Botswana’s President Duma Boko has warned that the current economic model that relies heavily on diamonds is unsustainable and is a “social time bomb” amid rising youth unemployment.
Speaking at a strategic cabinet workshop to discuss the Botswana Economic Transformation Programme (BETP) on Wednesday, Boko said the country must urgently move away from its decades-long dependence on diamond revenues, which have underpinned the economy since independence but now pose structural risks.
“The limitations of this reliance are increasingly unbearable,” he said. “If left unaddressed, there is a real risk of the situation becoming not just an economic challenge but a social time bomb.”
Botswana’s diamond industry, dominated by the Debswana joint venture between the government and De Beers, accounts for nearly 70 percent of export revenue and a significant portion of gross domestic product (GDP).
However, global demand for natural diamonds has slumped in recent years, exacerbated by competition from lab-grown alternatives and economic headwinds in key markets.
The downturn has led to mass layoffs, with Debswana announcing in May that it would cut 1,000 jobs and the country’s unemployment rate climbing to 27.6 percent in early 2024.
The BETP outlines a shift toward agriculture, tourism, manufacturing and digital services, with a focus on inclusive growth and measurable outcomes.
Boko urged government leaders to become “proactive agents of change” and embrace a new governance model rooted in accountability and innovation.
Deputy President and Finance Minister Ndaba Gaolathe described the programme as a “data-driven roadmap” open to all citizens, including cooperatives, small to medium enterprises and informal traders.
“Every project is evaluated for return on investment, its employment potential and its alignment with our developmental goals,” Gaolathe said.
The initiative comes amid broader efforts to diversify Botswana’s economy, which has long been vulnerable to external shocks due to its dependence on a single commodity.
In April, the International Monetary Fund projected a 0.4 percent GDP contraction for 2025, citing falling diamond revenues and weak private sector growth.
JN/APA