Botswana Sees 2023 Growth of 4%

Botswana’s Finance Minister, Peggy Serame, stated on Monday that the government is poised to bolster infrastructure investment as it anticipates a 4% growth rate for the current year and 5.7% for the medium term. Serame delivered the annual budget speech to parliament, revealing that the 2023/24 budget deficit has been revised to 3.06% of the Gross Domestic Product, compared to 2.1% for 2022/23.

Serame stated that the government’s focus on increasing infrastructure spending in 2023/24 is aimed at removing obstacles to economic growth. This follows the upward revision of the country’s growth estimate for 2022, which has been revised to 6.7% from an earlier projection of 4.2%. The Minister attributed the upward revision to a strong recovery from the COVID-19 pandemic and better-than-expected performance in various sectors, including the diamond trade, mining, water, and electricity.

Botswana is heavily reliant on the diamond industry, generating around 70% of its foreign exchange earnings and 30% of its revenue from it. The country experienced an 11.8% economic growth in 2021, following a contraction in 2020 due to lockdown measures.

In conclusion, the government of Botswana aims to accelerate its infrastructure investment to fuel economic growth, as it anticipates a positive outlook for the current year and medium term.