Thursday, October 28, 2021

How our financial budget horses ran in 2016 and indicators for the year ahead

Domestic economic outlook 
The domestic growth rate of 3.5 percent is estimated for 2016 and is projected at 4.1 percent in 2017. In it was projected at 2.6 percent. However, it registered a negative growth of 0.3 percent in 2015, partly due to decline in mineral revenues were recorded at 19.7 percent. 

Inflation 
In 2016 the inflation rate registered an average rate of 2.7 percent between April and September. The figure falls within Bank of Botswana’s target of 3 to 6 percent. The same trend was observed in 2015.  

Bank Rate 

The Bank of Botswana (Bob) adjusted the bank rate by half a percentage point to 5.5 percent in August 2016 from 6 percent in 2015.The rate was also cut by half a percentage point at the same time in 2015 from 6.5 percent. 

The adjustments, according to BoB, were done because the economy as well as the domestic and external economic outlook provided scope for easing monetary policy to support economic activity without undermining maintenance of inflation within the medium-term objective range of 3ÔÇô6 percent. 

Foreign Reserves 

By August 2016, Foreign Exchange Reserves were valued at P83.1 billion, equivalent to 18 months of import cover. Of these reserves, the government Investment Account amounted to P33.8 billion. In August 2015 Foreign Exchange Reserves were estimated at P87.8 billion, a 16.3 percent increase from P75.5 billion in August 2014. 

Foreign Direct Investment (FDI) 
 
FDI attracted through Botswana Investment and Trade Centre (BITC) amounted to P1.493 billion in 2015 compared to P1.489 billion the previous year, while domestic investment amounted to P1.253 billion compared to P238.4 million the previous year. BITC further facilitated exports valued at P2.2 billion. In the 
2014/15 financial year, BITC raised a total combined investment capital of just over P3.2 billion, which contributed to the creation of 3,316 jobs. 

Entrepreneurship 

From April 2015 to March 2016, 2 657 entrepreneurs were trained and mentored by LEA of whom 2 033 were youth. As of March 2016, an additional 25189 were also trained through the Entrepreneurship Awareness Workshops programme, which targets secondary school leavers, vocational education trainees, as well as prison inmates. 

In 2014-15 financial year 24 426 clients were trained.  The Citizen Entrepreneurial Development Agency (CEDA) assisted 418 enterprises with a total monetary value of P400 million in 2015/16 financial year, generating 2,952 new jobs. During the 2014/15 financial year, CEDA assisted 329 new enterprises with a total monetary value of P328 million, collectively generating 1,971 new jobs.

Ipelegeng Programme 

The approved budget for Ipelegeng for the 2016/17 financial year stands at P612 964. 318. P434 186.112 or 91 percent of the budget has been allocated to payment of beneficiaries. 

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