Botswana for years was hailed as an economic success story, but a collapse in demand for the country’s diamonds has hit revenues hard and raised questions about an ambitious spending scheme.
Botswana produces 22 percent of the world’s diamonds, making it the top producer and accounting for half of government revenue. The country prides itself as a model of a successful African democracy.
However, last year, Botswana halved output and suspended much of its diamond activities as the global economic crisis hit its mines. High-end tourism, Botswana’s other economic mainstay, also took a hit as arrivals fell sharply during the recession.
Highlighting the nation’s difficulties, Standard and Poor’s rating agency last Monday downgraded Botswana’s sovereign credit ratings from A to A-, citing concerns over the country’s spending plans at a time of falling revenues.
“We expect this deterioration of public finances to translate into higher debt accumulation than we previously expected, and the gradual dissipation of the country’s asset buffers,” S&P credit analyst Veronique Paillat-Chayrigues said. “We believe that Botswana needs these buffers more than many similarly-rated peers to offset its economic and fiscal dependence on commodity exports, in particular diamonds, combined with its substantial development needs.”
For two years, the government has presented budget deficits due to limited funds and growing public expenditure, with this year’s deficit the largest yet.
Botswanan Finance Minister Kenneth Mathambo said in this year’s budget that the country will run a 12 billion pula (US$1.7 billion) deficit, representing 12.2 percent of GDP.
The shortfall will be financed by drawing on the government’s cash reserves, accumulated in surplus years, and by borrowing largely on the domestic capital market, he said in the budget.
QUIET START: Nearly a week after applications opened, agencies did not announce or promote the program, nor did they explain how it differed from other visitor visas Taiwan has launched a six-month “digital nomad visitor visa” program for foreign nationals from its list of visa-exempt countries who meet financial eligibility criteria and provide proof of work contracts. To apply, foreign nationals must either provide proof that they have obtained a digital nomad visa issued by another country or demonstrate earnings based on age brackets, the Bureau of Consular Affairs said. Applicants aged 20 to 29 must show they earned an annual salary of at least US$20,000 or its equivalent in one of the past two years, while those aged 30 or older must provide proof they earned US$40,000 in
AIR DEFENSE: The Norwegian missile system has proved highly effective in Ukraine in its war against Russia, and the US has recommended it for Taiwan, an expert said The Norwegian Advanced Surface-to-Air Missile Systems (NASAMS) Taiwan ordered from the US would be installed in strategically important positions in Taipei and New Taipei City to guard the region, the Ministry of National Defense said in statement yesterday. The air defense system would be deployed in Taipei’s Songshan District (松山) and New Taipei City’s Tamsui District (淡水), the ministry said, adding that the systems could be delivered as soon as the end of this year. The US Defense Security Cooperation Agency has previously said that three NASAMS would be sold to Taiwan. The weapons are part of the 17th US arms sale to
SERIOUS ALLEGATIONS: The suspects formed spy networks and paramilitary groups to kill government officials during a possible Chinese invasion, prosecutors said Prosecutors have indicted seven retired military officers, members of the Rehabilitation Alliance Party, for allegedly obtaining funds from China, and forming paramilitary groups and assassination squads in Taiwan to collaborate with Chinese troops in a possible war. The suspects contravened the National Security Act (國家安全法) by taking photos and drawing maps of key radar stations, missile installations and the American Institute in Taiwan’s headquarters in Taipei, prosecutors said. They allegedly prepared to collaborate with China during a possible invasion of Taiwan, prosecutors said. Retired military officer Chu Hung-i (屈宏義), 62, a Republic of China Army Academy graduate, went to China
UNITY MESSAGE: Rather than focusing on what Trump said on the campaign trail about Taiwan, Taipei should be willing to engage with the US, Pompeo said Taiwan plays a key role in Washington’s model of deterrence against China, former US secretary of state Mike Pompeo said in a speech in Taipei yesterday. During US president-elect Donald Trump’s first term, “we had developed what we believe was a pretty effective model of deterrence against adversaries who wanted to undermine the set of rules and values that the people of Taiwan and the people of the US hold dear,” Pompeo said at a forum organized by the Formosa Republican Association. “Succeeding in continuing to build this model will not solely rest at the feet of president Trump and his team,
RSS