• AI agents are redefining productivityJune 10, 2025
    Dr Dimakatso Polokelo At the turn of the 21st century, the idea of asking a computer to book a dinner reservation or summarize a report would have sounded implausible. Yet today, digital assistants like Siri and Alexa routinely perform… Read more: AI agents are redefining productivity
  • Boko mulls military hubJune 10, 2025
    BIUST, BDF, Air Force War College (Nigeria) discuss military industrial complex STAFF WRITERS editors@thepatriot.co.bw RelatedPosts Boko mulls military hub BOSETU reject education privatisation RDC pursues PrimeTime acquisition Just days after President Duma Boko announced Botswana’s ambition to develop a… Read more: Boko mulls military hub
  • BOSETU reject education privatisationJune 10, 2025
    Reports Botswana govt to ILO over privatisation of public education BAKANG TIRO editors@thepatriot.co.bw RelatedPosts Boko mulls military hub BOSETU reject education privatisation TOUGH TIMES AHEAD!   Amidst growing standoff between the government and public sector trade unions, Botswana Sector… Read more: BOSETU reject education privatisation
  • RDC pursues PrimeTime acquisitionJune 9, 2025
    Strong 2024 results confirm sound strategy, buoyed by BSE clearance STAFF WRITER editors@thepatriot.co.bw RelatedPosts AI agents are redefining productivity Boko mulls military hub RDC pursues PrimeTime acquisition RDC Properties Limited (RDC), on the 30th May released a Circular and… Read more: RDC pursues PrimeTime acquisition
  • Botswana Environmental Assessment Practitioner AssociationJune 9, 2025
    RelatedPosts Botswana Environmental Assessment Practitioner Association TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Friday, June 13, 2025
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

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

AI agents are redefining productivity

RDC pursues PrimeTime acquisition

Letshego deposits hit P2.1 billion

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

AI agents are redefining productivity
Business

AI agents are redefining productivity

June 10, 2025
RDC pursues PrimeTime acquisition
Business

RDC pursues PrimeTime acquisition

June 9, 2025
Letshego deposits hit P2.1 billion
Business

Letshego deposits hit P2.1 billion

June 3, 2025
‘Raise capital through BSE’
Business

‘Raise capital through BSE’

June 2, 2025
Mining sector endures worst recession
Business

Mining sector endures worst recession

May 27, 2025
VP applauds the Northern Trade Fair
Business

VP applauds the Northern Trade Fair

May 26, 2025
Next Post
BTC Foundation boosts hawkers

BTC Foundation boosts hawkers

Please login to join discussion
  • AI agents are redefining productivityJune 10, 2025
    Dr Dimakatso Polokelo At the turn of the 21st century, the idea of asking a computer to book a dinner reservation or summarize a report would have sounded implausible. Yet today, digital assistants like Siri and Alexa routinely perform… Read more: AI agents are redefining productivity
  • Boko mulls military hubJune 10, 2025
    BIUST, BDF, Air Force War College (Nigeria) discuss military industrial complex STAFF WRITERS editors@thepatriot.co.bw RelatedPosts Boko mulls military hub BOSETU reject education privatisation RDC pursues PrimeTime acquisition Just days after President Duma Boko announced Botswana’s ambition to develop a… Read more: Boko mulls military hub
  • BOSETU reject education privatisationJune 10, 2025
    Reports Botswana govt to ILO over privatisation of public education BAKANG TIRO editors@thepatriot.co.bw RelatedPosts Boko mulls military hub BOSETU reject education privatisation TOUGH TIMES AHEAD!   Amidst growing standoff between the government and public sector trade unions, Botswana Sector… Read more: BOSETU reject education privatisation
  • RDC pursues PrimeTime acquisitionJune 9, 2025
    Strong 2024 results confirm sound strategy, buoyed by BSE clearance STAFF WRITER editors@thepatriot.co.bw RelatedPosts AI agents are redefining productivity Boko mulls military hub RDC pursues PrimeTime acquisition RDC Properties Limited (RDC), on the 30th May released a Circular and… Read more: RDC pursues PrimeTime acquisition
  • Botswana Environmental Assessment Practitioner AssociationJune 9, 2025
    RelatedPosts Botswana Environmental Assessment Practitioner Association TIKI MEDIA * Head Branding Solutions WILDERNESS AIR * Quality Assurance Manger
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?