Botswana’s economy is expected to grow by six percent in 2020 as the country targets transformation from middle-income to high-income status, APA learnt here on Tuesday.
According to a budget strategy paper seen by APA, “the focal areas for 2020/2021 budget include efforts to increase economic growth towards an average of 6 percent per annum.”
The African Development Bank had earlier stated that Botswana’s medium-term growth prospects were favourable, with real GDP growth projected at 3.8 percent in 2019 and 4.1 percent in 2020.
In the paper, the Botswana government revealed that the forecast comes on the backdrop of the country’s aspiration to transform from a middle-income to a high-income country.
The Gaborone authorities said in order to achieve the target of transitioning to a high-income country, they are targeting “reducing unemployment rate towards the Vision 2036 target of a single digit, especially among the youth; embracing the national transformation agenda with the aim of increasing competitiveness of local industries in international markets.”
Other policy thrusts would include human and social economic development; as well as embracing the fourth industrial revolution, the paper said.
“In developing budgetary plans for 2020/2021, Government’s main focus remains to be on economic growth and job creation,” the document said.
The strategic objectives for 2020/2021 would continue to be in line with the country’s aspiration for Vision 2036 as well as the National Development Plan 11 and its mid-term review, it said.
The document revealed that the National Transformation Strategy, which is currently being developed, will drive the process of transforming Botswana into a high income country, focusing on achieving a diversified and export-led economy.
“To further provide strong impetus to the economic reform agenda and aid the country’s efforts to graduate from upper middle to high-income status, Government plans to focus economic transformation from the primary sector to advanced manufacturing and services in order to reduce its vulnerability to shocks in the diamond sector,” it said.
To stimulate private sector investments and increase the productivity of economic investments, the Botswana government plans to invest in high impact infrastructure, provide sound regulatory business environment, as well as enhance skills development.
KO/jn/APA