This follows a challenging 2024, during which the economy contracted by 3.3% over the first three quarters, exceeding earlier expectations of a 1.7% decline.

The country’s heavy reliance on diamond exports has made its economy particularly vulnerable to global market fluctuations. Weak diamond sales throughout 2024 prompted Debswana, a joint venture between Botswana and De Beers, to lower its annual production target by 6 million carats, closing the year with 17.9 million carats.

Improved mineral revenues are expected to reduce the national budget deficit from 6.75% of GDP in the 2024/25 fiscal year to 3.6% in 2025/26. The rebound is also likely to be supported by stronger performance in non-mining sectors, helping to stabilize overall economic activity.

The upcoming national budget for 2025/26, set to be delivered in February by the finance minister, is expected to outline further measures to sustain this recovery and address the economic challenges posed by the previous year’s downturn.

Botswana remains optimistic that the combination of a revitalized diamond market and diversification efforts will strengthen its fiscal health and ensure steady growth moving forward.