Botswana: Africa’s Best-Kept Secret

“Our commitment is to respond to emerging dynamics, one of which is opening up the economy for fair competition.” H.E. DR. Mokgweetsi Eric Keabetswe, President of Botswana

The 1960s marked a turning point in Botswana’s history as the country discovered diamonds that would make it one of Africa’s wealthiest in the course of a few years. Over the past six decades, the southern African country produced some of the ten largest diamonds in the world, the latest of which was a massive 2,492-carat diamond – the second-largest diamond in the world. But Botswana knows ‘diamonds are not forever’ and is pivoting away from relying on the mining industry to a knowledge-based economy, valuing human creativity and innovation. The shift is expected to expand the nation’s GDP from 4.7% to 5.3% by 2036, backed by an Indigenous Knowledge System policy and strategy that the country is currently

developing. President Mokgweetsi Masisi’s government has set its sights on education and skill development, implementing initiatives to improve funding and equip its workforce with relevant skills. “In the past five years, we’ve made significant investments in our education sector. We’re also introducing progressive legislation that will create a conducive environment for Botswana to support and facilitate innovation and embrace technology,” says Diane Mongudi, Acting CEO of the Botswana Digital and Innovation Hub.

According to the 2022 Global Innovation Index, Botswana has climbed the ranks to become the fifth most innovative country on the African continent. The country aspires to become an innovation hub in the region, supporting ICT companies, entrepreneurship, and digitalization, undertaking a significant initiative towards digital governance. In a commitment to enhance citizen access to services, the government has allocated over US$11.8 million to facilitate the online migration of 400 government services. To date, over 170 services have been successfully transitioned to online platforms. “Investing in Botswana offers a wealth of incentives. Lower taxes make it an attractive option, and you can freely repatriate your profits. We also boast an innovation hub with tax holidays ranging from five to ten years, depending on your chosen sector. Doing business in Botswana is now remarkably easy. Company registration takes just two days with a streamlined process. We’re a peaceful country with a strong record of good governance. This stability is especially evident this year, even with national elections approaching in October,” says Serty Leburu, Executive Director of the Botswana Accountancy College.

Botswana envisions an economic leap through the implementation of its Vision 2036 agenda, aspiring to join the ranks of high-income countries in the next 12 years. This transformation plan fuels investment in growth sectors like tourism, agriculture, and technology. Further solidifying this vision, the nation announced a massive 33% increase in infrastructure spending for 2024/25, focusing on water, transport, and energy.

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In a strategic move to increase domestic production and self-sufficiency, the Botswana government implemented import restrictions on fresh produce in December 2021.

Recently extended to 2025, this policy aims to nudge the population towards entrepreneurship, particularly in agriculture. The government is further supporting this shift

by providing assistance to smallholder farmers. By fostering local production, the country aspires to meet its own food needs and potentially become a future exporter of agricultural goods. This ambition aligns with the country’s pride in being land-linked, not landlocked. Botswana strategically leverages its geographic position to not only benefit its own economy but also contribute to regional development. “Given the recent launch of the African Continental Free Trade Area, we can now envision Africa as a unified trade zone.

This represents a massive market with a combined GDP of US$3.4 trillion, which Botswana is strategically positioned to tap into,” says Andrew Madeswi, CEO of the Botswana Vaccine Institute.

Botswana has a well-deserved reputation as one of Africa’s least corrupt nations. President Masisi has made tackling corruption a cornerstone of his administration. He has implemented a multi-pronged approach, focusing on transparency, accountability, and strengthening the rule of law. This includes promoting ethical leadership and bolstering anti-corruption institutions to create a more robust system for combating graft. Masisi has also shown commitment to environmental conservation and sustainable development. He has supported initiatives to protect Botswana’s natural resources, preserve biodiversity, and mitigate the impact of climate change.