Botswana : $304 million AfDB loan to bolster economy amid falling diamond prices

On May 28, 2025, the African Development Bank (AfDB) approved a $304 million loan to Botswana, part of a broader $1 billion support package announced in April. The loan funds the Governance and Economic Resilience Support Programme (GERSP) to address fiscal challenges and promote private sector growth. Diamond price drops, the backbone of Botswana’s economy (80% exports, 30% GDP), led to a 3.1% GDP contraction, a 9% budget deficit, and a downgraded credit rating.

Moono Mupotola (AfDB) highlights the loan’s critical role in supporting reforms and economic diversification.