A strong public sector balance sheet A well-managed minerals-based economy A long record of political and macroeconomic stability A still narrow economic base, with strong economic and fiscal dependence on the mining sector Large development needs and the HIV/AIDS pandemic, which pose significant policy and financial challenges The ratings on the Republic of Botswana reflect its strong public sector fiscal and external balance sheets, its well-managed minerals-based economy, and a long record of political and macroeconomic stability. These factors are offset by heavy reliance on mining sector performance despite diversification efforts, and still significant development needs. The impact of the global downturn on Botswana's diamond exports and other commodities is in turn likely to have a significant effect on economic
