16 Jul 2026

Government remain steadfast to tackle pressing economic challenges such as a staggering decline in diamond revenues and transforming such hurdles into growth opportunities through the Botswana Economic Transformation Programme (BETP), which aims to transition the nation into a services-led, investor-friendly and export-driven economy.

With Botswana's heavy reliance on diamond exports having created a ‘perfect storm’ of economic challenges, the crisis has nonetheless forced the country to pivot toward long-term resilience and diversification.

The current economic meltdown has led to a depletion on government investment account which stood at P6.1 billion in April 2026, while public debt rose from 22 per cent of GDP in the 2003-2004 financial year to an estimate of 38 per cent at the end of March 2006.

 Speaking during the official launch of the maiden edition of the World Bank group’s Botswana Economic update, Ministry of Finance, Secretary of Macroeconomics and Financial Policy, Dr Sayeed Timuno reaffirmed government commitment to seize the moment and turn the current economic crisis into opportunity.

He stated the need to get a diversified, high-resilient economy which is underpinned by disciplined public finances and a labor force equipped for work that diversification demanded.

Transforming economic challenges into opportunities, he said required shifting from single-sector dependence to a diversified, technology-driven and sustainable economy adding that by reframing problems as invitations to innovate, both government and private sector could turn adversity into long-term growth.

“Our analysis shows that diamond still accounts for roughly 72 per cent of exports, largely unchanged from three decades ago, though there are opportunities in livestock, mineral processing, green energy, high-end tourism, which creates a near-term avenue for export diversification to carbon-neutralised investment,” Dr Timuno said.

He said it was also important to invest in human capita in order for the public service to deliver measurable results for harnessing human capital for sustainable and climate-resilient growth, principally through renewable energy and water security.

To that effect, Dr Timuno highlighted that it was pleasing to note that the World Bank group also  recommends employer-led sector skills compact, a re-oriented human resource development fund and a balanced structure for the  revival of the  economy.

Thus noted no degree of fiscal consolidation or private sector reform would diversify the economy if the labour force continually increases with less value addition.

Additionally, he said it was key to restore fiscal sustainability through a more efficient government spending and stronger domestic revenue normalisation as well as management of the wage bill as a direct rationale for the wider challenges.

“Our true north has not changed. We still want to build a high-income, digitally-labeled, export-driven, and economically-diversified country by 2036, where every citizen is employed, empowered and fulfilled,” he said.

This goal, Dr Timuno said was underpinned by disciplined public finances and strong human capital and was the destination set out in the National Development Plan 12 and given operational form in the BETP. ENDS