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Power shortage, serious obstruction in economic growth
Feb '08
In 2007 Botswana transformed itself for one of the poorest countries in the world to a middle-income country according to one of the surveys conducted. The country has one of the fastest growth rates, but the recurrent power cuts is creating blockage in the economic growth for the next fiscal year.

Due to increase in the demand of power which is not being fulfilled many industries are now shifting to other options like fuel-operated generators. The Government has also raised the prices of petrol and diesel recently which will boost the cost of production. this in turn will hamper the export earnings of the country.

Industry insiders fear that if the power cuts continue, it will not allow Botswana to reach the desired target Vision 2016.

Further, the expansion of Morupule Power Plant which is run by the Botswana Power Corporation (BPC) will come in effect only in 2011. Looking at the current scenario, experts suggest that the private sector to come forward to its aid by venturing into independent power supply.

Recently announced statistics show that increased demand for gold and textile from US helped the economy to earn higher foreign currency.

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