Botswana, which relies largely on diamond exports for 80% of its export revenue, is experiencing economic difficulty as a result of lower worldwide demand. Innocent Molalapata, the central bank’s director of research and financial stability, said during an economic briefing published by Reuters that the country may not meet its prior objective of 4.2% GDP growth this year. “Based on the first half-year performance and unfavorable global economic conditions, along with internal structural limitations, it is unlikely that we will meet our growth projection,” she said.
According to data issued in March by the Bank of Botswana, raw diamond sales will fall 25.1% to $3.44 billion in 2023. Despite these obstacles, Botswana has the highest per capita GDP of any African country south of the Sahara, thanks largely to its diamond business, which provides universal free education to its 2.3 million residents.