Botswana: S&P Downgrades Botswana With Negative Outlook On Diamond Weakness

S&P Global Ratings downgraded Botswana’s sovereign credit rating to BBB- from BBB and assigned a negative outlook, citing prolonged weakness in global diamond demand.

The decision reflects Botswana’s reliance on diamonds, which account for about 70% of exports, one-third of government revenue and roughly a quarter of GDP. The sector has faced pressure since 2023 due to lower prices, weaker demand from China and a slowdown in global luxury spending, alongside competition from lab-grown diamonds.