Time for Botswana to confront hard truths
Country needs to make structural changes to the economy and lessen its dependence on diamonds, writes Alexander Matthews
As Botswana celebrates 50 years since the discovery of its vast diamond deposits, the country is struggling to shake off its dependence on the gems. The mineral bonanza has transformed one of the world’s poorest and least-developed countries into an upper-middle-income economy that has seen average growth of 8.2% since independence in 1966 to 2015 – a performance only outpaced by China’s 9.3%. Poverty levels have shrunk from 50% to 19%, with per capita incomes increasing a whopping 13 times from $483 in 1966 to $7,080 in 2015 (in constant 2010 US dollar terms). There has been a significant social dividend too. The provision of healthcare and education has been expanded massively – today, 9% of GDP is spent on education and primary school is free. Life expectancy has surged from 52 years to 64 – despite HIV/AIDS, which has infected almost a quarter of the population. Infant mortality has been reduced by two-thirds. Despite these impressive achievements, Botswana’s income inequality i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.