Botswana

 

Bureau of African Affairs                                                     
July 2007                                                                     
                                                                       
  Background Note: Botswana                                                   
                                                 
  A cheetah alongside the road at                                             
  Mochudi, Botswana, June 29, 2003. [©                                        
  AP Images]                                                                  
                                                                       
  Flag of Botswana is light blue with a horizontal white-edged black stripe in
  the center.                                                                 
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Botswana                                                        
                                                                       
  Geography                                                                   
  Area: 582,000 sq. km. (224,710 sq. mi.), about the size of Texas.           
  Cities (2001 census): Capital--Gaborone (pronounced ha-bo-ro-neh), pop.     
  186,007. Other towns--Francistown (83,023), Selebi-Phikwe (49,849),         
  Molepolole (54,561), Kanye (40,628), Serowe (42,444), Mahalapye (39,719),   
  Lobatse (29,689), Maun (43,776), Mochudi (36,962).                          
  Terrain: Desert and savanna.                                                
  Climate: Mostly subtropical.                                                
                                                                       
  People                                                                      
  Nationality: Noun and adjective--Motswana (sing.), Batswana (pl.).          
  Population (2003): 1.76 million.                                            
  Annual population growth rate (2002): 0.6%.                                 
  Ethnic groups: Tswana 79%; Kalanga 11%; Kgalagadi, Herero, Bayeyi, Hambukush,
  Basarwa ("San"), Khoi, whites 10%.                                          
  Religions: Christianity 70%, none 20%, indigenous beliefs 6%, other 4%.     
  Languages: English (official), Setswana, Ikalanga.                          
  Education: Adult literacy--81%.                                             
  Health (2004): Life expectancy--33.9 years. Infant mortality rate--56/1,000.
  Work force (2003): 274,000.                                                 
                                                                       
  Government                                                                  
  Type: Republic, parliamentary democracy.                                    
  Independence: September 30, 1966.                                           
  Constitution: March 1965.                                                   
  Branches: Executive--president (chief of state and head of government),     
  cabinet. Legislative--popularly elected National Assembly; advisory House of
  Chiefs. Judicial--High Court, Court of Appeal, local and customary courts,  
  industrial labor court.                                                     
  Administrative subdivisions: Five town councils and nine district councils. 
  Major political parties: Botswana Democratic Party (BDP)--48 seats, Botswana
  National Front (BNF)--12 seats, Botswana Congress Party (BCP)--1 seat,      
  Botswana Alliance Movement (BAM), Botswana Peoples Party (BPP)--0 seats.    
  Suffrage: Universal at 18.                                                  
                                                                       
  Economy                                                                     
  Nominal GDP (2004/2005): $9.2 billion.                                      
  Real GDP growth rate (2004/2005): 5.1%                                      
  Per capita nominal GDP (2004/2005): $5,336.                                 
  Natural resources: Diamonds, copper, nickel, coal, soda ash, salt, gold,    
  potash.                                                                     
  Agriculture (2.1% of GDP, 2004/2005): Products--livestock, sorghum, white   
  maize, millet, cowpeas, beans.                                              
  Industry: Types--mining (38% of GDP): diamonds, copper, nickel, coal;       
  tourism, textiles, construction, tourism, beef processing, chemical products
  production, food and beverage production.                                   
  Trade (2003/2004): Exports--$2.9 billion: diamonds, nickel, copper, meat    
  products, textiles, hides, skins, and soda ash. Partners--EU, South Africa, 
  Zimbabwe. Imports--$2.9 billion: machinery, transport equipment, manufactured
  goods, food, chemicals, fuels. Major suppliers--South Africa, EU, and U.S.  
                                                                       
  PEOPLE AND HISTORY                                                          
  The Batswana, a term also used to denote all citizens of Botswana, refers to
  the country's major ethnic group (the "Tswana" in South Africa), which came 
  into the area from South Africa during the Zulu wars of the early 1800s.    
  Prior to European contact, the Batswana lived as herders and farmers under  
  tribal rule.                                                                
                                                                       
