Botswana

B

Education

In 2005 Botswana’s adult literacy rate stood at 81.4 percent. Most primary schools are supervised by the district councils and township authorities and are financed from local government revenues assisted by grants-in-aid from the central government. Virtually all primary school-aged children were enrolled in school in 2002–2003, while 73 percent of secondary school-aged children were enrolled. Specialized education was provided by teacher-training schools and vocational-training schools. Thousands of students attend the University of Botswana (founded in 1976), in Gaborone.

IV

Economy of Botswana

Since independence in 1966, Botswana has been transformed from a near-subsistence economy into one of the wealthiest and fastest-growing countries in Africa. In 2006 the country’s gross domestic product (GDP) was $10 billion, or $5,845.80 per person. (GDP is a measure of the value of all the goods and services a country produces.) The transformation of the economy resulted from the discovery of mineral resources, in particular huge deposits of the diamonds that account for about four-fifths of Botswana’s export earnings. Industry, primarily mining, produced 53 percent of GDP in 2006.

From the time of independence, Botswana recorded one of the highest economic growth rates in the world. The growth rate averaged over 9 percent per year from 1966 to 1999. The country’s revenues, largely from diamond mining, exceeded its expenditures. However, the dependence on diamond mining made the country vulnerable to global fluctuations in demand, and the government sought to diversify the economy.

A

Agriculture

Less than 1 percent of the country’s total land area is arable (suitable for growing crops). Raising livestock has long been the most important agricultural activity in Botswana. Goats and sheep adapt to drought better than cattle do. Most of Botswana’s cattle are raised for beef rather than dairy products. About a fifth of the population is engaged in agriculture, most of it at a subsistence level, and agriculture provides a tiny part of the country’s GDP. People grow crops mainly to feed their families.

---

---

B

Mining and Manufacturing

Botswana is the world’s largest supplier of gem-quality diamonds, with two-thirds of production meeting gem standards. Diamonds account for four-fifths of Botswana’s annual export revenue. About 23 million carats of gem-quality diamonds were extracted in 2004. Prospectors discovered diamonds in northern Botswana in the late 1960s, and the first mine opened at Orapa in 1971, followed by a smaller mine at Letlhakane. What developed into the world’s richest diamond mine opened in Jwaneng in 1982. Important deposits of copper and nickel are in the Selebi-Pikwe area. Much of the nickel and copper produced annually is exported, as is soda ash and small quantities of gold.

Botswana’s manufacturing sector is small. However, a diamond-processing plant opened in 2008 under the joint ownership of the government and the De Beers diamond giant. The new plant, located in Gaborone, created thousands of jobs. Previously, all of Botswana’s diamonds had been exported for processing. The remainder of the country’s manufacturing sector consists mainly of food-processing and mineral-processing, with some textile production. Botswana produces beef for export.

C

Currency, Banking, and Trade

The currency of Botswana is the pula (5.80 pula equal U.S.$1; 2006 average). In 2001 Botswana’s annual imports cost $1.8 billion; exports earned $2.5 billion in the same year. The country is in a customs union, the Southern African Customs Union (SACU), which includes Lesotho, Namibia, South Africa, and Swaziland. This group is Botswana’s chief trading partner for imports. The United Kingdom is its chief trading partner for exports.