateral bank finance reflects a well-managed and prudent economic strategy that balances the need for external support with long-term fiscal sustainability. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/42082 |
| institution | University of Cape Town (South Africa) |
| language | English eng |
| last_indexed | 2026-06-10T12:33:17.409Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/42082 Its not you, its me: an analysis of Multilateral Bank Finance in Botswana Keseabetswe, Lorato Alhassan, Abdul Latif Bank Finance Botswana Multilateral Devebelopment Bank debt is hailed for its positive relationship to economic growth, represented by Gross Domestic Product. Botswana has a long history of demonstrating many positive attributes at macro and micro economic level that would typically attract multilateral bank funding, however the country maintains one of the lowest debt to GDP ratios on the continent. This study investigates the whether there is a direct relationship between Multilateral bank finance and key macro indicators in Botswana. Using Qunatitative research methodology, the research uses annual time series data from 1986 to 2023, and estimation techniques such as Autoregressive Distributed Lag (ARRDL) cointegration model, Unit Root, Error Correction Model and other diagnostic tests. The study's findings reveal a nuanced relationship between Botswana's macroeconomic conditions and its MDB debt accumulation. In the long run, trade balances significantly impact external borrowing, while economic growth, foreign exchange reserves, and government expenditure remain insignificant. In the short run, economic growth and trade balances exhibit statistically significant effects on borrowing, whereas foreign exchange reserves and government expenditure remain insignificant. These findings reinforce the role of external trade conditions in Botswana's debt accumulation while highlighting the country's cautious fiscal approach. Unlike many developing nations where economic growth, public expenditure, and foreign reserves directly influence external borrowing, Botswana's multilateral bank financing patterns are primarily shaped by its trade balance and counter-cyclical debt policies. The findings of this study have important policy implications and recommendations for Botswana, which are targeted towards diversification of its export base, efficient use of its resources including reserves, and finally, better negotiated positions with MDB loan terms given the country's strong credit rating. Botswana's approach to multilateral bank finance reflects a well-managed and prudent economic strategy that balances the need for external support with long-term fiscal sustainability. 2025-11-03T08:16:25Z 2025-11-03T08:16:25Z 2025 2025-11-03T07:33:39Z Thesis / Dissertation Masters Masters http://hdl.handle.net/11427/42082 en eng application/pdf Graduate School of Business (GSB) Faculty of Commerce University of Cape Town |
| spellingShingle | Bank Finance Botswana Keseabetswe, Lorato Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| thesis_degree_str | Master's |
| title | Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| title_full | Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| title_fullStr | Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| title_full_unstemmed | Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| title_short | Its not you, its me: an analysis of Multilateral Bank Finance in Botswana |
| title_sort | its not you its me an analysis of multilateral bank finance in botswana |
| topic | Bank Finance Botswana |
| url | http://hdl.handle.net/11427/42082 |
| work_keys_str_mv | AT keseabetswelorato itsnotyouitsmeananalysisofmultilateralbankfinanceinbotswana |