Botswana may fall short of 4.2% growth target over constraints

AFRICAN BUSINESS AND ECONOMYJune 18, 2024 at 6:31 PM UTC

TLDR

Botswana's economy may not meet the government's 4.2% growth target due to global and domestic limitations.
Finance Minister Serame projected a 4.2% GDP increase, focusing on diamond sector improvements for future growth.
Struggles in Botswana's diamond-dominated mining sector have led to a significant 48% decline in sales at Debswana Diamond Company in Q1 2024.

Botswana’s economy may fall short of the government’s 4.2% growth target for this year, a senior central bank official said on Tuesday, citing global and domestic constraints.

Finance Minister Peggy Serame projected a 4.2% increase in GDP in a budget speech in February, saying the government expected growth to accelerate from 2023 due to an improved performance in the diamond sector. Gross domestic product grew 2.7% in 2023.

However, Botswana’s mining sector, which is dominated by diamonds, is still struggling, reflecting sluggish market conditions globally. Sales at Debswana Diamond Company, a joint venture between the southern African country’s government and Anglo American’s De Beers unit, were down about 48% year-on-year in the first quarter of 2024.

Key Takeaways

Botswana, a landlocked nation in southern Africa, has been gearing up to diversify its economy as its gross domestic product (GDP) growth remains relatively resilient. Once one of the poorest countries in the world, the South African country has experienced rapid growth and development since gaining independence. Today, it stands as the least corrupt nation in mainland Africa boasts the highest economic freedom score in the region, and maintains a GDP per capita comparable to other emerging economies like Brazil and Turkey.

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Debswana Diamond Company

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