Botswana

BOTSWANA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS BOTSWANANS
DEPENDENCIES
BIBLIOGRAPHY

Republic of Botswana

CAPITAL: Gaborone

FLAG: The flag of Botswana consists of five horizontal stripes. The top and bottom stripes are light blue and wider than the middle stripe, which is black. The blue stripes are separated from the black by thin white stripes.

ANTHEM: Fatshe La Rona (Blessed Country).

MONETARY UNIT: On 23 August 1976, the pula (p) of 100 thebe replaced the South African rand (r) as Botswana's legal currency. There are coins of 1, 2, 5, 10, 25, 50 thebe and 1 pula, and notes of 2, 5, 10, 20, 50 and 100 pula. p1 = $0.19380 (or $1 = p5.16) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; President's Day, 15 July; Botswana Days, 30 September–1 October; Christmas, 25 December; Boxing Day, 26 December. Movable holidays include Good Friday, Easter Monday, and Ascension.

TIME: 2 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

A landlocked country in southern Africa, Botswana has a total area of 600,370 sq km (231,804 sq mi), extending 1,110 km (690 mi) nne–ssw and 960 km (597 mi) ewe–wnw. Comparatively, the area occupied by Botswana is slightly smaller than the state of Texas. It meets Zambia at a point in the n and is bordered on the ne by Zimbabwe, on the se and s by South Africa, and on the w and n by Namibia, with a total land boundary length of 4,013 km (2,493 mi).

TOPOGRAPHY

The country is a broad tableland with a mean altitude of 1,000 m (3,300 ft). A vast plateau about 1,200 m (4,000 ft) in height, extending from near Kanye north to the Zimbabwean border, divides the country into two distinct topographical regions. The eastern region is hilly bush country and grassland (veld). The Tsodilo Hills in the northwest contain the highest point in the country at about 1,489 m (4,884 ft). To the west lie the Okavango Swamps and the Kalahari Desert. The only sources of year-round surface water are the Chobe River in the north, the Limpopo in the southeast, and the Okavango in the northwest. The Limpopo is the longest river with a length of 1,600 km (1,000 mi). In seasons of heavy rainfall, floodwaters flow into the Makgadikgadi Salt Pans, Lake Ngami (the largest lake, 1,040 sq km/401 sq mi), and Lake Xau.

CLIMATE

Most of the country has a subtropical climate, with cooler temperatures prevailing in the higher altitudes. Winter days are warm and nights are cool, with heavy frost common in the desert. Temperatures range from average maximums of 33°c (91°f) in January and 22°c (72°f) in July to average minimums of 18°c (64°f) in January and 5°c (41°f) in July. In August begin the seasonal winds that blow from the west and carry sand and dust across the country. Rainfall normally averages 45 cm (18 in) but ranges from 69 cm (27 in) in the north to less than 25 cm (10 in) in the Kalahari; drought conditions prevailed in the early and mid-1980s.

FLORA AND FAUNA

Although about 90% of Botswana is covered by some kind of savanna, even the Kalahari Desert contains adequate vegetation to support tens of thousands of wild animals. Common trees are the mopane, camel-thorn, motopi (shepherd's tree), and baobab. Botswana is a natural game reserve for most animals found in southern Africa, including lions, leopards, cheetahs, elephants, giraffes, zebras, hippopotamuses, rhinoceroses, African buffalo, hyenas, and 22 species of antelope. The duiker (a small, horned antelope), wildebeest (gnu), and springbok (gazelle) are familiar. As of 2002, there were at least 164 species of mammals, 184 species of birds, and over 2,100 species of plants.

ENVIRONMENT

Overgrazing due to the rapid expansion of the cattle population is a continuing threat to the vegetation and wildlife of Botswana. There are 5 game reserves, 3 game sanctuaries, and 40 controlled hunting areas. About 18% of the land has been set aside as national parks and game reserves. Natural hazards to the environment include seasonal winds from the west that blow sand and dust across the country.

Botswana has a very limited water supply that is inadequate for its increasing population, and the nation's water shortage is exacerbated by periodic droughts. One major factor in Botswana's water supply problem is that 68% of the country is part of the Kalahari desert. The country has about 3 cu km of renewable water resources, 48% of which is used for farming. Almost all of Botswana's urban dwellers and 90% of its rural people have access to safe water.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 6 types of mammals and 9 species of birds. Endangered species included the black rhinoceros, the African hunting dog, and the African savannah elephant. Burchell's zebra has become extinct.

POPULATION

The population of Botswana in 2005 was estimated by the United Nations (UN) at 1,640,000, which placed it at number 143 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 39% of the population under 15 years of age. There were 97 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be -0.3%. The projected population for the year 2025 was 1,583,000. The population density was 3 per sq km (7 per sq mi).

The UN estimated that 54% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 0.54%. The capital city, Gaborone, had a population of 19,000 in that year. Other cities and their populations are Mahalapye, 109,811; Serowe, 153,035; Tutume 123,514; Bobonong, 66,964; Francistown, 87,000; Selebi-Phikwe, 52,300; Maun, 48,057; and Lobatse, 29,700.

The prevalence of HIV/AIDS has had a significant impact on the population of Botswana. The UN estimated that 38.5% of adults between the ages of 15–49 were living with HIV/AIDS in 2001. The AIDS epidemic causes higher death and infant mortality rates, and lowers life expectancy. Life expectancy dropped from 65 years in 1990 to 35 years in 2005.

MIGRATION

At least 50,000 Botswanans are working in South Africa at any particular time. In 1991, 21,468 South African residents were listed as born in Botswana. Botswana had some 500 refugees at the end of 1992, about 40% from South Africa. In 1998, the United Nations High Commissioner for Refugees (UNHCR) had been planning to phase out its Botswana office by the end of the year. However, in October 1998 the influx of 2,500 asylum seekers from the Caprivi region of Namibia provided them with an urgent new caseload. As of 1999, the repatriation plan to return the Namibian refugees had been temporarily halted, due to a deterioration of the situation in the Caprivi region. In 2005, the net migration rate was estimated as 6.07 per 1,000 population. There were 52,000 migrants living in Botswana in 2000. In 2004 there were 3,800 refugees. The government views the immigration level as too high.

ETHNIC GROUPS

The population, predominantly of Tswana stock (79%), is distributed among eight tribes, Batswana being the largest. The others include Bamangwato, Bakwena, Bangwaketsi, Bakgatla, Barolong, Bamalete, and Batlokwa. The next largest single group of indigenous peoples is the Kalanga, which accounts for about 11% of the population. There are about 3% Basarwa (Bushmen). Kgalagadi and whites account for about 7%.

LANGUAGES

Though English is the official language, it is only spoken by about 2.1% of the population (2001 census). Setswana is the most widely spoken language, spoken by about 78.2% of the population. About 7.9% of the population speak Kalanga and 2.8% speak Sekgalagadi. Other languages are used by about 8.6% of the population; 0.4% of the population did not specify their native language.

RELIGIONS

It is estimated that about one-half the population are nominally Christian. Anglicans, Methodists, and the United Congregational Church of Southern Africa—formerly the London Missionary Society—are the largest groups. Other congregations include Lutherans, Roman Catholics, the Church of Jesus Christ of Latter-Day Saints (Mormons), Seventh-Day Adventists, Jehovah's Witnesses, Baptists, the Dutch Reformed Church, Mennonites, and other Christian denominations. Most people practice a blend of indigenous beliefs alongside of their Christianity. About 1% of the population is Muslim and about 1% is Hindu. There is a small community of Bahai's.

