Expert doubts Botswana economic growth

Commenting on the Bifm Economic Review for the second quarter of 2008, Dr Keith Jefferis said more generally, growth prospects for the year are uncertain, despite strong economic growth in the second half of 2007. He said growth is likely to be negatively affected by the global economic slowdown through reduced demand for exports and the regional electricity shortage. However, strong government spending domestically should help to support growth rates.

In Botswana, things may be made worse by two high-profile corporate failures in the transport sector namely Lobtrans and African Express. This may make the banks more reluctant to provide corporate credit, or impose tighter terms and conditions, which would restrict credit availability.