02 Feb 2015

The outlook for the domestic economy remains positive, despite the continued uncertainty over the global economic recovery.

Minister of Finance and Development Planning, Mr Kenneth Matambo told Parliament in his delivery of the 2015/16 budget speech that real GDP was estimated to have grown by 5.2 per cent in 2014 and forecast to grow at a slower rate of 4.9 per cent in 2015.

Such a positive growth was mainly driven by the non-mining sectors including trade, hotels and restaurants, finance and banking , social and personal services.

Mr Matambo said activities such as diamond polishing, establishment of steel manufacturing plant in Selebi Phikwe and the horticulture agro-processing plant that was expected to be commissioned in the first quarter of 2015/2016 were also expected to contribute to growth and economic diversification, creating employment opportunities and empowering citizens.

Other such services such as the rolling out of postal and banking service to the rural areas are also expected to contribute to the growth of the non-mining sectors in the future.

Minister Matambo further said a positive domestic outlook as shown by some major economic indicators characterised by low debt levels as confirmed by external organisations such as Moody’s Investors Service, provides a basis for domestic and foreign investment in the country.

Similarly, he said, the real effective exchange rate should promote competitiveness of domestic enterprises in the global market. Mr Matambo said the prospect of low inflation also has the potential to impact positively on the standard of living of Batswana.

The private sector is expected to take the lead in driving economic growth and employment creation, given this conducive macroeconomic environment, the minister stated. ENDS