The agency stated that the nation’s mineral-dependent economy will likely be negatively affected by the market’s protracted downturn for a longer period than anticipated.
Botswana’s foreign exchange reserves have also significantly decreased, according to S&P data.
By the end of 2025, reserves had fallen to $3.8 billion, a significant $3.7 billion decrease from 2017 levels.
The Southern African nation is one of the world’s top producers of natural rough diamonds; traditionally, this industry has contributed around one-third of government revenue and 70% of export revenue.
Because of this substantial dependency, the economy is especially susceptible to changes in the price of diamonds worldwide.
The government is making efforts to reduce its reliance on the diamond sector amid these difficulties.
Tiroeaone Ntsima, Botswana’s Minister of Trade and Entrepreneurship, emphasized ongoing initiatives to diversify the economy and create new industries that can sustain long-term growth in an interview with Forbes.
“We are exploring opportunities in manufacturing and agriculture, within which agro-processing offers avenues to add value and sell at a higher margin,” he explains, before revealing their strategy.
The minister noted that the country won’t rule out any step in the value chain when asked how it intends to increase manufacturing.
“When we look for investors, we want those that will bring in technology and fresh ideas…we will facilitate them to settle in Botswana,” the minister stated.
Concurrently, the nation’s largely unexploited mineral resources are undergoing evaluation as a viable channel for attracting foreign direct investment.
This strategic objective has been further reinforced by the recent identification of a rare-earth mineral deposit in the northwestern region, which contains significant quantities of cobalt and lithium.
Ntsima guarantees that Botswana’s diamond sector “is still committed to natural diamonds.”
He further affirmed Botswana’s dedication to the natural diamond industry.
The minister also pointed to President Duma Boko’s plan to acquire an equity stake in the De Beers Group, a move intended to grant the nation greater influence over its diamond sales.
Economic diversification initiatives are increasingly prioritized by the administration, which remains dedicated to optimizing the utilization of national resources.