Botswana in Africa’s worst economic decline – AfDB

Botswana’s Economic Downturn: A Regional Challenge

Botswana’s economy faces a significant decline, as highlighted in the latest African Development Bank (AfDB) “Africa’s Macroeconomic Performance and Outlook – November 2025 Update.” The report identifies Botswana as experiencing Africa’s sharpest economic deterioration.

Southern Africa’s Growth Struggles

While the broader African continent shows improved growth prospects, driven by stronger private consumption, easing inflation, and robust external demand, Southern Africa lags behind. The AfDB’s update indicates that Botswana’s substantial economic downgrade is a primary factor in the region’s weak performance.

Regional Outlook and Constraints

The AfDB maintains Southern Africa’s 2025 growth outlook at 2.2 percent. However, the 2026 forecast has seen a downward revision, moving from 2.5 percent to 2.4 percent. The bank attributes these challenges to several key factors.

A lack of decisive structural reforms, particularly within South Africa’s energy and transport sectors, is a significant constraint. Additionally, the region’s vulnerability to volatile commodity prices contributes to its economic instability.