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BMI View: Botswana's food and drink industry will benefit from a recovery in
economic growth, boosting the positive consumer outlook for 2016. Rising
household spending will fuel strong growth in food and drink spending through to
the end of our forecast period in 2020. Growing food retailing expansion will
further support our positive outlook for Botswana's consumer market, encouraged
by low operational risks and stable political conditions.
Key Trends & Industry Developments
-A gradual recovery in Botswana's economic growth will be weighed down by
weaker-than-expected diamond production. We have revised down our real GDP
growth forecasts for 2016 from 3.7% to 3.3%.
-An estimated 15% increase in the price of grains imports from South Africa will
occur due to a decrease in maize output, as dry weather conditions continue to
depress agricultural activity.
-Local retailer Choppies is beginning to target expansion in the Sub-Saharan