Botswana's economy slows in third quarter of 2018

Botswana’s economy grew at a slower pace of 0.5 percent in the third quarter of this year after growing 2.5 percent in the second quarter.

Botswana’s economy grew at a slower pace of 0.5 percent in the third quarter of this year after growing 2.5 percent in the second quarter, data from the statistics office showed on Friday.

On a year-on-year basis, gross domestic product grew 4.2 percent in the third quarter after expanding by 3.5 percent in the same period last year. 

Statistics Botswana said utilities, trade, hotels, restaurants and transport were the major contributors.

Slow growth in government spending is believed to the biggest challenge facing businesses, highlighting major dependency on government by local firms. 

According to the Business Expectations Survey (BES) which was conducted from between September and October last year, unavailability of skilled labour came second.

The survey which is carried out by Bank of Botswana (BoB) twice a year highlights that the challenge of lack of skilled labour is more pronounced in the construction sector, followed by manufacturing.

“Lack of skilled labour is also one of the areas highlighted among the main challenges to doing business in Botswana by the Global Competitiveness reports,” the survey states.

Other factors such as the political climate and exchange rate are said to have been viewed positively by businesses.

However, one of the interesting findings that the survey reportedly picked is that water and power are now contributing positively to the business climate.

BES, which is a biannual exercise, collects data on the local business community’s perceptions about the prevailing state of the economy and economic prospects.