02 March, 2007
Remarkable Business optimism in Botswana’s economy
Business confidence in the economy of Botswana has increased remarkably from -12% to +41%, taking Botswana on the optimistic plane compared to last year, according to Grant Thornton’s 2007 International business report (IBR).
Although below the global average of +45% the business community have turned around to be more positive in their outlook on Botswana’s economy.
Jay Ramesh, Managing Partner of Grant Thornton Botswana credits this to the Government’s increased focus on the mining sector. He comments: “Over the past year we have seen the establishment of diamond cutting and polishing industries, the shifting part of the activities of the diamond trading centre from London to Botswana and the development of the copper and nickel refining project. These actions are expected to fuel the increase in economic activity. The focus that the government has placed on “Implementation” in the current years’ budget will pave the way for an energetic completion of projects started during prior years’. The increased spending within the economy will assist the local businesses more, especially the citizen entrepreneutial businesses to achieve economic success. It will also aid in increasing the recovery levels of the various loan schemes introduced by the government.”
The initial findings from the International Business Report (IBR) from Grant Thornton International published show that medium to large privately held businesses around the world are considerably more optimistic about the prospects for their economies in 2007 - with an optimism/pessimism balance percentage (*see note below) of +45%, up from +39% last year. The survey, which covers the opinions of 7,200 business leaders in 32 countries, represents 81% of global GDP.
The survey has also brought to light the four major emerging economies Brazil, Russia, India and China(BRIC) will now account for over half of the world output, and are expected to represent 44% of the Global GDP by 2050.
Alex MacBeath global leader of privately held business services for Grant Thornton International said: “Businesses are increasingly finding ways of doing business with the fast-expanding boom economies of the BRIC countries. It is no longer just the huge multinationals who are finding ways of taking advantage of the BRIC phenomenon – which has to be good news for the global economy.”
The Voice. 02/03/07
