# Economic diversification and resource management in Southern

> Live situation record from CLSTR: https://clstr.news/situations/southern-african-economic-diversification-efforts
> Updated: 2026-09-06T13:19:43.000Z. Sources: 16. Developments: 6.

Botswana and Namibia are intensifying efforts to transform natural resource wealth into sustainable prosperity through economic diversification and regional cooperation. In Namibia, officials are emphasizing local value addition and domestic supply chains as the nation explores oil, gas, and green hydrogen. Namibia is also aligning mineral beneficiation with SADC industrialization goals to create regional value chains. To manage revenues, Namibia utilizes the Welwitschia Fund, which includes an Intergenerational Fund and a Stabilisation Fund.

In Botswana, the economy is navigating a transition following a 0.7% contraction in 2025. While the Bank of Botswana’s June 2026 survey indicates firms expect output to expand by 2.1% in 2026, near-term sentiment is tempered by high financing costs, weak government spending, and unfavorable exchange rates. The prolonged global diamond slump has strained revenues and foreign exchange reserves, prompting Vice President and Finance Minister Ndaba Gaolathe to note that diamond reliance creates vulnerabilities that monetary policy alone cannot resolve. To manage volatility, President Duma Boko has endorsed maintaining the Pula exchange-rate framework.

To address declining fiscal revenue, which fell from US$6.2 billion in 2021 to US$5.0 billion, the African Development Bank has advised Botswana to implement tax reforms, including strengthening the Botswana Unified Revenue Service and utilizing digital platforms for real-time VAT reporting.

Additionally, Botswana is addressing rising energy costs, including a 9% electricity tariff increase in August 2026. This has spurred interest in energy independence, with Absa Bank Botswana introducing green energy loans to support solar installations.

## Timeline

### 2026-09-06: Botswana addresses economic vulnerabilities amid diamond slump and rising energy costs

Botswana faces economic pressure from a diamond market downturn and rising energy costs, prompting shifts toward currency stability measures and increased solar energy adoption.

3 sources. https://clstr.news/cluster/botswana-addresses-economic-vulnerabilities-amid-diamond-slump-and-rising-energy-costs

### 2026-08-24: Botswana faces economic recovery and calls for tax reform

Botswana businesses expect a modest 2.1% economic recovery in 2026, while the African Development Bank urges tax reforms to offset declining diamond revenues and fiscal pressures.

3 sources. https://clstr.news/cluster/botswana-faces-economic-recovery-and-calls-for-tax-reform

### 2026-08-21: Copper mining expansion drives economic shifts in Botswana and Zambia

Botswana is expanding copper mining through the Khoemacau project to diversify beyond diamonds, while Zambia faces major logistical challenges in transporting increased copper and mineral output.

2 sources. https://clstr.news/cluster/copper-mining-expansion-drives-economic-shifts-in-botswana-and-zambia

### 2026-08-20: Botswana seeks economic diversification amid diamond market decline

Botswana is seeking to diversify its economy and mitigate a diamond market downturn by linking its mining industry with luxury tourism and fostering a more robust private sector.

3 sources. https://clstr.news/cluster/botswana-seeks-economic-diversification-amid-diamond-market-decline

### 2026-08-16: Namibia and Botswana prioritize economic diversification and resource management

Namibia and Botswana are focusing on economic diversification and resource wealth management, while Namibia aligns its mineral beneficiation goals with SADC regional industrialisation strategies.

5 sources. https://clstr.news/cluster/namibia-and-botswana-prioritize-economic-diversification-and-resource-management

### 2026-08-11: Botswana financial leaders advocate for economic diversification and regional market collaboration

Botswana financial leaders are pushing for economic diversification and regional stock exchange collaboration to help SMEs access capital and drive inclusive growth.

2 sources. https://clstr.news/cluster/botswana-financial-leaders-advocate-for-economic-diversification-and-regional-market-collaboration

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Cite as: Economic diversification and resource management in Southern. CLSTR, https://clstr.news/situations/southern-african-economic-diversification-efforts