Botswana faces rising unemployment as private sector job cuts offset public sector gains
via Mmegi1 min read
Botswana's economy is projected to experience job losses, leading to historically high unemployment. Researchers at the Bank of Botswana indicate that modest employment gains in the public sector during early 2024 are likely to be reversed by job cuts in the private sector. This warning, detailed in the central bank's latest Monetary Policy Report, highlights an economy grappling with both cyclical decline and structural weaknesses. A key factor contributing to this crisis is the prolonged downturn in the diamond industry, which is a foundational sector of Botswana's economy and whose struggles are increasingly impacting the broader labor market.
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Must ReadPan-African microlender Letshego Africa has scheduled an Annual General Meeting for June 19 to consider a $62.7 million P840 million deal to sell its East and West African subsidiaries to Axian Digital Venture Holding and Management Limited. The sale includes Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda Limited, and Letshego Uganda Limited. These assets collectively reported a loss of P519.5 million in Letshego's latest financials, an increase from a P154.8 million loss in the previous period. The combined market value of these assets is P823.9 million, and the deal will be executed at a P281.1 million discount to the group. Letshego has faced challenging trading conditions in these regions due to macroeconomic pressures, foreign exchange volatility, inflation, increased credit impairments, and regulatory changes, which have led to losses. Following the sale, Letshego plans to concentrate on its operations in Botswana, Namibia, Mozambique, Lesotho, Eswatini, and Kenya.
Must ReadIn the 2024 General Election, David Tshere, the incumbent legislator for Mahalapye-West, was re-elected with 73% of the vote and a 58 percentage point margin. This represents the highest vote share and margin of victory ever attained by a non-BDP candidate in Botswana's electoral history, surpassing the 71% record set by Bathoen II 55 years prior. The Botswana Democratic Party BDP lost national power for the first time since 1966, with its vote share in Mahalapye-West declining to 14.8%, its second-lowest performance in any constituency. The UDC, by contrast, saw a 21-percentage-point increase in its vote share compared to the 2019 election. Tshere began his political career in 2011 after resigning from his position as head of the Biomedical Engineering unit at Princess Marina Hospital in 2009. He cites the 2008 regime change within the BDP and an economic recession as factors that influenced his decision to enter politics, believing politics could make a difference in people's lives. His background in public service, including serving in middle management and as chairperson of a tender evaluation committee, has provided him with knowledge of protocols and procedures, which he finds helpful in his current ministerial role.
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The Court of Appeal CoA in Botswana has ruled in favor of Nova Africa in the legal dispute over the sale of Mupane Gold Mine, setting aside a High Court interdict previously secured by Ulsan Botswana. The CoA judges criticized Ulsan Botswana, referring to them as a "grumpy loser intent on frustrating the liquidation process." The legal battle began last year after creditors approved the sale of the mine to Nova Africa for $21 million. Ulsan Botswana, a rival bidder, had offered an upfront $500,000 and up to P10 million pending further assessment. Ulsan had secured an interdict in October, citing technical irregularities in the award to Nova. The CoA bench upheld the appeal filed by the liquidator, Kopanang Thekiso, and Nova Africa, and set aside the interim interdict with costs.