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Non-mining GDP to tumble as gov't cash woes worsen

Seeing risks: Jefferis PIC: PHATSIMO KAPENG
Seeing risks: Jefferis PIC: PHATSIMO KAPENG

Economic activity outside the mining sector is expected to suffer knock-on effects of slowed government spending coupled with delayed payments to suppliers, as the economy’s cash crunch takes a turn for the worst, BusinessWeek has learnt.

Non-mining GDP held the fort last year as the only growing sector of the economy, containing a contraction of economic output to negative three percent, which could have been worse if non-mining GDP did not grow at by four percent.

Prominent economist Keith Jefferis said during an economic update shared this week in Gaborone that the non-mining GDP this year would take a nosedive as government spending slows and payments to suppliers continue to stall from government.

Editor's Comment
A promising step for public schools, but...

For too long, the state of many public schools has been a source of shame. We have all seen the pictures and heard the stories of broken windows, unreliable water and electricity, topped by classrooms that are not fit for proper learning. The establishment of the Education Infrastructure and Management Company Ltd (EIMC) signals that authorities are finally ready to take this problem seriously. We must commend the government for this initiative....

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