EXPLORING ECONOMIC STRUCTURE AND DRIVERS OF ECONOMIC GROWTH IN BOTSWANA

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Abstract

This article set out to analyse the economic structure and main economic drivers in Botswana. Botswana, a country in sub-Saharan Africa, is a relatively small economy, hugely dependent on its diamond mineral wealth. Concerns have arisen in recent years that the diamond deposits will soon be depleted and the country therefore needs to embark on a diversification programme to broaden its economic base. In order to understand the Botswana economy, its economic structure and current domestic sectorial performance were evaluated, as well as its trends in imports and exports. An analysis of the data shows that, regardless of the awareness of the sensitivity to external shocks of commodity prices, as well as the obvious future depletion of diamond reserves, the Botswana economy continues to rely on diamonds, at the expense of attracting international capital flows to enhance and maintain sustainable economic growth, through investments in agriculture, manufacturing and tourism. It is therefore recommended that the Government of Botswana becomes proactive and implements recommended policies to diversify its economy, so that it can sustain or improve its economic growth by becoming a prime destination of international capital and domestic private sector investment, thereby increasing employment and trade opportunities.

Keywords: Trend Analysis, Investment, Imports, Exports, Policy, Botswana, Africa, Diversification, Economic Growth, Diamonds, FDI

How to cite this paper: Makoni, P. L. (2015). Exploring economic structure and drivers of economic growth in Botswana. Journal of Governance and Regulation, 4(4-6), 673-678. https://doi.org/10.22495/jgr_v4_i4_c6_p1