Botswana�s credit rating upheld
Tuesday, November 01, 2016
In a statement issued by the Bank of Botswana (BoB) last week, the US-based ratings agency reaffirmed the ratings of ‘A-’ for long-term bonds and ‘A-2’ for short term bonds in domestic and foreign currency denominated borrowing.
S&P observed that the ‘A-/A-2’ ratings have appropriately taken account of the enduring impact of the ongoing global commodity price shock, including challenges posed by the utilities sector and drought on the country’s fiscal position and economic activity.
While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...