A local economist has observed no signs of an imminent structural shift under Botswanaโs new government, attributing this to the similarities in party manifestos during the recent watershed elections.
The economist, Mphoeng Mphoeng of MP Consultancy, stated, โIn reality, I think the manifestos between the three major parties were really very similar. Itโs really just the quantum of certain things, but I think the general idea is very similar. So, I donโt think you will see a huge shift in approach.โ
Speaking at the launch of BBS Bankโs business current account, Mphoeng expressed interest in how the new administration will address current financial constraints while implementing ambitious manifesto pillars, such as job creation and a living wage.
โThereโs some really ambitious things in that manifesto,โ he remarked. โThereโs one about making Botswana a transport hub, almost making Botswana the center of SADC, where people can move up and down in these high-speed trains between Johannesburg, Harare, all of that kind of stuff has been mentioned there.โ
Mphoeng highlighted the emphasis on agriculture, noting that the combination of the agriculture and land portfolios signifies a stronger commitment to the sector. He also acknowledged the ruling partyโs focus on Foreign Direct Investment (FDI), stating that it is a significant shift given Botswanaโs recent inward-looking stance, including restrictions on imports.
During his State of the Nation Address, President Duma Boko outlined measures to attract investment, including the establishment of a Legal Reform Task Force. โBotswana has the highest credit rating in Africa with a BBB+ long term and A-2 short term Standard and Poor rating,โ Boko stated.
He stressedย the importance of exploring new markets for goods and services to strengthen theย nationโs economy.
โIn an interconnected world, Botswana must strengthen its national security and developย strategic regional and international partnerships,โ said Boko.
Highlighting the significance of trade partnerships, Boko noted the governmentโs commitmentย to collaborating with neighbouring countries and international organisations to identify new tradeย opportunities. He further announced plans to organise high-level government visits to strengthenย ties with key trading partners and attract foreign investment in priority sectors.
โWith the African Continental Free Trade Area, becoming an export-led economy implies that we need to open our markets and take advantage of that,โ Mphoeng commented.
He pointed to the governmentโs commitment to cut electricity and water tariffs by 30 percent, despite the Botswana Power Corporationโs claim that power is already subsidised.ย
โThatโs going to be interesting to see how they finance it in the current financial situation that we have,โ he said.
Another ambitious pledge involves addressing budget inefficiencies, with the government claiming it can save 37 percent of budget wastage.
Mphoeng urged the new government to prioritise critical metals such as copper, nickel, cobalt, and manganese, which are essential to the burgeoning electronic vehicle (EV) battery market.ย
โIn 2022, the EV battery market was $95 billion, and itโs expected to reach $508 billion in 10 years, growing at 14.4 percent year-on-year,โ he said.
He cautioned that Botswana must actively participate in the global rush for mineral assets. โI think Batswana donโt realise thereโs a whole scramble for Africa happening afresh. The Americans, the Chinese, and even the Middle Eastern countries are running all over Africa to buy mineral assets,โ he said.
Mphoeng criticised the lack of a mineral beneficiation policy, noting, โThe reality is, right now, we still donโt have a mineral beneficiation policy. Most people will be surprised to know this about Botswana.โ
Boko emphasised that excessive bureaucracy is a barrier to doing business in Botswana. The task force will draft legal reforms to improve the investment climate, with a focus on renewable energy, agriculture, tourism, and technology.
Boko also announced plans to fast-track strategic infrastructure projects in transportation, energy, and digital connectivity to boost employment and economic growth. โWe are committed to working with local and global technology companies to rapidly prepare Botswana for the future,โ he said.
The government aims to launch a comprehensive national housing program to address inequality and lack of stable housing. โEconomic reforms must go hand-in-hand with social development. A nation cannot thrive when its people lack access to safe and affordable housing,โ Boko asserted.
By fostering transparency, innovation, and skill transfer, Boko said the government hopes to position Botswana as an open, fair, and ambitious player in the global economy.
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