Botswana Faces Economic Crisis as Diamond Sales Drop

For decades, Botswana was known as one of the most stable and successful economies in Africa. After gaining independence from Britain in 1966, the discovery of diamonds transformed the nation from one of the poorest in the world into a leader in education and healthcare. However, this period of growth is now facing a major challenge. A significant drop in the price of natural diamonds has caused the national economy to shrink, leading to a difficult financial situation for many citizens.

According to The Guardian Business, the price of natural diamonds has fallen by 60% over the last four years. This decline is largely because consumers are choosing cheaper lab-grown stones instead. Because diamonds represent 80% of Botswana’s total exports, this market crash has hit the country’s budget very hard. The International Monetary Fund (IMF) estimated that the economy shrank by 3% in 2024 and by another 1% last year. This economic downturn has also led to higher unemployment rates across the country.

The impact of this crisis is most visible in the public healthcare system. In Botswana, healthcare is supposed to be free for everyone. However, shortages of medicine and medical supplies have become so severe that President Duma Boko declared a public health emergency last year. This declaration came shortly after he took office, following his victory over the party that had governed the country since 1966.

For many people, the reality of this emergency is painful. Boitumelo Mosege, a 53-year-old former farmer, shared her story with The Guardian Business. After being diagnosed with a thyroid condition, she found that she could no longer get the medicine she needed from the government. She now has to pay for her own treatment, which costs 2,000 pula (the local currency) every month. With limited family income, she has sometimes gone months without being able to afford her life-saving medicine. Similarly, Kelly Jansen, who cares for her elderly father, spends a large portion of his pension on basic medical supplies. She described her struggle to find support, stating that she simply wants her life back.

Experts suggest that the problem is not just about a lack of money, but also about how the government manages its resources. The Central Medical Stores (CMS), which is the state agency responsible for buying medicine, has been accused of being inefficient and corrupt. Thabo Lucas Seleke, a health policy lecturer at the University of Botswana, told The Guardian Business that the agency’s problems have been known for many years. He noted that a government report from 2010 already suggested that the agency needed major changes. Instead of improving, he believes the situation has only gotten worse.

While the government works to address these issues, the future remains uncertain. The health ministry has not provided a public comment on the situation. Meanwhile, other factors are adding to the pressure. The country is also facing rising fuel prices, which is particularly difficult because Botswana must import all of its oil. Marisa Lourenço, an expert on the region, noted that the global situation, including conflicts that affect oil prices, will continue to make life harder for the people of Botswana.

Despite these challenges, Botswana still holds a strong history of progress. The country has been a world leader in fighting HIV/Aids and has provided free education to its citizens for many years. Its GDP per capita remains among the highest in Africa, according to the World Bank. However, current healthcare outcomes are not keeping up with this economic history. The World Health Organization has pointed out that maternal death rates in Botswana are higher than in other countries with similar levels of wealth.

As the government looks for ways to recover, the main question is how to protect the most vulnerable citizens. The diamond crash has exposed deep weaknesses in the national budget and public services. For people like Mosege and Jansen, the need for reform is not just a political issue—it is a matter of daily survival. Whether the country can return to its path of stability will depend on how effectively it can manage its remaining resources and fix its broken systems during this difficult time.