Facing critical drug shortages, the government will create a new fund and enact reforms to cut costs and break the influence of intermediaries.

Botswana's President Duma Boko announced on Monday the establishment of the "Health First Botswana Partnership Fund," a 5 billion pula ($362 million) fund aimed at addressing a health emergency and improving the supply chain for essential medicines and medical equipment.

The fund will be launched with an initial contribution of 100 million pula from the Botswana Development Corporation (BDC). The president stated the goal is to "secure transparent, sustainable, and reliable access to medicines for every Motswana."

In the immediate term, emergency supplies worth 250 million pula are being procured. President Boko also announced structural reforms to curb inflated costs, eliminate inefficiencies, and reduce the influence of intermediaries. "We will not rest until every citizen has uninterrupted access to essential healthcare," he said.

The southern African nation is currently grappling with a shortage of medicines and equipment, a crisis worsened by what the government has deemed excessive pricing. The president cited a cost discrepancy of over 600 million pula. He provided an example in which the Central Medical Stores (CMS) quoted 705 million pula for a year's supply of medicine, while a government task force was able to source the same products for less than 80 million pula.

This health crisis comes amid a tense economic climate. Heavily reliant on the international diamond market, Botswana is suffering the effects of a global slowdown in the sector. A reduction in U.S. aid has also increased pressure on public finances.

According to figures from the Ministry of Finance, the Ministry of Health's budget for the 2024-2025 fiscal year is 9.4 billion pula, a decrease from the 10.5 billion pula allocated in the previous year.

Charlène N’dimon