14 Nov 2022

Botswana’s economy continues to display signs of recovery due to successful mitigations and improved performance in the diamond mining sub-sector, President Dr Mokgweetsi Masisi has said.

Delivering the State-of-the-Nation Address (SONA) in Gaborone yesterday, he said the momentum of recovery was likely to be sustained in the medium term with domestic economic growth projected to be 4.2 per cent and 4.1 per cent this year and 2023 respectively.

However, Dr Masisi said the rate of growth fell short of the 5.7 per cent required to attain high income status by 2036.

“It is for this reason that we are intensifying our efforts to restructure the economy. This is being done through ramping up industrialisation, development of value chains, diversification and beneficiation of our minerals,”  he said.

Industrialising and diversifying the economy, the President said, would be accomplished by engaging major continental financial institutions to open up funding options beyond domestic development funds.

“These resources will support development of bankable projects in agriculture, mining, manufacturing, tourism, including development of Special Economic Zones and strategic rail and road maintenance,” said Dr Masisi.

The President went on to outline initiatives and projects being undertaken to grow the economy and create more employment opportunities.

In the legislative area, he mentioned the promulgation of the Economic Inclusion Law and its supporting legislation, the revised Public Procurement and Asset Disposal Act.

The President stressed the need for full implementation of the two pieces of legislation as well as compliance  to them by all stakeholders.

Another initiative, he said, was giving Botswana Oil 100 per cent fuel import mandate.

 “I am pleased that this initiative is embracing citizen economic inclusion through participation  of citizen companies in the multi-billion-pula fuel and lubricant supply business,” Dr Masisi said.

He said citizen companies also had the opportunity to be part of the entire petroleum value chain, including transportation and logistics, through the partnership between Debswana Diamond Company and Botswana Oil.

“This is yet another act of responsiveness of government to accelerate the citizen-centred, private sector led growth,” he said.

President Masisi said citizen economic inclusion would further be bolstered by Debswana Diamond Company and Morupule Coal Mine’s supplier development programmes through which local suppliers were trained to develop capacity for efficient and sustainable delivery of products and services.

He therefore commended the two companies and encouraged other entities to mainstream economic inclusion policies and programmes into their operations.

Staying with the sector, Dr Masisi said there were major developments to extend mine lifespans that included transitioning from open cast to underground  mining at Jwaneng and Karowe mines.

At Morupule Coal Mine, its  Motheo Open pit and washing plant had been fully commissioned and were operational, he said.

In addition, the President said Premium Nickel Resources Botswana started surface drilling to determine the size and quality of copper assets at Selebi Mine, Khoemacau Copper Mine was expected to reach full capacity and production next month while Tshukudu Metals in Ghanzi was scheduled for commissioning during the first half of next year.

“With all these developments, the mining sector has to date created employment of 19 230, which is an increase of 1 145 since 2021,” he said.

In addition, President Masisi said government’s decision to add value to natural resources, including minerals, would increase the mineral sector’s contribution to GDP.

He said ongoing negotiations between government and De Beers Group to renew the contract was timely for the realisation of promotion of natural resources provenance, sustainability and redistribution of value. ends