Botswana Announces Spending Cuts
Government to Reduce Expenses
Botswana's Finance Minister Peggy Serame has announced plans to cut spending on government in response to the country's economic struggles.
The government will reduce spending on new vehicles and travel for government officials.
The move comes as Botswana's economy, which is heavily dependent on diamonds, has been hit by the global economic slowdown.
Diamond Industry Struggles
Botswana's diamond industry, which accounts for around 80% of the country's exports, has been struggling in recent years.
The rising demand for non-Russian diamonds, combined with the high prices, has benefited both De Beers and Russia.
As a result, Botswana has lost market share and revenue.
Economic Forecast
The International Monetary Fund (IMF) has slashed Botswana's 2024 growth forecast to 1% from an earlier estimate of 3.8%.
The IMF cited the weak diamond market and the slow recovery of the global economy as reasons for the downgrade.
The government's spending cuts are an attempt to address the economic challenges facing the country.
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