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Introduction:
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Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in 1966. Four decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment have created one of the most dynamic economies in Africa. Mineral extraction, principally diamond mining, dominates economic activity, though tourism is a growing sector due to the country's conservation practices and extensive nature preserves. Botswana has one of the world's highest known rates of HIV/AIDS infection, but also one of Africa's most progressive and comprehensive programs for dealing with the disease. |
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Geography
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Climate
The tables below display average monthly climate indicators in major cities
based on 8 years of historical weather readings.
Temperature by: Centigrade
FRANCISTOWN 21 21 S, 27 50 E, 3280 feet (1000 meters) above sea level.
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People
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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
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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.
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