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Botswana seeks to escape middle income trap

Published

6 years ago

September 14, 2018

The private sector has been urged to re-position itself to assist the country escape the middle income trap.

This refers to a situation where countries that have attained a certain level of development find it difficult to make the leap required to become advanced economies.

President Mokgweetsi Masisi made the call during a question and answer session dubbed, Conversation with the President at the just ended 15th National Business Conference. The biennial gathering was held under the theme: Breakthrough to a high income Botswana, The role of the private sector in charting the way.

President Masisi explained that government was doing its part through enrolling more students on technical courses and encouraging the use of information technology in the delivery of services.

In addition, he highlighted that while government was addressing the problem of skills mismatch, the private sector should also play its part in this regard. As a way of positioning the country’s transition to a high income status, President Masisi also explained that global partners were going to be key in this objective as evidenced by the P340 million grant from China for key infrastructural projects that facilitate business innovation.

In this regard, President Masisi highlighted that government was also looking at increasing the number of science and engineering graduates and attaching them in innovative organisations in developed economies.

Furthermore, President Masisi noted that a high income status would only come about when Botswana improved her productivity levels, the quality of education, innovation, developed the financial sector and diversified her economy away from diamonds.

“I urge the private sector to up its game with regards to efforts aimed at economic diversification,” he added.

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TotalEnergies CEO to meet Mozambique president for further project discourse

Published

3 hours ago

October 3, 2024

Ifeoluwa Dada

To discuss the company’s proposed LNG project in Mozambique with the nation’s new president, CEO Patrick Pouyanne has announced he will travel to Mozambique later this month.

“The project remains profitable, we remain committed,” Pouyanne said at an investor presentation.

The $20 billion Mozambique LNG project has been delayed because of worries about violent upheaval in the area, although Pouyanne claimed there had been “progress on security” recently.

On October 9, Mozambicans will cast their votes in presidential and legislative elections that will almost certainly prolong the fifty-year rule of the ruling Frelimo party, which is fighting a protracted Islamist insurgency in one of the largest gas reserves in Africa.

Pouyanne went on to say that lenders had affirmed between 70% and 80% of a $14 billion finance package that supports the project.

“We are waiting on the green light on financing from three credit agencies, some are in Western countries where rules on gas have changed … as soon as that is in place we will move,” Pouyanne said.

VenturesNow

Tanzania’s central bank maintains 6% lending rate

Published

3 hours ago

October 3, 2024

Ifeoluwa Dada

Tanzania’s central bank announced on Thursday that it had left its benchmark interest rate at 6% unchanged.

The benchmark rate was maintained by the central bank at 6% in the two quarters leading up to September, up from 5.5% when the rate was first published in January.

Agriculture, construction, and manufacturing led real GDP growth to 5.3% in 2023, up from 4.7% in 2022. Private investments drove demand.

Tight monetary policy and food and energy price moderation reduced inflation from 4.3% in 2022 to 3.8% in 2023. Due to foreign cash shortages, the Tanzanian shilling fell 8% in 2023.

Despite mounting pressure on the shilling, consumer inflation has remained comfortably below the bank’s objective of 5%. August saw a rise in inflation from 3.0% year over year to 3.1%, according to information from the statistics office.

In recent weeks, many African countries announced monetary policy decisions. Nigeria raised its benchmark interest rate by an additional 50 basis points, to a new record high of 27.25%, Ghana reduced its benchmark monetary policy rate by 200 points to 27% at a normal meeting. while South Africa decreased its benchmark interest rate by 25 basis points to 8% after holding seven consecutive meetings at a 15-year high of 8.25%.