Botswana slips in Global Competitiveness rankings

The latest report, released this week, highlights a number of challenges weighing on the country's competitiveness. Amongst these is Botswana's continued dependence on diamonds, which leaves the economy highly vulnerable to fluctuations in global market demand and prices. The country is also facing a widening fiscal deficit driven by increasing spending obligations at a time of declining mineral revenues.

High unemployment, particularly amongst young people, remains a persistent concern, whilst private-sector growth continues to be fragile and heavily dependent on government expenditure. The recent outbreak of Foot and Mouth Disease has further added to the country's economic vulnerabilities by threatening the livestock industry and Botswana's valuable beef export market.