Development of new projects in the African nation of Botswana has slowed due to the low prices of diamonds as well as the sagging foreign investment in the country, according to an independent research company.
Rough&Polished is reporting that Botswana’s diamond exports fell by 61 percent, resulting in a loss of $260.4 million in revenue this past year, according to the country’s central bank. During the first seven months of this year, diamond exports fell by 31 percent, resulting in a $2.28 billion loss.
"The construction market contracted sharply during the economic recession," said Frost & Sullivan’s environmental and building technologies industry analyst, Sarah O'Carroll. "Although the country's growth rate is above 7 percent, the effects of the recession still linger and investors are reluctant to invest in new infrastructure projects.”
Diamonds account for over 30 percent of Botswana’s GDP and over 50 percent of the government’s revenue.