  In the 19th century, hostilities broke out between the Batswana and Boer    
  settlers from the Transvaal. After appeals by the Batswana for assistance,  
  the British Government in 1885 put "Bechuanaland" under its protection. The 
  northern territory remained under direct administration and is today's      
  Botswana, while the southern territory became part of the Cape Colony and is
  now part of the northwest province of South Africa; the majority of         
  Setswana-speaking people today live in South Africa.                        
                                                                       
  Despite South African pressure, inhabitants of the Bechuanaland Protectorate,
  Basuotoland (now Lesotho), and Swaziland in 1909 asked for and received     
  British assurances that they would not be included in the proposed Union of 
  South Africa. An expansion of British central authority and the evolution of
  tribal government resulted in the 1920 establishment of two advisory councils
  representing Africans and Europeans. Proclamations in 1934 regularized tribal
  rule and powers. A European-African advisory council was formed in 1951, and
  the 1961 constitution established a consultative legislative council.       
                                                                       
  In June 1964, Britain accepted proposals for democratic self-government in  
  Botswana. The seat of government was moved from Mafikeng, in South Africa, to
  newly established Gaborone in 1965. The 1965 constitution led to the first  
  general elections and to independence in September 1966. Seretse Khama, a   
  leader in the independence movement and the legitimate claimant to          
  traditional rule of the Bamangwato, was elected as the first president,     
  re-elected twice, and died in office in 1980. The presidency passed to the  
  sitting vice president, Ketumile Masire, who was elected in his own right in
  1984 and re-elected in 1989 and 1994. Masire retired from office in 1998. The
  presidency passed to the sitting vice president, Festus Mogae, who was      
  elected in his own right in 1999. Mogae won a second term in elections held 
  October 30, 2004.                                                           
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  Botswana has a flourishing multiparty constitutional democracy. Each of the 
  elections since independence has been freely and fairly contested and has   
  been held on schedule. The country's minority groups participate freely in  
  the political process. There are three main parties and a number of smaller 
  parties. In national elections in 2004, the Botswana Democratic Party (BDP) 
  won 44 of 57 contested National Assembly seats, the Botswana National Front 
  (BNF) won 12, and the Botswana Congress Party (BCP) won 1 seat. Individuals 
  elected by the National Assembly hold an additional 4 seats; the ruling BDP 
  currently holds all 4. The opposition out-polled the ruling BDP in most urban
  areas. The openness of the country's political system has been a significant
  factor in Botswana's stability and economic growth. General elections are   
  held every 5 years. The next general election will be held in October 2009. 
                                                                       
  The president has executive power and is chosen by the National Assembly    
  following countrywide legislative elections. The cabinet is selected by the 
  president from the National Assembly; it consists of a vice president and a 
  flexible number of ministers and assistant ministers, currently 14 and 6,   
  respectively. The National Assembly has 57 elected and 4 specially elected  
  members; it is expanded following each census (every 10 years; the most     
  recent was conducted in 2001).                                              
                                                                       
  The advisory House of Chiefs represents the eight principal subgroups of the
  Batswana tribe, and four other members are elected by the sub chiefs of four
  of the districts. A draft of any National Assembly bill of tribal concern   
  must be referred to the House of Chiefs for advisory opinion. Chiefs and    
  other leaders preside over customary traditional courts, though all persons 
  have the right to request that their case be considered under the formal    
  British-based legal system.                                                 
                                                                       
  The roots of Botswana's democracy lie in Setswana traditions, exemplified by
  the Kgotla, or village council, in which the powers of traditional leaders  
  are limited by custom and law. Botswana's High Court has general civil and  
  criminal jurisdiction. Judges are appointed by the president and may be     
  removed only for cause and after a hearing. The constitution has a code of  
  fundamental human rights enforced by the courts, and Botswana has a good    
  human rights record.                                                        
                                                                       
