Botswana GDP Growth Hits Near 5-Year High

Botswana’s economy grew by 8.7% yoy in Q2 2026, its fastest pace since Q3 2021, accelerating from 3.5% in the prior period. The expansion was largely driven by an 81.7% surge in mining & quarrying, reflecting strong growth in the diamond mining sub-industry. Diamond production jumped 94.7% on higher processing volumes at the Orapa and Jwaneng mines and improved recovered grades. Coal output rose 27.8% and copper 4.0%, while soda ash and salt production fell 68.0% following a planned maintenance shutdown at the Botash plant. Other sectors also expanded, led by professional, scientific & technical activities (3.8%); accommodation & food services (3.4%); education (3.3%) and wholesale & retail trade (3.1%). Conversely, output delined sharply for agriculture, forestry & fishing (-23%) and diamond traders (-27.9%). On a quarterly basis, the GDP rose by 1.3% in Q2, following a 9.2% expansion in the prior quarter.

The economy of Botswana grew by 3.5% year-on-year in Q1 2026, rebounding from a 5.4% contraction in the previous period. The turnaround was largely driven by a surge in utilities and diamond traders industries, up 87.4% and 60.5%, respectively. Growth was also supported by the education sector, which rose 4.7%, while mining & quarrying, manufacturing, and wholesale & retail trade each expanded by 3.4%. Conversely, output declined in agriculture, forestry & fishing (-3.4%) and construction (-1.3%). On a quarterly basis, the GDP jumped by 9.2% in Q1, after a 11.4% decline in the prior quarter.

The economy of Botswana contracted by 5.4% year-on-year in Q4 2025, following a 8.2% advance in the previous period, largely due to a steep decline of 47% in the mining sector. Diamond production plunged 54.6%, while coal and soda ash mining also fell 13.3% and 8.2%, respectively, while growth in diamond trading slowed markedly (2.1% vs 88.1%). Botswana has been hit hard by a prolonged slump in the global diamond market, driven by economic uncertainty and the rising popularity of synthetic alternatives. Other sectors that contributed negatively to the GDP included construction (-2.3% vs -1.1%) and water and electricity (-1.3% vs -30.1%). On the other hand, growth picked up for some activities such as manufacturing (6.5% vs 2.5%); agriculture, forestry & fishing (4.2% vs 3.1%); administrative & support (4.4% vs 3.2%) and information & communication (3.7% vs 1.3%). On a quarterly basis, the GDP slipped by 11.4%, the most since Q2 2020, following a 10.9% rise in the previous quarter.