The government current account improved significantly in 2025, resulting in a surplus of P7.9 billion, or 3 percent of GDP, according to the Bank of Botswana’s External Sector Statistics Research Bulletin for June 2026.
The Bank of Botswana publishes the quarterly External Sector Statistics Bulletin to enhance understanding of developments in the external sector by providing objective statistical information and context to support interpretation of the data.
According to the bulletin, the surplus largely reflected higher export volumes associated with improved consumer demand for larger, higher-quality and premium natural diamonds, as well as stock rebalancing initiatives by De Beers Group, where lower margins were accepted to sell specific assortments of rough diamonds.
The goods account recorded a reduced deficit of P8 billion during the same period, compared with a deficit of P30 billion in 2024.
The non-mining current account remained in deficit from 2020 to 2025, with the largest deficit of P68.3 billion, or 34.1 percent of GDP, recorded in 2022.
“Although the deficit narrowed in the following years, it remained persistent and elevated. In 2024 and 2025, the non-mining current account deficit stood at P48.2 billion (20.5 percent of GDP) and P48.3 billion (19.7 percent of GDP), respectively,” the Bank of Botswana said.
The report said these sustained deficits reflect underlying structural pressures within the non-mining sector, including dependence on imports and continued net outflows in services and primary income.
Receipts from travel services amounted to P7.8 billion, down from P8 billion, indicating a moderation in external travel receipts. Imports of travel services declined slightly from P1.8 billion in 2024 to P1.7 billion in 2025, resulting in travel services surpluses of P6.3 billion and P6.2 billion, respectively.
TRANSPORT DEFICITS
The transportation services sector continued to register deficits during the review period. Exports of transportation services recorded P685 million in 2024 and P1.2 billion in 2025, compared with imports of P4.7 billion and P4.5 billion during the same periods.
“This resulted in transportation deficits of P7.1 billion in 2024 and P6.5 billion in 2025,” the report said.
Freight and insurance, mostly associated with imports of goods, are the main components of transportation services imports.
Exports of other services increased by 30 percent, from P4 billion in 2024 to P5.2 billion in 2025, while imports of the same category increased by 5.4 percent, from P11.1 billion to P11.7 billion, the report said.
As a result, the deficit in the other services category narrowed to P6.5 billion in 2025 from P7.1 billion in 2024. The deficit was mainly driven by imports of telecommunication, professional and technical services.
The primary income account also remained in deficit throughout the period from 2020 to 2025, consistent with Botswana’s position as a net income payer. The deficit, which averaged about P5.8 billion, was primarily driven by investment income, particularly dividends and retained earnings paid to foreign investors.
“The mining sector, which attracts the highest value of foreign direct investment, accounted for a significant share of these payments,” the report said.
