S&P downgrades Botswana sovereign rating to BBB- amid prolonged weakness in global diamond demandS&P Global Ratings has downgraded Botswana’s sovereign credit rating from BBB to BBB-, assigning a negative outlook, citing the prolonged weakness in global diamond demand that continues to weigh on the country’s economy and public finances. The decision reflects Botswana’s heavy reliance on the diamond sector, which has historically accounted for around 70% of exports, one-third of government revenue, and about a quarter of GDP. Against this backdrop, S&P expects Botswana’s fiscal position to remain under strain in the coming years. However, the negative outlook indicates that the rating could be downgraded again if fiscal or external indicators deteriorate further, particularly if global diamond demand weakens again or economic growth slows more than expected. Conversely, a sustained recovery in diamond markets or meaningful progress in economic diversification could lead to a stabilization of the outlook.

Source: The North Africa Journal March 14, 2026 22:44 UTC