This September 2017 PESA Editorial focuses on political uncertainty and its impact on economic growth in Botswana. The issue looks at: what is the current political economy context in SADC? what is the source of uncertainty? what is the historical context behind the uncertainties? what are the drivers and key role players in the SADC growth story?
The SADC region experienced decline in growth rates in 2015 and 2016. When delivering his 2017/18 budget speech, Motswana Finance Minister, Kenneth Matambo, highlighted that the region is expected to record a real GDP growth rate of 3.1% in 2016, representing a decline of 0.4%, compared to 3.5% in 2015.
The economy of Botswana is largely dependent on the regional economy, particularly the Southern African Customs Union (SACU), and global demand from the EU. The impact of the 2015 drought, uncertainties in the geopolitical environment, weak commodity prices and subdued global growth are some of the challenges that the Botswana 2017/18 budget proposals are responding to.