A strong public sector balance sheet A well-managed minerals-based economy A long record of political and macroeconomic stability A narrow economic base, with strong economic and fiscal dependence on the mining sector Rising economic policy challenges 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 global downturn is harshly affecting Botswana, as the country's key commodity markets have contracted severely over the past six months
