S&P revises Botswana's outlook to 'stable' on strong diamond sector recovery

20th September 2021 By: Reuters

Ratings agency S&P on Friday revised its outlook on Botswana to 'stable' from 'negative', citing its expectation that economic rebound, supported by a strong diamond sector recovery, will lead to a material improvement of fiscal and external performance over the next two years.

"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," S&P said.

The agency affirmed Botswana's ratings at 'BBB+/A-2'.