A healthy economy?
When Botswana gained independence in 1966, the country was economically undeveloped. Ranked as one of the poorest nations in the world, it had received little attention from the British administration, which had neglected this part of the continent during its eighty-five year protectorate. The country had no infrastructure or industry, and very few skilled citizens, educated or trained for high office. From agricultural production to building materials, it was also very dependent on South Africa for almost all its needs. However, a quarter of a century later, thanks to the discovery of diamonds on its territory, the situation became quite different: cities and industrial complexes sprang up on the eastern edge of the country, the standard of living of every citizen was suddenly raised and the economy grew spectacularly. If Botswana is now considered Africa's growth champion, it is of course largely due to its real political stability and strong currency, but above all to its raw resources and the size of its cattle herd. With a GDP per capita of US$7,347.6 in 2021, it is one of the richest countries on the continent. However, although the fruits of growth are fairly well distributed and invested, the fact remains that nearly 20% of the population lives below the poverty line. Among other things, the high inflation generated by economic growth makes it difficult for less privileged consumers to acquire basic goods.
Diamonds, a fleeting financial windfall
The discovery of diamonds, which would trigger an economic boom in Botswana, occurred only a year and a half after the declaration of independence. After twelve years of searching, geologists from the South African company De Beers, the world's leading diamond miner, found the Orapa deposit in the central Kalahari, and shortly thereafter the Letlhakane deposit, 40 km southeast of Orapa. The mines came on stream successively in 1971 and 1975 and led to a sudden development of the local infrastructure. Meanwhile, in 1972, another deposit was discovered in the Naledi River valley in the southern Kalahari. Considered the largest mine to come on stream in a hundred years, Jwaneng was soon ranked, after its belated opening in 1982, as the world's premier site for the richness and quality of its gems. It led Botswana to the world's top rankings for rough diamond production by volume, with, for example, 17.35 million carats produced in 1990 and over 20 million in 2000. Operated and managed by Debswana, a company whose capital is shared between the Botswana government and De Beers, the three deposits discovered in the 1970s enabled Botswana to be ranked the world's leading diamond producer for a long time, before being dethroned by Russia in 2015. While diamonds account for about 75% of total exports and their exploitation generates nearly a third of Botswana's GDP, their reserves are not eternal and should, at the current rate of exploitation, be exhausted within 40 years. At Letlhakane, open pit operations ceased in 2017 and a tailings treatment plant replaced the mine work, extending the life of the operation to 2043. Prospecting nevertheless continues, and new kimberlite zones have been discovered near Tsalong and Kukong, as well as 150 km north of Jwaneng. The Ghaghoo mine, which began production in 2014, is capable of producing between 200,000 and 220,000 carats per year.
Cattle breeding, a sector in decline
Livestock farming has been practiced for over two thousand years in Botswana and is traditionally an integral part of Tswana culture, with the ownership of livestock playing an essential role in society. It is first and foremost an outward sign of wealth and prestige, determining a man's status and power, then a dowry at weddings or a gift of compensation for wrongs done to others. Despite the social importance of livestock, only 55% of citizens own cattle and 5% of farmers are large landowners who own half of the national herd. At independence, meat exports were both the country's leading enterprise and the main source of foreign exchange until 1977. While in the 1990s, almost half of the country was still used for livestock grazing, the country, which has experienced terrible droughts, has lost almost half of its livestock in twenty years. Agriculture, which at the time accounted for more than 40% of GDP, has now fallen to 2.2%, sustained mainly by the livestock sector. The livestock sector, which is not spared by global warming, has fallen to third place in the country's foreign exchange earnings and accounts for less than 4% of the country's total exports. The main importers are the European Union and South Africa, to which 12,000 to 15,000 tons of meat are exported annually. The manager of this vast enterprise is the Botswana Meat Commission, a giant state-owned company established in 1965 with the Lobatse abattoir. After a parliamentary inquiry in 2012, it would appear that this body suffers from significant management problems, leading some to question the relevance of such a monopoly.
The place of tourism
With almost half of its territory left in its natural state, of which about 20% is protected in reserves and national parks, the country has an absolutely exceptional tourist potential. Although the distribution of animals is not the same everywhere, certain regions such as the Okavango Delta, the banks of the Chobe River or the Tuli Block are exceptionally rich, making Botswana a great safari destination. With the environment in mind, the country has focused on luxury tourism, avoiding mass tourism which would have a disastrous impact on its natural lands. In the Okavango and Chobe, for example, parks and reserves have been divided into concessions, which are leased to the tourism industry or the community for ten to twenty years, thus allowing the government to keep control over the land. The charming structures installed have a very limited number of beds and offer intimate and privileged stays, but at often expensive prices. Environmental standards are being tightened, and the government is planning a mandatory switch to solar power for all facilities. There are also community concessions, with less luxurious accommodation, operated by the communities, which generate joint income for them. Tourism is now the country's second largest source of foreign exchange and is an important part of the Botswana economy, generating almost 10% of employment. However, while tourism is a significant source of employment, according to Botswana Tourism Board statistics, only 10% of tourism-related revenue does not leave the country. Supply chains are largely managed by foreign companies, while the vast majority of tourism bookings are made in South Africa. However, foreign investment in tourism companies is regulated and, with similar qualifications, national priority applies for guides and employees of tourism facilities. The government makes it difficult for foreigners to obtain work permits, and they must demonstrate that the work cannot be done by a local
Current issues
Between its dependence on imports from South Africa, its economic diversification and the fight against AIDS, Botswana is not without challenges for its future. Botswana's energy and agricultural dependence on its large southern neighbor has been a historical constant in the country's recent history. Botswana's soil is poor for agriculture and water is in short supply everywhere. Only about 1% of the land is cultivated and only 5% is considered arable. Yet the current government is seeking to increase the country's food security. With only 2.4 million inhabitants, the situation could be improved. Thus, the focus is on the northeast region to produce more of the sorghum, corn, millet, wheat, beans, bananas and citrus fruits that the country needs. From an energy perspective, Botswana is also dependent on its neighbors for almost half of its needs. Faced with declining imports and insufficient production, the country has experienced numerous power outages in recent years, but the government sees an opportunity to develop renewable energy. Several projects are currently being examined, including the construction of a solar power plant. In the meantime, solar panels are multiplying in the country, on the roofs of houses and companies. The announced end of the subsoil's wealth places the government in a situation unseen since independence. It is necessary to diversify the economy as quickly as possible, to develop services, to ensure a certain food security and to find a replacement for the inflow of foreign currency. Despite the development of investments in the public sector and particularly in school infrastructures, the workforce remains insufficiently qualified and the unemployment rate high. With no other choice, the country is turning to skilled foreign labor.
