Botswana Presidential THE AFRICAN STORY task Force Team members test positive for COVID-19 page 4 Do you really need to ISSUE NUMBER 732 VOLUME 2 10 - 16 AUGUST 2020 party?’ WHO asks world’s youth page 7 BOTSWANA BUSINESSES PESSIMISTIC ABOUT ECONOMIC ACTIVITY • Firms anticipate a 12-month recovery period after Covid-19 impact 2 Echo Report Echo Newspaper 10 - 16 August 2020 THE AFRICAN STORY News, Finance, Travel and Sport Telephone: (267) 391 2305 E-mail: newsdesk@echo. co.bw Advertising Telephone: (267) 3922 655 E-mail: [email protected] Sales & Marketing Manager Ruele Ramoeng [email protected] Editor Bright Kholi [email protected] Head of Design Ame Kolobetso Botswana Busineses pessimistic [email protected] Distribution & Circulation Mogapi Ketletseng about economic activity [email protected] A report by the Bank of business operations in the second to a larger contraction of 8.9 and communications sectors, Echo is published by Botswana suggests that businesses quarter of 2020, with the most percent projected by the Ministry which have also been hard hit YMH Publishing from various economic sectors affected firms being in thee, of Finance and Economic by the travel restrictions and YMH Publishing, Unit 3, Kgale Court, Plot 128, were pessimistic about the hotels, restaurants, transport and Development (MFED), and lower social distancing requirements. GIFP, Gaborone prospects of economic activity communications; mining and than the 3 percent growth in The finance and business Postal address: during the second quarter of quarrying; finance and business 2019. services sector, which expects P O BOX 840, 2020, a deterioration from the services, and the construction “On quarterly basis, firms poor economic performance Gaborone, optimism business had during sectors. expect GDP to contract in consistent with firms’ predicted Botswana Telephone: (267) 3922 655 the first quarter of 2020. The “In general, firms anticipate the second quarter of 2020, decline in production and E-mail: [email protected] pessimism is consistent with the that it will take a year from consistent with the anticipated investment during the second www.echo.co.bw anticipated decline in production, June 2020, for their businesses decline in production; sales; quarter of 2020 are also third sales, profitability, exports and to recover from the impact of profitability; exports and on the list of these pessimistic DISCLAIMER: imports of goods and services; COVID-19,” the report states. imports of goods and services; sectors. Echo Newspaper welcomes concise letters from readers. and investment in buildings, “By design, the survey and investment in buildings, All is not gloom as the mining, Letters must carry the vehicles and equipment, plant responses are predominantly vehicles and equipment, plant manufacturing, water and full name and address of and machinery associated with qualitative, and provide valuable and machinery, and ‘other’ electricity sectors are optimistic the sender. Letters must the COVID-19 pandemic. information to facilitate analysis investments,” the report states. about economic performance, in conform to the laws of A report on the Bank’s and inform policy decisions. The perceptions of lower the third quarter while the rest Botswana and to the Press Council of Botswana’s Code quarterly Business Expectations However, responses to questions economic growth in the mining of the sectors are pessimistic. Of Ethics. Letters will also be Survey conducted in June, and relating to COVID-19, GDP mining and quarrying, the trade, “In general, firms expect edited for length, libel and published recently, gives a growth and inflation are hotels and restaurants and the the cost of credit to decrease language. general perception by the various quantitative and are consolidated transport and communications across all markets, and a few sectors about the prevailing state into simple averages,” the report sectors, as well as the finance cited the need for affordable of the economy and its prospects. further states. and business services sectors credit to stimulate economic Although conducted during According to the survey results, between the first and second activity in the wake of the adverse the second quarter, which was firms are less optimistic about quarters of 2020 have influenced impact of COVID-19 pandemic, current then, the survey horizon economic activity in the second the expected weak performance as the main reason. A few other covers the subsequent quarter quarter of 2020 compared to in the second quarter of 2020. firms based their expectation and the next twelve months. the previous quarter. Overall, “Notably, the mining and of lower lending rates on the The survey was conducted businesses expect a deterioration quarrying sector, which