Real Estate Investor Magazine South Africa April 2016 | Page 52

BOTSWANA

Botswana
After four decades of stability and
sound management, Botswana has
one of the most dynamic economies
in Africa. Its main source of
revenue is diamond mining.
Capital: Gabarone
Currency: Botswana pula
President: Ian Khama
Population: 2,021 million (2013) World Bank
Official language: Portuguese
Literacy: 81.2%
Ethnic Groups
Tswana (Batswana) 79%
Kalanga 11%
Baswara 3%
Other (Kgalagadi, European) 7%

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APRIL 2016 SA Real Estate Investor

Industries

Diamonds, Copper, Nickel, Salt, Soda, Ash, Potash;
Livestock processing; Textiles

Background

Formerly the British protectorate of Bechuanaland,
landlocked Botswana became independent in 1966.
Four decades of uninterrupted civilian leadership,
progressive social policies and significant capital
investment have created a stable and most dynamic
economy. Mineral extraction, principally diamond
mining, dominates economic activity, although
tourism is a growing sector due to the country’s
conservation practices and extensive nature reserves,
such as the unique Okavango Delta. Botswana has one
of the world’s highest HIV/AIDS infection, but also
one of Africa’s most progressive and comprehensive
programmes for dealing with the disease.

Economy

Botswana has maintained one of the world’s highest
economic growth rates since independence in 1966.
Through fiscal discipline and sound management,
Botswana has transformed itself from one of the
poorest countries in the world to a middle-income
country with a per capita GDP of nearly $15,800
in 2008. Diamond mining has fuelled much of the
expansion and currently accounts for more than onethird of GDP and for 70-80% of export earnings.
Tourism, financial services, subsistence farming
and cattle farming are other key areas. An expected
levelling off of diamond production overshadows long
term-prospects.
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