Mining sector leading Botswana’s economical mend

According to financial services provider Absa Bank Botswana, Botswana’s economy is on the mend, aided by the mining sector.

“Botswana’s economic recovery is underway with an improving outlook for diamond demand buoying medium- to longer-term prospects. Rough diamond prices are recovering in line with stronger demand in key markets, such as the U.S. and China, and signs of a recovery in India,” said Keabetswe Pheko-Moshagane, Absa managing director, who warned that the economy continues to face risks and uncertainties because of the pandemic.

Botswana has seen a steady rise in confirmed COVID-19 cases during the peak of the pandemic’s third wave and authorities are banking on the rollout of the vaccines to ease the pandemic’s wrath.

Meanwhile, though statistics indicate that the economy contracted 8.5 per cent in 2020, Absa believed base effects would play a major role in supporting the country’s projected growth rate of 6.7 per cent in 2021.

“The government’s economic recovery and growth plan are likely to provide further impetus to growth,” said Pheko-Moshagane.