Diamond exports pushed Botswana’s current account back into surplus in 2025, but a persistent non-mining deficit and rising external debt expose deeper structural pressure.
GAZETTE REPORTER
Botswana’s external position improved sharply in 2025, with the current account moving from a P11.7 billion deficit in 2024 to a P7.9 billion surplus, according to the Bank of Botswana’s (BoB) External Sector Statistics Bulletin, June 2026.
Diamond Rebound
The turnaround was largely driven by stronger diamond exports as demand improved for larger, higher-quality and premium natural diamonds. The De Beers Group also undertook “stock rebalancing initiatives”, accepting lower margins to sell specific assortments of rough diamonds.
“The current account shifted from a deficit of P17 billion in 2020 to a surplus of P7.9 billion in 2025,” the bulletin said, reflecting the improvement in diamond exports despite a setback in 2024.
The current account had improved steadily following the Covid-19 pandemic, moving from a P17 billion deficit in 2020 to P3.8 billion in 2023, before weakening sharply in 2024 amid weaker global diamond demand, high inventories and falling prices.
In 2025, the goods account recorded a deficit of P8 billion, significantly lower than the P30 billion deficit recorded in 2024.
Structural Pressure
Despite the improvement, Botswana’s non-mining current account remained in deficit throughout 2020 to 2025. The deficit stood at P48.3 billion, or 19.7 percent of GDP, in 2025, compared with P48.2 billion, or 20.5 percent of GDP, in 2024.
The bulletin said the persistent deficits reflected “dependence on imports and continued net outflows in services and primary income.”
The services account also remained in deficit, although it improved to P3.6 billion in 2025 from P4.8 billion in 2024. Travel services generated a P6.2 billion surplus, while transportation recorded a P6.5 billion deficit.
The primary income account remained in deficit, driven largely by dividends and retained earnings paid to foreign investors, with mining accounting for a significant share of those payments.
Debt Builds
Botswana remained a net creditor to the rest of the world, although its net international investment position narrowed from P64.7 billion in 2020 to P52.7 billion in 2025.
Gross external debt rose from P33.3 billion in 2021 to P60.2 billion in 2025, driven by private-sector intercompany loans and increased government external borrowing amid reduced diamond-related revenues.
The financial account recorded net outflows of P10.9 billion in 2025, following P11.2 billion in 2024, driven by increased offshore investments and loan repayments by government and the private sector.