Global headwinds weigh on economy

Speaking at an economic dialogue hosted by Business Botswana and BIHL in Gaborone recently, research manager at First National Bank of Botswana (FNBB), Moatlhodi Sebabole said Botswana is facing not only lower growth but also a budget deficit driven mainly by the downturn in global diamond market. “High rough diamond prices, difficulty in access for financing for sightholders and lower demand for diamonds has affected diamond sales and revenue, thus resulting in increased likelihood of budget deficit,” said Sebabole.

According to the researcher, another headwind comes from the drought, which he said has resulted in weak performance of the agriculture sector.