Downturn in diamond industry contracts Botswana’s economic activity

Botswana, known for its diamond industry, has faced economic challenges due to the recent slump in diamond prices, leading to reduced government revenue and increased unemployment rates. President Boko, in the state-of-the-nation address, expressed optimism about overcoming these hurdles through strategic policies and reforms. These initiatives aim to diversify the economy sustainably, address high unemployment rates, and attract foreign investment. Kealeboga Mogodi, Head of Business & Commercial Sales at Stanbic Bank Botswana, highlighted the government's focus on conducting forensic audits, strengthening anti-corruption measures, and reviving the economy through various sectors like renewable energy, agriculture, tourism, manufacturing, and technology. There will be a special emphasis on infrastructure projects to boost employment and economic activity, along with the establishment of a national housing scheme for affordable housing. The government plans to partner with local and global companies to accelerate development and achieve inclusive growth. Additionally, efforts will be made to attract foreign investment by reforming regulations and establishing a national development fund. However, the success of these initiatives remains to be seen as the country aims to reduce its dependency on the diamond industry. The potential agreement between Botswana and De Beers could play a crucial role in enhancing the country's investment appeal, signaling positive prospects for economic growth and stability.