12 Oct 2026

Moody’s Ratings has upgraded Botswana’s economic outlook from negative to stable to affirm confidence in the country’s strong credit fundamentals and ensure that Botswana maintains its investment-grade status. 

The shift reflects confidence in Botswana’s strong institutional framework, prudent policymaking and sound economic governance. The outlook upgrade also reinforces durable confidence in the nation’s creditworthiness and long-term resilience.

 A statement from the Bank of Botswana (BoB) says the revised rating highlights opportunities arising from a recovery in diamond production, growth in non-diamond mining activities and ongoing economic diversification efforts. The statement says to maintain and strengthen the country’s investment-grade standing, the central bank has advised that it is critical to sustain fiscal consolidation and manage public finances prudently. 

Such efforts, it says, will help rebuild fiscal buffers, strengthen long-term economic sustainability and support inclusive and resilient growth. It also says the reserve bank also indicates that risks remain balanced, with prospects for both strong fiscal policy implementation and sustained recovery in mining activity offsetting potential revenue and financing pressures.

“Botswana’s strong credit fundamentals are underpinned by effective institutions, sound macroeconomics, manageable public debt, a resilient external position, as well as access to affordable financing,” reads the statement.

It further says recent revenue and expenditure measures are reported to be yielding results, helping to moderate fiscal pressures while preserving long-term sustainability.  Government, it says, has taken targeted steps to manage public finances, including adjustments to personal and corporate tax rates, as well as broader income tax reforms.

 The BoB statement further states that other prudent fiscal measures include improved expenditure controls such as centralised procurement and greater efficiency in public resource management. 

Meanwhile, Botswana continues to invest in social services, infrastructure and other public goods while safeguarding fiscal and long-term debt sustainability. 

Additionally, Moody’s latest assessment aligns with Vice President Ndaba Gaolathe’s declaration at the recent Finance and Investment Pitso, that Botswana remained well-positioned to rebound from the current economic slump due to its strong and stable financial institutions. 

The Vice President highlighted that Botswana’s financial system remained solid despite prolonged geopolitical tensions, evolving trade arrangements and persistent uncertainty in the global economy. Mr Gaolathe stated that government was steadily moving forward with fiscal consolidation, domestic revenue mobilisation, and disciplined expenditure restraint. ENDS