Stronger Pula stifles SA bound exports

Kapur
Kapur

A strong and overvalued currency is putting Botswana’s economic growth at risk by making its exports too expensive and uncompetitive.

This emerged during a debate on the Pula to Rand parity at a special annual general meeting of the Botswana Exporters and Manufacturers Association (BEMA) in Gaborone this week.

Subhash Kapur of Reliance Foundries said the foreign exchange rate policy was the single biggest factor that made Botswana manufacturers uncompetitive, resulting in loss of revenue for the exporters as well as loss of jobs.

Editor's Comment
Botswana at a critical juncture

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...

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