Online Version

Facebook Feed

  • We must ‘walk the talk’ July 4, 2022
    We can only save ourselves and our planet by confronting climate change BY COLLEN VIXEN KELAPILE Climate change has become the enemy of human progress and a threat to humanity’s survival. We see its devastating consequences daily. No country is […]
  • Makwinja caught in Minergy saga   June 30, 2022
    Her husband –Leonard, is a Board Member at Minergy Coal ‘She is conflicted, hence she is failing to resolve our disputes with the company’ – Farmers ‘It’s an attempt to score cheap political points’ –Makwinja Minergy Coal proposes a […]
  • CA Sales lists on the JSEJune 29, 2022
    african-markets.com The JSE, Africa’s largest stock exchange, has listed CA Sales Holdings Limited on its main board providing South African investors with exposure in the fast-moving consumer goods (FMCG) company with a footprint in several Southern African countries. CA […]
  • BBS launches insurance agencyJune 28, 2022
    BBS Limited is pleased to inform its current and potential customers as well as stakeholders that it has launched an insurance agency called BBS Insurance Agency Limited; whose purpose is to provide insurance agency services and bespoke insurance products […]
  • MANTSWE JOINS TURNSTAR BOARDJune 28, 2022
    Turnstar Holdings Ltd, is pleased to announce the appointment of Mr Solomon Seoketsi Mantswe, to the Board of Directors, with effect from 1st July 2022. He brings over 30 years’ experience in the public service. He was appointed Deputy […]
  • About Us
  • Advertise
  • Disclaimer
  • Contact Us
  • Login
  • Register
Wednesday, July 6, 2022
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

Inequality, unemployment impede growth – BoB

patriot by patriot
January 25, 2021
in Business
240 12
0
Inequality, unemployment impede growth – BoB
491
SHARES
1.4k
VIEWS
ShareShareShare

Governor of Bank of Botswana (BOB) Moses Pelaelo has decried high unemployment and income inequality levels in Botswana, saying they were impeding economic growth and denying the country the chance to attain high income status.

Pelaelo called for robust structural transformation of the economy to curb factors hindering economic growth. He said this Tuesday when unveiling the 2018 BoB Annual Report.  

He said growing the private sector and expanding non-mining sector – especially agriculture – remained a key measure of growth prospects.

In addition, Pelaelo said a study by International Monetary Fund (IMF) on “Growth in Southern Africa: Issues and Reform Options” singled out three factors that continue to detract from growth prospects and transition to high-income status.

He said the first factor is lacklustre relative export performance and tradable sector. In contrast to countries that attained middle income status rapidly in Latin America and South East Asia for example, for Botswana, he said, the private sector’s performance declined as a share of the country’s GDP over recent years.

“The second factor relates to the low or declining total factor productivity, encompassing land, capital and labour. The third impediment factor is relatively large public sector including state-owned enterprises, with the resulting sub-optimal delivery of services, compared to middle-income peers,” he added.

According to Pelaelo, in order to sustain medium to long term prospects for the economy, diversified, inclusive growth, and transition to high–income status, policy should focus on raising potential growth through fiscal reforms.

“Inclusive economic growth is necessary by investing on infrastructural development; enhancing strong financial sector for funding businesses will assist in upgrading current volatile source of revenue being mining and SACU. There is a potential for economic growth which yield more employment opportunities going forward,” Pelaelo said.

No stolen funds

BOB Governor said there is no misappropriation of funds at the central bank as per some recent media reports. He said BOB is not audited by the Auditor General but is currently audited by KPMG in five years contract term.

Director of Research and Stability at BOB, Dr Tshokologo Alex Kganetsano urged the country to consider new financing strategies for industrialisation so as to fully attain high income status.

New financing strategies

Presenting the 2018 BOB annual report theme chapter titled “Financing Strategies for Industrialisation and Transition to High Income Status’’, he said the main sources  of revenue being minerals and Southern Africa Customs Union (SACU) need to be diversified.

Dr Kganetsano said Botswana should look into other financing options such as regional banks such African Development Bank (AfDB) as well as international financiers like the International Monetary Fund (IMF).

“Liberalisation of domestic markets for deliberate attraction of FDI in high technology driven sectors by using tax incentives and subsidised direct government funding model is common in countries such as Brazil and Singapore; hence Botswana can also adopt this model of funding to grow the business sector,” he charged.

He said the financing gap in Botswana remains high with weak funding capacity by the Development Finance Institutions (DFIs) such as commercial banks and state-owned enterprises such as CEDA amongst others.

As a result, he said Botswana becomes less competitive in the global economy due to limited access to funding by the possible drivers of economy such as the Small Medium and Micro Enterprises (SMMEs).

Giving financial results and operations of the bank in 2018, Chief Financial Officer Daniel Loeto said global economic activity was modest at 3.7 per cent growth in 2018 compared to 3.8 per cent in 2017, reflecting a slower pace of increase in global market.

He said the bank reached the net income of P2.9 billion in the previous year; reflecting a growth from the P739.5 million in 2017.

Related

Tags: BoB

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
  • We must ‘walk the talk’ July 4, 2022
    We can only save ourselves and our planet by confronting climate change BY COLLEN VIXEN KELAPILE Climate change has become the enemy of human progress and a threat to humanity’s survival. We see its devastating consequences daily. No country is […]
  • Makwinja caught in Minergy saga   June 30, 2022
    Her husband –Leonard, is a Board Member at Minergy Coal ‘She is conflicted, hence she is failing to resolve our disputes with the company’ – Farmers ‘It’s an attempt to score cheap political points’ –Makwinja Minergy Coal proposes a […]
  • CA Sales lists on the JSEJune 29, 2022
    african-markets.com The JSE, Africa’s largest stock exchange, has listed CA Sales Holdings Limited on its main board providing South African investors with exposure in the fast-moving consumer goods (FMCG) company with a footprint in several Southern African countries. CA […]
  • BBS launches insurance agencyJune 28, 2022
    BBS Limited is pleased to inform its current and potential customers as well as stakeholders that it has launched an insurance agency called BBS Insurance Agency Limited; whose purpose is to provide insurance agency services and bespoke insurance products […]
  • MANTSWE JOINS TURNSTAR BOARDJune 28, 2022
    Turnstar Holdings Ltd, is pleased to announce the appointment of Mr Solomon Seoketsi Mantswe, to the Board of Directors, with effect from 1st July 2022. He brings over 30 years’ experience in the public service. He was appointed Deputy […]
The Patriot On Sunday

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?