3 days ago
Botswana implements initiatives, reforms to counter U.S. tariff impacts: bank official
GABORONE, July 25 (Xinhua) -- Botswana is implementing several initiatives and structural reforms to mitigate the potential adverse effects of U.S. tariffs on the southern African country, a Bank of Botswana official said on Friday.
"Despite this challenge of U.S. tariffs on Botswana diamonds, there are several government initiatives and structural reforms, which are expected to improve the business environment and strengthen fiscal resilience," said Innocent Molalapata, director of Research and Financial Stability Department at the Bank of Botswana.
During an economic media briefing, Molalapata said the initiatives include tax review and revenue maximization, enhanced public financing and debt management, as well as the Botswana Transformation Economic Program, a national blueprint to reshape the country's economy from being consumption-driven to investment-oriented and innovation-led.
Meanwhile, Molalapata said Botswana's real gross domestic product is expected to contract by 0.4 percent in 2025, reflecting the prevailing unfavorable economic conditions, the weaker-than-expected economic growth, and the impacts of U.S. tariffs.
Botswana faces a 37 percent tariff on exports to the United States.
According to Daily News Botswana, President Duma Boko said in June that the tariff imposed on Botswana worsened the already bleak future faced by the diamond industry, and the U.S. tariff tensions had been a daunting challenge, likely to hinder efforts to grow the African economy.
A World Bank report in April suggested that diamond exports account for more than 90 percent of Botswana's total exports.