Freedom of religion is provided for in the constitution and this right is generally respected in practice. Religious groups, like all organizations within the country, must be registered with the state Registrar of Societies, a department of the Ministry of Labor and Home Affairs. Some Christian holidays are celebrated as public holidays.

TRANSPORTATION

In 2003, Botswana had 25,233 km (15,694 mi) of roads, of which 8,867 km (5,506 mi) were paved. Bituminous roads have been extended to the Zambian and Zimbabwean borders, thereby reducing Botswana's economic dependence on South Africa. In 2003, there were 52,120 passenger cars and 75,400 commercial vehicles in Botswana.

The main railroad from Cape Town in South Africa to Bulawayo in Zimbabwe runs through Botswana for a distance of 641 km (398 mi), connecting Lobatse, Gaborone, and Francistown. Two branch lines totaling 71 km (44 mi) connect the coal field of Morupule and the copper-nickel complex at Selebi-Phikwe with the main line; these lines are owned by Botswana but operated by National Railways of Zimbabwe. In 1991, a new 165 km (103 mi) spur connecting Sua Pan to Francistown was completed, at a cost of $45 million. Botswana had a total of 888 km (552 mi) of narrow gauge railways in 2004.

In 2004 there were an estimated 85 airports, 10 of which (as of 2005), were paved. The government-owned Air Botswana operates scheduled flights to Francistown, Gaborone, Maun, and Selebi-Phikwe. There is international service to Johannesburg, South Africa; Mbabane, Swaziland; and Harare, Zimbabwe. A new international airport near Gaborone was opened in 1984. Air passengers arriving to and departing from Botswana during 2003 totaled about 183,000.

HISTORY

According to tradition, the founder of the Batswana tribe was a 14th-century chief named Mogale. His great-great-grandson Malope had three sons, Kwena, Ngwaketse, and Ngwato, who became the chiefs of the major tribes that now inhabit Botswana.

The foundations of the modern state lie in the 1820–70 period, when the Batswana suffered many tribulations at the hands of the Matabele. In 1872, Khama III became chief of the Bamangwato. He was the son of Chief Sekgoma, the only Batswana chief who had succeeded in turning back the Matabele. Up to that time, the Batswana had no permanent contact with europeans, except for the missionaries Robert and Mary Moffat and David Livingstone, who had established missions in the first half of the 19th century. But with increased exploration and the partition of southern Africa among the European powers, hostility developed between the Batswana and the Boer trekkers from the Transvaal. Khama III appealed to the United Kingdom for assistance, and in 1885 the whole of what was then known as Bechuanaland was proclaimed to be under the protection of Queen Victoria. The territory south of the Molopo River was constituted a crown colony called British Bechuanaland, and in 1895 it was incorporated into South Africa. The northern part of the territory, the Bechuanaland Protectorate, remained under the protection of the British crown, the powers of which, beginning in 1891, were exercised by the high commissioner in South Africa. The South African Act of Union of 1909, which created the Union (now Republic) of South Africa, provided for the eventual transfer to South Africa of Bechuanaland and the two other High Commission Territories, Basutoland and Swaziland, despite their requests to the contrary. The provision was dropped in 1961, after the withdrawal of South Africa from the Commonwealth.

The first significant political progress was made in 1921–22 with the creation of European and African advisory councils, added to which was a joint advisory council. In 1961, executive and legislative councils were created. A major step on the road to independence was taken in 1965 with the implementation of Bechuanaland's self-government constitution under Seretse Khama, the former chief-designate of the Bamangwato, who had become prime minister after Bechuanaland's first general elections. Final constitutional talks were held in London in February 1966, and on 30 September 1966, under the leadership of President Khama, the newly named Republic of Botswana came into being.

On 18 October 1969, the Botswana Democratic Party (BDP), under the leadership of Sir Seretse Khama, was returned to power in the general elections, and he was sworn in for a second term as president on 22 October. Khama was reelected president after the BDP won 27 out of 32 regular elective seats in the National Assembly in national elections held on 26 October 1974. During this first decade of independence, Botswana refused to support the United Nations (UN) sanctions against South Africa because, although officially opposed to apartheid, Botswana recognized its own economic dependence on South Africa. Following the 1969 elections, President Khama banned the import of goods from the white minority regime in Rhodesia (now Zimbabwe). Tensions were high in the 1970s as Botswana harbored 20,000 refugees from Rhodesia, and Rhodesian forces several times crossed into Botswana on "hot pursuit" raids against guerrillas.

In elections held in October 1979, the BDP won 29 of the 32 elective seats, and Khama was elected to a fourth presidential term. He died in 1980 and was succeeded by Vice President Quett Ketumile Joni Masire, who was elected to a full five-year term on 10 September 1984. Masire was reelected on 7 October 1989 and the BDP won 31 and the BNF 3 of the elected assembly seats.

South Africa repeatedly, but fruitlessly, pressed Botswana to sign a mutual-security agreement, and it accused Botswana of harboring insurgents opposed to the Pretoria regime and allowing them to mount acts of terrorism and sabotage against South Africa, a charge Botswana denied. An attack by South African commandos on 14 June 1985, aimed at South African refugees, killed at least 15 people in Gaborone. Further South African border violations and attacks on targets in Botswana took place during 1986, but such incursions had ended by 1988. In 1992 the two countries established formal diplomatic relations.

Before the 1994 legislative elections, the assembly was expanded to 44 seats, 40 of which would be elected, with the majority party given the right to appoint the remaining 4 seats. The opposition maneuvered before the election, attempting to form a broad coalition to unseat the BDP, which had so dominated the country since independence. Many opposition politicians insisted on electoral reforms, specifically the introduction of absentee balloting (20% of the population were migrant workers) and the lowering of the voting age from 21 to 18. On 15 October the elections were held and the BDP won a significant majority of seats in the assembly. The assembly named Masire president on 17 October. In November 1995, amidst worsening economic conditions and civil unrest, the government announced constitutional reforms, which limited the president to two terms, although a stipulation was added that the rule would not apply to the sitting president. The voting age was also lowered to 18, but no action was taken to introduce absentee balloting.

On 1 April 1998, Festus Mogae succeeded Quett Masire after the latter stepped down. Mogae was subsequently elected president in the 16 October 1999 polls with 54.3% of the National Assembly vote. He faced a number of issues such as environmental degradation, the need to diversify the economy, and political power struggles within the ruling party.

The Botswanan general election of 2004 was fought between the Botswana Democratic Party (BDP) and eight opposition parties. A total of 57 seats in the parliament were contested. The election was won by the BDP which won 51.7 % of popular votes and obtained 44 seats in the new parliament. The largest opposition party, the Botswana National Front (BNF) won 26% of the popular vote and 12 seats. The Botswana Congress Party (BCP) won 17% of the popular vote and only 1 seat. Voter turnout in the 2004 general election was 76%. The other five smaller political parties did not win any seats. The BNF accused the country's Independent Election Commission of fundamental errors in its conduct of voter registrations. The leader of BDP, Festus Mogae, was serving his second and last term as President of Botswana. Although the political landscape in Botswana has been dominated by the BDP since independence, the country has a flourishing multiparty constitutional democracy. As of 2004, each of the elections since independence were freely and fairly contested and had been held on schedule.

The escalating HIV/AIDS pandemic has meant that political and economic challenges have taken a back seat. As of 2003, Botswana had one of the highest HIV/AIDS adult prevalence rates in the world. The government's goal was to have no new infections by 2016, and Botswana has been commended for being the first country in Africa to widely distribute antiretroviral drugs through its public health system.

