China slowdown dims Botswana�s minerals prospects
Tuesday, November 10, 2015
Sluggish: Demand for diamonds in he second half of 2015 is expected to be worse than the 2008 crisis
China is the second largest consumer of diamonds while it is the top buyer of commodities such as copper and coal.
According to the report compiled by the Economist Intelligence Unit (EIU), the impact of the softening in international demand was already evident in the first half of 2015, with Botswana’s earnings from rough diamond exports falling by 16.8 percent year-on-year to $1.7 billion (P17.6 billion).
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...