Botswana, which depends on diamonds for 80% of its export revenue, is facing economic challenges due to a global decline in demand for the precious stones, IDEX Online reports.
The country’s economic growth target of 4.2% for the year may not be met, according to Innocent Molalapata, the central bank’s director of research and financial stability. Speaking at an economic briefing, Molalapata cited unfavorable global conditions and domestic structural issues as major obstacles.
Rough diamond sales in 2023 dropped by 25.1% to $3.44 billion, according to Bank of Botswana figures released in March.
Despite having the highest per capita GDP in continental Africa, thanks to its diamond industry, Botswana’s economic stability is at risk. The diamond revenue has traditionally funded significant public services, including free education for its 2.3 million citizens.