GOVERNMENT

Under the 1965 constitution, as subsequently modified, Botswana is a republic. It is Africa's longest continuous multiparty democracy. The president is the chief of state, chief executive, and commander-in-chief of the armed forces. He is elected by a simple majority of the National Assembly. The president appoints a cabinet from among the National Assembly members, including the vice president, who also serves as a cabinet minister. The president also has the power to declare war, and he can summon or dissolve the National Assembly at any time. He can veto any bill, but if it is passed again within six months, he must either sign it or dissolve the Assembly.

The bi-cameral parliament consists of a National Assembly and a House of Chiefs. The National Assembly comprises 61 seats—57 are directly elected members and 4 are appointed by the majority party. After a no-confidence vote, the Assembly must be dissolved, or the president must resign. The House of Chiefs is largely advisory and consists of the chiefs of the eight principal tribes, four chiefs elected from minority districts, and three others elected by the House. Any proposed bill relating to matters of tribal concern must be referred to the House of Chiefs before the Assembly can pass it. It was chaired by Chief Seepapitso IV as of 1997. All citizens of Botswana aged 18 and over are eligible to vote. Both the President and members of parliament are elected for five-year terms.

POLITICAL PARTIES

Botswana has had multiparty competition since independence, although the Botswana Democratic Party (BDP), founded in late 1961 as the Bechuanaland Democratic Party by Seretse Khama, won every election since 1966 to 2004. The BDP gained prominence by advocating a gradual approach to independence through democracy, nonracialism, and a multiparty state. While maintaining opposition to apartheid, the BDP acknowledged Botswana's economic dependence on South Africa and the need to maintain friendly relations. Other parties included the Botswana People's Party (BPP), founded in 1960; the Botswana Independence Party (BIP), founded in 1964 under the leadership of Motsamai Mpho; and the Botswana National Front (BNF), which put up its first candidates in 1969.

In the March 1965 elections, the BDP won 28 of the 31 contested seats, and the BPP took the other 3. Seretse Khama became prime minister and appointed Quett Masire as deputy prime minister. Under the transitional constitutional provisions for the immediate postindependence period, they automatically acceded to the offices of president and vice president, respectively. The members elected to the Legislative Assembly in 1965 continued to hold office in the new National Assembly. The first postindependence elections were held on 18 October 1969; the BDP won 24 seats, the BPP 3 seats, the BNF 3 seats, and the BIP 1 seat (only 31 seats were contested).

In the elections of 26 October 1974, the ruling BDP raised its total of elective seats to 27, while the BNF won 2 seats, the BPP 2, and the BIP 1. In the elections of October 1979, the BDP won 29 seats, the BNF 2, and the BIP 1. In elections held in September 1984, the BDP won 29 seats, the BNF 4, and the BPP 1. The division in the October, 1989 elections was BDP 31 and BNF 3. Since then, the opposition parties, largely concentrated in urban areas, formed a common front and threatened to boycott the 1994 elections unless electoral reforms were enacted. Principal among these demands were that the voting age be lowered from 21 to 18 and absentee balloting be allowed—20% of the country's electorate were migrant workers. However, the coalition collapsed before the election and the BNF ran alone, winning 13 of the 40 contested seats, with the BDP taking the rest. The Assembly was enlarged to 44 seats prior to balloting with four seats appointed by the majority.

In the parliamentary elections held on 16 October 1999, the BDP won 33 out of the 40 parliamentary seats. The remaining seats went to the Botswana National Front led by Otswoletse Moupo (6 seats) and the Botswana Congress Party led by Mokgweetsi Kgosipula (1 seat). A number of minor parties formed a coalition, but did not capture any seats. These were the United Action Party led by Ephraim Lepetu Setshwaelo, the Independence Freedom Party (IFP) led by Motsamai Mpho, and the Botswana Progressive Union (BPU) led by D. K. Kwele.

In the parliamentary elections held on 30 October 2004, the BDP led by Festus Mogae, won 51.73% of the popular vote and 44 of the 57 seats contested. BNF led by Motsweletse Moupo won 26.06% of the popular vote and 12 seats; and BCP led by Otlaadisa Koosaletse won 16.62% of the popular vote and only 1 seat. The other 5 smaller political parties that contested did not win any seat but in total won about 5% of the popular vote. These included the Botswana Alliance Movement led by Ephraim Lepetu Setshwaelo (2.84% of the popular vote), Botswana People's Party led by Motlatsi Molapise (1.91% of the popular vote), the New Democratic Front led by Dick Bayford (0.78% of the popular vote) and the Marx, Engels, Lenin, Stalin (MELS) Movement of Botswana led by Themba Joina (0.03% of the vote).

LOCAL GOVERNMENT

Local government is carried out by 10 district councils and 5 town councils—Gaborone, Francistown, Lobatse, and Selebi-Phikwe. Executive authority in each district is vested in the district commissioner, who is appointed by the central government. The commissioner is assisted by the district council and the district development committee, which are partly appointed and partly elected. Botswana also has traditional village councils, called kgotla, which serve as public forums at which villagers can express opinions.

JUDICIAL SYSTEM

The 1965 constitution provides for a high court, a court of appeal, and subordinate first-, second-, and third-class courts. The chief justice, appointed by the president, is chairman of the Judicial Services Commission, which advises the president on the appointment of other judges and magistrates. The African Courts Proclamation of 1961 provides for courts with competence in matters of tribal law and custom, presided over by chiefs and headmen. A court of appeals for such cases was created in 1986. The customary courts handle marital and property disputes as well as minor offenses. The judiciary is independent of the executive and the legislative branches. The legal system is based on Roman-Dutch law and local customary law.

ARMED FORCES

The armed forces personnel of Botswana numbered 9,000 in 2005. The Army consisted of 8,500 members while the remaining 500 were in the Air Wing, which had 31 combat capable aircraft, including 15 fighter aircraft. There were also about 1,500 paramilitary police. The defense budget in 2005 totaled $359 million.

INTERNATIONAL COOPERATION

Botswana became a member of the United Nations (UN) on 17 October 1966 and is a member of the ECA and several nonregional specialized agencies. It is a member of the African Union, the ACP Group, and the WTO (1995). It belongs to the Southern African Customs Union (with South Africa, Lesotho, Namibia, and Swaziland) and the Preferential Trade Area for East and Southern Africa. Botswana also participates in the African Development Bank, the Commonwealth of Nations, G-77, and the Southern African Development Community (SADC), which maintains a secretariat at Gaborone. In 2000, the United States and Botswana jointly established the International Law Enforcement Academy (ILEA) in Gaborone. Botswana is part of the Nonaligned Movement. In environmental cooperation, Botswana is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, the Kyoto Protocol, the Montréal Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Most economists regard Botswana as one of Africa's major success stories. The country's economy was dependent almost entirely on livestock production until the 1970s, when it became an important exporter of diamonds and other minerals. Then, the Botswana Development Corporation, adopting a conservative investment policy, actively sought foreign capital for investments in crop agriculture, tourism, and secondary industries. The rapid growth in diamond production helped Botswana achieve average high economic growth from independence through the early 2000s.

The diamond industry developed in 1971 in cooperation with De Beers Consolidated Mines. Botswana is the one of the world's largest producer of gem diamonds in value terms. It is also the one of the world's most diamond-dependent economy. Diamond production in 2003 stood at over 30 million carats. Botswana also produced copper-nickel matte production, and had significant coal deposits. Botswana had exploitable deposits in platinum, gold, and silver as well. Exploration for petroleum and natural gas deposits has been underway in western Botswana. As of 2003, Botswana was the second-largest mining producer by value (after South Africa, which is the largest mining producer in the world).

