Standard Chartered Bank Botswana Limited (STANCH.bw) HY2019 Interim Report

We have extracted the Chairman’s Statement from the 2019 half year financial report for Standard Chartered Bank Botswana Limited (STANCH.bw), listed on the Botswana Stock Exchange:

ECONOMIC REVIEW

Global Economy

Global economic growth has remained somewhat sluggish, with the International Monetary Fund (IMF) re-forecasting the 2019 growth rate down to 3.2%, although expecting an improved 3.5% in 2020. Euro-area headline inflation fell to 1.1% in July from 1.3% in June. This reflected lower price gains for energy and reduced services inflation, which fell to 1.2% from 1.6%. China Lending Prime Rate reduced to 4.25%, still above the 3.91% minimum that banks offer to clients, suggesting a sustained downwards trend in the near term. Downside risks to forecasts are quite pronounced; Brexit uncertainties persist while trends in energy prices carries substantial uncertainty. Pockets of geopolitical tensions will remain a pain point.

Regional Economy

IMF forecasts a 3.5% economic growth in sub-Sahara for 2019, reflecting an improvement over the 3% recorded in 2018. There is an expectation of a generalised recovery which will see growth