Botswana

Botswana has a land mass of 581,730 km² and is located at the centre of Southern Africa, bordering South Africa, Namibia, Zambia and Zimbabwe. The country has significant mineral wealth (largely diamonds), good governance, prudent economic management policies and a small population of about 2.6 million and a GDP of US$20.8bn, giving it one of the highest GDP per capita ratios in Africa.

It is a democracy using English as the official language, and the official currency is the pula. Key industries in Botswana are mining, tourism and ICT.

Botswana’s GDP growth slowed to 3.8 percent in 2023 from 5.8% in 2022 due to a projected decline in diamond production but is projected to pick up in the following two years to 4.1% and 4.3% respectively. Inflation fell within the Central Bank’s 3-6% objective range by May 2023 and further breached the lower objective bound in July. At 18.6% of GDP, Botswana had one of the lowest public debt levels on the continent and has a long-held reputation as a good example of political and economic stability.

A total of 32,688km of road and rail network connects the country's main centres, and rail connects Botswana's capital, Gaborone, via Lobatse, to Mafikeng in South Africa and Gaborone, through Mahalapye, Palapye, Serule and Francistown to Plumtree in Zimbabwe. There are international airports in Gaborone, Maun, Francistown and Kasane and many smaller airports and airfields throughout the country.

There were 579,789 licensed vehicles in Botswana in 2020 compared to 601,190 in 2019. According to Statistics Botswana, the country had 242 vehicles per 1,000 people in 2020, placing it among the world's highest in terms of vehicle density.

Botswana also has one of the highest mobile penetration rates in Africa with a teledensity of over 160 subscriptions per 100 inhabitants. Information and communication technology (ICT) contribution to GDP was 5.6% reaching P4.89bn (US$369.36m) in 2022 and 2.50%, P4.64bn (US$350.39m) in 2021. The sector registered annual revenue growth rate of 5.22% in 2022 from 4.52% in 2021. The sector includes three big operators, Mascom Wireless, Orange Botswana and Botswana Telecommunications Corporation (BTC), and several internet service providers (ISPs). Internet is largely accessed by individuals through smartphones, while fixed internet services are used by businesses and a small number of households, particularly in urban areas. Mobile money services have continued to grow, with the number of subscribers increasing by 10.4% in 2022.

There are currently eight licensed commercial banks, all majority foreign owned. Five large banks, ABSA Botswana, African Banking Corporation of Botswana (trading as Banc ABC), First National Bank of Botswana (FNBB), Stanbic and Standard Chartered dominate the sector and accounted for 84.7% of total assets, 85.3% of total deposits and 87.5% of total loans and advances.

The Botswana government identified tourism as a sector that could contribute to the diversification of the economy. The Botswana Tourism Master Plan, adopted in 2000, recognised the potential growth of the tourism sector and its significant role in benefitting the country economically, and tourism now accounts for 13.1% of GDP.

Mining is significant contributor to Botswana’s GDP and minerals comprise almost 80% of export earnings. In 2018, Botswana was the world’s second largest diamond producer by value and volume, after Russia, according to the Kimberley Process Certification Scheme. The country has large soda ash, coal and diamond reserves. Botswana’s mining sector is dominated by diamond mining, with Debswana Diamond Company being the largest producer. Other minerals produced are aggregate, brickmaking clay, coal, dimension stone, gemstones, gold, salt and soda ash.


Sources: Who Owns Whom sector reports, CIA Factbook, African Development Bank, World Bank, Trading Economics, African Statistical Yearbook and IMF.