We expect Botswana's diamond export-dependent economy to grow by 6% in real terms in 2021 as the mining sector recovers from 2020's large pandemic-induced contraction. Absent a setback in diamond exports, we expect the fiscal and current account deficits to fall gradually over the next few years, and foreign exchange currency reserves to stabilize at current levels, after a substantial drop in 2020. A stable and predictable institutional framework continues to support the ratings, and the monetary policy framework supports macroeconomic stability We affirmed our 'BBB+/A-2' ratings on Botswana and maintained the negative outlook. On March 19, 2021, S&P Global Ratings affirmed its 'BBB+/A-2' long- and short-term foreign and local currency sovereign credit ratings on Botswana. The outlook is negative.
