Government Repositions Agriculture as Growth Engine Amid Structural Challenges

Government Repositions Agriculture as Growth Engine Amid Structural Challenges. Botswana’s agriculture sector has been formally repositioned from its long-standing role as a social buffer to a central pillar for economic growth and diversification, as government seeks to reduce reliance on diamonds and expand overall economic output.

President Duma Boko has set a target to increase agriculture’s contribution to gross domestic product from about two percent to six percent over the medium term. The objective signals a policy shift that reframes agriculture as a commercial and productivity-driven sector with the potential to support employment, exports and stronger industrial linkages.

The renewed focus has been accompanied by policy reforms, budgetary support and institutional interventions across agricultural value chains. Attention has also been directed toward emerging segments such as industrial hemp and export-oriented citrus production, reflecting efforts to broaden the sector’s scope and market reach.

Despite the policy momentum, developments in 2025 have highlighted persistent structural weaknesses within the sector. These include payment delays, water availability constraints, climate volatility, financing gaps and operational inefficiencies within agricultural institutions. These challenges continue to shape the operating environment for farmers and agribusinesses.

According to Keletso Setimela, Head of Business Banking at Absa Bank Botswana, agribusiness sentiment during 2025 initially remained neutral before gradually shifting toward cautious optimism. He notes that improved rainfall, policy support and renewed attention to agricultural financing contributed to more stable conditions within the sector.

Food inflation has been recorded at around 5 to 6 percent, a development linked to improved production conditions and increased focus on domestic agriculture. At the same time, risks associated with climate variability, high input costs and continued dependence on imports remain significant considerations for stakeholders.

“The sector remains measured but positively evolving, supported by reforms and improved production, while maintaining vigilance against structural and climate-related challenges,” Setimela said.

As government advances its growth targets for agriculture, the sector’s ability to address long-standing constraints while adapting to a more commercial role remains central to its expanded economic mandate.