The country recorded a trade deficit of P37.3 billion last year – possibly the worst ever performance according to available records – eating into the foreign reserves as the downturn in diamonds collapsed exports.
The trade balance, or the relationship between imports and exports of goods, has been in negative territory since at least September 2023 when diamond sales began to slow down and eventually sank due to factors including Chinese market weakness and the encroachment of synthetics.
According to a Statistics Botswana report released recently, imports for 2024 reached P96.9 billion against exports of about P59.7 billion, resulting in the record deficit. By comparison, in 2023, imports were estimated at P88.2 billion versus exports of P77.9 billion, resulting in a deficit of P10.3 billion.
Most of the shortfall in 2023 came in the third quarter of the year as a result of the diamond slump that set in during that period. For 2024, however, the weakness in the trade balance lasted throughout the year, with quarterly exports declining from P17.6 billion in the first three months to P11.5 billion in the last three months of the year. By comparison, imports strengthened from P22.7 billion in the first quarter to P25.7 billion in the last quarter, indicating steady activity and demand in the economy.
According to Statistics Botswana figures, diamonds were the most imported item last year at about P17.6 billion, followed by fuel at P16.8 billion and food, beverages and tobacco at about P15 billion. Diamonds are classified as both imports and exports because the country imports rough diamonds under the sales agreement with De Beers where stones from Canada, South Africa, and Namibia are sorted, arranged, and sold in Gaborone to international clients over 10 auctions a year.
Despite their slump, diamonds remained the top export item in 2024, followed by copper and machinery.
According to a Statistics Botswana report released recently, imports for 2024 reached P96.9 billion against exports of about P59.7 billion, resulting in the record deficit. By comparison, in 2023, imports were estimated at P88.2 billion versus exports of P77.9 billion, resulting in a deficit of P10.3 billion.
Most of the shortfall in 2023 came in the third quarter of the year as a result of the diamond slump that set in during that period. For 2024, however, the weakness in the trade balance lasted throughout the year, with quarterly exports declining from P17.6 billion in the first three months to P11.5 billion in the last three months of the year. By comparison, imports strengthened from P22.7 billion in the first quarter to P25.7 billion in the last quarter, indicating steady activity and demand in the economy.
According to Statistics Botswana figures, diamonds were the most imported item last year at about P17.6 billion, followed by fuel at P16.8 billion and food, beverages and tobacco at about P15 billion. Diamonds are classified as both imports and exports because the country imports rough diamonds under the sales agreement with De Beers where stones from Canada, South Africa, and Namibia are sorted, arranged, and sold in Gaborone to international clients over 10 auctions a year.
Despite their slump, diamonds remained the top export item in 2024, followed by copper and machinery.