  Local government is administered by nine district councils and five town    
  councils. District commissioners have executive authority and are appointed 
  by the central government and assisted by elected and nominated district    
  councilors and district development committees. There has been ongoing debate
  about the political, social, and economic marginalization of the San        
  (indigenous tribal population). The government's policies for the Basarwa   
  (San) and other remote area dwellers continue to spark controversy.         
                                                                       
  Principal Government Officials                                              
  President--Festus G. Mogae                                                  
  Vice President--Lt. Gen. (ret) Seretse Khama Ian Khama                      
                                                                       
  Cabinet Ministers                                                           
  Finance and Development Planning--Baledzi Gaolathe                          
  Foreign Affairs and International Cooperation--Mompati S. Merafhe           
  Environment, Wildlife and Tourism--Onkokame Kitso Mokaila                   
  Communications, Science and Technology--Pelonomi Venson                     
  Presidential Affairs and Public Administration--Phandu T.C. Skelemani       
  Trade and Industry--Daniel Neo Moroka                                       
  Minerals Resources and Water Affairs--Mbiganyi Charles Tibone               
  Lands and Housing--Dikgakgamatso Seretse                                    
  Local Government--Margaret Nasha                                            
  Education--Jacob Nkate                                                      
  Health--Sheila Tlou                                                         
  Works and Transport--Lesego Motsumi                                         
  Labour and Home Affairs--Moeng Pheto                                        
  Agriculture--Johnnie Keemenao Swartz                                        
                                                                       
  Ambassador to the United States--L. Caesar Lekoa                            
  Ambassador to the United Nations--Samuel Otsile Outlule                     
                                                                       
  Botswana maintains an embassy at 1531-1533 New Hampshire Avenue NW,         
  Washington DC 20036 (tel. 202-244-4990; fax 202-244-4164). Its mission to the
  United Nations is at 103 E. 37th Street, New York NY 10017 (tel.            
  212-889-2277; fax 212-725-5061).                                            
                                                                       
  ECONOMY                                                                     
  Since independence, Botswana has had the fastest growth in per capita income
  in the world. Economic growth averaged over 9% per year from 1967-97. The   
  government has maintained a sound fiscal policy, despite three consecutive  
  budget deficits in 2002-2004, and a negligible level of foreign debt. Foreign
  exchange reserves were $5 billion at the end of December 2005, equivalent to
  22 months of imports of goods and services. Botswana's impressive economic  
  record has been built on the foundation of wisely using revenue generated   
  from diamond mining to fuel economic development through prudent fiscal     
  policies and a cautious foreign policy. However, economic development       
  spending was cut by 10% in 2002/2003 as a result of recurring budget deficits
  and rising expenditure on healthcare services. While development spending was
  budgeted to increase by 12.3% in the 2005/2006 fiscal year, the bulk of the 
  money was to be spent on ongoing projects and maintenance rather than new   
  infrastructure. Real GDP growth was expected to slow in 2005 to between 3%  
  and 4% from its 5.7% growth rate in 2004. The government recognizes that HIV/
  AIDS will continue to affect the economy and is providing leadership and    
  programs to combat the epidemic, including free anti-retroviral treatment and
  a nationwide Prevention of Mother-to-Child Transmission program.            
                                                                       
  Mining                                                                      
  Two large mining companies, Debswana (formed by the government and South    
  Africa's DeBeers in equal partnership) and Bamangwato Concessions, Ltd. (BCL,
  also with substantial government equity participation) operate in the       
  country.                                                                    
                                                                       
  Since the early 1980s, the country has been the world's largest producer of 
  gem quality diamonds. Four large diamond mines have opened since            
  independence. DeBeers prospectors discovered diamonds in northern Botswana in
  the late 1960s. The first mine began production at Orapa in 1972, followed by
  the smaller mines of Lethlakane and Damtshaa. What has become the           
  single-richest diamond mine in the world opened in Jwaneng in 1982. The Orapa
  2000 Expansion of the existing Orapa mine was opened in 2000. In December   
  2004, Debswana negotiated 25-year lease renewals for all four of its mines  
  with the Government of Botswana. The Debswana carat output for 2004 was a   
  record 31 million carats, making Debswana the world's leading diamond       
  producer by value and volume. Exploration for other kimberlite pipes        
  continues. In addition, as part of its drive to diversify and increase local
  value added within the mining sector, Botswana has announced plans to       
  establish a joint venture company with De Beers, which will be Debswana's   
  sorting and marketing arm.                                                  
                                                                       
