Botswana Faces Fiscal Pressure As Diamond Market Slump Deepens

TLDR

• Botswana’s economy is reeling from a collapse in diamond revenues, straining public finances and fueling social tensions
• Diamonds account for 80% of the country’s exports and a third of government income, but demand has plunged
• The government projects a fiscal deficit of 11% of GDP in 2025, the widest in sub-Saharan Africa, with debt expected to double to 43% of GDP

Botswana’s economy is reeling from a collapse in diamond revenues, straining public finances and fueling social tensions….