We expect Botswana's diamond export-dependent economy will rebound by 8.5% in real terms in 2021 because the diamond industry is rebounding from 2020's large pandemic-induced contraction. As a result, we expect the fiscal and current account deficits will start narrowing in 2021 and 2022 before yielding a small surplus from 2023, resulting in the gradual strengthening of foreign exchange reserves. A stable and predictable institutional framework continues to support the ratings, and the monetary policy framework supports macroeconomic stability. We revised the outlook on Botswana to stable from negative and affirmed our 'BBB+/A-2' ratings. On Sept. 17, 2021, S&P Global Ratings revised its outlook on Botswana to stable from negative and affirmed its 'BBB+/A-2' long- and short-term foreign and local
