On October 20, 2025, Moody's downgraded Botswana's sovereign credit rating to 'Baa1' from 'A3'. The downgrade is attributed to the challenges the country faces in adapting to a structural downturn in the diamond industry, its primary export, as well as rising government debt. Moody's noted that the weakness in the diamond sector has led to a wider current account deficit and pushed foreign reserves to historical lows. The agency anticipates Botswana's economy could decline by an additional 6% in 2025 due to global demand shocks and the increasing popularity of lab-grown diamonds. This action follows a similar rating cut by S&P the previous month.