In spite of the gains recorded by the mining sector, agriculture employed more than 80% of the labor force in 2004. Provided with inadequate rainfall and poor soil, agriculture supplied only 50% of the country's food needs and accounted for only 4% of GDP in 2003. Commercial farms played a critical role in agricultural and livestock production. Of Botswana's total output of sorghum, maize, millet, beans and pulses, 37% was produced by 100 of the 360 commercial farms. Ownership of the national herd of cattle was highly concentrated: 5% of households owned over 50%.

Botswana had the highest rate of economic growth in the world from 1966–1997 (averaging at 9.2%), after which it was adversely affected by the Asian financial crisis. Economic growth was 7.7% in 2000, 4.2% in 2004 and 3.3% in 2005; Botswana had an inflation rate of about 7% in 2004 and 8.3% in 2005. Although Botswana had an advanced infrastructure with good roads, communications, and dependable utilities, there was a general lack of technical and managerial skills among its workers. High rates of unemployment estimated at 23.8% in 2004 and severe poverty (estimated at 47% of the population living below the poverty line in 2002) keep the country from fully sharing its economic success with all its citizens. HIV/AIDS rates are among the highest in the world, with 37% of the sexually active population (defined as those between the ages of 15 and 49) being HIV positive in 2003. This high prevalence rate is expected to force a greater percentage of the population into poverty. Botswana was in the process of diversifying its economy in 2005, and was engaged in promoting sustainable development. It was encouraging foreign direct investment in non-mining sectors of the economy, including light manufacturing, tourism, financial services, and pharmaceuticals.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Botswana's gross domestic product (GDP) was estimated at $16.6 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $10,100. The annual growth rate of GDP was estimated at 4.5%. The average inflation rate in 2005 was 8.3%. It was estimated that agriculture accounted for 2.4% of GDP, industry 46.9%, and services 50.7%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $27 million or about $16 per capita and accounted for approximately 0.4% of GDP. Foreign aid receipts amounted to $30 million or about $17 per capita and accounted for approximately 0.4% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Botswana totaled $2.03 billion or about $1,177 per capita based on a GDP of $7.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 3.0%. In 2001 it was estimated that approximately 24% of household consumption was spent on food, 12% on fuel, 2% on health care, and 7% on education. It was estimated that in 2003 about 47% of the population had incomes below the poverty line.

LABOR

In 2004, Botswana had 288,400 people employed in a formal economic sector. As of 2001, a total of 12.3% of the workforce was employed in the agricultural sector, with 25.5% in industry, 61.3% in the services sector, and 0.9% in not defined occupations. As of 2004, unemployment among the workforce stood at 23.8%.

Botswana's unions are concentrated mostly in the mining sector, and to a lesser extent in the country's railway and banking sectors. In 2004, employees in the public sector were granted the right to organize, but as of 2005, this process was still underway. An employment act controls employment contracts, work by women and children, wage guarantees, conditions of work, and paid holidays. The law severely restricts the right to strike. There was a government-set minimum wage of $0.64 per hour in 2005 for most fulltime workers in the private sector, which cannot provide a living wage to a worker and family. However, most jobs in the formal sector of the economy paid in excess of the minimum wage. There is a maximum 48-hour workweek, although 40 hours per week can be found in most private sector jobs. Public sector employees however, had a 48 hour workweek. Although there are minimum safety and health standards, due to lack of resources they are not regularly enforced.

AGRICULTURE

Only about 0.7% of total land area is arable. Crop production is hampered by traditional farming methods, recurrent drought, erosion, and disease. Most of the land under cultivation is in the eastern region. The principal crops for domestic use are sorghum, corn, and millet. Sorghum and corn production in 2004 were 32,000 tons and 10,000 tons, respectively. The sorghum and corn harvests comprise less than 10% of the annual requirement of 250,000 tons. In 2004, Botswana's agricultural imports (primarily cereals) exceeded agricultural exports by $102.5 million. Grain is often imported from South Africa. Smaller quantities of cowpeas, beans, and other pulses are also grown. The 2004 output of all these crops was about 20,000 tons; in addition, 16,000 tons of vegetables and 10,000 tons of fruit were grown.

Agricultural research has been devoted to soil conservation, grazing experiments, and developing and distributing improved strains of grain. The construction of dams and the drilling of boreholes to tap underground water are continuing government programs. In early 1990, the government changed its official agricultural policy to emphasize the production only of those foodstuffs that can be raised economically. The Arable Lands Development Program and the Tribal Grazing Land Policy are government programs designed to help farmers in communal areas.

ANIMAL HUSBANDRY

In 2004, the cattle population was about 1,700,000. Other livestock included 2,250,000 goats; 400,000 sheep; 33,000 horses; 330,000 donkeys; and 4,000,000 poultry. Cattle are valued for wealth and prestige and are used in the payment of bride price, but there is little of the cultural prohibition against selling cattle found in some other parts of Africa. Herds are grazed in the open veld where water and grass are available; the borehole-drilling program is extending the available grazing land. A gradual upgrading of stock quality has been achieved through selective breeding, culling, and controlled grazing. A system of disease-control fences has been installed. A vaccine institute was opened in 1981 to deal with the threat of foot-and-mouth disease. In the mid-1980s, the Botswana Meat Commission's plant at Lobatse was the largest export abattoir in Africa. In 2004, meat production totaled 54,100 tons, with beef accounting for 28,000 tons. Much of Botswana's annual beef production is exported to South Africa and Western Europe. Beef and beef products are Botswana's second-largest export earner (after minerals); about 140,000 cattle were slaughtered in 2004.

FISHING

Botswana is landlocked, but some fishing for local consumption is carried out by the inhabitants of the Limpopo River Valley and the Okavango region. Landings were estimated at 122 tons in 2003.

FORESTRY

About 47% of Botswana's land area is covered with forests and woodlands. The indigenous forests of northeast Ngamiland include the valuable mukwa, mukusi, and mopane woods. Some small-scale exploitation has taken place. Roundwood production was an estimated 755,000 cu m (27 million cu ft) in 2003.

MINING

Botswana, home to the world's largest gem diamond mine, is a leading producer of diamonds by value. The diamond sector accounted for 36% of GDP in 2003, around 50% of government revenues, and 81.5% of the country's exports, by value. Nickel, cobalt, and soda ash production also played significant roles in the economy. The minerals industry employed over 13,000 workers, of which about 50% were involved in miming and quarrying in 2003. The northeast contains copper, nickel, and precious metals; the northwest has copper and silver; and the south holds base and precious metals. Other valuable minerals produced included agate, clay, coal, cobalt, gold, salt, sand, silver, soda ash, and construction stone. Major mines were situated in regions with few job opportunities. Diamonds were the most notable area of exploration in 1996, but Botswana's mineral resources were still largely unexplored. Mineral rights (separate from surface rights) were vested in the state. For significant mineral operations, the government usually exercised its legal right to acquire for free an equity interest of 15–25%. Royalties are collected on the sales of certain minerals, such as 3% on base metals, 5% on gold, and 10% on diamonds. The 1999 Mines and Minerals Act, designed to promote foreign investment, diversify the economy, and reduce reliance on the diamond industry, continued to vest all mineral rights in the state, but introduced a new "retention license." The government retained an option to acquire up to a 15% interest in new ventures on commercial terms, thus abolishing its previous free equity participation. Favorable geologic environment and mineral investment climate, political stability, and low tax rates should make Botswana a target for foreign mineral investment.

The government maintained an equity position in most of the major mining companies, but the industry was operated, for the most part, on a privately owned free-market basis. In a 50–50 joint partnership with De Beers Centenary, the government owned Debswana Diamond, the country's largest mining company.

