In this series, we take a look at Africa, country-by-country, and offer a (very) brief glance at the historical events, key industries, and current political situation shaping individual states.
Quick facts
Head of state: President Mokgweetsi Masisi (2018–present)
Capital/ largest city: Gaborone
National population: 2.6 million (2021)
GDP: USD 17.6 billion (2021)
A (very) brief history
Botswana gained independence from Britain in 1966 and has since become one of Africa's success stories. A year after its independence, diamonds were discovered in the country, and this has strongly influenced its economic trajectory. From that time, Botswana has transformed from one of the poorest in the world to a middle-income nation with a stable political system and a growing economy.
In its early decades, the country sought to cast itself as a “nonracial, liberal democratic alternative to South African apartheid.” During the 1990s, the AIDS epidemic engulfed it (and many others on the continent), pushing its infection to be one of the highest on the planet. However, the government’s aggressive response through awareness campaigns and universal free HIV antiretroviral medication in their early 2000s have helped enormously with the country achieving its 90–90–90 goal.
Though Botswana has been ruled by the same political party, the Botswana Democratic Party (BDP), since independence, July 2022’s Botswana Focus Report concluded that a combination of “diamond wealth, good governance and prudent economic management have enabled Botswana to develop into an upper-middle-income country.”
The country has maintained a stable democracy, peaceful transitions of power, and a well-functioning legal system, and while corruption remains an issue, single party rule has seemingly not kept Botswana from attaining positive economic and social development.
Key industries
Botswana’s main source of income has been diamonds, which were discovered in the late 1960s just after independence. Diamonds have been the backbone of the economy and continue to be the main contributor to the country's GDP.
In recent years, other minerals such as copper and nickel have been discovered, and the government has been working to diversify the economy and reduce its reliance on diamonds.
Tourism is another key industry in Botswana. The country is known for its wildlife and beautiful landscapes, including the Okavango Delta, Kalahari Desert, and its well-maintained and protected national parks. The government has invested in tourism infrastructure and has implemented policies to support sustainable tourism development.
Agriculture is another sector that has been growing in recent years. The government has been promoting investment in agriculture and has implemented policies to support small-scale farmers. Despite this, agriculture remains a small part of the economy, and the country still imports most of its food.
How politics affects the business environment
The government has been promoting foreign investment in the country and has implemented policies to make it easier for foreign companies to do business in Botswana. This includes tax incentives, streamlined investment procedures, and a well-functioning legal system that protects the rights of investors.
In recent years, the government has been working to address some of the challenges facing the country, including high unemployment, income inequality, and the need for diversification of the economy. It has implemented a number of initiatives to address these challenges, including investment in education and training, infrastructure development, and support for small and medium-sized enterprises.
Current political and economic climate
In 2019, Botswana held its 12th general election (the country operates on 5-year cycles), and the BDP continued its uninterrupted winning streak. In fact, under President Mokgweetsi Masisi, the party increased its leadership majority from 47% to 53%.
However, in the 21st century, Botswana’s economy has struggled to grow, and the Great Recession of 2008–2009 and COVID-19 have reduced demand for the country’s commodities. Elections are generally considered free and mostly fair in comparison to other countries globally, but the President’s office maintains tight control over state media.
Further, minority groups including the indigenous San people, migrants, refugees, and LGBT+ people continue to face varying forms of discrimination, in spite of the country’s culture of participation and consensus-building.
Final note
Since independence, Botswana has transformed into a middle-income nation with a stable political system, a well-functioning legal system, and a growing economy. While the country relies heavily on commodities, they have been relatively well-managed by the government over the decades. While the country, like others, faces challenges in governance, social inclusion, and sustaining historical economic growth, it remains a strong regional player with an optimistic future.
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