Latest news with #Gaborone
Reuters
a day ago
- Business
- Reuters
Botswana to slash growth forecast amid prolonged diamond market downturn
GABORONE, June 2 (Reuters) - Botswana will cut its 2025 economic growth forecast to almost zero due to a prolonged downturn in the global diamond industry, a senior financial ministry official said Monday, with the budget deficit also seen widening due to reduced diamond revenue. Botswana is the world's leading producer of diamonds by value and its economy largely depends on diamond exports, which normally contribute around 30% of national revenues and 75% of foreign exchange receipts. In the 2025 Budget, announced in February, finance minister Ndaba Gaolathe had projected 3.3% growth this year based on an expected rebound in the diamond market. For the 2025/26 financial year, running from April to March, he had forecast a budget debit of 7.56% of gross domestic product, lower than the last financial year's estimated deficit of 9% of GDP. But permanent secretary in the ministry of finance Tshokologo Alex Kganetsano told a parliamentary audit meeting on Monday that those estimates were no longer possible to achieve. "In view of what has happened since ... February, we are going to revise this growth forecast downwards," Kganetsano said. "We do have a preliminary figure of close to zero percent, but that figure has to be interrogated internally before we can officially publicise it." The International Monetary Fund expects Botswana's economy to contract by 0.4% this year. Botswana's economy contracted by 3% in 2024 largely due to the diamond market downturn, but the government had expected mineral revenues, including diamonds, to more than double this year which would help it avert another recession. "The trend doesn't seem to show any improvement, instead it is a deterioration," Kganetsano said. "As result of a slowdown in inflows we find ourselves sitting on some unpaid invoices to government suppliers," he added. A significant decline in the country's revenues has resulted in massive liquidity challenges, threatening the financial sustainability of the government's operations, he said.
Reuters
4 days ago
- Business
- Reuters
Botswana's ODC to start contract diamond sales in September
GABORONE, May 30 (Reuters) - Botswana's state-owned Okavango Diamond Company plans to start contracted gem sales in September, managing director Mmetla Masire said on Friday, as it diversifies its sales channels under the government's new marketing deal with De Beers. ODC, whose allocation in the production of Debswana - its 50-50 joint venture with De Beers - was increased to 30% from 25% under the new deal, aims to sell about 40% of its supply through contracts, with the balance sold through auctions, strategic partners and Botswana-based companies. Currently, ODC's sales are predominantly through online auctions, typically held 10 times a year. Like De Beers, which sells about 90% of its diamonds through contracts to handpicked buyers, also called sightholders, ODC will now also sell to contracted buyers. "The previous deal had a clause which prevented us from directly competing with De Beers on contract sales," Masire told Reuters in an interview. The process of selecting buyers has started, with contracts expected to be issued by September, he added. Under the new ten-year deal with De Beers signed in February, ODC's allocation of Debswana output will reach 40% at the end of the agreement, with the possibility of a further increase to 50% during a proposed five-year extension period. The global diamond market is currently going through a downturn marked by declining demand and a supply glut, but Masire said there were signs of "a slow but sustained recovery". "The global market is still fragile, and the U.S. tariffs have added uncertainty, but indications are that demand is improving as China looks like it's starting to pick up and India as well,' Masire said. ODC's 2024 revenues were about 60% of the previous year's levels due to the downturn.