  BCL, which operates a copper-nickel mine at Selebi-Phikwe, has had a troubled
  financial history but remains an important employer. The soda ash operation 
  at Sua Pan, opened in 1991 and supported by substantial government          
  investment, has begun making a profit following significant restructuring. It
  produced 283,000 tons of soda ash in 2002. BCL is expected to significantly 
  reduce operations within the next ten years.                                
                                                                       
  Coal bed methane gas has been discovered in the northeastern part of the    
  country, estimated by the developers at a commercially viable quantity of 12
  trillion cubic feet. Development of the gas field, financed by the U.S.     
  Overseas Private Investment Corporation, began in mid-2004.                 
                                                                       
  Tourism                                                                     
  Tourism is an increasingly important industry in Botswana, accounting for   
  almost 12% of GDP, despite only modest growth of 2.9% in 2003/2004. One of  
  the world's unique ecosystems, the Okavango Delta, is located in Botswana.  
  The country offers excellent game viewing and birding both in the Delta and 
  in the Chobe Game Reserve--home to one of the largest herds of free-ranging 
  elephants in the world. Botswana's Central Kalahari Game Reserve also offers
  good game viewing and some of the most remote and unspoiled wilderness in   
  southern Africa.                                                            
                                                                       
  Agriculture                                                                 
  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 a very small amount to          
  GDP--primarily through beef exports--but it remains a social and cultural   
  touchstone. Cattle raising in particular dominated Botswana's social and    
  economic life before independence. The national herd is estimated between 2 
  and 3 million head, but the cattle industry is experiencing a protracted    
  decline.                                                                    
                                                                       
  Private Sector Development and Foreign Investment                           
  Botswana seeks to further diversify its economy away from minerals, which   
  account for a third of GDP (down from nearly half of GDP in the early 1990s).
  Foreign investment and management are welcomed in Botswana. Botswana        
  abolished foreign exchange controls in 1999, has a low corporate tax rate   
  (15%), and no prohibitions on foreign ownership of companies. The country's 
  inflation rate had remained stable and comparatively low over the 10 years  
  preceding 2005. However, rising fuel and utility prices along with the      
  government's 12.5% devaluation of the Pula in May 2005 resulted in a spike in
  inflation to an average annual rate of 11.4% as of December 2005, which fell
  well outside the Bank of Botswana's target rate of between 4-7%. The        
  Government of Botswana was considering additional policies to enhance       
  competitiveness, including a new Foreign Direct Investment Strategy and     
  National Export Development Strategy. Botswana's parliament adopted both a  
  Privatization Master Plan and a new Competition Policy that were aimed at   
  fostering economic diversification.                                         
                                                                       
  With its proven record of good economic governance, Botswana was ranked as  
  Africa's least corrupt country by Transparency International in 2005, ahead 
  of many European and Asian countries. The World Economic Forum rates Botswana
  as one of the two most economically competitive nations in Africa. In       
  November 2005, Standard & Poor's once again assigned Botswana an "A" grade  
  credit rating. This ranks Botswana as by far the best credit risk in Africa 
  and puts it on par or above many countries in central Europe, East Asia, and
  Latin America.                                                              
                                                                       
  U.S. investment in Botswana remains at relatively low levels. Major U.S.    
  corporations, such as H.J. Heinz and AON Corporation, are present through   
  direct investments, while others, such as Kentucky Fried Chicken and Remax, 
  are present via franchise. The sovereign credit ratings by Moody's and      
  Standard & Poor's clearly indicate that, despite continued challenges such as
  small market size, landlocked location, and cumbersome bureaucratic         
  processes, Botswana remains one of the best investment opportunities in the 
  developing world. Botswana has a 90-member American Business Council that   
  accepts membership from American-affiliated companies.                      
                                                                       
