Weak rand hurts Botswana exports

The weakening of the South African Rand is hurting Botswana companies, Acting Business Botswana Chief Executive (CEO) Dichaba Molobe has said.

For the past eight months the SA Rand has been on a free fall against major currencies with value plunging by about 26 percent. It reached a record low of R17.9950 to a US Dollar earlier this year following a sustained decline.

On the flipside the Pula appreciated by 7 percent against the rand since the beginning of 2015. Currently one SA rand buys 0.73 Pula. Molobe said that although the local general populace was excited about the depreciation of the rand, however companies exporting to South Africa were negatively affected.

“A weak rand hurts Botswana in a way. It’s good for consumers who can go shopping in Johannesburg or go for holidays,” said Molobe. “But for our manufactures it does a lot of harm and we cannot compete with imports from South Africa.

Our exporters also cannot compete with South African manufacturers because once they export to SA their goods become expensive when they land there,” added the official. Botswana exports mostly minerals to South Africa.