Zawya
17-05-2025
- Business
- Zawya
African Development Bank approves $304mln loan to support Botswana's fiscal stability and economic reforms
GABORONE, Botswana -- The African Development Bank ( has approved a $304 million loan to Botswana to support the southern African country in managing mounting fiscal challenges and implementing key governance and economic reforms. The funding, approved by the Bank Group's Board of Directors on Wednesday, will finance the Governance and Economic Resilience Support Programme (GERSP), a one-year general budget support operation covering the 2025/2026 fiscal year. The facility aims to cushion Botswana from the financial shock triggered by declining diamond revenues, while advancing critical reforms to enhance fiscal transparency, boost revenue collection, and promote private sector-led growth. Botswana's economy contracted by 1.7% in 2024, primarily due to weak global demand for diamonds, which account for approximately 80% of the country's exports. The country's fiscal deficit widened -- from a balanced budget in 2022/23 to 4.7% of GDP in the 2023/24 financial year–– and is projected to reach 6.7% in the current fiscal year. 'This operation comes at a critical time for Botswana," said Moono Mupotola, Deputy Director General for Southern Africa and Country Manager at the African Development Bank Group. "We will work with the new administration to implement reforms that will deepen fiscal sustainability, strengthen transparency, and create a more business-friendly environment for economic diversification." The GERSP is structured around two main pillars: Strengthening fiscal sustainability and transparency, and stimulating economic growth. It includes measures to increase domestic revenue mobilization, curb illicit financial flows, and enhance public expenditure efficiency and accountability. The program also targets support for micro, small, and medium enterprises, particularly those led by women and youth, to create jobs and reduce inequality. The operation is a transitional measure to address short-term budget pressures while engaging with Botswana's new government, elected in November 2024, on long-term development goals. 'The African Development Bank is committed to supporting Botswana's ambitious socioeconomic development agenda through credible and transformational reforms, project and program financing, and continuous policy dialogue', said Abdoulaye Coulibaly, the Bank's Director of Governance and Economic Reforms. The new loan builds on the Bank's prior support to Botswana, including the Economic Recovery Support Programme implemented in 2021-2022, which had $200 million cofinancing from the OPEC Fund for International Development. The current program aligns with the Bank's Country Strategy Paper for Botswana (2022-2026), which prioritizes building economic resilience through support for economic governance and private sector development. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Contact: Emeka Anuforo Communication and External Relations Department media@ SOURCE African Development Bank Group (AfDB)
Yahoo
11-05-2025
- Politics
- Yahoo
'Proud to be young' - Beauty queen, lawyer and Botswana's youngest cabinet minister
Lesego Chombo's enthusiasm for life is as infectious as her achievements are impressive: she has won the Miss Botswana 2022 and Miss World Africa 2024 crowns, is a working lawyer, has set up her own charitable foundation - and made history in November, becoming Botswana's youngest cabinet minister. She was just 26 years old at the time - and had clearly impressed Botswana's incoming President Duma Boko, whose Umbrella for Democratic Change (UDC) had just won a landslide, ousting the party that had governed for 58 years. It was a seismic shift in the politics of the diamond-rich southern African nation - and Boko, a 55-year-old Harvard-trained lawyer, hit the ground running. His main focus, he said, was fixing an economy too reliant on diamonds, telling the BBC ahead of his inauguration that he wanted young people to be the solution - "to become entrepreneurs, employ themselves and employ others". Key to this was finding a suitable ambassador - and Chombo was clearly it: a young woman already committed to various causes. He made her minister of youth and gender. "I've never been more proud to be young," she told the BBC at the ministry's headquarters in the capital, Gaborone. "I'm a young person living in Botswana, passionate about youth development, gender equality, but also so passionate about the development of children." The beauty queen did not campaign to be an MP - she is what is called a specially elected member of parliament - and is now one of just six female MPs in the 69-member National Assembly. Chombo said becoming an MP and then minister came as a complete surprise to her. "I got appointed by a president who had never met me," she said. "Miss World and the journey that I thought I was supposed to pursue as my final destination was only the platform through which I would be seen for this very role." It was her crowning as Miss Botswana in 2022 that raised her profile and enabled her to campaign for social change, while trying to inspire other young women. It also gave her the opportunity to set up the Lesego Chombo Foundation, which focuses on supporting disadvantaged youngsters and their parents in rural areas – and which she is still involved with, its projects funded by corporate companies and others. "We strive to have a world where we feel seen and heard and represented. I'm very thrilled that I happen to be the very essence of that representation," she said. As she prepared for last year's Miss World pageant, she said: "I really put myself in the zone of service. I really channelled it for this big crown." Now in political office, she is aware of the expectations placed on her in a country where approximately 60% of the population is below 35 years. It also has a high level of unemployment - 28%, which is even higher for young people and women who have limited economic opportunities and battle systemic corruption. Chombo said this was something she was determined to change: "Currently in Botswana, the rates of unemployment are so high. "But it's not just the rate of unemployment, it's also just the sphere of youth development. "It's lacking, and so my desire