HomeBusinessGDP rebounds as diamond output lifts economy while FMD weighs on agriculture

GDP rebounds as diamond output lifts economy while FMD weighs on agriculture

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Botswana’s real gross domestic product (GDP) grew 3.5% in the first quarter of 2026, reversing a 0.3% contraction recorded in the same period a year earlier, supported by higher diamond production and strong growth in utility-related industries.

According to Statistics Botswana, the expansion was driven largely by increases in real value added in the Water and Electricity industry, which grew 87.4%, and the Diamond Traders industry, which expanded 60.5%.

Economic growth was also supported by the Education industry, which grew 4.7%, while the Mining and Quarrying, Manufacturing, and Wholesale and Retail Trade industries each recorded growth of 3.4%.

Most industries posted positive growth during the quarter, with Agriculture, Forestry and Fishing and Construction the only sectors to contract.

The Mining and Quarrying industry grew 3.4%, supported by increases in real value added from soda ash, diamonds, coal and copper of 72.8%, 3.1%, 2.7% and 0.5%, respectively.

Diamond production rose 4.8% year-on-year in the first quarter, reflecting higher processing volumes at the Orapa and Jwaneng mines and improved recovered grades.

Statistics Botswana said soda ash output benefited from fully operational plants at Botash Mine.

Manufacturing grew 3.4%, recovering from a 0.6% contraction a year earlier. The increase was driven mainly by growth in diamond cutting and polishing, which rose 39.3%, as well as gains in bakery products manufacturing and wood and paper production of 3.2% and 2.4%, respectively.

Copper production increased 15.1% to 13,133 tonnes in the first quarter of 2026, from 11,415 tonnes a year earlier. On a quarterly basis, output edged up 0.3% from 13,088 tonnes in the fourth quarter of 2025.

The increase was attributed to higher-than-expected ore grades and operational stabilisation following disruptions experienced during the first and third quarters of 2025.

Soda ash production climbed 72.8% year-on-year to 60,730 tonnes from 35,147 tonnes, supported by improved operational efficiencies and stable plant performance. However, output fell 19.8% from the 75,754 tonnes recorded in the fourth quarter of 2025.

Outside mining, non-mining GDP expanded 2.7% in the first quarter, compared with growth of 2.3% in the corresponding period of 2025.

Manufacturing grew 3.4%, recovering from a 0.6% contraction a year earlier. The increase was driven mainly by growth in diamond cutting and polishing, which rose 39.3%, as well as gains in bakery products manufacturing and wood and paper production of 3.2% and 2.4%, respectively.

The Agriculture, Forestry and Fishing industry contracted 3.4% during the quarter, following a 3.0% decline in the same period of 2025.

The decline was driven primarily by contractions in livestock farming and support services to agriculture, which fell 9.0% and 2.5%, respectively.

Statistics Botswana attributed the decline in livestock farming to movement restrictions imposed following outbreaks of Foot and Mouth Disease (FMD), as well as reduced beef exports to European markets during the quarter.

Cattle sales to the Botswana Meat Commission fell 51.2% during the period, a decline linked to the FMD outbreak.

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