Botswana
The land that is now Botswana has been inhabited for at least 30,000 years. As the local population grew and Europeans began to arrive in the 18th century, the Tswana, the leading tribe, regrouped to develop a highly structured, stable society ruled by hereditary monarchs.
Area: 234,144 square miles Capital: Gaborone Government: Parliamentary Republic Population: 1,586,119 Language: English, Setswana GDP per capita: USD 6,600 Monetary unit: Pula Exports: Diamonds, copper, nickel, meat, vehicles Imports: Foodstuffs, machinery & transport equipment, textiles, petroleum products.
Africa’s best kept secret is open for business
History
Festus Gontebanye Mogae, President
In the 19th century, the Boers entered the country, provoking rebellion. In 1877, the British annexed the Transvaal, launching the Boer War, and in 1882, the Tswana asked the British to step in to protect them from the Boers.
Nationalism took root, and in 1966, the British Protectorate of Bechuanaland became the independent Republic of Botswana. With the discovery of diamonds near Orapa in 1967, Botswana amassed extensive foreign-currency reserves and its currency, the pula, became Africa’s strongest. Botswana remains phenomenally wealthy and stable compared to other African countries, and offers a number of investment opportunities as it works to diversify its economy.
Economy
Botswana is one of Africa’s success stories. The country has enjoyed a stable, democratic government and steady economic growth since it achieved independence in 1966. In particular, since the 1970s, minerals – mainly diamonds – replaced cattle-raising as the chief contributor to GDP. Botswana and the southern African kingdom of Swaziland are the only two African countries that invest in, rather than borrow from, the World Bank-IMF.
Botswana has successfully pursued a policy of investing its minerals revenues in social programs, infrastructure, and incentives to attract private enterprise. It is working to diversify its economy, and its tourism and financial sectors are currently expanding. As President F.G. Mogae explains, “In the next three years, information technology will be big. We are second only to South Africa, and maybe to Mauritius, regarding connectivity.”
President Mogae points out that Botswana offers a number of advantages to investors, including political stability, low taxes, a strategic location in fast-growing southern Africa, and excellent trade relations with the United States and Europe. “Since we qualify under the General Services Policy (GSP), and under the ROMA convention with the European Union, we have no tariffs or quotas for exports.”
Botswana has a bright future ahead. As President Mogae says, “Although there is a general phenomenon of Afro-pessimism, Botswana has been growing steadfastly for the past 35 years. We have a stable macro-economy and stable political policies. We have respect for human rights, women’s rights and kids’ rights. To the international investor, this is a democracy with a stable political situation.”
