---
title: "Botswana budget projects economic rebound this year"
description: "Botswana's economy is projected to grow by 3.1% in 2026, recovering from two years of contraction, according to Finance Minister Ndaba Gaolathe. The economy has suffered due to a downturn in the globa"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/275331441.md"
published_at: "2026-02-09T14:23:47.000Z"
---

# Botswana budget projects economic rebound this year

> Botswana's economy is projected to grow by 3.1% in 2026, recovering from two years of contraction, according to Finance Minister Ndaba Gaolathe. The economy has suffered due to a downturn in the global diamond market, which significantly impacts national revenue and foreign exchange earnings. Gaolathe emphasized the need for economic reforms to avoid stagnation and called for accelerated diversification to strengthen non-mining growth sources. The country's diamond stockpile is currently above target levels, limiting production increases amid low prices.

Botswana's economy is expected to grow 3.1% in 2026, rebounding after two successive years of contraction, Finance Minister Ndaba Gaolathe said in a budget speech on Monday.

The Southern African country's economy, long viewed as an African success story, has been hit hard by a prolonged downturn in the global diamond market, driven by economic uncertainty and the rising popularity of lab-grown stones.

Diamonds typically account for about one-third of Botswana's national revenue and three-quarters of its foreign exchange earnings.

Gaolathe told lawmakers on Monday that without major economic reforms growth was likely to remain below potential in the short to medium term.

It was urgent to accelerate economic diversification and strengthen non-mining growth sources, he continued.

Botswana's diamond stockpile is nearly double its target inventory levels amid persistent low prices, limiting its ability to increase production in the short term to support the economy.

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.