recent policy rate cut by the during the lock down period in all business condition predominantly targets the Bank. Regarding borrowing with its travel restrictions and indicators while deterioration in export market, was significantly volumes, firms broadly expect Read more Echo the social distancing measures access to credit was anticipated to pessimistic about economic an increase in domestic credit, stories on our to contain the spread of the be much tighter in the domestic growth prospects in the second and a reduction in credit from Facebook page by pandemic, but also having dire market compared to other quarter of 2020 compared to South Africa and elsewhere in consequences on the economic markets. an expected stagnation in the the twelve-month period to scanning the QR activity both at domestic level “Meanwhile, firms expect cost first quarter. This is consistent June 2021.” code below with and globally, affecting different pressures to fall significantly with the unfavourable market On a positive note, local your mobile phone businesses in various ways. in the third quarter of 2020, conditions, especially with businesses are of the view The survey covered companies mainly reflecting the anticipated respect to the diamond industry, that the local political climate, in eight areas of the economy, reduction in costs of wages, occasioned by, among others, government spending and the being agriculture, mining, transport, rent and materials. weaker global demand for current regulatory framework as manufacturing, water and Firms also expected inflation rough diamonds associated being the most supportive factors electricity, construction, trade, to remain stable and within the with the US-China trade war to doing business in Botswana hotels and restaurants; transport Bank’s medium-term objective (since September 2018) and the during the second quarter of the and communications: and range of 3 - 6 percent, in 2020 interruption of trading due to the year. Another observation is that finance and business services. and 202,” the report states. recent outbreak of the COVID-19 the water sub-sector contributed Chief among the outcomes of However, though painting pandemic,” the report observes. positively to economic activity, the survey the report indicates a gloomy outlook, businesses The next highly pessimistic reflecting improvement in the that the COVID-19 health protocol expect overall output to contract sectors are the trade, hotels and supply, which had previously measures have negatively affected by 0.2 percent in 2020, compared restaurants and the transport been a serious challenge. Echo Newspaper 10 - 16 August 2020 3 4 Echo Report Echo Newspaper 10 - 16 August 2020 Botswana Presidential task Force Team members test positive for COVID-19 recorded the first case reported had released a statement to Friday have remained a guarded on August 7. the effect that he (Mosepele) secret, but indications are that In a statement on Saturday, had rescinded his resignation the move stems from a long- Acting Coordinator of the as deputy Coordinator of the held suspicion that relations Task Force Team Professor Task Force Team after meeting between the task force team and Mosepele Mosepele, who has President Mokgweetsi Masisi. senior officials at government tested negative, said 46 tests Mosepele had on Friday were not so cordial. The soured had been conducted, of which 8 tendered his resignation under relations have, allegedly led to were positive, 28 negative while unclear circumstances. President frustrations on the Task Force other tests are being processed. Masisi did not accept the team who at time felt sabotaged The Director of Public Health, resignation, and met Mosepele by some at government enclave. Dr Malaki Tshipiyagae is among on Saturday, where the latter Some sources have indicated those who have tested positive, rescinded his decision, and was that it is only President Masisi Botswana’s Presidential Task Scientific Advisor Dr Mogomotsi and follow up tests for those immediately appointed Acting who can resolve this bickering, Force Team’s office has registered Matshaba. who tested negative will be Coordinator following Masupu’s otherwise the core mandate 8 positive cases of the virus, Others who have tested conducted. Covid 19 results. of the Task Force Team will be among them the Coordinator Dr positive are support staff The statement by Mosepele The details surrounding the distracted. Kereng Masupu and the team’s members at the office, which came shortly after the Presidency resignation of Mosepele on Echo Newspaper 10 - 16 August 2020 5 AGI L I T Y At the Stanford Seed leadership lab in South Africa, the keyword was Agility, which stuck with Dichaba forever. At leadership labs, Seed business leaders