https://www.miningweekly.com

Significant growth for Botswana’s mining sectors

21st February 2014

By: Ilan Solomons

Creamer Media Staff Writer

  

Font size: - +

While Botswana’s real economy expanded by an estimated 7.4% year-on-year in the second quarter of 2013, the mining sector showed the strongest sectoral growth, expanding by 15.6% year-on-year in the second quarter, stemming from a 19.2% year-on-year ramp-up in domestic rough-diamond production during the same period, according to Botswana's Central Statistics Office.

The Botswana Snapshot is a quarterly study compiled by privately owned political and economic research unit NKC Independent Economists and advisory services company KPMG; it provides an overview of the country’s economy in the third quarter of 2013.

The snapshot indicates that the economic policy of Botswana continues to be mapped out by the country’s seven-year national development plan and government’s long-term policy, ‘Vision 2016’, which promotes diversification of the economy while maintaining macroeconomic stability through a balanced budget over the medium term.

The study states that, in addition to existing opportunities in the dominant diamond sector, “vast potential” exists in the extractives sector, particularly in coal.

It also notes that the relocation of diamond major De Beers’ Diamond Trading Company’s (DTC’s) trading operations from London, in the UK, to Gaborone, in Botswana, at the end of last year, was a positive development for the country.
 
KPMG and NKC also highlighted in the report that, despite Botswana’s attempts to diversify its economy, the economy remains “heavily dependent” on the diamond mining sector.

The Botswana Snapshot identifies this as “a major constraint, as Botswana remains overly exposed to external global developments”.

It adds that the 2008 global financial crisis led to a sharp downturn in worldwide diamond demand and states that the subsequent decline in diamond prices directly correlates with the economic malaise in Botswana during 2008 to 2012.

The Rapaport Diamond Trade Index (RAPI), which is derived from the average asking price for the top 25 best-quality one-carat diamonds and is seen as a global benchmark, fell by 12.5% in the first half of 2012, but by December of that year, RAPI was trading flat.

However in 2013, RAPI recorded a 10.1% rise for 0.30 ct diamonds.

 

Edited by Samantha Herbst
Creamer Media Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION