BCL closure slows economic growth

Ripple effects: Electricty and coal production are some of the sectors affected by the BCL closure
Ripple effects: Electricty and coal production are some of the sectors affected by the BCL closure

The economy grew at a slower rate of 0.8% in the first three months of the year compared to 2.3% in the same period last year as the full effects of the closure of BCL in the fourth quarter of 2016 come into play.

Although the economy’s new driver, the services sector continued to perform well, it was the 28.9% decrease in the real mining value added that largely slowed economic growth.

BCL’s closure also affected coal production with Morupule Coal Mine (MCM) reducing output while the water and electricity sector also reduced output due to the closure of the copper and nickel mines.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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