Rentals, the informal sector and govt intervention

Main Mall during Covid-19 lockdown PIC. THALEFANG CHARLES
Main Mall during Covid-19 lockdown PIC. THALEFANG CHARLES

In the past two months since the coronavirus (COVID-19) pandemic gripped the globe, world governments have responded in various ways to control the health crisis and to also minimise the potential economic catastrophe. 

Social distancing and lockdown rules, whilst necessary for the control of the virus, are detrimental to many economies and more so an economy like that of Botswana, which is reliant on sectors such as hospitality, travel, tourism, mining and the informal sector.

The Botswana government has in previous weeks announced many interventions to assist businesses that will be adversely affected by this pandemic. These interventions include a wage subsidy ranging from P1,000 to P2,500 for employees of companies and industries affected by the pandemic, tax deferrals, loan guarantees and holidays from commercial banks, a food basket programme and a potential economic stimulus package to encourage Batswana to get into businesses such as manufacturing going forward.

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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