Government fiscal deficits are narrowing as diamond revenues have temporarily increased owing to higher diamond sales from selling stock. We assume Botswana's economic growth performance will remain stable, at least at 3% of GDP over the medium term, supported by a stable diamond sector, strong growth prospects in service sectors, construction, and an improving agriculture sector. We are affirming our ratings on Botswana at 'A-/A-2'. The continuing negative outlook reflects our view that over the next 12 months economic growth performance and fiscal outcomes could be weaker than we currently expect if the diamond sector were to underperform. On April 28, 2017, S&P Global Ratings Services affirmed its 'A-/A-2' long- and short-term foreign and local currency sovereign credit ratings on
