Botswana Mining Review Comprehensive Coverage of the Progress and Achievements in the Mining Sector
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Botswana was the weakest performing economy among Southern Africa’s major economies in 2025, with the African Development Bank warning that heavy dependence on diamonds has left the country exposed to global commodity shocks even as its neighbours rebounded strongly.
The bank’s Southern Africa Economic Outlook 2026 shows Botswana’s economy contracted 2.8% in 2024 before a subdued recovery to minus 0.3% in 2025, placing it at the bottom of the region’s growth rankings. “Botswana’s economy shows a contraction of 2.8% in 2024 and records a subdued recovery to -0.3% in 2025. The downturn in the global diamond market underscores the risks associated with commodity dependence,” stated the AfDB. The regional contrast is stark. Zimbabwe led Southern Africa with 7.6% growth in 2025, followed by Zambia at 5.2% and Eswatini at 4.6%. Botswana’s contraction reflects structural weaknesses including limited diversification and over reliance on extractive industries, said the AfDB. “Growth remained negative in Botswana (-0.3%), reflecting a significant contraction in investment alongside sizeable external adjustments,” stated the report.
The findings have renewed scrutiny of Botswana’s decades-long reliance on diamonds as the backbone of government revenue, exports and growth. Diamonds have historically underpinned foreign exchange earnings and fiscal stability but weaker global demand and softer prices have exposed an economy that has struggled to build alternative growth engines. Industrial activity across Southern Africa more broadly remains concentrated in extractive and resource based industries, noted the AfDB, with manufacturing capacity still limited. “Industrial activity remained concentrated in extractive and resource-based industries, reflecting the region’s continued dependence on mining and primary commodity production,” stated the AfDB.
Other regional economies are recovering through agriculture, investment and consumption, with Zimbabwe’s growth driven by household consumption and Zambia benefiting from both consumption and investment. Regional growth improved from 2.0 % in 2024 to 2.3% in 2025, with further expansion expected, though the AfDB cautions the recovery remains uneven. “Quality of growth remains uneven across the region,” the report warned, noting much of the expansion comes from agriculture and extractive industries, sectors that create limited formal employment. Services added 1.7% points to regional GDP growth, while industry subtracted 0.1% points. Finance, tourism, telecommunications and public administration have helped more diversified economies outperform, the AfDB said, while resource dependent countries such as Botswana remain considerably more vulnerable to external shocks.
