Diamond Sector Lifts Botswana’s S&P Outlook
Ratings agency S&P has revised its outlook on Botswana – from Negative to Stable – saying it expects that “economic rebound, supported by a strong diamond sector recovery, will lead to a material improvement of fiscal and external performance over the next two years,” Mining Weekly reports.
S&P said in its report: “We expect Botswana’s diamond export-dependent economy to rebound by 8.5% in real terms in 2021 because the diamond industry is rebounding from 2020’s large pandemic-induced contraction.” The agency affirmed Botswana’s ratings at ‘BBB+/A-2’.
Recently, Gem Diamonds sold its Ghaghoo mine in Botswana for $4 million to Okwa Diamonds, a company owned by Vast Resources and Botswana Diamonds. Botswana Diamonds managing director James Campbell noted that “there are significant opportunities to improve Ghaghoo’s operating and financial performance through both the application of new, and optimization of existing, technologies, along with a strongly recovering diamond market.”