The Executive Secretary of the United Nations Economic Commission for Africa (ECA), Claver Gatete, has warned that Botswanaโs economic growth is at a critical turning point, urging the government to accelerate diversification efforts beyond the diamond sector.
Speaking at the ECA-Government of Botswana meeting, Gatete highlighted a worrying slowdown in GDP growth, which has declined from an average of 7 percent in previous decades to 2.7 percent in 2023. Projections suggest a further drop to just 1 percent in 2024, raising concerns about the countryโs economic resilience.
โTo be clear: the heavy reliance on the diamond sector underscores the need for urgent diversification,โ Gatete said. โWhen growth is largely dependent on international markets, any shocks will have a significant impact.โ
His remarks come amid growing calls for policy reforms to boost private sector investment and create alternative sources of revenue. While Botswana has long relied on diamond revenues to fuel its economy, volatility in global markets and declining output from the mining sector have heightened concerns over long-term sustainability. The government has been pushing for economic diversification through sectors such as tourism, manufacturing, and financial services, but progress has been slow.
Gatete said Botswanaโs strengthsโstrong governance, an educated workforce, and emerging service sectorsโoffer a solid foundation for new growth paths. However, he stressed that if the country is to achieve its Vision 2036 goal of becoming a high-income economy and eradicating poverty, it must take urgent steps to rethink its economic strategy.
He pointed to untapped opportunities in agriculture, particularly in the beef and leather value chains, as well as in digital innovation and renewable energy. Botswana, he said, must harness these sectors to reduce its dependence on diamonds and create a more resilient economy.
Beyond economic sectors, Gatete emphasised the importance of placing Botswanaโs youth at the center of its development strategy. He said young peopleโs energy and innovation are crucial for unlocking new industries, promoting entrepreneurship, and driving technological transformation. Investing in skills development, digital literacy, and youth-led enterprises, he argued, would help create the jobs and industries of the future.
Governance reform was another key area of concern. Gatete said enhancing efficiency and accountability in the public sector, improving regulatory frameworks, and strengthening institutions would boost investor confidence and accelerate economic progress. He called for a reassessment of Botswanaโs development model to ensure it delivers greater impact, arguing that a business-friendly environment is necessary for attracting private sector investment.
He also urged the government to prioritise investments in high-return sectors that generate employment, particularly for young people, and to strengthen policy coherence to ensure inclusive and sustainable growth.
The ECA and the broader UN system, he said, remain committed to supporting Botswana through its economic transition. He assured the government that the UN stands ready to help develop innovative solutions, mobilise strategic partnerships, and ensure policies translate into real, measurable outcomes for the people of Botswana.
