Trade surplus reaches P4.5bn

The country’s merchandise trade balance reached a surplus of P4.49 billion by the end of the third quarter of the year, a significant turnaround from a P4.7 billion deficit over the same period in 2021. Figures released by Statistics Botswana this week indicate that this year’s positive trade figures have been driven by the rebound in diamond exports. By the end of the third quarter, diamond exports had reached P72.2 billion, compared to P57.4 billion over the corresponding period last year. The difference between the two periods has been stronger demand for rough diamonds, particularly after the outbreak of the Ukraine war which resulted in some Western countries imposing sanctions against diamonds from Russia. On a month-by-month basis, Statistics Botswana figures show a deficit of about P3 billion for September, breaking a five-month run of surpluses, a rarity as the trade balance has generally been in the red over the years. September’s deficit was largely the result of a surge in diamond imports, which rose from P837.1 million in August to P5.7 billion. Under government’s sale agreement with De Beers, rough diamonds from the group’s mines around the world are first imported into Botswana for sorting in Gaborone, before being exported by buyers who hold exclusive licences to participate in auctions.