S & P maintains Botswana credit rating status

S& P Global Ratings ( S& P) maintained Botswana’s sovereign credit rating for long and short term foreign and local currency sovereign credit at BBB+/ A- 2, and the stable outlook. The stable outlook is on account of S& P’s expectation that the demand for Botswana’s diamond will remain strong against downsides risks presented by the weakening global economic activity. “We expect Botswana’s current account and fiscal outcomes will be supported by sustained diamond revenue through 2025. We forecast the current account will record an average surplus of 2.3 percent of GDP in 20232025, with the government budget in a largely balanced position averaging 0.4 percent of GDP over the same period.”

Botswana’s economic growth outlook is largely shaped by the performance of the diamond sector. Diamond production at Debswana increased by about 30 percent in 2021 following strong demand in the U. S. and China.