---
title: "Botswana sees 3.3% growth in 2025 amid upturn in diamond market"
description: "Botswana's economy is set to grow 3.3% in 2025, rebounding from last year's contraction, driven by a recovering diamond market. Finance Minister Ndaba Gaolathe emphasized the need to diversify beyond diamonds, expanding tourism, agriculture, manufacturing, and energy"
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "DIVERSIFYING DIAMONDS"
author: "Reuters"
author_url: "https://www.dailymaverick.co.za/author/reuters/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-02-10-botswana-sees-3-3-growth-in-2025-amid-upturn-in-diamond-market/"
published: "2025-02-10T04:35:13"
updated: "2025-02-11T05:21:51"
lang: "en-ZA"
word_count: 273
---

# Botswana sees 3.3% growth in 2025 amid upturn in diamond market

> Botswana's economy is set to grow 3.3% in 2025, rebounding from last year's contraction, driven by a recovering diamond market. Finance Minister Ndaba Gaolathe emphasized the need to diversify beyond diamonds, expanding tourism, agriculture, manufacturing, and energy

By Reuters · Published 10 February 2025, 06:35 SAST · Updated 11 February 2025, 07:21 SAST

## Key points
- Botswana's economy is poised for a 3.3% rebound this year, thanks to a diamond market recovery that has finance ministers polishing their diversification strategies—because relying solely on glittering rocks is so last century.
- Botswana's economy is projected to grow by 3.3% this year, driven by a recovery in the global diamond market, despite a contraction of 3.1% in 2024.
- The country remains heavily reliant on diamond exports, prompting calls for economic diversification into sectors like tourism, agriculture, and manufacturing.
- Finance Minister Ndaba Gaolathe highlights the dual nature of diamond dependency as both a strength and a vulnerability, echoing President Duma Boko's commitment to diversification.
- The budget deficit for the 2025/26 financial year is expected to decrease to 7.56% of GDP, down from an estimated 9% this year, amid ongoing negotiations with De Beers on diamond sales and mining licenses.

## Content

Botswana's economy is forecast to grow 3.3% this year after a contraction in 2024, due to an expected recovery in the global diamond market, its finance minister said on Monday, echoing calls to diversify the economy away from precious stones.

Botswana is the world's leading producer of diamonds by value and its economy largely depends on diamond exports. Declining earnings have limited government spending.

"This growth outlook is premised on recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors," Finance Minister Ndaba Gaolathe said in a budget speech.

The southern African country's economy is estimated to have shrunk by 3.1% last year, Gaolathe said, which is a bigger contraction than the 1.7% forecast in December by the government.

Gaolathe echoed President Duma Boko, who came to power in November following a [landslide election upset](https://www.reuters.com/world/africa/botswanas-ruling-party-loses-its-majority-this-weeks-election-mmegi-newspaper-2024-11-01/) and has vowed to [diversify Botswana's economy](https://www.reuters.com/world/africa/botswana-looking-diversify-its-economy-president-says-2025-01-23/).

"Botswana's reliance on diamond revenues has been both a strength and a vulnerability," Gaolathe said.

The focus would be on expanding key sectors such as tourism, agriculture, manufacturing and energy, he said.

Last week, Botswana and diamond giant De Beers said they had [finalised talks](https://www.reuters.com/markets/commodities/de-beers-agrees-fresh-sales-agreement-with-botswana-2025-02-03/) on a rough diamond sales deal and on extending mining licences for their Debswana joint venture there to 2054.

Gaolathe said the budget deficit for the 2025/26 financial year running from April to March was estimated to fall to 7.56% of gross domestic product (GDP), lower than the current financial year's estimated deficit of 9% of GDP.

Writing by Tannur Anders and Bhargav Acharya; Editing by Aidan Lewis Editing by Gareth Jones