Botswana: The future is now

Having observed the country’s economy for the past five years, the speech was perhaps one of the more detailed budget speeches delivered. However, the proof will lie in the subsequent actions taken and the results achieved.

Botswana continues to depend on a single natural resource: diamonds. During 2024 the economy contracted by 3.1 percent in large part due to a 22.9% contraction in the diamond sector and a 44.1% decline in diamond-related industries. In 2025, the economy is expected to recover and grow at a modest 3.3 percent. The recovery has been predicated on a potential rebound in the diamond industry. However, a boost in the global demand for diamonds is by no means certain and depends on several external factors. It is, therefore, critical that the country’s policymakers begin to chart clear policy pathways for tapping alternative sources of growth. The new (12th) national development plan will be an important instrument for signalling Botswana’s intentions and policy objectives over the next five years.