The world’s fastest-growing economy

At independence, Botswana was among the ten poorest nations in the world.  A year later, in 1967, diamonds were discovered within its borders and over the next three decades, the country became the world's fastest-growing economy.

Though founded on the wealth of its diamonds, Botswana’s transformation into a middle-income nation is also the result of a free market economy and strong stable government.

Since 1970, Botswana is one of only three countries (along with Cape Verde and the Maldives) to have risen out of the United Nations group of Least Developed Countries.

Running out of diamonds

Botswana’s economy is growing between five and six percent a year, with diamonds accounting for three-quarters of its foreign earnings. However, at the current rate of mining, diamond deposits are expected to run out in the next three decades and the country urgently needs to diversify its economy.

Botswana currently supplies over a fifth of the world’s rough diamonds. Nickel and copper are also mined, as are mineral resources such as salt and soda ash.

Limited manufacturing

With high costs for power and water and a small domestic market, manufacturing is limited in Botswana and consists mainly of meat and food processing plants.

Coal is mined near Palapye, providing an important source of energy for electricity generation, though power supplies are supplemented from the grids of neighbouring countries.

Beef is a top earner

To promote alternative sources of revenue, the government has encouraged investment in commercial farming. With limited rain and water resources, this mainly takes the form of livestock, particularly cattle-rearing.

Botswana’s top-earning agricultural exports are beef products.

Finding a balance

Apart from agriculture, Botswana expects tourism to take on an increasingly important role in its future economy. However, the government recognises a balance must be struck between increasing visitor numbers and the preservation of the natural environment.

Smaller ‘eco-tourist’ projects are encouraged, where the emphasis is on nature conservation and education.