Ndaba Gaolathe is one of the most influential figures in Botwana’s new administration, but the economy and US tariffs offer a severe test.
A year ago, Botswana’s vice-president and finance minister Ndaba Gaolathe might not have expected to find himself addressing the famous venue at the annual conference of the African Society of Cambridge University.
Until November, the ruling Botswana Democratic Party had reigned supreme since the dawn of independence in 1966. But following President Duma Boko’s stunning victory – propelled by his pledge to create 500,000 new jobs in five years – his deputy Gaolathe found himself launched into two senior offices, and onto the world stage.
Gaolathe looks at home as he talks to African Business on the Society’s famous scarlet benches, under the watchful eyes of portraits of past society presidents. But taking in the historic surroundings and basking in electoral success is far from his priority. The honeymoon period which attended the election of Boko’s Umbrella for Democratic Change is quickly drawing to a close. Just days after Boko’s shock election win in November, President Donald Trump swept back into power in the United States – and set the world economy on a path of trade war, tariffs and turmoil.
Botswana, the world’s second-largest producer of diamonds by volume, finds itself exposed to an underperforming global market for the stones, Trump’s caprice, and the very real threat of 37% tariffs on its exports to the US.
The IMF expects the economy to shrink by 0.4% this year – hardly encouraging grounds for the promised employment revival. Given such a discouraging start, can Gaolathe build the economy that Boko promised his voters?
While cognisant of the worsening global economy, the finance minister insists that his plans to impose fiscal discipline, diversify the economy, reinforce policymaking credibility and invest in transformative infrastructure remain unchanged.
Continue reading with Eandel
Subscribe to unlock the complete story and receive your subscriber benefits.
