A strong government balance sheet, despite some deterioration in recent years. A well-managed minerals-based economy. A long record of political stability. A narrow economic base vulnerable to shocks. Rising medium-term economic and fiscal policy challenges. Large development needs. The ratings are supported by Botswana's strong government balance sheet, well-managed minerals-based economy, and long record of political stability. The ratings are constrained by the country's narrow economic base, which relies heavily on the diamond sector and is vulnerable to shocks, despite efforts to diversify. Fiscal and inflation challenges and still-significant development needs are further rating constraints. Botswana's stable politics, track record of prudent economic policies, and high transparency are strong by emerging market standards. However, the country's narrow economy, incomes that
