A very strong public sector balance sheet and prudent fiscal policies A well-managed and growing minerals-based economy A long record of political and macroeconomic stability, despite recent inflationary tensions A narrow economic base, with strong economic and fiscal dependence on the mining sector Large development needs and the HIV/AIDS pandemic that pose significant policy and financial challenges The ratings on the Republic of Botswana reflect the sovereign's strong financial position, a well-managed and growing minerals-based economy, and political stability, offset by the narrow economic base, high inflation, and the challenges to growth posed by the country's large development needs. The public sector net external asset position, at 119% of current account receipts (CARs) in 2006, is among the highest recorded
