ECONOMY IN BOTSWANA
Since its independence, Botswana has benefited from one of the fastest economic growth rates in the world and has thus changed itself from a deeply impoverished country to a middle-income country. Botswana’s successful economic story has been based on effective use of revenue from diamond mining to launch economic development, combined with judicious fiscal strategy and a cautious foreign policy that kept a negligible level of foreign debt. The economy encountered a significant slump due to the global economic downturn in the late 2000s which resulted in reduced demand for Botswana’s diamonds as well as tourism. However, the economy has since recovered through sound fiscal policies and management.
Botswana’s key economic sectors include:
Since the early 1980s, the country has produced most of the world’s gem-quality diamonds, which stimulated Botswana’s economic development. Four large diamond mines have been established since independence, and in the foreseeable future diamond mining will remain the flagship of Botswana’s economy, with known current reserves calculated to last for at least the next twenty years. Aside from diamonds, other minerals such as copper and nickel are also mined in Botswana.
Tourism in the country includes excellent game viewing and birding in diverse ecosystem of Chobe, Moremi – Okavango Delta, Linyanti, Central Kalahari, Makgadikgadi and others.
Cattle-raising was a very important part of Botswana’s social and economic life before independence, and thus remains a specialist industry in society. Agriculture contributes to the economy mainly by beef exports.
The main commodities exported besides diamonds and minerals are textiles, clothing, hides and skins.