Contents

- General Information
- Geography and Environment
- Population and HIV/AIDS
- Economy
- Communications, Information, Science and Technology
- Chronology of History

Economy

Lower middle income country (WB classification)
Less indebted country (WB classification)

Introduction

The Central Statistics Office provides more detailed statistical and descriptive information on population, environment, trade and economic sectors.

Botswana was one of the poorest countries when she attained her political independence in 1966 with a per capita income of about P60 (equivalent then to roughly US$80). The poverty situation was accentuated by several years of drought, which coincided, with the achievement of independence. One third of the national cattle herd died, while one fifth of the population received famine relief from the International community. [1]

Since independence, Botswana has had the highest average economic growth rate in the world at about 9% per year from 1966 through 1999. Growth in formal sector employment has averaged about 10% per annum over Botswana's first 30 years of independence. The government has consistently maintained budget surpluses and has substantial foreign exchange reserves totaling about $6.2 billion in 1999. [2]

Agriculture. At attainment of Independence in 1966, agriculture contributed about 40 percent to Gross Domestic Product (GDP) but has since been declining. It is now estimated at less than 5 percent. This is largely due to the dominance of mining. [3]

More than one-half of the population lives in rural areas and is largely dependent on subsistence crop and livestock farming. Agriculture meets only a small portion of food needs and contributes just 2.8% to GDP--primarily through beef exports--but it remains a social and cultural touchstone. Cattleraising in particular dominated Botswana's social and economic life before independence. The national herd was about 2.5 million in the mid-1990s, though the government-ordered slaughter of the entire herd in Botswana's northwest Kgamiland District in 1995 has reduced the number by at least 200,000. The slaughter was ordered to prevent the spread of "cattle lung disease" to other parts of the country. [2]

By the beginning of the 1980s, diamonds had well overtaken beef as the country's leading foreign exchange earner, and in 1981, diamond exports accounted for 40% of total exports and rose rapidly thereafter to reach approximately 80% of total foreign exchange earnings by 1989. Furthermore, Botswana has been able to diversify its trading partners. In 1974, about 40% of its exports were to South Africa while the remaining percentage went to Europe, the USA and other parts of the world. There are three diamond mines, Jwaneng in the southern Kalahari, and Orapa and Letlhakane in the central Kalahari. These mines are jointly owned by the Debeers mining company and the Botswana government. By the value of diamonds, Botswana is the biggest producer in the world. [4]

Diamonds are by far the most important source of income for Botswana. The discovery of diamonds in 1967, after a protracted search of twelve years, dramatically changed the pace of development in Botswana. There are three diamond mines, Jwaneng in the southern Kalahari, and Orapa and Letlhakane in the central Kalahari, whose combined earnings have accounted for 77% of the total export earnings and 45% of the GDP. These mines are jointly owned by the Debeers mining company and the Botswana government. In 1989 diamond exports totaled US$ 1.41 billion. By value of diamonds, Botswana is the biggest producer in the world, with an annual output of 15 million carats. [5]

With the increase in resources arising from diamonds during the 1980s, the government channeled more resources towards the development programs. This enabled the government to undertake investments to address national disasters, such as drought, which has been a recurring problem over the years. The road network was significantly improved throughout the country, and a number schools and health centers were built to improve access and hence the standard of living of the Batswana. [4]

Trade: Because of history and geography, Botswana has long had deep ties to the economy of South Africa. The Southern Africa Customs Union (SACU), comprised of Botswana, Namibia, Lesotho, Swaziland, and South Africa, dates from 1910. Under this arrangement, South Africa has collected levies from customs, sales, and excise duties for all five members, sharing out proceeds based on each country's portion of imports. The exact formula for sharing revenues and the decisionmaking authority over duties--held, until at least 1996, exclusively by the Government of South Africa--have been increasingly controversial, and the members began renegotiating the arrangement in 1995. Following South Africa's accession to the World Trade Organization (WTO--Botswana also is a member), many of the SACU duties are declining, making American products more competitive. [2]

Tourism: Due to the involvement of the private sector in the tourism industry, tourism accounts for about 40% of the employment opportunities that have been created in the northern part of Botswana.

Economic overview, 1999 [6]
GNP measured at purchasing power parity (PPP): US$ 9.2 billion
GNP per capita measured at PPP: US$ 6,032
GNP per capita: US$ 3,240
GNP average annual growth rate, 1998-99: 4.7%
GNP average per capita annual growth rate, 1998-99: 3.0%
GNP: US$ 5.1 billion

GDP total: 3.766 million US$ (1990), 5.996 million US$ (1999)
Value added as % of GDP, agriculture: 5 (1990), 4 (1999)
Value added as % of GDP, industry: 56 (1990), 45 (1999)
Value added as % of GDP, manufacturing: 5 (1990), 5 (1999)
Value added as % of GDP, services: 39 (1990), 51 (1999)

