In a bid to reshape Botswana’s economic future, newly elected President Duma Boko has unveiled an ambitious strategy to diversify the country’s diamond-dependent economy. His government plans to develop new industries, reform state-owned enterprises, attract private investment, and increase concessional borrowing to fund development projects.
Despite diamonds contributing approximately 80% of Botswana’s economy through Debswana—a partnership between the government and De Beers—the sector has not generated sufficient employment. This has raised concerns about long-term stability in the country of 2.5 million people, which, despite being the wealthiest nation in mainland Africa on a per capita basis, struggles with high unemployment.
A New Political Era
Boko, a Harvard-educated human rights lawyer, led a historic electoral victory in October, unseating the ruling Botswana Democratic Party (BDP), which had governed for nearly six decades. His campaign promise to reform the economy resonated with voters frustrated by declining living standards and an unemployment rate exceeding 25%.
“Our past economic growth has unfortunately been jobless,” Boko, 55, said at an energy conference in Dar es Salaam, Tanzania. “The majority of the unemployed are young people, which presents a significant risk to our stability.”
The election took place amid a prolonged downturn in the diamond industry, which slowed economic growth and widened budget deficits. Boko’s Umbrella for Democratic Change (UDC) coalition secured 36 of 61 parliamentary seats, while the BDP managed only four—ending former President Mokgweetsi Masisi’s hopes for a second term.
Economic Diversification and Energy Reforms
Although Botswana’s per capita income of $7,820 surpasses that of oil-rich Gabon and industrial powerhouse South Africa, economic diversification has been sluggish. Boko has already moved to stabilize the economy, securing a long-term agreement with De Beers to ensure continued diamond revenues.
However, his administration is also pushing beyond mining. Plans include expanding the digital economy, strengthening wildlife tourism, promoting sustainable agriculture, and increasing local mineral processing instead of exporting raw materials. A key priority is transitioning Botswana’s energy sector away from coal reliance.
“We are prioritizing solar energy development,” Boko said, outlining a target for renewable sources to supply at least 50% of Botswana’s electricity by 2030. While a coal-fired power plant from Jindal Steel & Power Ltd. was approved in 2022, Boko suggested that future coal projects are unlikely.
Strategic Borrowing and Power Sector Overhaul
Botswana’s low debt-to-GDP ratio gives it room to borrow strategically for development initiatives. Boko revealed that discussions with the World Bank and the African Development Bank highlighted how Botswana has underutilized available financing opportunities.
In addition to securing funding, Boko is restructuring the struggling Botswana Power Corporation (BPC). His administration plans to unbundle the state utility into separate entities for generation, transmission, and distribution, opening the door for private sector investment.
“There has been a change in leadership, and with that comes a new direction,” Boko said. “We are confident that Botswana will experience sustained economic growth and greater prosperity for its people.”
With sweeping reforms underway, Botswana stands at a crossroads, moving away from diamond dependency toward a diversified and modernized economy. The coming years will test Boko’s ability to deliver on his promises and reshape the nation’s economic landscape.