Diamonds expected to spur Botswanan economy

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An employee displays a handful of uncut diamonds in this arranged photograph at DTC Botswana, a unit of De Beers, in Gaborone, Botswana, on Thursday, Oct. 25, 2012. De Beers, the biggest diamond producer by revenue, is moving the sorting and trading of rough stones to Botswana from London to secure access to the world's largest supplier of diamonds by value and challenge Antwerp's dominance as the world's biggest trading hub for rough diamonds./Chris Ratcliffe/Bloomberg/ Getty Images

Botswana’s economy is on a recovery course supported by the mining sector, according to the financial services provider Absa Bank Botswana.

“Botswana’s economic recovery is underway with an improving outlook for diamond demand buoying medium- to longer-term prospects. Rough diamond prices are recovering in line with stronger demand in key markets, such as the U.S. and China, and signs of a recovery in India,” said Keabetswe Pheko-Moshagane, Absa managing director, who warned that the economy continues to face risks and uncertainties because of the pandemic.

Botswana has seen a steady rise in confirmed COVID-19 cases during the peak of the pandemic’s third wave and authorities are banking on the rollout of the vaccines to ease the pandemic’s wrath.

Meanwhile, though statistics indicate that the economy contracted 8.5 percent in 2020, Absa believed base effects would play a major role in supporting the country’s projected growth rate of 6.7 percent in 2021.

“The government’s economic recovery and growth plan is likely to provide further impetus to growth,” said Pheko-Moshagane.

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