Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
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Botswana’s economic fortunes are predicted to improve in 2025, with a projected growth of 3.3% following a sharp contraction in 2024. Finance Minister Ndaba Gaolathe, in his budget speech, attributed this optimism to the anticipated recovery of the global diamond market, the cornerstone of the nation’s economy. However, he also echoed the growing sentiment for economic diversification.
Botswana, the world’s leading diamond producer by value, has seen its economy heavily impacted by declining diamond revenues, leading to constrained government spending. Gaolathe revealed that the economy contracted by an estimated 3.1% in 2024, a more severe downturn than previously forecast.
“This growth outlook is premised on recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors,” Gaolathe stated.
The minister’s comments reflect the priorities of President Duma Boko, who has championed economic diversification since assuming office in November. “Botswana’s reliance on diamond revenues has been both a strength and a vulnerability,” Gaolathe acknowledged, underscoring the need to broaden the economic base.
The government’s strategy will focus on expanding sectors such as tourism, agriculture, manufacturing, and energy. This diversification drive is seen as crucial to reducing the economy’s vulnerability to fluctuations in the diamond market.
The recent finalization of a new diamond sales deal and the extension of mining licenses for the Debswana joint venture with De Beers until 2054 have provided a degree of stability to the diamond sector. However, the government remains committed to its diversification agenda.
Gaolathe also announced that the budget deficit for the 2025/26 financial year is projected to fall to 7.56% of GDP, down from the current financial year’s estimated deficit of 9%.
While the budget speech primarily focused on economic strategy, the Ministry of Health also released a statement, saying “The Ministry of Health is committed to ensuring that the revenue generated by the nation is used to improve the health and well-being of all citizens. We will continue to invest in our healthcare infrastructure and services to provide quality care for all.” This statement was released to show the government’s commitment to other sectors of the government and not only the diamond industry.
