Connect with us
Advertisement

GDP growth slacked during Q1


“Botswana GDP growth slowed to 4.3% y/y during the 1st quarter of the year 2015 as revealed by data from Statistics Botswana. The subdued growth was mainly led by the mining sector which slacked to 1.2% as compared to 2.5% during the last quarter of 2014 and the tourism sector which reduced to 6.1% (relative to 7.8% posted prior quarter).

The Water and Electricity sector continue to drag economic growth as it posted negative growth for a 6th consecutive quarter, slowing by -1.7%, though this was better than -236% registered during q4 2014.


However on a positive note, the Finance & Business sector grew by 5.4% higher than the 5% realized during the previous quarter. Meanwhile real exports rose by 7.2% while imports advanced by 13.6% during the quarter under review. The mining sector which still contribute the largest portion to our economy (about 22%), contributed to the slowdown in GDP growth.

This was mainly at the back of a decline in diamond production, while q/q Copper/Nickel production decreased by 15.3% following the closure of Discovery Metals Boseto copper mine. We are likely to experience this volatile trend in mining growth due to the bleak outlook of theglobal picture.

Eurozone is currently at a critical state due to the Greece financial crisis. However, Greece took an initiative to come up with reforms in order to secure bailout package which will aid in rescuing it from its huge debts. In China, economic indicators have been pointing out to slow growth of the 2nd largest world economy, including PMI, trade balance among others. However, recent q2 2015 GDP numbers exceeded market expectations, showing Chinese economy grew by 7% y/y.


The IMF recently, again, downward revised global economic outlook for 2015 (from 3.5% to 3.3%), reiterating slowdown in emerging markets and developing economies at the back of lower commodity prices, structural bottlenecks, economic distress related to geopolitical factors among others.


Despite the subdued growth projected, developed economies are expected to pick up gradually. Coming back home, we expect GDP growth to be subdued, tracking volatile mining growth and fragile outlook of global growth which could hinder tourism space as well. Although the lower interest rate could provide impetus for the non-mining sector to grow, the fruits will only be realized in the mid to long term in our view.”  


(Motswedi Securities)

Continue Reading

Business

China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

Continue Reading

Business

Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

Continue Reading