03 Feb 2014

Minister of Finance and Development Planning, Mr Kenneth Matambo says positive growth rates in some non-mining sectors are a welcome development as they reflect some success in economic diversification efforts.

Presenting the 2014/2015 budget speech today, February 3, Mr Matambo said government will continue to devise strategies to promote inclusive growth in the non-mining sectors of the economy. He said non-mining sectors such as Financial and Business Services, construction, agriculture, tourism and manufacturing also have a greater potential for employment creation.

He said over the past few years, the financial and business services sector has registered positive growth rates, underpinned by a stable banking sector characterised by adequate capital levels, good asset quality and sufficient liquidity. He said in 2013, banks were characterised by an increase in banking business distribution channels such as branch networks, automated teller machines, points of sale machines and mobile phone and internet-based banking services.

Mr Matambo further said the Botswana Bond Market Association will begin formal implementation of its mandate in 2014 in collaboration with Botswana Stock Exchange to resolve structural issues impending bond market development, with a view to promote efficiency and liquidity of the bond market.

Minister Matambo, however noted that despite the relative good performance in the sector, there were some challenges as identified in the 2012 Financial Sector Development Strategy study conducted by the World Bank.

He said his ministry was working with relevant stakeholders to continue implementing some of the recommendations of the study which will address issues of financial inclusion and improved access to financial services. ENDS