De Beers Botswana Mining (Debswana) and Botswana Concessions (BCL), both partly owned by the government, developed major mineral fields in the eastern and central regions in the 1970s. Starting in 1981, the Debswana diamond mine at Orapa had to stockpile diamonds to halt the decline in world prices. The world's largest gem diamond mine was opened at Jwaneng in 1982, and processing capacity was increased in 1996 by the addition of a fourth treatment line. Jwaneng, the richest diamond mine in Africa, treated 8.9 million tons of ore and recovered 12.8 million carats in 2003. Reserves and resources in Jwaneng's three main kimberlite pipes were reported to be 287.6 million tons at a grade of 143.6 carats per hundred tons. The Letlhakane Mine recovered 1.061 million carats in 2003. The Orapa Mine recovered 16.3 million carats in 2003. Total reserves and resources at Orapa were reported to be 652.9 million tons at a grade of 49 carats per hundred tons. Debswana completed an expansion at Orapa in 2000 that was designed to double production to 12 million carats per year and treat an additional 8.9 million tons per year of ore. It was expected to allow production from the open pit for 30 years, with the potential of extending the mine life by another 20 or 30 years by shifting to underground mining. The expanded facilities included a completely automated recovery plant (CARP), a 15story building in which only X-ray technology is used to recover diamonds and no human picking or sorting is done. Botswana's diamond output for 2003 was 30.4 million carats, up from 24.635 million carats in 2000.

BCL developed a nickel-copper smelter at Selebi-Phikwe in the 1970s and owns the Phikwe, Selebi, and Selebi North mines. National output for mined copper in 2003 was estimated at 30,400 metric tons; for mined nickel was estimated at 32,740 metric tons; and for smelted cobalt, 283 metric tons. BCL's smelter produced 24,289 metric tons of copper, 27,400 metric tons of nickel. Reserves were reported at 27 million tons for BCL at a grade of 0.86% copper and 0.84% nickel, and for Tati Nickel's Phoenix Mine, at 46 million tons at a grade of 0.32% copper and 0.56% nickel.

A brine mining and treatment facility at Sua Pan produced 309,350 metric tons of soda ash in 2003, up from 233,643 in 1999, and 190,000 metric tons of salt from natural soda ash, down from 233,069 metric tons in 1999. The country produced an estimated 102,000 kg of other precious gemstones, principally agate, in 2003. Gold output totaled 8 kg in 2003, down from 28 kg in 1997.

ENERGY AND POWER

Most electric power is generated thermally in installations run by the Botswana Power Corp., a public enterprise established in 1970. Electric generating capacity consists of the 132 MW Morupole coal-fired plant and the 60 MW coal-fired plant at Selebi-Phikwe. Total capacity in 2002 stood at 0.132 million kW. Production of electricity in that same year totaled 0.930 billion kWh. Fossil fuels were used exclusively. Consumption of electricity totaled 1.989 billion kWh. Coal production in 2002 consisted entirely of the bituminous type and totaled 992,000 tons. Coal is mined solely at Morupole by Anglo American, mostly for the generation of electricity. The government is considering constructing a coal-fired power plant at the same coal field, which would be designed to export power to South Africa.

Several companies are prospecting for oil, but none had been discovered as of 2002. However, Amoco has studied the possibility of extracting methane from coal beds.

INDUSTRY

Botswana has a small, but dynamic, manufacturing sector, which contributed approximately 5% to GDP in 2004. Average growth in this sector during the 1990s was 3.8%, and it was seen in the early 2000s as having the most growth potential in the country. The sector has diversified into textiles, beverages, chemicals, metals, plastics, and electrical products. The government parastatal, the Botswana Development Corp., has declined in significance relative to private initiatives, but still is a major promoter of industrial development with interests in brewing, sugar, furniture, clothing, tourism, milling, and concrete. Though promising, industrial development is limited by a small domestic market, weak infrastructure, import dependence, and small skilled labor force. Indeed this sector has seen slow growth since 2000 following the closure of the Hyundai vehicle-assembly plant and the emphasis on manufacturing as the main source of future growth has been questioned.

Local coal supplies the fuel required for Botswana's energy sector. Peak requirements are generally supplied by the South African grid. In 1991, Botswana also linked to the Zambian and Zimbabwean grids. Botswana has no hydroelectric power resources, but solar power has potential as an energy source.

The construction industry was the fastest growing sector of the economy in the 1980s, and rapid urbanization created a need for low-income housing. This sector has decreased in importance, however, as there has been a shortage of building material and supplies. On the other hand, the chemicals industry has expanded; soda ash (for use in steel, glass, paper, and detergent manufacturing industries) is an important commodity, and Botswana Ash is the leading soda ash company operating in the country. The production of copper and nickel has contributed to an increase in the local production of electrical components. The motor industry is growing, with vehicle assembly, tire manufacturing, leather finishing, paint manufacturing, batteries, and the manufacture of spare parts being government priorities and opportunities for foreign investment.

Diamond mining is the engine of growth in Botswana. Diamond mining has fueled much of the economic expansion and in 2005 accounted for more than one-third of GDP and for 80% of export earnings. Mining and livestock production remain the primary economic activities. Botswana has been referred to as the world's largest diamond producer in terms of the quality and grade of its diamonds. The country's growth is heavily dependent upon developments in the diamond industry, which in turn is affected by global economic conditions. The slowdown in the global economy that began in 2001 thus adversely impacted Botswana's diamond industry. Botswana's diamond reserves are estimated to last 30 years at 2003 production rates, and the government emphasizes the need to diversify the economy.

SCIENCE AND TECHNOLOGY

The University of Botswana (founded in 1976), the Botswana Agricultural College (founded in 1967), and Botswana Polytechnic, all located in Gaborone, offer training in science, agriculture, and engineering. In 1987–97, science and engineering students accounted for 37% of college and university enrollments. The Geological Survey of Botswana, founded in 1948, publishes mineral resource reports and bulletins.

DOMESTIC TRADE

Small general stores usually carry a variety of items, but food, fuel, and clothing staples make up most of their stock. There are also a few wholesalers, and some traders act as local agents for larger firms. To augment their incomes, other traders operate postal or transport services, restaurants, butcheries, and bakeries. The traders play an important role as middlemen between the local livestock and crop producers and the slaughterhouses, factories, and exporters. There are also a number of South African and US franchises in Botswana, including fast food, supermarkets and department stores. Major US investors include Owens Corning, H.J. Heinz, Coca-Cola, IBM, Xerox, and Kentucky Fried Chicken. Such private sector, foreign investments are encouraged by low corporate taxes and no prohibitions of foreign ownership. The government has eliminated all foreign exchange controls.

Business hours are 7:30 am to 4:30 pm, Monday through Friday with a 45-minute lunch break, and most retail businesses are also open Saturdays and Sundays until midday.

FOREIGN TRADE

Botswana's leading trade partners are the European Union (EU), other Southern African Customs Union nations (South Africa, Lesotho, Namibia, and Swaziland), and Zimbabwe. The government of Botswana has increased economic integration with the Southern African Development Community (SADC), ratifying a Trade Protocol to ease trade barriers, which was scheduled to come into effect eight years from its completion. With recurrent drought and only 5% arable land, Botswana imports much of its food and other basic needs, primarily through South Africa. Indirectly, the United States accounts for a sizeable portion of Botswana's imports (manufactured goods) and exports (diamonds).

