Earlier this month, Botswana President Seretse Khama Ian Khama announced that the government will launch a holistic Economic Stimulus Program to enable the establishment of special economic zones.
The introduction of the program aims to address the challenge of slower growth and greater uncertainty that the diamond-rich country has experienced since the worldwide economic slowdown of 2008.
The government will use its expenditure to expand the economy through accelerated economic diversification, while creating employment opportunities in the country including the growth of the private sector.
The ESP, which is moreover a bold blueprint for the urgent delivery of national priorities, is to stimulate the economy, diversify the economy through special economic zones and boost job creation.
The eight ares currently identified for special economic zones include the capital city Gaborone (with two zones), Lobatse, Palapye area, Selebi Phikwe, Tuli Block, Francistown and Pandamatenga.
They are specialized to the fields of international diamond activities and specialized manufacturing, financial services, beef and leather, mineral beneficiation,horticulture,mining supplies and etc.
Earlier this year, the government downgraded its view on economic growth rate from 4.9 percent to 2.6 percent due to the steeper than originally projected slowdown in mineral revenues.
Statistics shows that mining industry contributed 22.9 percent of the country’s total GDP in 2014. It is estimated that the country’s domestic economy expanded by 4.4 percent in 2014 compared to 9.3 percent in 2013, due to decreased growth in both mining and non-mining sectors.
Source: Xinhua
