Spending cuts save Botswana's investment status

S&P Global Ratings last week affirmed the country’s long-term sovereign rating at BBB-, the lowest rung of investment grade, together with its A-3 short-term rating. However, the agency maintained a negative outlook, keeping Botswana on notice that another downgrade remains possible.

The decision comes six months after S&P cut Botswana from BBB to BBB-, following an earlier downgrade from BBB+ in September 2025. A further one-notch reduction would push the country into speculative grade, potentially raising government borrowing costs and weakening its appeal to investors restricted to investment-grade assets.