Botswana’s trade deficit widened to P3.2 billion in May 2026 as falling export earnings, driven largely by weaker diamond and copper sales, continued to expose the economy’s heavy dependence on the mining sector.
The latest International Merchandise Trade Statistics (IMTS) monthly digest released by Statistics Botswana shows that the May deficit was the country’s second-largest so far this year, behind the P4.4 billion deficit recorded in February.
The report measures the movement of goods into and out of Botswana’s economy, providing a monthly snapshot of the country’s merchandise imports and exports.
Commenting on the figures, economist Mosimane Rammika said the slowdown in diamond sales continues to weigh heavily on the economy, dampening activity across multiple sectors.
He said Botswana’s narrow export base and slow progress in diversifying the economy have left it vulnerable to fluctuations in the global diamond market.
“The economy remains subdued, placing pressure on overall economic performance,” Rammika said.
“With limited alternative revenue streams resulting from an unsuccessful diversification drive, Botswana is likely to continue experiencing trade deficits. Government finances remain heavily dependent on diamond revenues.”
He noted that while tourism has become an increasingly important contributor to economic growth and government revenue, it has not yet developed sufficiently to offset the country’s dependence on mining.
“There is an urgent need for robust economic diversification,” he said.
Exports decline sharply
Statistics Botswana reported that export earnings declined by 22.4 percent, or P1.39 billion, falling from a revised P6.21 billion in April to P4.82 billion in May.
The decline was largely driven by lower exports of diamonds and copper.
Diamond exports fell by 23.1 percent (P856 million), while copper exports declined by 27.9 percent (P477.9 million) during the month under review.
Asia remained Botswana’s largest export destination, accounting for 58.5 percent (P2.82 billion) of total exports.
Diamonds dominated exports to the region, contributing 75.6 percent (P2.13 billion) of shipments, while copper accounted for 24 percent (P676.8 million).
Within Asia, the United Arab Emirates remained Botswana’s largest export market, receiving 27.8 percent (P1.34 billion) of total exports. China followed with 14 percent (P676.8 million), while India accounted for 12.9 percent (P623.5 million).
Imports ease
Imports also declined during the month, although not enough to offset the sharp fall in exports.
Total imports were valued at P8.07 billion in May, down 4.1 percent (P343 million) from the revised P8.41 billion recorded in April.
According to Statistics Botswana, the decline was mainly due to lower imports of vehicles and transport equipment, which fell by 67.2 percent (P915.2 million), as well as machinery and electrical equipment, which declined by 15.8 percent (P227.8 million).
Despite the moderation in imports, the much steeper decline in export earnings widened Botswana’s trade deficit, underscoring the continued vulnerability of the economy to swings in diamond demand and reinforcing calls for faster economic diversification.
