- Tsaone Segaetsho
Business Botswana President, Neo Nwako, has called on the private sector to assume a leading role in driving Botswana’s industrialisation agenda, warning that the country’s long-standing dependence on diamonds continues to undermine long-term economic resilience and sustainable growth.
Speaking at the recent 30th Northern Trade Fair, held under the theme “Value Chain Revolution: From Local Resources to Global Markets,” Nwako said the current economic climate underscores the urgent need for diversification and stronger private sector participation across the economy.
“Economic diversification is no longer optional; it is an urgent national priority,” he said. “The private sector must lead through value addition to our raw materials, innovation, exports, job creation and competitiveness. We can no longer afford to export our raw materials in an unprocessed state.”
Nwako noted that Botswana’s economy remains heavily exposed to fluctuations in the global diamond market, a vulnerability that has become increasingly apparent amid weakening international demand.
Referencing the International Monetary Fund’s (IMF) 2025 Article IV Consultation, he said Botswana is currently navigating a critical economic phase, with subdued diamond demand weighing on economic growth, exports, government revenue and broader business activity.
The IMF projects an economic contraction of between 0.4 per cent and 0.9 per cent in the near term, although growth is expected to recover to approximately 4 per cent by the end of 2026.
“The report further highlights that long-term economic recovery will require a stronger and more active private sector, accelerated economic diversification, improved competitiveness, and a business environment that supports investment and industrial expansion,” Nwako said.
He further cited the World Bank, which continues to stress Botswana’s heavy reliance on diamonds, noting that the mineral accounts for between 70 and 80 per cent of export earnings and roughly one-third of government revenue.
According to Nwako, such dependence leaves the economy highly vulnerable to external market shocks and reinforces the urgency of building a broader and more diversified productive base.
“The World Bank has consistently emphasised the need to strengthen productivity, accelerate diversification, support export growth and expand private sector participation across non-mining sectors of the economy,” he said.
Nwako added that Botswana’s industrialisation ambitions will only materialise through deliberate investment in value chains, manufacturing capacity and export-oriented industries capable of positioning local enterprises within regional and global markets.
