• Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award November 24, 2023
    Orange Botswana celebrates the business’ CEO, Nene Maïga, on her prestigious Female Innovator of the Year Award 2023, received at the Africa Tech Festival Awards in Cape Town, South Africa. This distinguished accolade recognises the exceptional contributions of women in the fields of technology, media, and telecommunications… Read more: Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award 
  • Govt’s P1.4billion Tati land headacheNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The 45 000 hectares of land recently acquired by Botswana government from Tati Company to the tune of P1.4 billion, will address acute land shortage in Northeast district, the Minister of Lands and Water Affairs (ML&WA),… Read more: Govt’s P1.4billion Tati land headache
  • BDP raises fundsNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The ruling Botswana Democratic Party (BDP) parliamentary candidates will raise close to P1 million through contributions of P15 000 each towards a campaign fund for the 2024 elections, The Patriot on Sunday has learnt. Information turned… Read more: BDP raises funds
  • Butale dumps BFTUNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw In a move that shocked many, Thusang Butale -the Secretary General (SG) of the oldest labour federation in the country, Botswana Federation of Trade Unions (BFTU) resigned his position abruptly this week, The Patriot on Sunday… Read more: Butale dumps BFTU
  • China’s MMG seals $1.9 billion deal to buy Khoemacau copper mine in BotswanaNovember 21, 2023
    Chinese miner MMG Ltd’s share price jumped on Tuesday to a near eight-week peak after it agreed to buy Canada-based Cuprous Capital, the parent company of the Khoemacau copper mine in Botswana, with an enterprise value of $1.88 billion.MMG… Read more: China’s MMG seals $1.9 billion deal to buy Khoemacau copper mine in Botswana
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Tuesday, November 28, 2023
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 

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
  • Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award November 24, 2023
    Orange Botswana celebrates the business’ CEO, Nene Maïga, on her prestigious Female Innovator of the Year Award 2023, received at the Africa Tech Festival Awards in Cape Town, South Africa. This distinguished accolade recognises the exceptional contributions of women in the fields of technology, media, and telecommunications… Read more: Orange Botswana CEO, Nene Maïga, Wins Female Innovator of the Year Award 
  • Govt’s P1.4billion Tati land headacheNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The 45 000 hectares of land recently acquired by Botswana government from Tati Company to the tune of P1.4 billion, will address acute land shortage in Northeast district, the Minister of Lands and Water Affairs (ML&WA),… Read more: Govt’s P1.4billion Tati land headache
  • BDP raises fundsNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw The ruling Botswana Democratic Party (BDP) parliamentary candidates will raise close to P1 million through contributions of P15 000 each towards a campaign fund for the 2024 elections, The Patriot on Sunday has learnt. Information turned… Read more: BDP raises funds
  • Butale dumps BFTUNovember 23, 2023
    BAKANG TIRO editors@thepatriot.co.bw In a move that shocked many, Thusang Butale -the Secretary General (SG) of the oldest labour federation in the country, Botswana Federation of Trade Unions (BFTU) resigned his position abruptly this week, The Patriot on Sunday… Read more: Butale dumps BFTU
  • China’s MMG seals $1.9 billion deal to buy Khoemacau copper mine in BotswanaNovember 21, 2023
    Chinese miner MMG Ltd’s share price jumped on Tuesday to a near eight-week peak after it agreed to buy Canada-based Cuprous Capital, the parent company of the Khoemacau copper mine in Botswana, with an enterprise value of $1.88 billion.MMG… Read more: China’s MMG seals $1.9 billion deal to buy Khoemacau copper mine in Botswana
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
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?