Weaker diamonds cause 49% fall in July exports
Thursday, October 10, 2024 | 1400 Views |
National pride: Botswana is the largest producer of diamonds by value and the country most dependent on revenues from their mining
According to the data agency, in July, the country’s trade balance – or the difference between the values of exported and imported goods, widened to a shortfall of P4.2 billion from a deficit of about P3 billion in June. The country’s trade balance has been in negative territory since September last year when diamonds entered a slowdown broadly caused by oversupply in the retail end of the market.
According to Statistics Botswana figures, the declining export figures in July were caused by diamonds, whose exports dropped 68% in the month to P1.1 billion. The most recent time that diamond exports were lower than the July figure was in April 2020, but the zero exports recorded for that month were possibly due to the travel bans instituted for the COVID-19 pandemic.
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...