Connect with us

Business

National poverty incidence falls

Published

on

Statistics Botswana Poverty Survey results have shown that national poverty incidence have decreased slightly from 19.3 percent in 2009/10 to 16.3 percent in 2015/16. The survey results show that urban villages recorded a decrease in poverty incidence between the two periods from 19.9 to 13.4 percent, while in rural areas the poverty incidence marginally decreased from 24.3 to 24.2 percent. Presenting the results last week, Deputy Statistician General, Dr Burton Mguni pointed out that urban villages recorded a decrease in poverty incidence between the two periods from 19.9 to 13.4 percent, while in rural areas the poverty incidence marginally decreased from 24.3 to 24.2 percent.

Statistics Botswana carried out the Multi-Topic Household Survey last year to provide a comprehensive set of household level indicators for poverty and the labour market including employment and unemployment levels. Poverty incidence was disaggregated at district and sub-district level and the highest poverty levels were observed in Kweneng West with 50.6 percent followed by Ngwaketse West with 40.3 percent and Kgalagadi South with 39.5 percent while the lowest poverty incidence was recorded in Sowa Town at five percent.

Dr Mguni explained that the national average monthly household consumption expenditure was estimated at P3, 927.43 in 2015/2016, an increase of 28.9 percent, from P3, 045.93 estimated in 2009/10. “Consumption patterns as per the Classification of Individual Consumption by Purpose showed that at national level, households allocated significant proportions of their consumption expenditure to Transport, at 23.9 percent, followed by Housing Costs and Food at 17.8 percent and 12.8 percent respectively,” said Dr Mguni.

In cities and towns, households allocated 22.2 percent of their consumption expenditure to Transport, followed by Housing Costs at 19.7 percent and Miscellaneous items at 9.7 percent. For urban villages, the largest of consumption expenditure was allocated to Transport at 25.0 percent, followed by Housing Costs and Food at 18.8 percent and 12.8 percent respectively. In rural areas, the largest share of consumption expenditure was allocated to transport at 24.7 percent followed by Food at 21.4 percent and Housing costs at 12.4 percent.

Deputy Statistician General Malebogo Kerekang explained that the survey was a national sample survey covering a total of 7 188 households from cities and towns, urban villages as well as rural areas covering household demographics, education, health, labour and agriculture. Households were visited over a period of two weeks.

 

Continue Reading
Comments

Business

‘Manufacturing holds key to economic growth’

Published

on

Barclays bank’s economist Naledi Madala has urged the country to consider manufacturing, as a key tailwind to drive the economy and reduce inequality.

She was speaking at a gathering organised by the bank which focused on economic outlook for 2019. “We should not make a mistake of leapfrogging without manufacturing,” said Madala, lamenting that the country’s diversification remains a pipeline dream, as the diamond is still the economy’s mainstay. She bemoaned that mining activities in the country could not spring forward diversification, though non-mining GDP has been steady over the years.

“Extractive industries are not good stepping stones for diversification, the sector does not prepare us for the next step,” said Madala at the Barclays’ Economic Outlook Forum Review 2019. The economist further noted that government should confront head-on challenges of productivity and competitiveness to attract the much needed Foreign Direct Investment (FDI). Though diversification efforts continue to hit a brick wall, Madala said the country should expect increased activities in the mining sector hinged to ramp up in coal production in the year ahead.

She also implored government to consider a welcoming attitude towards foreign investors and generous tax incentives to businesses that set up in the country. Madala is also upbeat that the use of public private partnership model could also help diversify the economy coupled with privitisation. “Privitisation will offer opportunities for growth, through the renewed optimism from government, as business confidence has improved,” said Madala.

She implored the government and the business community to access what is going to drive and hinder growth highlighting that key headwinds to growth are income inequality, diversification challenge and productivity, among others. “The pace of poverty reduction has slowed down, while income inequality goes up,” said Madala

Continue Reading

Business

MINISTER BEWAILS BAD REPAYMENT BY YOUTH

Keikantse Lesemela

Published

on

Minister of Youth Empowerment, Sports and Culture Development, Tshekedi Khama has told parliament his ministry continues to face challenges on the repayment of Youth Development Fund (YDF) loans.

Recently presenting the budget to Parliament, Khama said this financial year the ministry has received a total of 2582 YDF applications and approved 983of them to the value of P98 million. He said the programme attracts a high level of interest from youth but the ministry is only limited to funding a maximum of 1200 youth projects annually due to budget limitations.

“However the greatest challenge for the Fund is the repayment of the loan component by the majority of the youth businesses. The youth have advanced number of challenges for this including high rentals for operating spaces, low market access owing to tight competition and limited production capacities,” said Tshekedi, adding that they continue to pursue beneficiaries to repay the loans.

Out of the 919 businesses funded 1058 jobs have been created. The minister highlighted that disbursements of funds will continue to be undertaken until the end of the financial year. “The YDF is currently under review in line with the pronouncement made by the President, Dr Mokgweetsi Masisi in the State of the Nation Address, to improve beneficiaries through training, and encourage consortia and cooperatives,” said Tshekedi.

The ministry assists YDF beneficiaries in marketing their products and services through fairs and exhibitions. The ministry also runs entrepreneurship-training seminars for youth and in the past year 3692 young people were trained. Over 600 youth businesses attended fairs and exhibitions to market their products and services. Currently the ministry is collaborating with Local Enterprise Authority (LEA), First National Bank Botswana and Citizen Entrepreneurial Development Agency (CEDA) on training in entrepreneurship development and mentorship of YDF beneficiaries.

Continue Reading

Trending