21 December 2014
In Africa, Botswana is often seen as a diamond in the rough.
It's perceived as the least corrupt country, with the longest surviving multiparty democracy on the continent, and boasts one of the world's fastest-growing economies.
But, following the global economic downturn in 2008, and increasingly volatile commodity prices, the country's reliance on diamonds has come into question.
For the first time Botswana finds itself cash strapped, in negative growth, and having to go to international donors.
The country is looking to diversify its economy by strengthening existing sectors like tourism and cattle farming, and investing in burgeoning industries spawning from technology and entrepreneurship.
Yet diamonds by far outshine any other industry in Botswana, accounting for one-third of GDP, 70% of export earnings, and about one-third of the government's revenues.
However, production has peaked, and experts believe reserves of the precious stone may run out by 2030.
Unemployment is also on the rise, with official jobless rates nearing 20%, and an estimated 45% of Botswana's population living below the poverty line.
Economic growth was also negative in 2009, and the industrial sector shrank by 30%.
Signs of labour unrest have also began showing following public sector strikes in recent years.
As Linah Mohohlo, who has been governor of the Bank of Botswana for 15 years, put it in a recent interview read more ...........
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