Moody’s Ratings has downgraded Botswana’s long-term issuer ratings to Baa2 from Baa1, citing a persistent deterioration in public finances and depleted financial buffers.
According to the rating agency, prolonged fiscal deficits and a severe slump in diamond revenues continue to drive a steady increase in government debt.
Public debt is projected to climb to 41% of GDP by fiscal 2027, up from 31% in fiscal 2025, weakening overall macroeconomic resilience.
Despite the downward one-notch adjustment, Moody’s revised the country’s outlook from negative to stable, signaling that current credit risks remain balanced.
This stabilization reflects anticipated benefits from ongoing government tax reforms, expenditure controls, and potential medium-term recoveries in global mining output.
