Botswana’s economy is rapidly growing and developing
Updated: Apr 1, 2020
Over the last 24 years, Botswana has unfailingly been one of the finest performing economies world-wide. This success can be attributed to high-quality mineral, tourism, and agriculture resources, modern transport and communication infrastructure, etc.
Strategically located at the heart of Southern Africa, Botswana compromises unique business opportunities in the Mining, Jewellery, Automotive, Textile and Apparels, Pharmaceuticals and other sectors which is particular to export-oriented manufacturers. The graph below shows the FDI inflow and outflow in the past 6 years:
Due to the country’s high dependence on mining and the increasing pressure on employment creation, tourism is particularly suited for the sector which could help in economic diversification. Industry participants, both in Botswana and abroad, agree that the nation’s unique and abundant natural resources provide it with an immediate advantage in the tourism sector.
Basic hospitality skills are not difficult to acquire and with pro-active training, the local workforce could become actively involved in the industry since tourism provides career and employment opportunities across the spectrum, from semi-skilled to highly skilled management levels. Barriers to entry are relatively low and emerging tourism entrepreneurs require limited capital to enter the industry. Should the industry be managed effectively, economic leakages could be contained and most tourism products and services could be supplied locally.
Mines & Energy:
The economy of Botswana has been dependent on Diamond Mining for many years, and there is a huge potential in the mining of other mineral resources and Gthe overnment is encouraging investment across the country. The government has passed a Mines and Mineral Act which encourages investors to invest in the exploration of other mineral resources of Botswana encouraging the constant opportunity for the investors to invest in the Diamond mining in Botswana. There are huge diamond reserves present and so with them, the opportunity also lies. Botswana currently has a relatively limited primary energy resource and therefore it largely relies on imports. There is substantial potential in renewable energy sources like solar, which is the most abundant in the country. A large potential lies in the energy sector through the supply of related products, solar panels, energy generating equipment, and applicators, etc.
The health sector of Botswana is the prime area for investment as the country is committed to providing Quality health professionals and pharmaceuticals nationwide. Botswana spends a lot of money every year to provide free health care to its citizens. It imports both raw materials and pharmaceutical medicaments thereby increasing the investment opportunities
Textiles & Fabrics:
Botswana has no Foreign Exchange controls and offers you free repatriation of profits and dividend thus it has an investment climate cut out as a manufacturer of high-end quality apparel.This is ideal for the apparel industry as the industry relies on imported raw materials.The Botswana-SACU membership allows duty-free and quota-free shipments of apparels to the largest market in the region, South Africa.