Botswana Eyes Growth After Diamond Dip

The government has announced that the country’s economy is expected to rise by 3.1% in 2026, signalling a comeback after two years of decline.

Global Demand Drop Hits Diamond Industry

This outlook follows a sharp drop in global demand for natural diamonds, which has hurt Botswana’s main source of income.

Diamonds normally provide about a third of the nation’s revenue and most of its foreign currency earnings.

Finance Minister Ndaba Gaolathe told parliament that without sweeping changes, the economy may stay below its true potential for a while.

He urged faster diversification and stronger growth from non-mining sectors.

The country’s diamond reserves are almost twice the amount it aims to keep, a consequence of long-term low prices.

Because of this surplus, Botswana cannot ramp up production quickly enough to boost the economy right now.

The ministry’s message is clear: a shift away from reliance on diamonds and toward other industries will be essential for sustained growth.