Botswana

Botswana has a land mass of 581,730km² 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 2.52 million and a GDP of US$19.40bn, giving it one of the highest GDP per capita ratios in Africa.

It is a democracy using English as the official language, and the pula as the official currency. Key industries are mining, tourism and ICT.
The Botswana Democratic Party (BDP), which governed for 58 years since independence in 1966, lost the October 2024 election to Umbrella for Democratic Change (UDC) which won 36 of the 61 available parliamentary seats, and a majority to form a new government. Botswana Congress Party (BCP) won 15 seats, Botswana Patriotic Front (BPF) five seats and BDP only four seats.
GDP growth slowed to 1% in 2024, from 2.7% in 2023, reflecting a decline in diamond production and prices due to weaker global demand. Growth will increase slightly over the medium term, driven by the pickup in global demand for diamonds and efforts undertaken to diversify the economy.
Inflation declined in the first half of 2024, averaging 3.3% compared with 7.8% in the same period in 2023, supported by tight monetary policy conditions and a reduction in fuel prices.
A total of 32,688km of road and rail network connects the 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 contribution to GDP was 5.6% with 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.

There are 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, which currently accounts for 13.1% of GDP, as a sector that could contribute to the diversification of the economy.

Mining is the most significant contributor to Botswana’s GDP and minerals comprise almost 80% of export earnings. Diamond mining dominates the mining sector with the Debswana Diamond Company being the largest producer. Other minerals produced are aggregate, brickmaking clay, coal, dimension stone, gemstones, gold, salt and soda ash. Agriculture’s contribution to GDP is now averaging about 2.0%, but it was as high as 30% in the mid-1970s. The agriculture sector provides a livelihood for most citizens who operate subsistence farms. Livestock production contributes an estimated 80% to agricultural GDP.

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