The African Development Bank has called on Botswana to implement strategic reforms to boost economic growth and unlock the nation’s estimated $116 billion in national wealth. The appeal was made during the launch of the Bank’s 2025 Country Focus Report for Botswana, titled “Making Botswana’s Capital Work Better for its Development”, held on September 16.
The report highlights Botswana’s strong domestic fiscal position, with a tax-to-GDP ratio exceeding 20%, well above the Sub-Saharan Africa average of 16%. This fiscal strength allows the country to fund most of its national budget without borrowing. However, heavy dependence on diamonds, which account for 80% of export revenue, exposes Botswana to external shocks. The report emphasizes the need for diversification and better management of natural capital to drive sustainable growth.
Despite this fiscal resilience, Botswana’s GDP contracted by 3% in 2024 and is projected to remain weak in 2025 due to infrastructure gaps, fiscal vulnerabilities, geopolitical instability, trade restrictions, and climate-related disruptions. Still, the country holds vast untapped potential, with its total national wealth in 2020 valued at more than six times its GDP, comprising human, financial, natural, and produced capital. Botswana’s ecosystems, including forests, biodiversity, and renewable energy, represent valuable assets for climate-resilient development.
Permanent Secretary at the Ministry of Finance, Tshokologo Kganetsono, welcomed the report’s recommendations, noting that Botswana’s abundant resources—including mineral wealth, arable land, renewable energy, and its strategic location—could be better harnessed for development. He stressed the need for alignment between government, private sector, and development partners to address external shocks and vulnerabilities, while urging continued support from the African Development Bank and other partners to scale up financing and technical assistance.
The Bank identified three critical priorities for Botswana’s future development: strengthening institutional frameworks, particularly governance in state-owned enterprises and municipalities; scaling up development finance; and investing in human capital to support structural transformation. These measures, officials noted, will help diversify the economy, improve resilience, and unlock greater opportunities for inclusive growth.
The report’s launch featured insights from senior government officials, development partners, private sector leaders, and civil society representatives. A panel discussion explored strategies such as economic diversification, stronger institutions, financial reforms, and deeper regional trade integration. Contributions came from senior officials across ministries and policy institutions, while African Development Bank economists provided expert analysis.
In a video message, Kevin Urama, the Bank’s Chief Economist and Vice President, reiterated the importance of reforms to ensure Botswana’s wealth is effectively harnessed for sustainable and inclusive development. The event underscored the Bank’s commitment to supporting Botswana in transforming its capital into a driver of long-term growth and stability.
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