18 May 2017

The economy is expected to continue to show signs of recovery, says President Lt Gen. Dr Seretse Khama Ian Khama.

Addressing a High Level Consultative Council (HLCC) meeting yesterday, President Khama said following a 4.2 per cent growth in the fourth quarter of 2016 compared to a 3.5 per cent decline during the same period in 2015, the non-mining sector continued to show growth in the areas of trade, hospitality as well as transport and communications.

President Khama, however, noted that the diamond sector continued to be the main contributor to the Gross Domestic Product (GDP).

This, he said, called for more concerted efforts to achieve the National Development Plan (NDP) 11 outcome of a diversified economy.

Despite the overall positive outlook of the economy, President Khama decried the decline in the mining sector in the fourth quarter of 2016, which he said stood at 6.2 per cent.

He attributed the decrease to the closure of the BCL and Tati Nickel mines, adding that government was pursuing opportunities to resuscitate the economy of the Selebi Phikwe region.

Furthermore, President Khama noted that while Botswana had been rated as an investment destination of choice in Africa, plans were afoot to revitalise the International Financial Services Centre (IFSC) in order to position the country as a reputable gateway for financial and capital flows into SADC and the rest of Sub Saharan Africa.

“A key factor for a competitive IFSC is the attractiveness of its framework and attributes against its competing jurisdictions,” he said, adding that the reforms would include legislative and regulatory improvements.

President Khama also highlighted the success of the tourism sector, noting that it had been confirmed by a recent study by Oxford University’s Wildlife Conservation Research Unit which ranked Botswana number one in the world in efforts by countries to conserve the world’s mega-fauna.

“This performance confirms and points to the comparative advantage and success that this country has achieved in our tourism sector hence the need to strengthen our efforts in developing the tourism cluster to increase its productivity and employment opportunities,” he stated.

For his part, Business Botswana president, Mr Lekwalo Mosienyane underscored the importance of intensifying efforts to improve Botswana’s investment climate.

Mr Mosienyane said a favourable business environment remained a key catalyst for expansion of businesses which would in turn create jobs and reduce unemployment.

He said achieving the feat would require leadership and ownership of the reform agenda.

Of concern, Mr Mosienyane said, was the recent introduction of a US$30 Tourism Development Levy.

He said it showed that government continued to introduce and implement regulations which had negative implications for business.

Citing the Doing Business Reforms Roadmap, he said the private sector was also concerned about the slow implementation of various policies and initiatives.

He appealed for the private sector to be included to assist with the management, monitoring and evaluation of such policies and initiatives to ensure their timely implementation. ENDS