Trade Profiles

Country Info: Botswana

Botswana

Bilateral Trade by Sector: United States - Botswana

Value ('1000 dollars), US 'domestic exports' *, US 'imports for consumption' / Includes year-to-date data

Economic Background

Until the beginning of the global recession in 2008, Botswana maintained one of the world's highest economic growth rates since its independence in 1966. Botswana recovered from the global recession in 2010, but only grew modestly until 2017, primarily due to a downturn in the global diamond market, though water and power shortages also played a role.

Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries in the world five decades ago into a middle-income country with a per capita GDP of approximately $18,100 in 2017. Botswana also ranks as one of the least corrupt and best places to do business in Sub-Saharan Africa.

Because of its heavy reliance on diamond exports, Botswana’s economy closely follows global price trends for that one commodity. Diamond mining fueled much of Botswana’s past economic expansion and currently accounts for one-quarter of GDP, approximately 85% of export earnings, and about one-third of the government's revenues.

In 2017, Diamond exports increased to the highest levels since 2013 at about 22 million carats of output, driving Botswana’s economic growth to about 4.5% and increasing foreign exchange reserves to about 45% of GDP. De Beers, a major international diamond company, signed a 10-year deal with Botswana in 2012 and moved its rough stone sorting and trading division from London to Gaborone in 2013. The move was geared to support the development of Botswana's nascent downstream diamond industry.

Tourism is a secondary earner of foreign exchange and many Batswana engage in tourism-related services, subsistence farming, and cattle rearing. According to official government statistics, unemployment is around 20%, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens the country's impressive economic gains.

Agricultural products

milk, roots/tubers, vegetables, sorghum, beef, game meat, watermelons, cabbages, goat milk, onions

Industries

diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver; beef processing; textiles

Industrial production growth rate

-4.2% (2017 est.)

(Source: World Factbook, 2021)

Share this article

View related news articles

Botswana: Government acts as AGOA exports hit zero

Government is hoping its newly revitalised strategy for the African Growth and Opportunities Act (AGOA) reaps dividends after revelations that exports by local companies under the trade deal have been at zero since 2019 end. AGOA is a trade arrangement between the US and sub-Saharan African countries, including Botswana, which runs till 2025 and provides relaxed access to the American market. From a peak of P1.8 billion in AGOA exports by...

04 June 2021

US and Botswana MITI launch revised AGOA Utilization Strategy to improve economic growth in Botswana

On April 29, the Embassy of the United States of America joined the Ministry of Investment, Trade, and Industry (MITI) and other stakeholders to launch the revised strategy (see link to download) at the Hilton Garden Inn in Gaborone.   U.S. Ambassador to the Republic of Botswana, Craig L. Cloud, joined Minister Mmusi Kgafela to formally launch the strategy.   Also present were the USAID Representative to Botswana, Ms....

03 May 2021

Botswana: AGOA dream dims for local textile sector

Local textile and apparel producers appear to be giving up hope of exporting to the United States under the duty-free AGOA provisions, preferring instead to focus on the local and regional markets, BusinessWeek has established. AGOA is a trade arrangement between the US and sub-Saharan Africa running till 2025 and providing relaxed access to the American market. Textiles are Botswana’s primary export under AGOA. From a peak of P1.8...

30 August 2019

Botswana: Textile sector upbeat, despite AGOA export collapse

The country’s textile and apparel exports to the United States under AGOA, fell to just $3,000 (P32,100) in 2018, the first numbers showing the impact of the relocation to Lesotho of the last exporting firm. Under the African Growth and Opportunity Act’s duty and quota free provision, Botswana textile firms were shipping off P1.8 billion in stock to the US at the peak in 2008. Becky Geiger, an international trade specialist in the US...

22 March 2019

Botswana: 'Businesses fail to fully utilise AGOA' - BITC

Local businesses are failing to exploit the African Growth and Opportunity Act (AGOA), says the director for export development at Botswana Investment and Trade Centre (BITC), Mr Obert Yuyi. Mr Yuyi said this during a national AGOA response strategy workshop in Francistown on April 24. He said with the recent closure of mines around Francistown, unemployment was on the rise and that it required the business community to take over and employ...

25 April 2018

AGOA strategy awareness in motion for Botswana

The Ministry of Investment Trade and Industry (MITI) in collaboration with Botswana Investment and Trade Centre (BITC), U.S. Embassy in Botswana, USAID Southern Africa Trade and Investment Hub, African Women’s Entrepreneurship Program (AWEP), the Local Enterprise Authority (LEA), the Citizen Entrepreneurship Development Agency (CEDA) and the Botswana Export Credit Insurance (BECI) are conducting nation-wide workshops to sensitize the...

01 March 2018

Botswana: Fresh attempt to revive AGOA exports

Despite duty free access to the United States (US) market, exports from Botswana have virtually dried up due to inadequate awareness of the African Growth Opportunities Act (AGOA) programme and the high cost of compliance with technical regulations, standards and quality certification. From the peak of exports worth around $17 million in 2011, which were dominated by textiles, exports under the AGOA pact to the US in 2016 were at a paltry $4...

25 August 2017

Botswana: Government launches strategy to benefit more from AGOA

The African Growth and Opportunity Act (AGOA) National Response Strategy, which was developed through the assistance of the USAID Southern Africa Trade and Investment Hub, will be launched at the beginning of next month. The strategy would help local businesses grow by taking advantage of AGOA provision of duty-free exports to the United States of America (USA) with the hub’s experts working directly with the private sector to improve...

25 August 2017

Botswana: Women in business urged to utilise AGOA

Women in business have been encouraged to take advantage and participate in the lucrative US preferential trade scheme known as the Africa Growth and Opportunity Act (AGOA) for better profits. African Women’s Entrepreneurship Programme (AWEP) chairperson, Chigedze Chinyepi said this when addressing women in business during AWEP’s capacity building workshop that was held at Tati River Lodge recently. Chinyepi said Botswana is one of the...

14 November 2016

Botswana advised to establish AGOA office

Speaking this week during the validation workshop of the draft AGOA strategy in Gaborone, George Makore said the AGOA office should be headed by a coordinator to be assisted by experts in export development, investment promotion, and information dissemination. “The process of setting up the institutional structure should be initiated within 60 days of approval of the strategy,” he stated. While the ministry of investment, trade and...

11 November 2016

Botswana to get garment training centre

The Botswana government has given the go-ahead for the Textile and Clothing Institute of Botswana (TCIB), the first of its kind in the country, to overcome a chronic shortage of skilled workers that has negatively impacted the textiles sector for many years. Its founder, Shahid Ghafoor, president of the Botswana Textile and Clothing Association, said TCIB was offering one-year certificate courses in clothing manufacturing in a wide variety of...

14 May 2016