Exports fell as a result of the 1997 East Asian financial recession, especially diamond exports, which dropped from $2.1 billion in 1997 to 1.7 billion in 1998. However, between 1999 and 2000 exports rebounded at a rate of 7.7%. By 2004 Botswana's exports were estimated to be $2.94 billion. Imports in 1997 and 1998 were $1.6 billion both years. These had risen to $2.26 billion in 2004. In 2003 diamonds accounted for 82.5% of exports; and copper and nickel, 4.9% with the remainder being exports of beef, soda ash and textiles. Leading imports included foodstuffs; vehicles and transport equipment; textiles; and petroleum products.

Country	Exports	Imports	Balance
World	6.6	42.2	-35.6
Netherlands	2.6	0.2	2.4
Portugal	2.4	26.8	-24.4
Belgium	1.0	4.9	-3.9
France-Monaco	0.3	0.6	-0.3
United States	0.2	…	0.2
Angola	0.1	4.2	-4.1
South Africa	0.1	0.2	-0.1
(…) data not available or not significant.

Current Account			-22.8
Balance on goods		-22.9
Imports	-28.0
Exports	5.1
Balance on services		-0.0
Balance on income		-4.7
Current transfers		4.9
Capital Account			12.1
Financial Account			3.7
Direct investment abroad		…
Direct investment in São Tomé and Príncipe		3.0
Portfolio investment assets		…
Portfolio investment liabilities		…
Financial derivatives		…
Other investment assets		-0.3
Other investment liabilities		0.9
Net Errors and Omissions			-0.0
Reserves and Related Items			7.0
(…) data not available or not significant.

Over the years Botswana has maintained a positive and healthy balance of payments.

BALANCE OF PAYMENTS

The US Central Intelligence Agency (CIA) reported that in 2004 the purchasing power parity of Botswana's exports was $2.94 billion while imports totaled $2.26 billion resulting in a trade surplus of $680 million. Because of the substantial diamond exports, Botswana always reports healthy trade surpluses. After falling slightly in 2001, diamond exports rose sharply in 2002 due to increased global demand. In 2004 international prices for diamond were raised three times which netted Botswana $2.8 billion in diamond exports, 95% of all export earnings.

BANKING AND SECURITIES

Prior to 1976, Botswana belonged to the South African Monetary Area. Its currency, like those of Lesotho and Swaziland, was issued by the South African Reserve Bank. On 23 August 1976, however, the central Bank of Botswana was established, and Botswana began issuing its own currency. The Bank of Botswana has responsibility for administering exchange control delegated for it by the Ministry of Finance and Development Planning. As of 1999, the major commercial banks were the following: First National Bank of Botswana, Ltd.; Barclays Bank of Botswana, Ltd.; Standard Chartered Bank of Botswana, Ltd.; and Stanbic Bank Botswana Ltd. Total assets of the four banks came to about $14 million in January 1999. Given a high level of reserves, there was little necessity for the Bank of Botswana to raise domestic interest rates to the real levels of South Africa in an attempt to attract portfolio capital.

The policy of the Bank of Botswana in 1999 was to maintain the relative international prices, and hence competitiveness, of non-diamond tradeables against its most important trading partners, notably South Africa. In 1999, the government launched a new loan guarantee scheme to support new, small businesses in non-diamond enterprises by providing partial security for loans.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $402.5 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $1.6 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 14.25%.

In November 1996, the Bank of Botswana relaxed controls that prevented the dual listing of foreign companies on the Botswana Stock Exchange (BSE). Prior to this, any investment by a Botswanan-based entity in a foreign company was regarded as an external investment covered by the relevant rates and limits. There became free transferability of shares between the BSE and any other stock exchanges listing the shares. Nine companies had dual listed by the end of 1998, and the BSE had recorded a growth rate of 14%. As of December 2004, there were 18 companies listed on the BSE, which had a market capitalization of $2.548 billion.

In 1998, an investment bank was licensed; Investec Bank Botswana was set up to provide merchant banking and investment advisory services. The Botswana Development Corporation (BDC) and the National Development Bank (NDB) offer specialized development assistance.

INSURANCE

The South African insurance giant, Metropolitan Life, established First Health Medical Administrator in Botswana in mid-September 1996. It launched Metropolitan Life of Botswana in 1997 in a joint venture with the Botswana Development Corporation (BDC), and had a 25% stake in the company. In a similar move several years ago, BDC established Botswana Insurance Holdings (BIHL) in conjunction with St. Paul (USA) and African Life. St. Paul Fire and Marine of Minnesota bought out Botswana General Insurance in November 1997.

PUBLIC FINANCE

About half of the government's revenues in 1998 came from the diamond industry with another 20% from returns on foreign reserves. Tourism was becoming increasingly important, accounting for 12% of GDP in 2000. Government spending in 2001 accounted for almost 20% of GDP.

The US Central Intelligence Agency (CIA) estimated that in 2005 Botswana's central government took in revenues of approximately $3.766 billion and had expenditures of $3.767 billion. Revenues minus expenditures totaled approximately -$1 million. Public debt in 2005 amounted to 7.3% of GDP. Total external debt was $556 million.

TAXATION

The basic corporate tax rate in 2005 was 15% (plus a 10% surcharge). For manufacturing companies, approved as such by the Minister of Finance, a reduced rate of 15% (5% company tax and 10% surcharge) applies. A withholding tax of 15% is assessed on the payment of all dividends and on the payment of interest on offshore loans. Taxes on such capital income may be reduced or eliminated in double taxation treaties. In 2005 Botswana had tax treaties with South Africa, the United Kingdom, Sweden, France, the Russian Federation and Mauritius. The capital gains rate is 25% and is assessed on 100% of the gains from real estate transactions and on 50% of the gains from transactions in moveable property. Only 75% of the gain from the sale of shares in a company is subject to the tax. However, capital gains from the sale of shares of a company listed on the Botswana Stock Exchange are tax-exempt.

The income tax law establishes for individual incomes progressive rates ranging up to 25%, reduced from 30%. A local government tax is paid to the district or town council to finance social and sanitary services.

As of 7 January 2002 a value-added tax (VAT) with a standard rate of 10% replaced Botswana's 10% sales tax which was imposed on fuel, liquor, cigarettes, motor vehicles, computers, domestic electrical appliances, and other consumer and luxury goods.

CUSTOMS AND DUTIES

Botswana belongs to a customs union called the Southern African Customs Union (SACU), with South Africa, Lesotho, Swaziland, and Namibia. South Africa levies and collects most of the customs, sales, and excise duties for the five member states, paying a share of the revenues to the other four. In addition, all customs duties are eliminated among the five countries. The SACU implements high protectionist tariffs on countries outside of the club, though, disheartening potential nonmember investors. In 1996, the Southern African Development Community (SADC) launched a free trade agreement for the elimination of tariff and nontariff trade barriers between its member countries (Angola, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe), to be completed by 2010.

South Africa has put in place a value-added tax (VAT) for imports coming into the SACU from outside, but its implementation on Botswana's borders has so far been unsuccessful. Additionally, as a signatory of GATT and a member of the World Trade Organization, Botswana and the rest of the SACU will have to reduce tariffs by 24% over the course of 10 years.

FOREIGN INVESTMENT

Since independence in 1966, Botswana has been open to foreign investment. With the discovery of diamonds in 1967, this has also meant an economy dependent on diamond mining and, more importantly, the diamond monopoly strictly maintained by the De Beers Company. Highly developed auditing and security systems, developed to preserve the diamond monopoly, helped minimize corruption in Botswana and give its bonds the highest rating in Africa.

From 1966 to 1999, Botswana had the highest average growth rate in the world (9%), a record it still holds, though by 2004 the average had fallen to 3.5%. This did not translate into significant foreign investment outside of the mining sector, however, nor into a solution for chronic high unemployment (officially 21%, but generally thought to be closer to 40%). Moreover, recent controversy about "conflict diamonds" and the HIV/AIDS epidemic in Botswana have led to substantial divestment by traditional investors, De Beers of South Africa and Anglo American of the United Kingdom.

