Botswana Insurance Q1 2019
We expect high-single-digit growth in Botswana's insurance industry over the medium term, led by the overwhelminglydominant life insurance segment - characterised by high density and penetration levels. The country's economy itself, led by themining sector and heavily influenced by commodity prices, will not grow as strongly as previously thought, but should averageabout 5.0% over the next 10 years as global diamond demand and prices gradually recover. This will help support insurance growth,although the structure of the economy means that the insurance sector will remain vulnerable to commodity prices, particularly indiamonds. Botswana's consumer base will find support from relatively low inflation, and as such, we expect private consumption togrow steadily in the years ahead. Real private consumption is expected to grow steadily over the next 10 years, and stable inflationshould continue to support consumer purchasing power. As a result, insurers should see demand rise at a steady pace.
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