Diamond rebound powers 2013 economic growth
Brian Benza | Friday April 4, 2014 15:14
Last year’s increase in the rate of growth reversed a three year streak in which the economy grew at a slowing rate.
In 2010, the economy grew by 8.6 percent but slowed down to 6.2 percent the next year before further declining to 4.3 percent in 2012.
According to figures released by Statistics Botswana the increase in real GDP was mainly due to mining that recorded an increase in value added of 10.6 percent. Diamond production increased by 12.4 percent in 2013 compared to a decrease of 11.9 percent in the previous year.
Debswana ramped up production by 12 percent to 22 million carats in 2013 to power parent company, De Beers’ output to a five-year high.
An output recovery at Jwaneng mine coupled with better grades recovered at Orapa mine drove Debswana’s carat output 17 percent up in the fourth quarter of 2013.
Analysis of the GDP data shows that mining remains the major contributor to GDP with its contribution going up to 22.4 percent in 2013 compared to 19.9 percent recorded in 2012.
In the year, all other economic sectors recorded positive growth except for the electricity and water sector which registered a negative growth of -30.9 percent.
On the quarter basis, real GDP increased by 4.7 percent in the fourth quarter of 2013 compared to 4.6 percent accrued in the same quarter in 2012.
“The slow growth is attributed to water and electricity which recorded a negative growth of 205.5 percent, all other sectors recorded a positive growth of more than 3 percent over the period.
“There was a significant decrease in the value added by the water and electricity sector after a positive growth of 63.5 percent realised in the third quarter of the year under review.
The sector recorded a decrease of 205.5 percent in the fourth quarter of 2013 compared to a decrease of 60.5 percent recorded in the same quarter of the previous year. The decline is largely by the electricity sector which has been contributing negatively to the economy since first quarter of 2012 due to a substantial increase in intermediate consumption,” stated Statistic Botswana.
In the quarter, the growth of the mining sector was sluggish in the period under review, moving from 21.2 percent in the third quarter of 2013 to 9.8 percent in the subsequent quarter.
In the fourth quarter, production at Debswana increased by 17 percent compared to third quarter 2013 with the return to operation of the Orapa One plant following unplanned maintenance in third quarter.