DIAMONDS RESURGENCE TO RESCUE THE ECONOMY

Analysts continue to highlight that diamonds will spur Botswana’s economy, despite uncertainties that continue to dent economies globally. The anticipated economic surge supported by diamonds has also been echoed by Absa Financial Director, Cynthia Morapedi

“Botswana’s economic recovery is underway with an improving outlook for diamond demand buoying medium to longer-term prospects. Rough diamond prices are recovering in line with stronger demand in key markets, such as the US and China, and signs of a recovery in India,” said Morapedi.

The forecast comes on the backdrop of Absa foreseeing a number of risks to the bank’s growth forecasts in the remainder of the year, recognizing that the impact of COVID-19 remains a significant uncertainty.

Morapedi said the economy also continues to face risks and uncertainties because of the pandemic. Botswana has seen a steady rise in confirmed cases and is in a third wave of the pandemic.

“We continue to operate in a volatile, unpredictable environment due to the COVID-19 pandemic, which comes with new waves of infections and variants, restricted movement and trade.

We however, remain resolute in executing our refreshed strategy and focus on offering our people and customers support in collaboration with the various stakeholders that we have partnered with,” said Morapedi.

Meanwhile, S&P Global Ratings has revised the country’s economic outlook from negative to stable on account of anticipated rebound in economic growth, partially led by the diamond mining recovery.