Botswana has overcome the challenges of corruption and ethnic violence facing most African countries that are rich in mineral deposits. As a nation they have been able to make significant strides since their independence in 1966. The per capita income shot up from 70 dollars in 1966 to 6,100 dollars in 2007. The road network has undergone a major overhaul with 7000 kilometers of road currently paved as compared to just 12 kilometers post-independence. 90% of the population has access to clean water and the under-five mortality rate has reduced to 45 deaths per 1000 (Chuhan-pole and Angwafo 81). These impressive numbers can be attributed to good governance, savvy economic management, and proper policy implementation.
Botswana has been able to exploit and utilize its vast diamond resources with great success because unlike many African nations with mineral deposits the country is majorly homogenous in its ethnic composition. It is because of this homogeneity along with political leaders who have consistently put the country’s needs above all ethnic and regional affiliations that there has been no conflict over mineral rights ownership. The Botswanan people have been included in the decision-making process via government consultation with consultative institutions called the Kgotla. The Kgotla ensure that the local people’s needs are voiced and adequately represented fostering a sense of confidence in the government (Chuhan-pole and Angwafo 84). Transparency and accountability practices by public corporations and officials have mitigated occurrences of graft and the losses associated misappropriation of public funds. The country has been able to evade the Dutch disease, which afflicts countries that suddenly experience an inflow of foreign capital, by investing in capital goods as opposed to consumer goods. The import substation policy was not adopted by Botswana. Government policy promoted the establishment of private corporations which made it possible to sustain a flourishing economy unencumbered by industrial inefficiencies associated with state-run organizations (Chuhan-pole and Angwafo 88).
Even though Botswana has made significant economic and political strides since independence it is lagging in terms of reaping the benefits from the tourism industry. Many of the safari companies are based outside the country leading to leakage in foreign earnings (Mbaiwa 23). The Botswanan government has policies in place that make it difficult for locally based tourism companies to compete with international companies. It would serve the country’s best interest to implement policies that protect and promote local safari companies. They should also take greater interest in methods of restrict foreign exchange leakages that occur through travel package bookings outside the company.
Based on the table below, the tourism sector (trade, hotels, and restaurants) has the largest room for development and growth than any other sector in the country. Botswana should thus pay more attention to the sector to enhance its GDP.
GDP Real Growth Rate
GDP real growth rate gives GDP growth on an annual basis adjusted for inflation and expressed as a percent.
These figures are subject to revision; Source: Statistics Botswana
|
|
2008
|
2009
|
2010
|
2011
|
2012
|
|
Agriculture
|
1.6
|
7.2
|
15.6
|
-22.4
|
6.4
|
|
Mining
|
-8
|
-46.2
|
22.7
|
-2.2
|
-8.1
|
|
Manufacturing
|
-5.1
|
3.2
|
9.7
|
3.4
|
-1.8
|
|
Water and electricity
|
6.6
|
-6.4
|
-2.6
|
-74.5
|
-41.9
|
|
Construction
|
0.0
|
12.8
|
5.6
|
18.5
|
14.4
|
|
Trade, hotels and restaurants
|
17.8
|
3.4
|
9.7
|
13.4
|
5.5
|
|
Transport, post and telecommunications
|
10.3
|
14.6
|
4.4
|
8.8
|
9.1
|
|
Banks, insurance and business services
|
11.8
|
0.9
|
11.1
|
8.7
|
9.7
|
|
General government
|
0.2
|
3.7
|
2.6
|
15.2
|
2.1
|
|
Social and personal services
|
15.3
|
11.3
|
6.9
|
7.3
|
12.2
|
|
Adjustment items
|
12.6
|
3.4
|
-5.2
|
17.5
|
1.4
|
|
GDP at Constant Market Prices
|
3.7
|
-7.9
|
8.1
|
8
|
37.7
|
|
GDP excluding mining
|
8.3
|
4.9
|
5.6
|
10
|
5.8
|
Works cited.
Chuhan-pole & Angwafo M. Yes, Africa can: Success Stories from a Dynamic Continent. Washington. World Bank Publications. 2011
Mbaiwa E J. Poverty or riches: who benefits from the booming tourism industry in Botswana? Journal of Contemporary African Studies, DOI:10.1080/02589001.1270424
Image Work Cited
GO Botswana. Economy, 2017. Web. <http://www.bitc.co.bw/economy>
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