Lack of diversification constrains Botswana ratings

Tuesday, May 20, 2014

International ratings agency, Standard & Poor’s (S & P) has blamed the lack of progress in diversification of Botswana’s economy for constraining the country’s economic and credit ratings.

Last week, S&P released the results of the first of the two annual reviews of Botswana’s sovereign credit rating for 2014, and affirmed the ‘A-’and ‘A-2’ for the long-term and short-term ratings, respectively.

The ‘stable’ economic outlook has also been retained. However, S&P say that the ratings are constrained by the country’s narrow economic base, despite efforts towards diversification.

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