This report does not constitute a rating action. Overview Institutional and economic profile Flexibility and performance profile Despite rising geopolitical risks tied to hostilities in Ukraine and forecast higher inflation, S&P Global Ratings expects the diamond sector will drive Botswana?s growth outlook over the medium term. U.S. sanctions on Russia?s diamond industry will likely have an impact on global diamond prices and spur demand for Botswana?s diamonds. The strong diamond sector recovery will not only underpin Botswana?s positive external sector performance but also accelerate fiscal consolidation. -- We expect the diamond sector to continue to perform strongly in 2022, supporting broader economic expansion. -- We expect the trade balance to turn positive from 2022 on stronger diamonds exports, leading to
