Photos: Wikimedia Commons
The African Development Bank approved a $304 million loan to Botswana to support the government’s spending as the country’s revenue generation from diamonds is challenged by the growing popularity of lab-grown products.
Botswana is one of Africa’s wealthiest countries on a per capita basis, but the economy inherited by President Duma Boko, who took office in November, is one strained by revenue shortfalls. Diamonds account for 80% of Botswana’s exports but weak global demand overall, alongside the growth of lab-grown diamonds, has posed a threat, making this “a critical time for Botswana,” the AfDB’s Botswana country manager Moono Mupotola said.
Boko this year moved to shore up Botswana’s diamond earnings by signing a long-term sales agreement with miner De Beers.
