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Botswana's business community expects the economy to expand by 2.1 percent in 2026 following a 0.7 percent contraction in 2025, though the outlook remains clouded by weak demand, constrained government spending and high financing costs, according to the Bank of Botswana's June Business Expectations Survey.
Botswana's business community expects the economy to expand by 2.1 percent in 2026 following a 0.7 percent contraction in 2025, though the outlook remains clouded by weak demand, constrained government spending and high financing costs, according to the Bank of Botswana's June Business Expectations Survey.
Botswana's working-age population (aged 15–64) is projected to rise to 67.6 percent of the total population by 2038 from 63.3 percent in 2023, creating a demographic dividend that will depend on the country's ability to generate jobs and raise productivity.
Botswana's labour market faces a growing skills challenge as young adults continue to leave the country for education, employment and professional opportunities. Statistics Botswana's Population Projections 2022–2038 show annual net migration is projected to fall from 2,449 people in 2023 to 1,204 by 2038.
Only three of Boteti West's 15 primary schools have purpose-built junior toilets, leaving reception class pupils in the remaining 12 schools sharing ablution facilities with older learners, despite government policy requiring age-appropriate sanitation, according to a parliamentary response by the Minister of Local Government and Traditional Affairs.
Air Botswana's financial troubles extend beyond grounded aircraft and cancelled flights; the state-owned airline is years behind in publishing audited financial statements, raising transparency questions as it has spent hundreds of millions of pula on fleet renewal while posting operating losses.
De Beers, the world's largest diamond producer, reported weak rough diamond demand, lower prices, and competition from laboratory-grown stones continued to pressure earnings in its latest six-month period, though the company noted early signs that market disruption may be easing.
Sefalana Holding Company reported its sharpest profit decline in almost a decade after rising operating costs, weak consumer demand, and disruptions to government supply contracts outweighed record sales.
Botswana Development Corporation has begun importing 1,000 high-yield dairy cattle from Brazil to increase local milk production and reduce the country's dependence on dairy imports.
Access Bank Botswana posted lower earnings for the year ended December 2025 after higher loan impairments and funding costs offset strong growth in digital banking income and an expanding loan book.
Botswana's economy returned to growth in the first quarter of 2026, ending two years of contraction as diamond-related activity and electricity production rebounded. However, the recovery remains uneven, with weak household spending, lower investment, and a sharp fall in exports highlighting the fragility of the upturn.
De Beers' chief executive has indicated that the long-running uncertainty surrounding the diamond company's future ownership could soon end, with a sale potentially completed within weeks.
Botswana reduced its dependence on imported electricity in the first quarter of 2026 after local power generation surged to its highest level on record, marking a milestone in the country's pursuit of energy security.
G4S Botswana's latest financial results show the security firm has moved beyond crisis management into early recovery, with a sharply narrower loss and stronger operating margins, though the business is still searching for a sustainable return to profitability.
Bank of Botswana Governor Lesego Moseki has warned that Botswana must accelerate economic reforms rather than wait for diamond market recovery, stating that the prolonged downturn has exposed structural weaknesses in the economy.
Botswana's financial watchdogs have identified sovereign risk as the biggest threat to the country's financial stability, citing rising government borrowing, shrinking fiscal buffers, and growing dependence on domestic financing as sources of vulnerability.
De Beers research suggests natural diamonds continue to command strong consumer demand in the United States, potentially providing relief for Botswana's diamond-dependent economy amid government revenue pressures from a prolonged global diamond market downturn.
G4S Botswana expects to substantially reduce its annual losses, signaling that the security services company may be emerging from a prolonged period of financial strain.
Standard Chartered Bank Botswana says the country's economy faces a "perfect storm" in 2025 as weakness in the diamond sector, tight liquidity conditions and global geopolitical tensions combine to create one of the most challenging operating environments in recent years.
Botswana's mining industry has welcomed the uranium discovery at Eastport Critical Metals' Foley Uranium Project, with industry leaders saying it could support the country's efforts to diversify its economy beyond diamonds.
Botswana's fiscal savings account has staged a remarkable recovery after months of decline, with fresh Bank of Botswana figures showing a sharp rebound in the Government Investment Account (GIA) during March.
Botswana's consumer price growth fell below the central bank's target range for a second consecutive year in 2025, but persistent increases in food prices continued to erode household purchasing power, particularly among lower-income families.
Letshego Africa Holdings is withdrawing from Ghana, Tanzania, Nigeria, Rwanda and Uganda following a combined loss after tax of P519.5 million in the year ended December 2025, despite operating income of P1.46 billion.
Botswana's fiscal savings account has recorded its strongest rebound in more than a year, though government continues to depend heavily on central bank support as the effects of the diamond downturn persist in public finances.
First-time vehicle registrations in Botswana fell 3.7 percent to 9,942 vehicles in the fourth quarter of 2025, down from 10,324 in the previous quarter, though passenger cars still accounted for 72.8 percent of all registrations.
Botswana's business community has warned that economic conditions remain difficult, government spending is constrained and confidence is fragile, even as firms cautiously expect a modest recovery this year.
The Bank of Botswana has warned that worsening fiscal position and rising government borrowing could drain liquidity from the financial system and squeeze credit to businesses, amid weak growth, rising inflation, and an expanding government financing gap.
Letshego Africa Holdings Ltd., a Gaborone-based lender, is selling units in Ghana, Tanzania, Nigeria, Rwanda, and Uganda to Axian Digital Venture Holding and Management Ltd., deepening its retreat from regions that have driven the company into the red.
Botswana's trade deficit expanded sharply to P4.2 billion in February, from P1.8 billion in January, as imports surged forty-seven percent to P9.8 billion while exports rose a slower fourteen percent to P5.6 billion, reflecting the economy's exposure to import surges and narrow export base.
At the HATAB conference in Maun, industry leaders reported renewed investor interest in lodges, camps and digital travel platforms, but persistent regulatory delays and policy friction are slowing deals.