Firms more optimistic in Q3, BoB survey finds
Pauline Dikuelo | Monday November 20, 2023 06:00
The latest edition of the BoB quarterly Business Expectations Survey (BES) indicates that confidence amongst firms has continued to improve compared to the previous survey that was done in the second quarter of this year.
The survey highlighted that all sectors except construction and real estate, are optimistic about the fourth quarter of 2023 and the year ending September 2024. This optimism appears to be based on support from government interventions to support economic activity, including through continued implementation of the Economic Recovery and Transformation Plan (ERTP) and the potentially expansionary two-year Transitional National Development Plan (TNDP).
“Notably firms in the mining and quarrying, manufacturing, agriculture, retail, accommodation, transport and communications, and finance, and professional and administrative activities sectors were optimistic about economic growth prospects in the third quarter of 2023, while the construction and real estate sector was pessimistic,” reads the BES.
Furthermore, the report states that reforms to further improve the business environment, as well as the new sales and mining agreement between the Government of Botswana and De Beers Group, are potentially positive growth prospects.
Meanwhile, the BoB researchers said firms anticipate tight access to credit across all markets, as central banks continue to increase policy rates and maintain high interest rates amidst elevated inflation. Firms expect cost pressures to be elevated in the third quarter of 2023, attributable to the relatively high fuel prices.
However, domestic lending rates are expected to be lower than external markets, leading to most firms expecting higher borrowing volumes in the local market.
This survey sampled 100 businesses across 13 different sectors and gauged their perceptions about the prevailing state of the economy as well as expectations going forward.
Participating sectors included agriculture, forestry and fishing, mining and quarrying, manufacturing, water and electricity, construction, wholesale and retail, transport and storage, accommodation and food services and others.