Trade balance scores rare surplus

Mbongeni Mguni | Wednesday September 24, 2025 10:45

Powering on: Khoemacau is the larger of two copper operations whose robust exports are helping mitigate the impact from the prolonged diamond downturn FILE KHOEMACAU

Preliminary figures from Statistics Botswana released this week indicate that the second quarter of the year jumped to a P1.6 billion surplus, following a string of deficits for all the quarters up to the Q2, 2023. In the first quarter of the year, the trade deficit was measured at P7.1 billion. According to the data agency, the second quarter surplus was due to improved trade balances in April and June, which recorded surpluses of P2 billion and P780 million respectively.

The surpluses in April and June were both helped by stronger diamond exports set against lower imports of the precious stone, as well as robust base metal exports. Under the country’s agreement with De Beers, diamonds from the group’s mines in South Africa, Namibia and Canada is imported and mixed in Botswana, together with local production, before being sold out to global buyers.

The country therefore records diamonds as both imports and exports. Statistics Botswana figures show that diamond exports nearly doubled in the second quarter to P18.5 billion, compared to the first quarter. Analysts believe the numbers show both some level of nascent recovery in the industry, as well as front-loading by players ahead of the August global tariffs by the Trump administration.

Base metal exports, primarily copper, also helped the trade figures, rising from P2.9 billion in the first quarter to P2.98 billion in the second. Imports in the second quarter were dominated by fuel, followed by food, beverages and tobacco.