As diamond sales continue to decline sharply, Botswana’s exports value recorded a 44 per cent decrease in November 2024 from the revised export value of P4, 085.2 million in October 2024 as the country continues to grapple with consistent trade deficits, data drawn by Statistics Botswana (SB) showed. This data is contained in the latest International Merchandise Trade Statistics of Statistics Botswana report that measures movement of goods across borders, accounts for transactions between trading partners, and measures the economic competitiveness of the country.
During the period under review, copper and diamonds were the main contributors to total exports at 34.1 percent and 27.0 percent respectively. Statistics Botswana added that Machinery and Electrical Equipment contributed 10.5 percent to the export basket value.
Botswana exported merchandise valued at P2, 289.2 million to external markets in November 2024.
Bleak Future
Economic observers say a sharp decline in the export value signal that the economy is not performing at optimal level given that the diamond sales continue to weaken as demand is very low.
Independent economist Lame Bothata said Botswana should strive to diversify her export basket in real fact. He said heavy dependence on minerals for economic stability would throw Botswana in dire economic distress going forward.
“A 44 percent decrease in export value is worrisome. This means that no significant money had been derived particularly by the government from the diamonds which is major export commodity,” he explained.
Bothata warned that tough times lie are ahead, saying Government needs to be agile and come up with sound plans to achieve real diversification of economy with sectors like agriculture being key.
Bank of Botswana (BoB) executives and captains of the industry recently emphasized the importance of economic diversification during the launch of the Monetary Policy Statement (MPs) in Gaborone.
Experts also pointed out that sectors such as agriculture and manufacturing are important for diversifying economy, buttressing that for Botswana to achieve her dream to attain a high-income status by 2036 it should walk the talk in diversification of the economy.
Trade Deficit
Meanwhile, Statistics Botswana said Botswana has consistently recorded trade deficits for over a year. In November 2024, the country recorded a trade deficit amounting to P6, 821.2 million with total imports valued at P9, 110.4 million, recording an increase of 7.6 percent (P640.6 million) from the revised October 2024 figure of P8, 469.8 million.