Reliance on Diamonds 'Haunts' Botswana

Economy
21/07/2015 08:54

The country has developed an over-reliance on income from its diamond resources over the past half century, and that is causing damage to its economic growth. In a 'Systematic Country Diagnostic' report, the World Bank warns that consumer spending has replaced diamonds as the key driver of economic growth, but this will be unsustainable in Botswana due to its weak private sector and high levels of household debt. Diamonds account for 75% of the country's foreign currency earnings and around two-thirds of Gross Domestic Product.