Botswana’s economy is projected to contract by 0.4% in 2026, driven largely by a slowdown in the diamond sector. Diamonds account for a third of fiscal revenues and a quarter of GDP. This means the government has less money to spend, even before making any policy choices.
At the same time, the government has set about reducing debt as a share of GDP by cutting expenditure to stabilise the economy. This combination is forcing difficult decisions about public spending.
A key one is investment in…
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