In Botswana, the government is preparing to raise taxes. This decision is motivated by the decline in revenue from the diamond sector, the main driver of the country's economy.
According to Bloomberg, the drop in diamond sales has led to a financial deficit, forcing authorities to revise their fiscal strategy to preserve economic stability. Botswana, one of the world's largest diamond producers, is heavily dependent on this sector.
This dependence makes the country vulnerable to fluctuations in demand and prices on international markets. To address this situation, the government is considering several fiscal measures, although the details regarding the nature and extent of the tax increases have not yet been specified. These adjustments are part of a broader strategy aimed at strengthening public finances, supporting growth, and accelerating the diversification of the economy.
A crucial economic turning point for Botswana, which is now facing the limits of its diamond-based model.