Budget, percentage of GDP [6]
Tax revenues: 27.7 (1990)
Expenditures: 26.5 (1990) and 28.5 (1998)
Capital expenditure: 7.3 (1990) and 6.8 (1998)
Overall deficit/surplus: 11.3 (1990) and 8.4 (1998)

Industries: meat packing, dairy products; mining (diamonds, copper, nickel and matte) [6]

Trade [6]
Exports (in million US$ in 1998): of commercial services 241, merchandise 1.948 [2]
Imports (in million US$ in 1998): of commercial services 517, merchandise 2.387 [2]

Export commodities: diamonds; copper, nickel and matte; vehicles and parts; meat and meat products; textiles; soda ash; and live animals [12]

Import commodities (in order of total amount in Pula): machinery and electrical equipment; vehicles and transport equipment; food, beverages and tobacco; metals and metal products; chemicals and rubber products; wood and paper products; textiles and footwear; and fuels [7]

External debt and official assistance [6]
Total in million US$: 563 in 1990 and 548 in 1998
Present value of GNP in 1998: 10%

Official development assistance:
US$ 115 per capita and 4.0% of GDP in 1990
US$ 108 per capita and 2.3% of GDP in 1998

Currency: 1 Pula (P) = 100 cents
Exchange rates: 1.00 Pula = 0.18 US$ (Rate = 0.184500, Sept. 2000)

Energy use and emission [8]

Final energy consumption by energy source: Fuelwood 52.9%; petroleum 29.6%; electricity 8.8%; coal 8.7%; renewable energy 0.1%

Table: Percentage of households using various energy sources for lighting and cooking, 1991 Census. [8:Table 3.3 and 3.4]

Table: GHG emission estimates in carbon dioxide equivalents (tons), by fuel, 1994/95 [8:Table 3.5A]

Agriculture [6]
Tractors per 1,000 agricultural workers: 9 (1979-81), 20 (1996-98)
Productivity, agricultural value added per agricultural worker 1995 US$: 630 (1979-81), 666 (1996-98)
Food production index: 87.2 (1979-81) 89.7 (1996-98)

Land use, percentage of land area (1998, in 1,000 hectares) [9]:

Land area (excluding inland water bodies): 56,673
Agricultural area: 25,946 (46%)
Arable land: 343 (1% )
Permanent crops: 3 (almost 0%)
Permanent pastures: 25,600 (45%) (cattle)
Forests and woodland: 11,232 (Note: data from 1994, since 1995 FAO lists this category with 0 hectares)
Irrigated land: 1

Agriculture products: Millet, sorghum, maize, beans & pulses, groundnuts; sunflowers; livestock

Table: Crop Holding Estimates of Traditional and Commercial Agricultural Sector, in Hectares, 1995. [10:Table 4]

Livestock statistics, 1996> [10], numbers in parentheses are from [11]
In heads (1,000): cattle 2,249 (2,400); goats 2,205 (1,850); sheep 349 (240); donkeys 336 (asses and mules 234.5); horses 5 (31); chickens 1,355 (1,900); and pigs 3 (3)

There are 59,509 (99.9%) traditional cattle holdings with 2,190,303 (97.4%) cattle by head and 80 (0.1%) commercial cattle holdings with 58,510 (2.6%) cattle by head. [10] Sources:

Sources:
[1] The Government of Botswana, http://www.gov.bw/home.html

[2] U.S. Department of State. Background Notes: Botswana, 2001, http://www.state.gov/r/pa/bgn/index.cfm?docid=611

[3] Central Statistics Office. National Statistics. Access date, Jan. 2000, http://www.cso.gov.bw/cso/index.html

[4] Government of Botswana. Economic Snapshot, http://www.gov.bw/economy/index.html

[5] Government of Botswana. Business in Botswana, http://www.gov.bw/business/index.html

[6] The World Bank. 2000. World Development Report 2000/2001. Attacking Poverty. New York, N.Y.: Oxford University Press. The complete report is available on-line: http://worldbank.org/poverty/wdrpoverty/report/

[7] Namibia, Rep. of. 2000. 2nd Development Plan. Windhoek: National Planning Commission. (electronic data-files)

[8] Central Statistics Office: Environment Statistics. Access date, Dec. 2000, http://www.cso.gov.bw/cso/env_stats.html

[9] FAOSTAT. 2000. Land Use Table. Update December 2000. http://faostat.fao.org/default.htm

[610] Central Statistics Office: Agricultural Statistics. Access date, Dec. 2000, http://www.4site.bw/cso/agric_stats.html

[11] FAOSTAT. 2000. Livestocks Stocks Table. Update December 2000. http://faostat.fao.org/default.htm

[12] Central Statiscs Office: Trade Statistics. Access date, Dec. 2000, tihttp://www.4site.bw/cso/trade_stats.html

- General Information
- Geography and Environment
- Population and HIV/AIDS
- Economy
- Communications, Information, and Science and Technology
- Chronology of History