Economic Diversification Drive in Botswana

Results of a Field Research

Abstract

Economic and especially export diversification in Botswana is a must as diamond reserves are predicted to be depleted in the coming decades. Based on the country’s natural, economic and social endowments, diamond processing, jewellery, mining of coal, uranium, copper, zinc, tin and coal-bed methane are the most promising diversification drivers. The prospects of the garment, textile, meat, leather industries, as well as of automotive component manufacturing are constrained by low competitiveness due to high wages, uncompetitive transport costs, shortage of skilled labour, and lack of entrepreneurship. However, low corruption, safety, the rule of law, good governance, high Human Development Index, competitive tax rates and incentives make Botswana an easy and pleasant place to visit and do business with. If economic and export diversification fails, the present per capita GDP of 7,300 USD will drop to 3,100 USD, and “we will live like Swazis” according to one of the experts interviewed during our study trip.