The government began actively encouraging foreign investment in the mid-1980s. Government policies offered attractive tax rates (10% on corporate income), including a five-year tax holiday, capital grants on new projects, and duty-free access to the large South African market (source of 80% of foreign direct investment). Botswana also enjoys duty-free access to the European Community for most of its products (source of 15% of foreign direct investment). Its liberal policies allow unrestricted repatriation of earnings and capital. Furthermore, it has a substantial financial assistance policy for foreign investors and has established an export-processing zone in Selebi-Phikwe. Investment law is scrupulously observed by the Botswana bureaucracy and courts. Investment incentives, including cash grants, have been offered to small and medium-scale investors for labor-intensive schemes, particularly outside urban areas. The complete liberalization of exchange controls occurred in February 1999.

In the late 1990s, with the exposure of the link between De Beers' purchases of uncontrolled raw diamonds to maintain its monopoly and socially corrosive brutality in diamond-producing countries, the diamond industry transformed to a system of certified diamonds and a list of "Suppliers of Choice." Although Botswana's diamond mining company, Debswana, continued to be owned 50% by the Botswana government and 50% by De Beers Centenary, the latter, in 2002, became part of the private holding company De Beers SA, 45% owned by the London-based mining conglomerate, Anglo-American, and 45% by the Oppenheimer Group. Botswana's two other major mining companies, Tati Nickel and BCL (copper, nickel, cobalt), had become 85% owned and 50% owned, respectively, by LionOre Mining of Canada, to which Anglo-American had sold its shares.

The HIV/AIDS epidemic in Botswana, with over 37% of the population 15 to 49 years old estimated to be HIV positive in 2003, affects everything, including foreign investment. Anecdotal evidence suggests it has increased production and training costs for companies and reduced the pool of skilled labor available for foreign investors.

Foreign direct investment (FDI) is chiefly in mining, accounting for 81% of FDI in 2001, up from 79% in 2000. The largest investors have been the Anglo-American Corporation, which bought out De Beers, and LionOre of Canada, which bought out Anglo-American interests. AMAX mining is also important. The retail and wholesale trade sector accounted for 7% of FDI inflow in 2001 and finance 6%. The British Commonwealth Development Corp. has invested in a Lobatse slaughterhouse and in three large cattle ranches, two in the northern part of the country and one on the Molopo River in the Kalahari. H. J. Heinz (South Africa) owns 80% of Kgalagadi Soap Industries, with assets of over $5 million. Houston-based brick manufacturer, Interkiln Corp., has a 17.5% interest in the Lobatse Clay Works. Owens-Corning owns 50% of a plant producing fiberglass piping for water transportation, in conjunction with the BDC.

Other areas of investment included specialty agricultural production; construction; and manufacturing of textile, health and beauty, agricultural and construction equipment products. The government seeks investments in infrastructure, telecommunications, tourism, and housing development. It is estimated that total direct foreign investment (FDI) exceeded $1 billion in 1998. The inflow of FDI averaged $98 million 1997 and 1998, but fell to $36.7 million in 1999. For 2000 and 2001, annual FDI inflow averaged about $57 million. FDI inward stock declined in 1995 to $1.1 billion from $1.3 billion in 1990, but made a bold recovery in 2002 to $1.9 billion. The key investor countries in Botswana are South Africa, Luxembourg and the United Kingdom. The three accounted for 61%, 25% and 10%, respectively, of total FDI stock in 2000. In 2001, these countries accounted for 60%, 29% and 6% respectively.

Botswana's prudent financial and monetary policies have contributed to continued strong performance on Botswana's stock exchange. In 2002, its index increased 8.5% in dollar terms and the market capitalization of listed stocks reached $1.67 billion, up from $1.27 billion in 2001 and from $295 million in 1992. As of 31 December 2001, US holdings of Botswana securities totaled $23 million, $20 million in equity shares, $2 million in long-term debt, and $1 million in short-term debt.

ECONOMIC DEVELOPMENT

Botswana has made job creation a top priority of government planning in the past few years. Although employment rates have grown, unemployment is formally estimated at 23.8%, but is closer to 40% in unofficial estimates in 2004.

The government has a long-standing policy of promoting human capital development and health care. All education through the university level is free, but 20% of the population over 15 in 2004 was illiterate. Great importance is placed on the development of rural areas so as to reduce rural-urban migration.

In light of the limited resources, Botswana's government now follows "food security" agricultural policy of promoting only those foodstuffs that can be grown economically.

Botswana's long-term economic prospects are highly dependent on South Africa and its other Southern African neighbors. The government has been a strong proponent of economic integration among the 14 members of the Southern African Development Community (SADC). The organization's 2000 Trade Protocol called for the elimination of all tariff and nontariff barriers to trade by 2012 among the 11 countries signing the protocol.

Botswana has been rated the least-corrupt country in Africa, according to Transparency International. The country aims to diversify its economy away from minerals, and ecotourism is being promoted. Botswana has been a victim of the HIV/AIDS pandemic, and the government has taken steps to tackle the virus through prevention programs and the provision of advanced drug therapies to those infected. The Government of Botswana has put in place policies that enhance competitiveness, including a new Foreign Direct Investment Strategy, Competition Policy, Privatization Master Plan, and National Export Development Strategy.

SOCIAL DEVELOPMENT

The first universal pension program was inaugurated in Botswana in 1996. It covers all residents aged 65 and older, and is funded completely by the government. It pays a flat-rate monthly pension, which is adjusted periodically according to the cost of living. Many social welfare needs are met through the provisions of tribal custom. Employed persons are covered by work injury laws, with the exclusion of casual workers and family labor. There are no statutory benefits for sickness and maternity. After 60 months of continuous employment, a severance unemployment benefit is available. Destitute residents are provided with a small monthly cash payment and food rations.

Traditional views of male dominance are pervasive in Botswana. Customary law allows men to physically punish their wives for wrongdoing and spousal abuse is common. Sexual harassment, rape, and other violence against women is widespread. Rape is especially serious considering the prevalence of HIV/AIDS. Women are accorded the same civil rights as men, but under traditional marriage laws, they require their husbands' consent to buy or sell property, obtain a loan, or sign a contract. There are legal provisions, however, that allow women to marry "out of common property" and thereby retain their legal rights. Polygamy is legal, but is not widely practiced.

While ethnic minorities are not subject to discrimination, some groups remain marginalized and underrepresented in government. Human rights are generally respected in Botswana. However, there are still reports of abusive police tactics, and prison conditions remain poor.

HEALTH

The government stresses primary health care with emphasis on disease prevention and healthy living. As of 2004, there were an estimated 241 nurses, 29 physicians and 2 dentists per 100,000 people.

The major health problems are malnutrition and tuberculosis. As of 2000, 17% of children under five years of age were considered malnourished. Public health teams conduct tuberculosis and malaria control campaigns. In 1999, there were 702 cases of tuberculosis per 100,000 people. In 1995, 70% of the population had access to safe water and 55% of the population had access to sanitation.

Approximately 33% of married women (ages 15 to 49) were using contraception. As of 1999, immunized children one year of age were as follows: diphtheria, pertussis, and tetanus, 90%; and measles, 86%.

The average life expectancy in 2005 was 33.87 years, the second-lowest in the world. The largest change in life expectancy was for females, which dropped from 60 years in 1980 to 33.84 years in 2005. The infant mortality rate in 2005 was 54.58 per 1,000 live births. For every 100,000 live births, 300 women died in pregnancy or childbirth as of 1998.

