Botswana-Economy-South Africa

Botswana jittery about contagion effects of sluggish S/Africa economy

APA-Gaborone (Botswana)

Botswana’s central bank has warned that sluggish economic performance of South Africa could spill over to Botswana.

In a new report, titled “Financial Stability”, the Bank of Botswana said South Africa’s gross domestic product growth is expected to average one percent in 2019, revised downwards from an earlier projection of 1.3 percent.

“As Botswana’s biggest trading partner, sluggish performance in the South African economy could have a negative impact on the economy of Botswana, and potentially impact on domestic financial stability,” the bank said.

Overall, the bank said South Africa is exposed to structural and reputational challenges that could adversely affect its economic performance through trade and investment channels.

Botswana relies heavily on neighbouring South Africa for goods and services, including electricity and raw materials for its own industries.

KO/jn/APA

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