- Says smooth transition of power will help in attraction of FDIs
- Praises the appointment of the youthful Kenewendo as Investment, Trade and Industry Minister
The leadership of President Mokgweetsi Masisi is likely to improve the economic growth of the country, according to a local stockbrokerage firm, Motswedi Securities.
Masisi was inaugurated as President of Botswana just over a week ago, replacing former President Ian Khama in what was widely viewed as a smooth transition of power.
In a flash note prepared by Motswedi Securities Head of Research, Garry Juma, the smooth transition of power will attract investment into the country. “The transition of power was very smooth and reaffirms the country as a beacon of democracy and political stability on the continent. The smooth transition of power provides political certainty and stability, which is one of the key ingredients for attracting Foreign Direct Investment into the country,” the note says.
It further notes that the transition “also reaffirms Botswana as one of the handful of African nations defined as free democracies by Freedom House, The Economist Intelligence Unit, and is rated as the least corrupt country in Africa by Transparency International.”
The firm says that President Masisi, a trained teacher who also worked for the United Nations Children’s Fund before becoming Member of Parliament in 2009 and thereafter serving as Minister of Presidential Affairs and Public Administration (and later on Minister of Education), is largely regarded as thoughtful, decisive and enthusiastic about getting things done.
“The business community regards him as more business-friendly and is widely expected to come up with policies that enable more economic activity to grow the economy which has been expanding at a smaller pace of late. It is not surprising that his presidency has been well received and is expected to bode very well for the markets and the economy in general, particularly with respect to areas such as job creation, economic growth and diversification,” the firm highlights.
It continued; “Botswana’s economy has been growing at a slower space over the past few years with rising unemployment which stands at around 18 percent and is the highest especially among the youth. Botswana’s economy registered a growth rate of 4.3 percent in 2016, after contracting by 1.7 percent in 2015. In 2017 the economy is projected to have expanded by 4.7 percent and is projected to grow by 3.8 percent in 2018.”
The Juma-led team concludes by saying Masisi has already hit the ground running with the appointment of a new vice president, Slumber Tsogwane and the unveiling of a 28-member cabinet which they say has been well received by the market. It refers to the appointment of Bogolo Kenewendo as Investment, Trade and Industry Minister as a sensational highlight of the new cabinet. “She becomes Botswana’s youngest ever minister, two years after she was appointed by the former President Ian Khama as a Member of Parliament.”