Botswana Expects 4% Bump in GDP Due to Strong Performance in Diamond Trade: Plans Major Infrastructure Upgrades For 2023

According to a statement released by the country’s financy minister in Gabarone, Botswana expects economic growth of 4% during 2023 while targeting medium-term growth of 5.7%. The government plans to use this windafall in proceeds to beef up infrastructural investments around the country.

The diamond-rich country now sees its 2023/24 budget deficit at 3.06% of gross domestic product (GDP), compared with 2.1% for 2022/23, Peggy Serame said during an annual budget speech to parliament. "This is due to better than expected performance in both the mining and non-mining sectors, particularly the diamond trade," she said.

Serame said Botswana wanted to raise its 2023/24 infrastructure spending to "unlock constraints to economic growth".

The government has also revised upwards its 2022 growth estimate to 6.7% from an earlier prediction of 4.2%. Serame said the 2022 revision was linked to a strong recovery from the COVID-19 pandemic, after economic growth of 11.8% in 2021 following a lockdown-related contraction in 2020.

Botswana generates about 30% of its revenue and 70% of its foreign exchange earnings from diamonds.

Source: Reuters
Photo: Courtesy of Debswana