President Duma Boko has delivered a stark warning about Botswana’s economic future, declaring that the country can no longer depend heavily on diamonds and acknowledging that the benefits of independence have not reached every household equally.
Speaking at a recent event, Boko identified modern agriculture, manufacturing, tourism, energy, digital enterprise, and creative industries as sectors requiring greater capacity as Botswana seeks to diversify away from its traditional reliance on diamond revenue .
A MONO-SECTORAL ECONOMY IN CRISIS
Boko has repeatedly acknowledged that Botswana’s heavy reliance on diamonds has created significant fiscal constraints. Diamonds account for approximately 80 percent of government revenue, and declining performance in the sector has left the country “without the revenue it used to have” .
“We now have an undiversified mono-sectoral economy, heavily dependent on diamonds,” Boko said during International Workers’ Day commemorations.
The economic figures paint a sobering picture. Botswana’s economy shrank by 5.4 percent year-over-year in the fourth quarter of 2025, while output from the mining sector fell by 47 percent . S&P Global Ratings downgraded the country’s sovereign credit rating from BBB to BBB- in March 2026, with a negative outlook reflecting subdued global diamond demand.
CHALLENGES MOUNT: UNEMPLOYMENT, DROUGHT, AND FMD
The President’s call for diversification comes amid a confluence of economic pressures. Unemployment remains persistently high, with Bank of Botswana Governor Lesego Moseki confirming the rate stood at 27.6 percent. Youth unemployment is estimated to be approaching 40 percent, a figure Boko’s Vice President, Ndaba Gaolathe, has described as “unacceptable” and incompatible with Botswana’s development aspirations.
Adding to the strain, recurring foot-and-mouth disease (FMD) outbreaks have disrupted the livestock sector, with four SAT1 outbreaks recorded in 2026 affecting zones across the country. The FMD crisis has cut Botswana off from the premium European Union beef market and placed pressure on rural households that depend on cattle for income .
Drought conditions have compounded these challenges, putting additional pressure on rangelands and water supplies while the prospect of an El Niño season threatens further agricultural disruption .
FROM PUBLIC SECTOR-LED TO PRIVATE SECTOR-LED
Boko has reaffirmed his government’s commitment to transforming Botswana from a public sector-led to a private sector-led economy, calling on the business community to drive job creation and diversify industries away from over-reliance on a single commodity .
Addressing the business community at the Botswana-South Africa Business Forum, Boko said: “As it is the private sector and businesses that provide the dignity of jobs for our people, it is our role as government to create a predictable and enabling environment for you to operate and thrive”.
He urged businesses to utilize Public-Private Partnerships to fund infrastructure, foster innovation, and promote local sourcing .
DIGITALISATION AND THE BETP
The President has also highlighted digitisation as a pathway to diversification. Following the 17th US-Africa Business Summit in Angola, Boko said Botswana must “take advantage of the opportunities presented by digitalisation” and engage investors with technological know-how to do business in the country.
The Botswana Economic Transformation Programme (BETP) is being positioned as the vehicle for this shift, prioritising a private-sector-led, export-driven economy.