Mmegi

Trade balance scores rare surplus

Powering on: Khoemacau is the larger of two copper operations whose robust exports are helping mitigate the impact from the prolonged diamond downturn FILE KHOEMACAU
Powering on: Khoemacau is the larger of two copper operations whose robust exports are helping mitigate the impact from the prolonged diamond downturn FILE KHOEMACAU

The country’s exports of goods exceeded imports in the second quarter of the year, the first time the feat has been achieved since the second quarter of 2023 when the now prolonged diamond downturn began.

Preliminary figures from Statistics Botswana released this week indicate that the second quarter of the year jumped to a P1.6 billion surplus, following a string of deficits for all the quarters up to the Q2, 2023. In the first quarter of the year, the trade deficit was measured at P7.1 billion. According to the data agency, the second quarter surplus was due to improved trade balances in April and June, which recorded surpluses of P2 billion and P780 million respectively.

The surpluses in April and June were both helped by stronger diamond exports set against lower imports of the precious stone, as well as robust base metal exports. Under the country’s agreement with De Beers, diamonds from the group’s mines in South Africa, Namibia and Canada is imported and mixed in Botswana, together with local production, before being sold out to global buyers.

Editor's Comment
Warm relations must not come at the expense of fair trade

“I believe that free but fair trade isan absolute imperative”– John E. JamesFor two countries bound by geography, history and deep economic ties, periods of diplomatic strain serve neither side well. President Duma Boko’s efforts to restore momentum to relations with Pretoria deserve recognition, particularly at a time when Southern Africa faces shared challenges ranging from sluggish economic growth and unemployment to energy security...

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