VenturesNow

Central bank official says Botswana’s 4.2% growth target under threat

Published

6 months ago

June 19, 2024

Citing both internal and international limitations, a top central bank official warned on Tuesday that Botswana’s economy might not develop at the 4.2% annual rate set by the government.

In a budget speech given in February, Finance Minister Peggy Serame predicted a 4.2% increase in GDP and stated that the government anticipated growth to pick up speed starting in 2023 as a result of the diamond sector’s improved performance. The GDP increased by 2.7% in 2023.

Nonetheless, Botswana’s mining industry, which is primarily focused on diamonds, is still having difficulty, which is indicative of the weak worldwide market.

In the first quarter of 2024, sales at Debswana Diamond Company, a joint venture between the government of the southern African nation and Anglo-American’s De Beers business, decreased by almost 48% year over year.

“From what we have seen in the first half of the year, unfavourable global economic conditions … as well as domestic structural constraints, one would expect that we are unlikely to attain the projected economic growth,” Innocent Molalapata, the central bank’s director of research and financial stability, told an economic briefing.

“A downward revision of the growth target might therefore be required,” Molalapata stated, noting that the first quarter’s mining output fell by almost 27%.

The finance ministry is usually the one to provide accurate GDP growth projections, not the Bank of Botswana. According to IMF projections, Botswana’s GDP will expand by 3.6% in 2024.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

3 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

4 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”