Last week the dominant thread across the region was the clash between economic headwinds – notably Botswana’s foot‑and‑mouth disease (FMD) outbreak and South Africa’s downgraded growth outlook – and signs of resilience, such as Botswana’s debt‑saving loan restructuring and a buoyant capital market.

Botswana

FMD outbreak threatens to wipe up to 1% off Botswana’s GDP
Photo: businessweekly.co.bw · FMD outbreak threatens to wipe up to 1% off Botswana’s GDP

FMD outbreak threatens up to 1% of GDP

Agricultural economist Patrick Malope warned that the 2026 foot‑and‑mouth disease outbreak could wipe between 0.8 and 1 percent off Botswana’s gross domestic product. The government has earmarked P97 million for containment and is working to reopen livestock trade channels, but loss of access to premium beef markets could further depress export earnings and cattle prices.

Debt restructuring saves P330 million on World Bank loan

Botswana has cut the projected interest bill on a US$250 million (P3.375 billion) World Bank loan by 47 percent, saving an estimated US$24.5 million (P330.75 million) over the life of the loan. The Treasury achieved the saving by shortening the repayment schedule and securing more favourable terms, according to the World Bank Treasury.

Capital market reaches P1.1 trillion

The Botswana Stock Exchange reported that total market capitalisation across all listed instruments rose to approximately P1.1 trillion for the nine months ended 30 September, a 62.3 percent increase from P700.4 billion in the same period a year earlier.

Government pushes EU economic ties

President Advocate Duma Boko highlighted a commitment to strengthen economic relations with the European Union, aiming to attract foreign direct investment and recover from the current economic slump. The President received letters of credence from the EU Ambassador‑designate to Botswana and the Southern African Development Community, Ms Belen Uyarra.

China grant supports diversification drive

Following a six‑day state visit to China, Botswana secured a P400 million grant and medical equipment and consumables worth about P40 million. President Boko said the engagements identified opportunities for economic diversification, improved healthcare delivery and further foreign investment.

Southern and East Africa

Rand Water implements restrictions on overconsuming municipalities
Photo: engineeringnews.co.za · Rand Water implements restrictions on overconsuming municipalities

South Africa lowers 2026 growth outlook to 1.2%

The National Treasury revised its 2026 growth forecast down to 1.2 percent from 1.6 percent, noting that 2025 growth of 1.1 percent fell short of what is needed to reduce unemployment and poverty.

IMF calls for stronger infrastructure management

Ahead of the Medium‑Term Budget Policy Statement, the IMF’s Public Investment Management Assessment highlighted the need for greater improvements in South Africa’s infrastructure delivery and management.

Rand Water imposes restrictions on over‑consuming municipalities

Rand Water announced it will begin restricting water supply to municipalities that continue to exceed allocated consumption volumes, after repeated warnings and ongoing system constraints.

Business sector welcomes fiscal discipline

Business Leadership South Africa praised the 2026 Medium‑Term Budget Policy Statement as evidence that fiscal discipline is working, noting a reduction in government debt despite external geopolitical tensions.

Potential rating upgrade after budget signals

Four economists surveyed by Bloomberg, including analysts from Bank of America and BNP Paribas, expect a possible South African credit‑rating upgrade as early as next month if the budget delivers a decline in the debt‑to‑GDP ratio for the first time in more than two decades.

Global business and trade

Energy Security And Sustainability: A Shared Opportunity For South Africa’s Mining Sector
Photo: africa.com · Energy Security And Sustainability: A Shared Opportunity For South Africa’s Mining Sector

China’s imports from Africa rise 23.3%

China’s imports from Africa grew 23.3 percent year‑on‑year by the end of September 2026, while China’s exports to the continent increased by 23.9 percent.

AfDB and UK Export Finance sign financing MOU

The African Development Bank Group and UK Export Finance signed a Memorandum of Understanding to strengthen co‑financing of projects across Africa and mobilise additional resources for sustainable development.

Energy security and sustainability for South Africa’s mining sector

At the Joburg Indaba, Kearney partner Frances Phillips framed South Africa’s energy transition as a shared opportunity to improve energy security, support growth and cut emissions, noting that coal currently supplies about four‑fifths of electricity.

Zambia’s farmer input programme sees high redemption

Zambia’s Ministry of Agriculture reported that 675,459 farmers – 65.93 percent of the target – had redeemed inputs under the 2026/27 Farmer Input Support Programme as of 23 October.

Artificial intelligence and technology

Ghana targets first phase of national AI facility within 24 months

Ghana announced a plan to complete the first phase of a national computing facility within the next 24 months to support researchers and universities.

MTN Ghana partners with KNUST on AI pathways

MTN Ghana entered a partnership with Kwame Nkrumah University of Science and Technology to strengthen AI research and nurture technology talent.

Barclays calls AI ‘icing on the cake’ while cutting jobs

Barclays said AI is “icing on the cake” as it expects over R24 billion in savings in 2027, even as McKinsey notes that projected AI‑driven job losses have fallen short of expectations.

South Africa AI course enrolments surge 75%

Enrolments in AI courses in South Africa jumped 75 percent, reflecting growing demand for combined technical and human skills.

Skills gaps hinder AI adoption, says KPMG

KPMG’s Abena Appiah highlighted that skills shortages and the rapid pace of AI development remain major barriers for businesses seeking to integrate the technology.

What it means for communications teams

The week ahead

  1. Expect the Botswana government to provide an update on livestock trade re‑opening as containment efforts progress.
  2. Watch for rating-agency signals after South Africa’s Medium‑Term Budget Policy Statement, with some economists expecting a possible upgrade as early as next month.
  3. Likely further announcements on Ghana’s national AI facility timeline as the 24‑month target approaches.
  4. Anticipate additional statements from Rand Water on the impact of municipal water restrictions.
  5. Expect the African Development Bank and UK Export Finance to outline concrete co‑financing projects following their MOU.

Sources

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