The ‘baton pass’ from mining to non- mining is underway as the non-mining sectors are expected to positively drive the economy for the 2015/16 financial year, Kenneth Matambo the Minister of Finance and Development Planning revealed.
Presenting the 2015/16 budget speech Matambo said non mining sectors like Trade, Hotels & Restaurants, Finance and Banking, and Social & Personal Services are set to push the economy in 2015.
Matambo said activities such as increased diamond cutting and polishing, establishment in Selebi-Phikwe of the Steel Manufacturing Plant, and the Horticulture Agro-Processing Plant which is expected to be commissioned in the first quarter of 2015/2016 and the rolling out of the postal and banking services to the rural areas are expected to contribute to the growth of the non-mining sectors.
“These sectors in turn, are expected to contribute to growth and economic diversification, thus creating employment opportunities, and empowering citizens,” Matambo highlighted.
He revealed that slightly lower economic growth in 2015 should be expected compared to the previous year, but the domestic outlook remains positive despite an uncertain global environment,
Diamond producing southern African state's economy would expand by 4.9 percent, down slightly from an estimated 5.2 percent in 2014.
Matambo forecast a budget surplus of 1.23 billion pula ($128 million) or 0.8 percent of GDP in the 2015/16 fiscal year starting in April, compared with a revised surplus of 280.83 million pula in 2014/15.
He said the budget surplus would help rebuild the country’s net financial assets and provide a cushion in the event of a future shock, as was the case during the 2008/09 global financial crisis.
“Despite continued uncertainty over the global economic recovery, the outlook for the domestic economy remains positive,” Matambo told parliament,” he said.
He said a supportive monetary policy that has ensured stability of the real effective exchange rate should promote competitiveness of domestic enterprises in the global market.
In addition he said a Cluster Development Approach has been adopted as a practical strategy to achieve economic growth and diversification. The four identified clusters are Diamond, Tourism, Cattle, and Mining, comprising of coal, copper and other minerals excluding diamonds.
The concept of clusters refers to a group of inter-connected firms, suppliers and related industries, while a value chain is a sequence of activities that firms operating in a specific industry perform in order to deliver a valuable product or service.
“Some work has already started on the development of the Diamond cluster.” Matambo revealed.
He said another industry where the cluster approach will be introduced is the tourism sector, which continues to be one of the key sectors that contribute to the diversification of the economy.
“Such a review process is in its final stages and the revised Policy is expected to create a more supportive and enabling environment for local investors. Furthermore, Government is reviewing the Wildlife Conservation and National Parks Act No. 28 of 1992 and the revised Act is expected to be considered by Parliament during 2015/2016 financial year.”
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.
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.
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.