Power and water shortages slow Botswana exports

Manufacturing exports out of Botswana have been affected by ongoing power and water shortages, according to a review by the International Monetary Fund (IMF). It noted that the country’s economy “grew faster than expected,” reaching a real Gross Domestic Product (GDP) growth of about 6% in 2013. Growth was fuelled by a cyclical recovery of the mining sector along with the recovery in Botswana’s major trading partners. However, the nonmineral sector slowed down, partly ref lecting recurring power supply disruptions, says the report. The IMF is forecasting that Botswana’s real GDP growth will slow down to 4.4% in 2014 and subsequently stabilise at around 4% over the medium-term. Figures released by the Botswana Central Statistics Office show a steady decline in imports since a spike in October 2013. Exports are also well off their highs during 2013. The growth slowdown in 2014 is owing to the slowdown in diamond recovery and continued problems in the electricity and water supply. Botswana has been suffering from power blackouts since two units at its only major power plant, Morupule, were shut down in 2013 due to boiler problems. This has left the country dependent on Eskom – which is struggling to supply its home market. The water crisis has been caused by a combination of drought and population growth in Gaborone. In 2012 the World Economic Forum predicted that Botswana would be one of the first countries in the world to suffer from chronic water shortages.