Download ACM Country Profile: Botswana

ACM Country Profile: Botswana
Highlighting political, economic and business trends
The bottom line: Long hailed as
politically stable, economically secure
and a beacon of freedom in Southern
Africa, Botswana can be credited
with all these qualities to a degree.
However, the merits hare generally
viewed relatively, in comparison to
other regional nations which are
in conflict or where freedoms and
human rights are suppressed. Oneparty states are inherently brittle,
and cracks are showing in service
delivery and public acceptance of the
governing dominance of Botswana’s
Botswana Democratic Party (BDP).
National Profile
SOUTHERN AFRICA
Table of
Contents
Gabarone
has facilitated auto use to bridge the country’s large
open spaces between towns. The Heritage Foundation
Led by an impressive score of 89 out of a possible 100 and Wall Street Journal Index of Economic Freedom
for political stability, Botswana earns an above-aver- and the Cato Institute Economic Freedom of the World
age (globally) score of 69 of 100 on the World Bank’s Index both give Botswana the highest scores for ecoWorldwide Governance Indicators. The country scores nomic freedom of Sub-Saharan Africa’s contiguous
high for Africa on government accountability and states. The ability of businesses to function relativeeffectiveness, and importantly for investors, regula- ly unfettered by red tape restrictions accounts for
tory quality and Rule of Law. Control of corruption is the country’s high ranking on the World Economic
also very good, which corresponds with
Forum’s Global Competitiveness Index
Transparency International’s Corruption
2014-2015, just below the island holiPerceptions Index score of 64, where 0
“An accountable
day paradise Mauritius.
is absolutely corrupt and 100 is comgovernment
pletely uncorrupt. This represents a
that allows for
Business Assessment:
high for Sub-Saharan Africa and ranks
the transparent
Although the economy is dominated
Botswana at 30 of all the world’s
reporting of the
by the diamond production of its minnations. The Institute for Economics
nation’s mineral
and Peace’s Global Terrorism Index finds
wealth and a robust ing sector, intelligent government and
private sector management of this natthat Botswana faces zero terrorism
political system
ural resource has led to spin-off busithreats. An accountable government
from the time of
nesses such as transportation, energy
that allows for the transparent reportindependence 50
ing of the nation’s mineral wealth and a
years ago, have laid and retail services originally intended
to serve mining but now mushrooming
robust political system from the time of
the groundwork for
to supply other businesses. Diamond
independence 50 years ago, have laid
a stable economy
reserves are finite, and government
the groundwork for a stable economy
that welcomes
has targeted tourism as a future growth
that welcomes foreign investors.
foreign investors.”
industry. Botswana is well served by
a road and rail system beneficial to
Economic Assessment:
tourism and other industries. The banking and serEnjoying Sub-Saharan Africa’s second freest economy, vices industries are sound, the retail sector records a
Botswana has a GDP per capita of US$ 16,998. Poverty steady growth in consumer goods sales, and automoexists in Botswana but income inequity is less than bile ownership has risen concomitant with the nation’s
in other Southern African countries with similar rela- expanding road system. Government is responsive to
tively-large GDPs per capita; meaning there is a wider business sector needs and has dedicated itself in word
middle class in the country capable of supporting a con- and deed to promoting more foreign direct investsumer society and a services sector, including greater ment. Botswana is the 3rd easiest African country in
automobile ownership. The country’s road infrastruc- which to do business, the World Bank reports.
ture, developed for mining industry transportation,
Africa Conflict Monitor | Consultancy Africa Intelligence (Pty) Ltd
March 2015 Edition
Political Assessment:
79