Online Reporter
GABORONE. – Bank of Botswana Governor Lesego Moseki on Wednesday called for urgent structural reforms to diversify the economy and rebuild fiscal buffers, as the country grapples with a protracted downturn in the diamond sector and mounting external pressures.
Speaking at the economic media briefing and providing information on the central bank’s 2025 annual report in Gaborone, Moseki painted a cautiously optimistic picture of Botswana’s economic position while warning that weaker global demand, geopolitical tensions and uncertainty in world trade have eroded the country’s policy space.
“Lower mineral revenues have put pressure on government finances and the foreign exchange reserves,” Moseki said , stressing that this erosion underlines the urgency of restoring fiscal sustainability through decisive policy reform.
Despite the headwinds, the governor highlighted Botswana’s solid economic fundamentals, including strong institutions, a stable financial system and prudent macroeconomic management, which have sustained the nation’s investment-grade credentials.
The current environment presents an opportunity for transformation rather than merely a constraint, he said, urging the government, state-owned enterprises and the private sector to embrace productivity improvements and implementation discipline to diversify the economy. – Xinhua
