Botswana’s economy experienced a significant contraction in the third quarter of 2024, as revealed by the latest GDP report from Statistics Botswana. The nominal GDP fell by 5.2%, dropping to P65.16 billion from P68.77 billion in the previous quarter. In real terms, the economy shrank by 4.3% compared to the same period in 2023, which had recorded a modest growth of 1.1%. This downturn reflects the mounting challenges faced by key sectors of the economy, particularly mining, diamond trading, and manufacturing.
The mining and quarrying sector emerged as the biggest contributor to the decline, registering a 27.2% contraction in real value. This was compounded by a 31.1% drop in diamond production, a critical pillar of Botswana’s economy. The diamond trading sub-sector fared even worse, with a staggering 75.6% decrease, further illustrating the vulnerabilities of the resource-driven economy. Agriculture, forestry, and fishing also posted declines, with a 2.1% contraction driven by decreases in livestock farming and support services, which fell by 3.6% and 2.4%, respectively. Manufacturing followed suit, shrinking by 1.7%, largely due to a sharp drop in diamond processing and furniture production, which declined by 31.1% and 12.3%.
Despite the overall economic slump, some sectors showed resilience and posted positive growth. Water and electricity recorded a remarkable 28.6% increase in real value added, buoyed by a rise in local electricity production by 11.1% and a significant reduction in electricity imports, which dropped by 38.3%. Wholesale and retail trade grew by 7.5%, reflecting strong consumer demand for fast-moving goods, while the accommodation and food services sector expanded by 5.4%, attributed to a rebound in tourism-related activities. The information and communication technology (ICT) sector also performed well, growing by 5.7%, with telecommunications leading the way with a 7.4% increase.
