Home Business & Economy Mining to spur Botswana’s economy

Mining to spur Botswana’s economy

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THE recovery of Botswana’s mining industry is expected to boost the country’s economy, a local investment manager said in the capital, Gaborone, on Friday.

‘We are optimistic going into the second half of the year, as a ramp up in government spending is expected to boost economic activity,’ said Tshegofatso Tlhong, portfolio manager of local investment managing firm Kgori Capital.

‘That, coupled with the recovery in the mining sector, is positive for the economy in the near-term,’ said Tlhong in Gaborone, adding that the country is recording increased activity in the resources sector.

‘Essentially, this means companies are raising capital to fund exploration and operational activity and investors are selectively investing in companies in this sector (mining) after years of mine closures and disinvestment,’ said Tlhong.

Botswana has been suffering a barrel of uncertainties in the mining sector since 2014, leading to half of the country’s mines being put under care and maintenance.

Three years after Botswana’s mining industry took a plunge, prospects are looking bright again, Tlhong said.

Mining accounts for a lion’s share of Botswana’s gross domestic product (GDP), government revenues and foreign exchange earnings.

 

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