Diamonds expected to boost economy of the African city of Botswana

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The Xinhua reported according to the financial services provider Absa Bank Botswana, Botswana’s economy is on a recovery course supported by the mining sector.

“Botswana’s economic recovery is underway with an improving outlook for diamond demand buoying medium- to longer-term prospects. Rough diamond prices are recovering in line with stronger demand in key markets, such as the U.S. and China, and signs of a recovery in India,” said Keabetswe Pheko-Moshagane, Absa managing director, who warned that the economy continues to face risks and uncertainties because of the pandemic.

Botswana has seen a steady rise in confirmed COVID-19 cases during the peak of the pandemic’s third wave and authorities are banking on the rollout of the vaccines to ease the pandemic’s wrath.

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Meanwhile, though statistics indicate that the economy contracted 8.5 percent in 2020, Absa believed base effects would play a major role in supporting the country’s projected growth rate of 6.7 percent in 2021.

Pheko-Moshagane said: “The government’s economic recovery and growth plan is likely to provide further impetus to growth.”

Source: xinhua