Economics

Diamonds were discovered the year after independence and since this time Botswana has had one of the world’s fastest growths per capita income in the world where economic growth averaged just about 9% from 1967 to the present. Botswana has the highest credit rating in Africa and through diligent governance has stock piled foreign exchange reserves of over USD 5billion or two and a half years of current imports.

Botswana’s impressive record has been achieved through the discovery of diamonds but equally important has been the well thought out fiscal policies that diamonds have generated. Debswana, which owns all Botswana’s diamond mines, is 50% owned by Debeers and 50% owned by the government and helps generate approximately half of all government revenues. Botswana is ranked as Africa’s least corrupt country (Transparency international 2004) and an A grade credit rating thereby ranking Botswana as the best credit risk in Africa and on par with many countries in Europe.

Botswana’s currency, the Pula is fully convertible and without exchange control restrictions – meaning profits and direct investment can be repatriated without restriction.

Diamonds make up nearly 50% contribution to the economy however in recent years tourism has become the second biggest revenue earner, surpassing cattle and agriculture in the late 90’s Tourism has become a major source of foreign currency, employment and training. More and more tourism ventures are opening every year with the government actively promoting citizen empowerment and joint ventures.

Politics

There are two main parties that contest general elections held every 4 years. The President of Botswana is both head of state and head of government. The Botswana Democratic Party has held power since independence in 1966 with the Botswana and Botswana National Front forming the main opposition. Legislative power is vested in both the government and parliament. The judiciary is independent of the executive and the legislator.