Diamond recovery at Jwaneng mine, Botswana.
Although dampened by slowing demand at the height of global recession that started in 2008 mining sector still remains a key driver of Botswana’s Gross Domestic Product (GDP). This is despite the sector registering a decrease of 3.8 percent in the second quarter of 2014.
“Mining continues to be the largest contributor to GDP; its contribution to GDP stands at 26.6 percent in second quarter of 2014 followed by Trade, Hotels & Restaurants and General Government at 14.5 percent and 13.7 percent respectively,” Statistics Botswana said its report for Second Quarter of 2014. .
The agency said at the estimated GDP at current prices for the second quarter of 2014 was P36 054.1 million compared to a revised level of P32 704.9 million registered in the first quarter of 2014.
The estimated GDP at constant 2006 prices for the Second quarter of 2014 was P20 283.5 million compared to P19 958.1 million registered in the first quarter of 2014, recording an increase of 1.6 percent.
Real Gross Domestic Product (GDP) went up by 4.5 percent in the second quarter of 2014 compared to 7.3 percent accrued in the same quarter in 2013.
At industry level, owing to the above said, most of the increase was attributed to Water & Electricity, Trade, Hotels & Restaurants and Transport & communications which increased by 31.6, 9.8 and 6.3 percent respectively.
“The improvement in real value added of the Water & Electricity sector was due to a 95.1 percent increase in the electricity local production which led to a substantial decrease in intermediate consumption,” Statistics Botswana revealed.
“The decrease in intermediate consumption was because imported electricity went down by 44.9 percent.”
It added that all other sectors recorded a positive growth of more than 1.5 percent over the period with the exception of mining which recorded a decrease of 3.8 percent.
“The decrease in the real value added of the Mining sector was attributed to diamond and copper/nickel production which registered a negative growth of 1.5 and 21.3 percent respectively”.