Power and water shortages have been singled out as the main obstacles to the development of the mining sector in Botswana. And to mitigate their effects on economic growth, the country’s ministry of finance has revealed that, for the challenges to be addressed, the country needs about $123.28 million for the 2015/16 financial year.
In a presentation of the supplementary budget to parliament, the ministry said that the bulk of the money would be allocated to the Botswana Power Corporation (BPC) to fund electricity imports and coal purchases.
The impact of the power and water shortages, together with drop in global prices on the global market, have forced Botswana, the world’s biggest producer by value, to cut its economic growth forecast to 2.6%. According to statistics from the Botswana Institute of Development Policy Analysis (BIDPA), diamonds contribute to 75% of Botswana’s foreign exchange earnings and 30% of Gross Domestic Product (GDP).