Bright future for Botswana

Botswana's economy is expected to continue to grow at a brisk rate in the next two years, according to Moody's Investors Service.

Botswana's economy is expected to continue to grow at a brisk rate in the next two years, according to Moody's Investors Service.

"The combination of increased output from the mining, manufacturing and infrastructure sectors and an added boost from government and financial services is expected to keep the economy growing at a relatively brisk pace in the next two years," said Kristin Lindow, Moody's vice-president and author of the report. "The volatility registered during the past four years also could be avoided."

Lindow expects large current account surpluses to continue, the extent of which will depend on the future prices of diamonds and oil as well as the costs associated with the construction of the Mmamabula electricity project, a new electric plant to help meet South Africa's energy shortages while providing the profit incentive to develop Botswana's coal deposits.

The strong external position supports the positive outlook on the country's foreign currency ratings. - I-Net Bridge

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