The HIV/AIDS prevalence was 37.30 per 100 adults in 2003. As of 2004, there were approximately 350,000 people living with HIV/AIDS in the country. There were an estimated 33,000 deaths from AIDS in 2003. The rapid transmission of HIV in Botswana has been due to three main factors: the position of women in society, particularly their lack of power in negotiating sexual relationships; cultural attitudes to fertility; and social migration patterns.

HOUSING

There is no overcrowding in tribal villages, but slums have developed in the larger towns. The Botswana Housing Corp., a public enterprise, concentrates its efforts on the main urban centers, where growth, and therefore demand, is greatest. The 1999 National Policy on Housing has shifted some of the control on housing from government to private hands. Part of this policy includes the Poverty Alleviation and Housing Programme, a pilot program through which those who cannot afford to purchase a home might learn the skills necessary to build their own. This self-help policy is particularly helpful to rural residents.

Housing ranges from flats and bungalows to huts and all other structures intended for human use. Squatter-occupied "improvised" housing units account for about 2% of all housing. Of all housing units, about 30% were acquired through tribal authorities. Nearly 71% of the total land area in Botswana is under tribal control. Sanitation facilities included pit latrines, and flush toilets; however, two-thirds of housing units had no facilities. The water supply is piped or drawn from wells, river beds, rivers, or other sources.

EDUCATION

The government aims to achieve universal education. Education is compulsory for students between the ages of 7 and 15. Education at the primary level lasts for seven years, though it is not compulsory. This is followed by three years of junior secondary school and two years of senior secondary school. Primary school enrollment in 2003 was estimated at about 81% of age-eligible students; 79% for boys and 83% for girls. The same year, secondary school enrollment was about 54% of age-eligible students; 50% for boys and 57% for girls. It is estimated that about 91% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 27:1 in 2003; the ratio for secondary school was about 16:1. Schooling is conducted in Sestwana for the first four years, and in English for the remaining years. The academic year runs from August to May.

Until 1961, primary schooling was completely financed by tribal treasuries, with some tribes spending up to 70% of their budgets on education. Between 1985 and 1994, the government launched a major program of secondary school construction. As of 2003, public expenditure on education was estimated at 2.2% of GDP, or 25.6% of total government expenditures.

The University of Botswana, established on 1 July 1982 by an Act of Parliament, has a faculty of social sciences, education, sciences, agriculture, and humanities. In 2001, there were about 8,000 students enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 78.9%, with 76.1% for males and 81.5% for females.

LIBRARIES AND MUSEUMS

The Botswana National Library Service was founded in 1967 to provide nationwide public library service and act as the national library. There are 21 branches located throughout the country holding a total of 160,000 volumes; mobile library service is also provided. The main library is located in Gaborone, has 65,000 volumes, and the University of Botswana (1971) has over 250,000. The National Archives, with 20,000 items, are in Gaborone. The Botswana Libraries Consortium was established in 2003 as a cooperative organization of public, private, and academic libraries.

The renovated National Museum and Art Gallery in Gaborone houses a collection of the ethnography and natural history of Botswana, and sub-Saharan African art. There are also ethnographic museums in Kanye and Mochudi and a postal museum in Gaborone. In 1986, the Supa Ngwao Museum Centre in Francistown opened, holding ethnographic and historical installations.

MEDIA

In 2003, there were an estimated 75 mainline telephones for every 1,000 people. The same year, there were approximately 297 mobile phones in use for every 1,000 people.

The government controls the content of nearly all radio and television broadcasts through the Botswana Press Agency (BOPA), which produces the free Daily News newspaper, Radio Botswana and Radio Botswana 2 (which broadcast nationally to most of the country), and Botswana Television (BTV). Radio Botswana broadcasts, in English and Setswana, a variety of news, educational, cultural, and entertainment programs. In 2004, there were two private radio stations, Yarona FM and Gabz FM, broadcasting in 5 of the country's 10 largest towns. The privately-owned Gaborone Broadcasting Company (GBC) is the only other television station in the country; it broadcasts mostly foreign programming. In 2003, there were an estimated 150 radios and 44 television sets for every 1,000 people. The same year, there were 40.7 personal computers for every 1,000 people and 35 of every 1,000 people had access to the Internet. There was one secure Internet server in the country in 2004.

There is one daily newspaper in Botswana, the government published Dikgang Tsa Gompieno (or Daily News, circulation 50,000 in 2002) in both English and Setswana. The government also publishes, in a bilingual edition, the monthly magazine Kutlwaro (circulation 24,000). In 2002, 4 independent newspapers were publishing on a weekly basis, with a total circulation of over 50,000. MMegi Wa Digmang, or The Reporter, is published in both Setswana and English with a weekly circulation of 24,000. The major political parties publish monthly journals.

The constitution of Botswana ensures a free press and free speech, and the government is said to highly respect these rights.

ORGANIZATIONS

There is a chamber of commerce in Gaborone and there are some professional associations. The Botswana Council of Nongovernment Organizations (BOCONGO) serves as an umbrella group to encourage and support nongovernment organizations as recognized partners in national development. Member organizations (which numbered about 67 as of 2002) include the Botswana Christian Council; the Cooperation for Research, Development, and Education; the Botswana Council of Women, and the Environmental Conservation Society.

Educational and cultural organizations include Botswana Society and the Botswana Technology Center. Youth organizations include Junior Achievement, Junior Chamber, Girl Guides, Boy Scouts, Botswana Christian Council Youth Unit, and the YWCA. Most towns have women's clubs. The Emang Basadi Women's Association is a national organization promoting women's development and legal rights.

There are national chapters of the Red Cross Society, UNICEF, and the Society of Saint Vincent de Paul. The Botswana Center for Human Rights was founded in 1996.

TOURISM, TRAVEL, AND RECREATION

Botswana's well-stocked game reserves are its principal tourist attraction, with both hunting and photographic safaris available. Popular with tourists is the Okavango Delta region, which during the rainy season is a maze of waterways, islands, and lakes; it includes the Moremi Wildlife Refuge; nearby is Chobe National Park. In all, eight national parks and game reserves cover almost 20% of the land area. The Kalahari Desert is another attraction, as are the country's tapestry weavers, potters, and rug makers. The Tsodilo Hills have cave paintings by the ancestors of the Basarwa (Bushmen), the earliest known inhabitants of Botswana. The government's "National Conservation Strategy and Tourism Policy" promotes tourism while protecting wildlife areas. All nationals except citizens of the United States, South Africa, Commonwealth countries, and most Western European countries, need visas for visits up to 90 days. Visitors are required to have a passport, ongoing/return ticket, and proof of sufficient funds for the stay. Proof of yellow fever and cholera vaccinations are required of travelers from infected areas. Antimalarial precautions are advisable. As of 2003, there were 3,589 hotel rooms with 6,646 beds. In 2003, about 975,000 visitors arrived in Botswana, more than 865,000 of whom were from other African nations.

In 2005, the US Department of State estimated the daily cost of staying in Gaborone at $171. In other regions, costs were as low as $155 per day for food and lodging. That year, the average estimated expenditure per tourist in Kasane was $205.

FAMOUS BOTSWANANS

Khama III (1837–1923), chief of the Bamangwato and a Christian convert, reigned for 48 years. His grandson, Sir Seretse Khama (1921–80), was Botswana's first president. Quett Ketumile Joni Masire (b.1925) succeeded him in 1980. President Masire resigned in April 1998, and was succeeded by his vice president, Festus Mogae.

DEPENDENCIES

Botswana has no territories or colonies.

BIBLIOGRAPHY

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