Mmegi

IMF sees diamond downturn squeezing growth

At the helm: Finance Minister, Peggy Serame, will be keeping a close eye on the numbers emerging from various sectors of the economy PIC: MORERI SEJAKGOMO
At the helm: Finance Minister, Peggy Serame, will be keeping a close eye on the numbers emerging from various sectors of the economy PIC: MORERI SEJAKGOMO

The International Monetary Fund (IMF) now expects the local economy to expand by just one percent this year, as the downturn in diamond mining and associated activities continues.

Earlier this year, in its World Economic Outlook, the IMF had projected 3.6 percent growth for Botswana in 2024. Government at the time of the February budget speech projected a 4.2 percent expansion, but the Bank of Botswana recently said this would likely be missed due to the underperformance of the key mining sector.

In a statement following the institution’s annual review with local fiscal and monetary policy authorities, Luc Eyraud, division chief in the IMF African Department, said the slowdown in diamonds would weigh down the economy this year.

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...

Have a Story? Send Us a tip
arrow up