Mmegi

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
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...

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