is to create an ecosystem, an environment, a society, an economy in which youth can thrive." Chombo said her plan was to develop a comprehensive system that nurtured youth-led initiatives, strengthened entrepreneurship and ensured young people had a seat at the table when decisions were being made. With Botswana's anti-corruption policy undergoing a rigorous review, she said this would ensure that quotas for young entrepreneurs - when state departments and agencies put out tenders for goods and services - were actually reached. The government has begun a 10-month forensic audit of government spending that will include 30 state-owned enterprises. Indeed President Boko is intent on cracking down on corruption, seeing this as a way to bolter investor confidence and diversify the economy - something his deputy has been seeking to do on recent trips to the United Arab Emirates (UAE) and Switzerland. And a key deal has now been secured with UAE-based CCI Global, a provider of business process outsourcing, to open a hub in Botswana. While youth development is a central pillar of her work, gender equity also remains close to her heart. Her short time in office has coincided with a growing outcry over gender-based violence. According to a United Nations Population Fund (UNFPA) report, over 67% of women in Botswana have experienced abuse, more than double the global average. "It hurts to know that it could be me next," she admitted. A month into her appointment, she was criticised for voting against an opposition motion in parliament to create "peace desks" at police stations and magistrate courts to quickly deal with victims. At the time she said such provisions already existed within the law and what was needed was more public awareness. This was followed in January by a police report noting that at least 100 women had been raped and another 10 murdered during the festive season - this caused public outrage with many lashing out at her on social media over the issue. The minister reiterated - on several occasions, including before parliament in March - that Botswana had many laws and strategies in place and what was important was to ensure these they were actually applied. But she told the BBC the government would be pushing for the implementation of a Gender-Based Violence Act, aimed at closing legal loopholes that have long hindered justice for survivors. She said she was also advocating a more holistic approach, involving the ministries of health, education and local government. "We want curriculums that promote gender equity from a young age," Chombo said. "We want to teach children what gender-based violence is and how to prevent it. "It will boil down to inclusion of teaching gender equity at home, how parents behave around their children, how they model good behaviour." She has also been vocal about the need to address issues affecting men, particularly around mental health and positive masculinity, encouraging chiefs "to ensure that our patriarchal culture is not actively perpetuating gender violence". "I hear a lot of people say: 'Why do you speak of women more than men?' "It's because as it stands in society, women are mostly prejudiced [against]. "But when we speak of gender equality, we're saying that it should be applied equally for everyone. But what we strive for is gender equity." Chombo, who studied law at the University of Botswana, said she was thankful to her mother and other strong women for inspiring her - saying that women had to work "10 times harder" to succeed. "[My mother] has managed to create an environment for me to thrive. And growing up, I got to realise that it's not an easy thing. "As women, we face so many pressures: 'A woman cannot do this. A woman can't do that. A woman can't be young and in leadership.' I'm currently facing that." She also credited Julia Morley, the CEO of Miss World, for helping her: "She has managed to create a legacy of what we call beauty with a purpose for so many young girls across the world. "She has just inspired us so deeply to take up social responsibility." Chombo is serious about this. The beauty queen-cum-lawyer-cum-minister knows she has made history - but is also aware that her real work has only just begun. "Impact. Tangible impact. That's what success would look like to me," she said. "I want to look back and see that it is there and it is sustainable. That when I leave, someone else is able to carry it through." Additional reporting from Innocent Selatlhwa in Gaborone 'Without sport I'd probably be a criminal' - Olympic champion Tebogo Botswana's politician who did the unthinkable Why voters fall out of love with liberation movements Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
Yahoo
11-05-2025
- Politics
- Yahoo
'Proud to be young' - Beauty queen, lawyer and Botswana's youngest cabinet minister
Lesego Chombo's enthusiasm for life is as infectious as her achievements are impressive: she has won the Miss Botswana 2022 and Miss World Africa 2024 crowns, is a working lawyer, has set up her own charitable foundation - and made history in November, becoming Botswana's youngest cabinet minister. She was just 26 years old at the time - and had clearly impressed Botswana's incoming President Duma Boko, whose Umbrella for Democratic Change (UDC) had just won a landslide, ousting the party that had governed for 58 years. It was a seismic shift in the politics of the diamond-rich southern African nation - and Boko, a 55-year-old Harvard-trained lawyer, hit the ground running. His main focus, he said, was fixing an economy too reliant on diamonds, telling the BBC ahead of his inauguration that he wanted young people to be the solution - "to become entrepreneurs, employ themselves and employ others". Key to this was finding a suitable ambassador - and Chombo was clearly it: a young woman already committed to various causes. He made her minister of youth and gender. "I've never been more proud to be young," she told the BBC at the ministry's headquarters in the capital, Gaborone. "I'm a young person living in Botswana, passionate about youth development, gender equality, but also so passionate about the development of children." The beauty queen did not campaign to be an MP - she is what is called a specially elected member of parliament - and is now one of just six female MPs in the 