Updated: Oct 26, 2020
Botswana’s economy is forecast to grow 7.7% in 2021 from a 8.9% contraction predicted this year, the country's finance minister has said.
Botswana's economy shrank by 24% in the second quarter of 2020 as a result of global lockdowns due to the coronavirus crisis which slowed domestic economic activity and diamond sales. Buyers of the precious gem were locked out of the capital Gaborone, where they come to purchase diamonds from global firm De Beers.
Mining is the southern African country's biggest revenue earner and accounts for just under 20% of total gross domestic product.
During a World Bank online meeting, finance minister Thapelo Matsheka said:"Recent months have seen a robust recovery in the international diamond industry, which will hopefully underpin strong growth in Botswana next year and help to boost exports and fiscal revenues."
Matsheka said that based on recent developments GDP growth of 7.7% was predicted for 2021.
De Beers, which gets about 70% of its supply from Botswana, said last week it had seen a 57% increase in sales to $467 million at its September "Sight" - when selected buyers come to view and purchase goods already priced by the firm.