Mining, Manufacturing and Agriculture to support other sectors – report
The mining sector particularly uranium mining will be the main engine of growth over the coming quarters, according to Business Monitor International (BMI) Research firm.
The research firm this week released the December edition of Africa Monitor report which states that the country’s mining sector is seeing robust growth, posting 25.8% year-on-year growth in Q2 17, which is being led mainly by increases in uranium and diamond production.
The firm said as mining output increases, it will mitigate some of the impact from other sectors that are in decline.
The sectors that will see stronger output in the coming quarters such as manufacturing, agriculture and mining, will gradually drive increases in income for a significant proportion of the labour force, BMI said in the report.
“This will consequently bolster demand in other sectors of the economy such as retail and real estate and in turn bolster their output. The agricultural, manufacturing and mining sectors employ 28.9% of the workforce (according to the statistics agency’s 2016 labour report) and we expect that all will see greater strength in the coming quarters,” BMI said.
“We expect that the eventual boost in income for this significant part of the labour force will bolster wider consumption, though any increase in income for those employed in these sectors will come gradually. Retail in particular showed a marked decline in Q2/17, but we expect that the eventual increase in consumption demand in 2018 will see some recovery in retail, greater growth in real estate and a boost to the hospitality sector,” the report added.
Meanwhile BMI said the development will help support the gains made in mining and see headline growth head higher in 2018.