Connect with us

Hi, what are you looking for?

2020: The year of plenty
2020: The year of plenty
EXPECTANT: Bank of Botswana hopeful for a fruitful year

Business

2020: The year of plenty

Businesses expect good trading conditions this year

The business community expects trade conditions to improve during the first quarter of 2020.

Indeed, the quarterly Business Expectations Survey (BES) conducted by Bank of Botswana indicates local companies are highly optimistic about business conditions for the whole year.

This is due to a number of anticipated improvements, including in capacity or resource utilization, production capacity, stock or inventories, exports of goods and services, profitability and employment.

These factors, along with expectations of increased growth in trade, hotels and restaurant and mining sectors, are believed to contribute to the improved expectations relating to the overall business conditions.

Confidence in the domestic oriented firms is largely driven by the hospitality sector, transport and communications and the finance and business services sectors.

Advertisement. Scroll to continue reading.

Furthermore, companies doing business in Botswana have also expressed confidence in cost pressures going down – a prediction motivated by the expected downward pressure on rentals, wages and transport costs.

“This is despite the expected rise in public sector wages in April 2020, with potential upward pressure on private sector wages,” states the report.

Meanwhile, local firms have once again cited unavailability of skilled labour as a major challenge they face. This is particularly evident in the manufacturing space, hospitality as well as transport and communications and is attributed to difficulties in recruiting foreign labour.

The second major impediment highlighted is the difficulty in accessing funding from abroad, which is commonly mentioned by domestic market-oriented firms across various sectors.

In addition, a number of firms, mainly in the manufacturing sector, have cited the lack of raw materials as another hurdle they have to contend with.

On a more positive note, the local political climate along with factors such as domestic demand and the current regulatory framework are viewed as supportive factors to doing business in Botswana.

Advertisement. Scroll to continue reading.

Another observation mentioned in the report is that water and electricity sub-sectors contribute positively to economic activity, reportedly an improvement from the past.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Business

Business Botswana (BB) held the 5th Prosperity Africa Small Business Exporters Conference in Gaborone last week. The three-day conference, which attracted over 70 international...

Business

Friday saw the start of a powerful new partnership as Botswana Power Corporation (BPC) and Francistown College of  Technical and Vocational Education (FCTVE) joined...

Business

As part of their efforts to promote the country as a tourism hub, Cresta Marakanelo Limited (CML) sang Botswana’s praises at the Africa Travel...

Business

Health Generation adds zest to the HATAB Conference Botswana’s best juicers, Health Generation had plenty of admirers at the just ended Hospitality and Tourism...

Business

Coal mine set sights on Europe Morupule Coal Mine (MCM) are in hot pursuit of an exciting new partnership, with the coal producers in...

Business

There is a famous Chinese proverb that states life begins the day you start a garden. This certainly rings true for 41-year-old Unaswi Tafila,...

Business

Fallout from Ukraine invasion worries Minerals Minister Calling for divine intervention, Minister of Minerals and Energy, Lefoko Moagi has warned that the on-going Russia/Ukraine...

Business

Distribution company open Gabs office East Africa’s leading ICT distribution company, Red Dot has honed in on Botswana, officially opening an office in Gaborone’s...

Advertisement