Country Info: Botswana
Economic Background
Botswana has maintained one of the world's highest economic growth rates since independence in 1966. However, economic growth was negative in 2009, with the industrial sector shrinking by 30%, after the global crisis reduced demand for Botswana's diamonds. Although the economy recovered in 2010, GDP growth has again slowed.
Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $16,800 in 2012. Two major investment services rank Botswana as the best credit risk in Africa. Diamond mining has fueled much of the expansion and currently accounts for more than one-third of GDP, 70-80% of export earnings, and about one-third of the government's revenues. Botswana's heavy reliance on a single luxury export was a critical factor in the sharp economic contraction of 2009. Tourism, financial services, subsistence farming, and cattle raising are other key sectors. According to official government statistics, unemployment reached 17.8% in 2009, but unofficial estimates run much higher. The prevalence of HIV/AIDS is second highest in the world and threatens Botswana's impressive economic gains. An expected leveling off in diamond production within the next two decades overshadows long-term prospects.
A major international diamond company signed a 10-year deal with Botswana in 2012 to move its rough stone sorting and trading division from London to Gaborone by the end of 2013. The move may support Botswana's downstream diamond industry. (Source: World Factbook, 2013)
Downloads
Brochure - AGOA performance and country profile of Botswana
An overview of Botswana's participation and utilisation of AGOA preferences since 2000, including relevant trade data and sector-focus. Double-sided A4 brochure. For printing, set 'fit to page'.
Botswana - National AGOA Strategy
This document was prepared following a multiple stakeholder consultation process facilitated by the Botswana Ministry of Investment, Trade and Industry with assistance from the USAID Southern Africa Trade and Investment Hub. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
Related News
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...
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...
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...
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...
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...
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...