MIDDLE EAST TENSIONS COULD PUSH UP FOOD PRICES

BY: Gilbert Manenye

Standard Chartered Bank Botswana Head of Treasury markets Galeboi Sennanyana says the country could soon see food prices rising further due to ongoing tensions in the Middle East.

Speaking during the bank’s results presentation, Sennanyana said the situation is still uncertain and changing quickly with early signs pointing to rising costs which could put more pressure on household spending.

She explained that the main risk comes from fertiliser supplies, as South Africa, which remains Botswana’s biggest trading partner, imports a lot of its fertiliser from the Middle East. Sennanyana noted that if supply from that region goes down, prices will go up which will then make food more expensive.

For his part, Standard Chartered Botswana CEO Mpho Masupe said the government's ability to cushion consumers from rising fuel prices is now limited, noting that fiscal buffers have largely been exhausted.