Botswana’s Diversification Efforts Hit Cul De Sac – IMF

Botswana’s long-standing ambition to diversify its economy has stalled with a new International Monetary Fund (IMF) report warning that the country’s export base has narrowed further and its industrial capabilities remain weak heightening vulnerability to shocks. In a report titled “Addressing Growth Bottlenecks in Botswana,” the IMF says Botswana’s Economic Complexity Index (ECI)-compiled by the Harvard Growth Lab-has deteriorated markedly over the past two decades.

The country has slipped from around 92nd place globally in 2000 to 102nd in 2023, with a current index value of about –0.67. The decline signals a weakening position in product space diversification compared with other economies.