Botswana expects 2025 financial development rebound on higher diamond market

By Brian Benza

GABORONE (Reuters) – Botswana’s economic system is predicted to develop 3% to 4% in 2025 after a contraction final 12 months, a senior authorities official mentioned at a price range workshop on Friday, as the worldwide diamond market is anticipated to get better.

The Southern African nation’s economic system shrunk 3.3% within the first three quarters of 2024, elevating authorities expectation of a much bigger contraction than the 1.7% forecast in December. An up to date contraction estimate was not given.

“The home economic system is anticipated to rebound in 2025 to a development of 3-4%, reflecting a mix of base results, the worldwide restoration within the main diamond export markets and continued development within the non-mining sector,” director of macroeconomic coverage within the finance ministry, Walter Matekane, mentioned.

Botswana’s economic system is essentially depending on the export of diamonds, and declining earnings from the dear stone have restricted authorities spending.

Diamond gross sales remained weak all through 2024 and Debswana, a three way partnership between Botswana and De Beers, lowered its manufacturing steerage for final 12 months by about 6 million carats to 17.9 million carats.

Botswana expects a restoration in mineral revenues to slim the price range deficit to three.6% of gross home product (GDP) in 2025/26 from 6.75% of GDP forecast for the 2024/2025 fiscal 12 months, a presentation by Matekane confirmed.

Botswana’s finance minister Ndaba Gaolathe is predicted to ship the 2025/26 nationwide price range in February.