Botswana’s economy is set to grow by 4% this year, with the government targeting a medium-term growth rate of 5.7%. The country's leaders are planning to increase infrastructure investment, but experts warn that this may not translate into immediate economic growth.“We don’t expect to see much more than 4% growth for at least the next five to six years,” project and African specialist, Duncan Bonnett, told Freight News.He said while Botswana’s economy may not be shooting out the lights, its steady growth rate was, however, hope for the future considering the diamond-rich southern African country imported much of its inf lation from South Africa. “Although Botswana’s currency is not directly linked to that of South Africa, their large import basket means that f luctuations in South Africa’s inf lation rate have an impact on Botswana's economy as well,” said Bonnett, who is a partner at Africa House.He added that ongoing attempts by the government to diversify the economy from diamonds were progressing well, a lbeit slowly.“There are some exciting projects on the cards around base metals such as copper and nickel,” he said. “Mining activity is picking up again. Over and above the new projects that are coming online, there is also a lot of investment in the resuscitation of mines that were put onto care and maintenance programmes. The upgrade and refurbishment of existing mines is also increasing.”Copper and nickel exports have been on a significant upward trajectory, reaching R4 billion last year, which is more than three times the level recorded in 2021. This surge in exports is a clear indication that the industry is making a strong comeback after years of inactivity.Bonnett said ongoing investment in the Khoemacau copper mine was paying off and it had already increased its output significantly. “Botswana is set to become one of the top 30 copper producers in the world, with a planned $700-million expansion at Khoemacau that will double its current output.”While Khoemacau was currently the only mine in the country producing copper, plans were also in place to resuscitate other copper mines such as the BCL Mines and the Mowana operation that is now known as the Kopano Copper Mine.Construction of the Mothea Copper Mine, which will have an initial 3.2-million-tons-per-annum (mtpa) capacity, is also nearing completion, according to mining house Sandfire. The company is funding the development of the $200m project through a combination of cash and project debt. Plans to expand the mine to 5.2mtpa are already under way.
