• REVITALISING OODI WEAVERSJuly 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted • Debswana, De Beers move to help • preserve cultural heritage DEBSWANA Diamond Company and De Beers Group have embarked on a collaborative initiative to support… Read more: REVITALISING OODI WEAVERS
  • HIV/ AIDS fight compromised?  July 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted   Monitoring in limbo due to CD4, viral reagents shortage CALISTUS BOSALETSWE editors@thepatriot.co.bw   Botswana was hit by a shortage of CD4 and viral screening reagents… Read more: HIV/ AIDS fight compromised?  
  • Foreign reserves get depletedJuly 28, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted Significant drop linked to decline in diamonds revenue Reserves went down by P0.9 billion as 31st May 2025 Govt forced to borrow more and more Ndaba… Read more: Foreign reserves get depleted
  • Pennywise Investments (Pty) LtdJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Solace Pty Ltd – Farm WorkerJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Friday, August 1, 2025
-6 °c
Columbus
6 ° Sat
13 ° Sun
15 ° Mon
16 ° Tue
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

Towards an uppermiddle- income economy

patriot by patriot
February 5, 2021
in Business
240
0
491
SHARES
1.4k
VIEWS
ShareShareShare

Botswana’s growth record has set it apart from Sub Saharan African peers. Even after the 2008-09 global financial crisis, a period characterised by weaker diamond production, Botswana grew faster than other Southern African Customs Union (SACU) economies. Despite this favourable performance, Botswana’s growth has fallen short of the rapid increase in GDP per capita observed in previous decades, especially in the 1970s and 1980s. While Botswana has achieved lower-middle-income status, in order to see further development and escape from the ‘middle-income trap’, it will need accelerated reform. Greater investment and faster productivity growth will be needed to improve potential output, which has stagnated. How can Botswana become a high-growth economy once again and raise per capita income further? The old model, where growth depended largely on accumulated diamond wealth, and the public sector played a key role in driving economic growth, may no longer meet the country’s needs. To enhance potential output more fully, Botswana’s private sector may need to take over from the public sector as the main driver of economic activity. This is likely necessary to reduce unemployment, as the public sector struggles to do this on its own. The uncertain global economic outlook, with rising trade and geopolitical tensions, provides yet another reason for Botswana to diversify its current narrow economic base. External reserves remain high, but Botswana would benefit from embracing diversification from a position of strength rather than acting only when it is forced to do so by falling diamond revenue. Encouragingly, Botswana’s government has already initiated a structural reform agenda. Business climate reforms are being tackled. Botswana will soon legislate to reduce the time it takes to set up a new business. Work permits and visa liberalisation issues are also being addressed, helping to overcome skill constraints in the private sector. While these are encouraging first steps, there is still plenty to do in the medium term. Action is needed on underperforming SOEs and many more measures could be taken to deepen the financial sector. Botswana has vast, but underutilised tourism potential. Micro reforms could address domestic beef production, with the potential to dramatically scale up exports. While the recent revival of the reform agenda promises much, it is important to keep focused on medium- to long-term goals. These include addressing key bottlenecks to growth, creating an environment conducive to private-sector growth, improving productivity growth, and attracting greater investment. Should Botswana get its reform agenda right, eventual upper-middle-income status remains in sight. Potential output should rise, and higher per capita incomes could be realised. 

Razia Khan 

RelatedPosts

REVITALISING OODI WEAVERS

Foreign reserves get depleted

New player enters Insurance market

Razia Khan is Managing Director, Chief Economist for Africa and the Middle East, with over 20 years of experience covering emerging and frontier markets. She is a well-known commentator on the region, and has provided regular updates to central banks, finance ministries and sovereign wealth funds. She currently serves on the WEF’s Global Future Council on Migration and on the Advisory Board of the Royal Africa Society. She was named one of the ‘100 Most Influential Africans’ in 2015 by New African Magazine, and the ‘100 Africa Economics Leaders’ by Institut Choiseul (2017). Razia holds BSc and MSc (Econ) degrees from the London School of Economics.

Related

Tags: Economyrazia khanSACU

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

Unsubscribe
Previous Post

Immigration Officers owed P11 million overtime

Next Post

BTC Foundation boosts hawkers

Related Posts

REVITALISING OODI WEAVERS
Business

REVITALISING OODI WEAVERS

July 29, 2025
Foreign reserves get depleted
Business

Foreign reserves get depleted

July 29, 2025
New player enters Insurance market
Business

New player enters Insurance market

July 21, 2025
Power supply crisis dampens economic recovery
Business

Power supply crisis dampens economic recovery

July 15, 2025
Banks in liquidity squeeze
Business

Banks in liquidity squeeze

July 14, 2025
BSB’s net profit jumps 230%
Business

BSB’s net profit jumps 230%

July 9, 2025
Next Post
BTC Foundation boosts hawkers

BTC Foundation boosts hawkers

Please login to join discussion
  • REVITALISING OODI WEAVERSJuly 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted • Debswana, De Beers move to help • preserve cultural heritage DEBSWANA Diamond Company and De Beers Group have embarked on a collaborative initiative to support… Read more: REVITALISING OODI WEAVERS
  • HIV/ AIDS fight compromised?  July 29, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted   Monitoring in limbo due to CD4, viral reagents shortage CALISTUS BOSALETSWE editors@thepatriot.co.bw   Botswana was hit by a shortage of CD4 and viral screening reagents… Read more: HIV/ AIDS fight compromised?  
  • Foreign reserves get depletedJuly 28, 2025
    RelatedPosts REVITALISING OODI WEAVERS HIV/ AIDS fight compromised?   Foreign reserves get depleted Significant drop linked to decline in diamonds revenue Reserves went down by P0.9 billion as 31st May 2025 Govt forced to borrow more and more Ndaba… Read more: Foreign reserves get depleted
  • Pennywise Investments (Pty) LtdJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
  • Solace Pty Ltd – Farm WorkerJuly 28, 2025
    RelatedPosts Pennywise Investments (Pty) Ltd Solace Pty Ltd – Farm Worker CHOPPIES – Distribution Center Manager
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

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

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

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?