This paper aims at examining critically the link between economic diversification and poverty eradication processes and the implied assumptions. It first examines the link theoreticallybefore testing it against Botswana s actual experience. It has been shown theoretically and empirically that the country is still very far from the vision s goal of diversifYing the economy and eradicating absolute poverty by 2016. The article concludes by spelling out policy recommendations for further diversification and poverty alleviation.