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Botswana
Formerly the British protectorate of Bechuanaland, Botswana adopted
its new name upon independence in 1966. Four decades of
uninterrupted civilian leadership, progressive social policies, and
significant capital investment have created one of the most dynamic
economies in Africa. Mineral extraction, principally diamond mining,
dominates economic activity, though tourism is a growing sector due
to the country's conservation practices and extensive nature
preserves. Botswana has one of the world's highest known rates of
HIV/AIDS infection, but also one of Africa's most progressive and
comprehensive programs for dealing with the disease.
Capital City: Gaborone (+2 GMT)
Chief of State: President Festus G. MOGAE
Head of Govt.: President Festus G. MOGAE
Currency: Pula
Main Cities: Francistown, Selebi-Phikwe, Molepolole
Major Languages: English, Setswana
Calling Code: 267
Voltage: 220V
Stock Exchanges: The Botswana Stock Exchange
Primary Religions: Indigenous beliefs, Christian
Main Airports
Kasane, Maun International Airport (MUB), Sir Seretse Khama
International (GBE)
U.S. Embassy
Embassy Drive off Khama Crescent
tel. 267-353-982
Statistics
- GDP: purchasing power parity:
- $17.24 billion (2005 est.)
- GDP - real growth rate:
- 4.5% (2005 est.)
- GDP - per capita: purchasing power parity:
- 10,500 (2005 est.)
- Inflation rate (consumer prices):
- 8.6% (2005 est.)
- Labor force:
- 288,400 formal sector employees (2004)
- Exports:
- $3.68 billion f.o.b. (2005 est.)
- Exports - partners:
- European Free Trade Association (EFTA) 87%, Southern African
Customs Union (SACU) 7%, Zimbabwe 4% (2004)
- Imports:
- $3.37 billion f.o.b. (2005 est.)
- Imports - partners:
- Southern African Customs Union (SACU) 74%, EFTA 17%,
Zimbabwe 4% (2004)
- Population:
- 1,639,833
- Population growth rate:
- -0.04% (2006 est.)
- Population Below Poverty Line:
- 30.3% (2003)
- Major Industries:
- diamonds, copper, nickel, salt, soda ash, potash; livestock
processing; textiles
- Employing Workers: 62*
- Registering Property: 34*
- Enforcing Contracts: 77*
- Closing a Business: 22*
- *2006 World Bank rank out of 175 countries
- Starting a Business
The table below shows the number of steps and the amount of
time needed to start a business, on average
| Indicator |
Botswana |
Region |
| Procedures (number) |
11 |
11.1 |
| Time (days) |
108 |
61.8 |
Botswana Risk Assessment
Country Rating
Rating: A2
The political and
economic situation is good. A basically stable and efficient
business environment nonetheless leaves room for improvement.
Corporate default probability is low on average.
Risk Assessment
Economic growth remained strong in
2007 and it should stay on track in 2008 thanks to increased diamond
production and the dynamism of the tourism and civil engineering
sectors, supported by robust investment policy. Restrictive monetary
policy should help keep inflation — heightened by the May 2005
devaluation — under the 10 per cent threshold in 2008.
After running notable fiscal surpluses
in 2005 and 2006 with revenues higher and spending lower than
expected, public finances should remain near equilibrium in 2008 due
to spending committed to combating AIDS. The current account,
meanwhile, should continue to show large surpluses thanks to the
firmness of diamond prices. In this context, foreign debt will
remain low and foreign exchange reserves high.
The handover of power between the
incumbent president Festus Megoa and the vice-president Ian Khama,
scheduled for April 2008 — over a year before the October 2009
elections — is supposed to guarantee a smooth transition in the
leadership of the ruling government party, the Botswana Democratic
Party. The new president should thus maintain prudent macroeconomic
policy and pursue the Ninth National Development Plan objectives on
diversification of the productive fabric, job creation, and poverty
reduction.
STRENGTHS
- Africa's oldest multi-party
democracy, Botswana has enjoyed remarkable political stability
since gaining independence in 1966
- Transparency International has
given Botswana the best Corruption Perception Index rating of
any African country, ranking it 37th out of 167 worldwide.
- The country boasts extensive
natural resources including diamonds (second largest world
producer), copper, nickel, and gold.
- Strict economic policy has
facilitated management of diamond revenues and allowed the
country to avert the "Dutch Disease".
- Quality infrastructure has
fostered development of tourism and services (finances,
telecommunications).
WEAKNESSES
- The economy is still too
dependent on a diamond sector that generates a third of GDP,
three-quarters of exports, and one-half of tax revenues.
- Diamond production should level
off and then decline sharply from 2020.
- Despite efforts to diversify the
economy, poverty and joblessness are still high with 24 per cent
of the population living on under a dollar a day and 19 per cent
unemployed.
- The HIV pandemic has undermined
Botswana's long-term economic and financial outlook with the
country's AIDS prevalence rate among the world's highest and
with 35% of the adult population infected with the disease.
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