Botswana depends too much on money from diamonds. This creates “bottlenecks” that stop businesses from growing and the country from trying new things, says the IMF (International Monetary Fund).

In a new report called Addressing Growth Bottlenecks in Botswana, the IMF says the country is at an important turning point.

The problems include:

• Hard to get loans (25% of companies say this).
• Issues with land ownership rules.
• Bad governance.
• Poor infrastructure, like unreliable electricity.
• Strict job rules that make hiring hard.

The diamond business is changing fast. Lab-grown diamonds, sanctions on Russia, and less demand from China (especially a normal business cycle drop) are hurting it.

The IMF says Botswana must fix these big problems to grow and not rely only on diamonds.

In 2024, the economy shrank by 3% because diamond production stopped and demand fell. This hurt government savings, raised youth joblessness, and showed too much focus on one industry.Last month, the IMF warned Botswana not to buy more shares in De Beers . It could increase debt and tie the country more to a risky business.