69-member National Assembly. Chombo said becoming an MP and then minister came as a complete surprise to her. "I got appointed by a president who had never met me," she said. "Miss World and the journey that I thought I was supposed to pursue as my final destination was only the platform through which I would be seen for this very role." It was her crowning as Miss Botswana in 2022 that raised her profile and enabled her to campaign for social change, while trying to inspire other young women. It also gave her the opportunity to set up the Lesego Chombo Foundation, which focuses on supporting disadvantaged youngsters and their parents in rural areas – and which she is still involved with, its projects funded by corporate companies and others. "We strive to have a world where we feel seen and heard and represented. I'm very thrilled that I happen to be the very essence of that representation," she said. As she prepared for last year's Miss World pageant, she said: "I really put myself in the zone of service. I really channelled it for this big crown." Now in political office, she is aware of the expectations placed on her in a country where approximately 60% of the population is below 35 years. It also has a high level of unemployment - 28%, which is even higher for young people and women who have limited economic opportunities and battle systemic corruption. Chombo said this was something she was determined to change: "Currently in Botswana, the rates of unemployment are so high. "But it's not just the rate of unemployment, it's also just the sphere of youth development. "It's lacking, and so my desire is to create an ecosystem, an environment, a society, an economy in which youth can thrive." Chombo said her plan was to develop a comprehensive system that nurtured youth-led initiatives, strengthened entrepreneurship and ensured young people had a seat at the table when decisions were being made. With Botswana's anti-corruption policy undergoing a rigorous review, she said this would ensure that quotas for young entrepreneurs - when state departments and agencies put out tenders for goods and services - were actually reached. The government has begun a 10-month forensic audit of government spending that will include 30 state-owned enterprises. Indeed President Boko is intent on cracking down on corruption, seeing this as a way to bolter investor confidence and diversify the economy - something his deputy has been seeking to do on recent trips to the United Arab Emirates (UAE) and Switzerland. And a key deal has now been secured with UAE-based CCI Global, a provider of business process outsourcing, to open a hub in Botswana. While youth development is a central pillar of her work, gender equity also remains close to her heart. Her short time in office has coincided with a growing outcry over gender-based violence. According to a United Nations Population Fund (UNFPA) report, over 67% of women in Botswana have experienced abuse, more than double the global average. "It hurts to know that it could be me next," she admitted. A month into her appointment, she was criticised for voting against an opposition motion in parliament to create "peace desks" at police stations and magistrate courts to quickly deal with victims. At the time she said such provisions already existed within the law and what was needed was more public awareness. This was followed in January by a police report noting that at least 100 women had been raped and another 10 murdered during the festive season - this caused public outrage with many lashing out at her on social media over the issue. The minister reiterated - on several occasions, including before parliament in March - that Botswana had many laws and strategies in place and what was important was to ensure these they were actually applied. But she told the BBC the government would be pushing for the implementation of a Gender-Based Violence Act, aimed at closing legal loopholes that have long hindered justice for survivors. She said she was also advocating a more holistic approach, involving the ministries of health, education and local government. "We want curriculums that promote gender equity from a young age," Chombo said. "We want to teach children what gender-based violence is and how to prevent it. "It will boil down to inclusion of teaching gender equity at home, how parents behave around their children, how they model good behaviour." She has also been vocal about the need to address issues affecting men, particularly around mental health and positive masculinity, encouraging chiefs "to ensure that our patriarchal culture is not actively perpetuating gender violence". "I hear a lot of people say: 'Why do you speak of women more than men?' "It's because as it stands in society, women are mostly prejudiced [against]. "But when we speak of gender equality, we're saying that it should be applied equally for everyone. But what we strive for is gender equity." Chombo, who studied law at the University of Botswana, said she was thankful to her mother and other strong women for inspiring her - saying that women had to work "10 times harder" to succeed. "[My mother] has managed to create an environment for me to thrive. And growing up, I got to realise that it's not an easy thing. "As women, we face so many pressures: 'A woman cannot do this. A woman can't do that. A woman can't be young and in leadership.' I'm currently facing that." She also credited Julia Morley, the CEO of Miss World, for helping her: "She has managed to create a legacy of what we call beauty with a purpose for so many young girls across the world. "She has just inspired us so deeply to take up social responsibility." Chombo is serious about this. The beauty queen-cum-lawyer-cum-minister knows she has made history - but is also aware that her real work has only just begun. "Impact. Tangible impact. That's what success would look like to me," she said. "I want to look back and see that it is there and it is sustainable. That when I leave, someone else is able to carry it through." Additional reporting from Innocent Selatlhwa in Gaborone 'Without sport I'd probably be a criminal' - Olympic champion Tebogo Botswana's politician who did the unthinkable Why voters fall out of love with liberation movements Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
