As the diamond industry faces an uncertain outlook, Botswana is working to expand sectors like agriculture, copper mining, and tourism in an effort to diversify its economy, the country's vice president said earlier this week.

"Botswana's reliance on diamond revenues has been both a strength and a vulnerability. To secure Botswana's future, we must diversify the economy by expanding key sectors such as tourism, agriculture, manufacturing, information technology, and healthcare," stated Ndaba Gaolathe, vice president and minister of finance, while presenting the first budget of the 13th Parliament in the capital, Gaborone.

Gaolathe said that diversifying the mining sector and focusing on mineral beneficiation are key components of their strategy.

He noted that companies like Khoemacau Copper Mine, which was purchased by a Chinese metal miner for $1.88 billion, will be vital in tackling unemployment. The company is undertaking an expansion project that will boost copper production from 60,000 tons to at least 130,000 tons annually, while also increasing its workforce from 2,000 to 4,000 employees.

The minister of finance also highlighted additional efforts to diversify the economy, including the development of seed production, the establishment of fertiliser industries to reduce dependence on imports, and modernising the power sector by shifting towards a solar-dominated energy industry.

Gaolathe also said this week that Botswana's economy is projected to grow by 3.3% this year after a contraction in 2024, driven by a recovery in the global diamond market, Reuters reports.

"This growth outlook is premised on recovery of the diamond industry, which is expected in the latter part of 2025, and continued positive sentiment in the non-diamond mining sectors," Gaolathe said during the budget speech.

Gaolathe reported that Botswana's economy is estimated to have contracted by 3.1% last year, a larger decline than the 1.7% contraction the government had forecast in December.

Furthermore, the budget deficit for the 2025/26 financial year, running from April to March, is expected to decrease to 7.56% of GDP, down from the estimated 9% deficit for the current financial year.