Conflict in Middle East poses potential economic risk for Botswana – central bank chief

0
Botswana
Botswana

The ongoing conflict between Israelis and Palestinians has the potential to pose a major risk to the Botswana economy if it is not contained, a senior official warned Thursday.

“Conflicts of any kind in the Middle East have far-reaching impacts on the global economy, including that of Botswana,” said Cornelius Dekop, governor of the Bank of Botswana, following the Monetary Policy Committee meeting in Gaborone, the capital of Botswana.

He expressed concerns that any potential escalation of the conflict could significantly increase energy prices and disrupt crucial trade routes.

The Middle East plays a critical role as a supplier of energy and is central to global shipping, which serves as a passageway for international trade.

Botswana, not producing its own energy products, cannot evade the long-term threat to the global energy and trade infrastructure resulting from such conflicts, Dekop said. “Regardless of how much oil prices may rise and the subsequent impact on the global economy, Botswana may face challenges due to its significant revenue reliance on selling diamonds to the lucrative Middle East region.”

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

LEAVE A REPLY

Please enter your comment!
Please enter your name here