  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,
  and is the world's oldest customs union. 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 decision-making authority over   
  duties--held exclusively by the Government of South Africa--became          
  increasingly controversial, and the members renegotiated the arrangement in 
  2001. A new structure has now been formally ratified and a SACU Secretariat 
  has been established in Windhoek, Namibia. Following South Africa's accession
  to the World Trade Organization (WTO, of which Botswana also is a member),  
  many of the SACU duties are declining, making American products more        
  competitive in Botswana. Currently the SACU countries and the U.S. are      
  negotiating a free trade agreement. Botswana is currently also negotiating a
  free trade agreement with Mercosur and an Economic Partnership Agreement with
  the European Union as part of SADC, and opened negotiations with China and  
  India in 2005.                                                              
                                                                       
  Botswana's currency--the Pula--is fully convertible and is valued against a 
  basket of currencies heavily weighted toward the South African Rand. Profits
  and direct investment can be repatriated without restriction from Botswana. 
  The Botswana Government eliminated all exchange controls in 1999. The Central
  Bank devalued the Pula by 12.5% in May 2005 in a bid to maintain export     
  competitiveness against the real appreciation of the Pula and restructured  
  the exchange rate mechanism to a crawling peg system to ensure against future
  large-scale devaluations.                                                   
                                                                       
  Botswana is the immediate past chair of the 14-nation Southern African      
  Development Community (SADC), and Gaborone hosts the SADC Secretariat's     
  headquarters. SADC replaced the Southern Africa Development Coordination    
  Conference (SADCC--launched in 1980, which focused its efforts on freeing   
  regional economic development from dependence on apartheid South Africa. SADC
  embraced the newly democratic South Africa as a member in 1994. It has a    
  broad mandate to encourage growth, development, and economic integration in 
  Southern Africa. SADC's Trade Protocol, which was launched on September 1,  
  2000, calls for the elimination of all tariff and non-tariff barriers to    
  trade by 2008 among the 11 signatory countries. Zimbabwe's membership has   
  limited SADC's opportunities for cooperation with the United States.        
                                                                       
  Transportation and Communications                                           
  A sparsely populated, semi-arid country about the size of Texas, Botswana has
  nonetheless managed to incorporate much of its interior into the national   
  economy. An "inner circle" highway connecting all major towns and district  
  capitals is completely paved, and the all-weather Trans-Kalahari Highway    
  connects the country (and, through it, South Africa's commercially dominant 
  Gauteng Province) to Walvis Bay in Namibia. A fiber-optic telecommunications
  network has been completed in Botswana connecting all major population      
  centers. In November 2003, representatives of Botswana, Namibia and South   
  Africa signed an MOU to simplify documentation to move cargoes to and from  
  the Port of Walvis Bay in Namibia.                                          
                                                                       
  In addition to the government-owned newspaper and national radio network,   
  there is an active, independent press (one daily and seven weekly           
  newspapers). Two privately owned radio stations began operations in 1999. In
  2000, the government-owned Botswana Television (BTV) was launched, which is 
  Botswana's first national television station. GBC is a commercially owned   
  television station that broadcast programs to the Gaborone area only. Foreign
  publications are sold without restriction in Botswana, and there are 22     
  commercial Internet service providers. Two cellular phone providers cover   
  most of the country.                                                        
                                                                       
  DEFENSE                                                                     
  The president is commander in chief of the Botswana Defense Force (BDF). A  
  defense council is appointed by the president. The BDF was formed in 1977 and
  has approximately 13,000 members.                                           
                                                                       
  The BDF is a capable and well-disciplined military force. Following positive
  political changes in South Africa and the region, the BDF's missions have   
  increasingly focused on border control and anti-poaching activities. The    
  United States has been the largest single contributor to the development of 
  the BDF, and a large segment of its officer corps has received U.S. training.
  It is considered an apolitical and professional institution.                
                                                                       
