Bogolo Kenewendo on how the COVID-19 pandemic is impacting Botswana’s economy

Botswana recently declared a six-month state of emergency in response to the COVID-19 pandemic to control the spread of the virus. The country initially imposed a 28-day lockdown, but it was extended by the parliament due to the ongoing threat. With 22 confirmed cases and one death, the nation is grappling with the economic impact of the crisis. To shed light on this matter, CNBC Africa spoke with Bogolo Kenewendo, an economist and former Minister of Investment, Trade, and Industry in Botswana. Kenewendo addressed the challenges facing various sectors, including the diamond industry, manufacturing, and tourism. The extended lockdown has disrupted the global supply chain, leading to a decline in production in the manufacturing sector. With many businesses closed, the economy is expected to contract significantly. The diamond industry, a key revenue generator for Botswana, has been hit hard, with mines temporarily shutting down and sales controlled. This downturn has also affected the large private sector company Debswana, which has scaled back operations. The loss of revenue from these sectors, coupled with the standstill in tourism and hospitality, is likely to create significant gaps in government revenue. Additionally, the informal sector, which employs a large part of the population, is vulnerable, with an anticipated 31 percent facing the risk of falling into poverty. Despite government efforts to provide subsidies for formal employees, the overall job losses in Botswana remain uncertain. The pandemic has exposed the fragility of the economy and the need for a more robust response to support businesses and livelihoods. As Botswana navigates the economic challenges posed by COVID-19, it will require strategic interventions to protect key industries and mitigate the impact on vulnerable populations.