  FOREIGN RELATIONS                                                           
  Botswana puts a premium on economic and political integration in Southern   
  Africa. It seeks to make SADC a working vehicle for economic development, and
  promotes efforts to make the region self-policing in terms of preventative  
  diplomacy, conflict resolution, and good governance. Botswana joins the     
  African consensus on most major international matters and is a member of    
  international organizations such as the United Nations and the African Union
  (AU).                                                                       
                                                                       
  U.S.-BOTSWANA RELATIONS                                                     
  The United States considers Botswana an advocate of and a model for stability
  in Africa and has been a major partner in Botswana's development since its  
  independence. The U.S. Peace Corps returned to Botswana in August 2002 with a
  focus on HIV/AIDS-related programs after concluding 30 years of more broadly
  targeted assistance in 1997. Similarly, the USAID phased out a longstanding 
  partnership with Botswana in 1996, after successful programs emphasizing    
  education, training, entrepreneurship, environmental management, and        
  reproductive health. Botswana, however, continues to benefit along with its 
  neighbors in the region from USAID's Initiative for Southern Africa. The    
  Regional Center for Southern Africa (RCSA), which implements the U.S. Agency
  for International Development's (USAID) Initiative for Southern Africa (ISA),
  is headquartered in Gaborone as well. The United States International Board 
  of Broadcasters (IBB) operates a major Voice of America (VOA) relay station 
  in Botswana serving most of the African Continent.                          
                                                                       
  In 1995, the Centers for Disease Control (CDC) started the BOTUSA Project in
  collaboration with the Botswana Ministry of Health in order to generate     
  information to improve TB control efforts in Botswana and elsewhere in the  
  face of the TB and HIV/AIDS co-epidemics. Under the 1999 U.S. Government's  
  Leadership and Investment in Fighting an Epidemic (LIFE) Initiative, CDC    
  through the BOTUSA Project has undertaken many projects and has assisted many
  organizations in the fight against the HIV/AIDS epidemic in Botswana.       
  Botswana is one of the 15 focus countries for PEPFAR, the President's       
  Emergency Plan for Aids Relief and began receiving funding and assistance   
  under this program in January 2004. PEPFAR assistance to Botswana, which    
  totaled $20 million in FY 2004 and doubled to $40 million in FY 2005, is    
  contributing to HIV/AIDS prevention, treatment, and care interventions.     
                                                                       
  The Governments of Botswana and the United States entered into an agreement 
  in July 2000 to establish an International Law Enforcement Academy (ILEA) in
  Gaborone. The academy, jointly financed, managed and staffed by the two     
  nations, provides training to police and government officials from Southern 
  Africa and eventually from across the continent. The academy's permanent    
  campus, in Otse outside of Gaborone, opened March 2003. Over 1,500 law      
  enforcement professionals from Sub-Saharan Africa have received training from
  ILEA since it began offering classes in 2001.                               
                                                                       
  Principal U.S. Officials                                                    
  Ambassador--Katherine H. Canavan                                            
  Deputy Chief of Mission--Philip R. Drouin                                   
  USAID Regional Center for Southern Africa Director--Erna Kerst              
  Defense Attache--LTC Davis (Lee) Butler                                     
  Office of Defense Cooperation--LTC Daniel M. Jones                          
  Centers for Disease Control--Dr. Margarett Davis                            
  International Board of Broadcasters--William Martin                         
  International Law Enforcement Agency--Stan Moran                            
  Peace Corps--Peggy McClure                                                  
                                                                       
  The U.S. Embassy is on Embassy Drive off Khama Crescent--P.O. Box 90,       
  Gaborone (tel. 267-353-982; fax 267-356-947). USAID is located on Lebatlane 
  Road. DAO and ODC are located at the embassy. CDC is located on Ditlhakore  
  Way in Gaborone. ILEA is located in Otse, about 30 minutes outside of       
  Gaborone. The IBB station is located in Selebi-Phikwe, about 400 kilometers 
  northeast of Gaborone.                                                      
                                                                       
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  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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See http://www.state.gov/r/pa/bgn/ for all Background notes
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