Penresa had an insightful conversation with His Excellency Dr. Mokgweetsi Eric Keabetswe Masisi, President of the Republic of Botswana, discussing the nation’s unparalleled management of its diamond deposits, elevating it to an upper-middle-income status, and its commitment to sustainable energy, among other ongoing initiatives.
“I don’t know of any country that presents the geopolitical stability that we do. Stability comes along with predictability.” H.E. Dr. Mokgweetsi Erickeabetswe Masisi, President of Botswana
Your Excellency, may you kindly elaborate on your government’s policies and legislation aimed at strengthening Botswana’s economy?
The fundamental prerequisite for success is good governance, and we plan to maintain and build upon the successes of my predecessors. Our commitment is to respond to emerging dynamics, one of which is opening up the economy for fair competition. The role of government is succinctly defined as that of a fair, dependable, predictable, and trusted facilitator for business and investment. We focus on fair distribution of our budget for infrastructure, providing a stable and reliable healthcare system, telecommunications, clean water, waste management, and education. Our policies include promoting enhanced trade, incentivizing key sectors of the economy, and encouraging both domestic and global private sector investment, as we seek to pivot our economy to depend less on natural resources, with emphasis on knowledge and intellectual capital.
What opportunities in the country do you see for investors?
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I don’t know of any country that presents the geopolitical stability that we do. Stability comes along with predictability. Stability is not just political. It is also economic and financial. We have a financial model and system that allows any investor, with whatever currency that is tradeable, to bring it into our economy with minimal bureaucracy. We see ourselves as a strategic conduit in the International Financial Service Centre system. Additionally, financial resources are legally
“Botswana’s story is an amazing one with an economy on an upward trajectory of 1.9 % in the fourth quarter of 2023. Further to this, Standard & Poor’s credit rating for Botswana stands at BBB+ with a stable outlook.” H.E. Dr. Mokgweetsi Erickeabetswe Masisi, President of Botswana
regulated. Our tax regime of 22% for companies has the potential to be reduced to 5% or even 0% in special economic zones for five years. Look at the state of our infrastructure, security and personal safety, and the skill base of our people, which make Botswana’s business environment competitively compelling. Our warm international relations with other SADC countries and our unwavering commitment to the ideals of the African Continental Free Trade Area Agreement have great potential to expand our small market of 2.65 million people to over 389.4 million people, even up to 1.5 billion. Lastly, our infrastructure provides opportunities for massive investment. Botswana’s current budget for infrastructure totaling P21 billion (US$1.5 billion) is the largest ever since independence. This is for the 2024-2025 financial year alone.
Could you please share insights into your environmental protection initiatives aimed at mitigating the effects of climate change?
Botswana boasts a long history of environmental protection stewardship, reserving 40% of its land mass for wildlife and environmental conservation, as well as implementing appropriate policies to manage waste disposal. We invest in relevant technologies to offset the impact of
negative environmental hazards. We also adhere to regional and international protocols. We have also put together an integrated resource plan that manages and limits the development of any energy source that could result in pollution. More importantly, we have ramped up and continue to review plans to further elevate the net contribution of solar energy as a proportion of our total
energy production. Additionally, we’re investing in the knowledge and innovation space as we strive to build our capacity to produce storage for batteries for solar generation. We have the ingredients, but we are still looking for investors, innovators, and creators so that we can be a solution provider, not only to Botswana but the world. We will continue to invest in research and development to ensure we meet the targets of the Paris Agreement, which aims to limit global
warming to 1.5-2ºC compared to pre-industrial levels.
What makes the people of Botswana unique?
Botswana is a young country with a small population of about 2.6 million people, young also in that we only gained our independence in 1966. We are a youthful population, with young people
under 35 years constituting approximately 60% of our country’s population. However, as a democracy, we are the oldest and arguably the most successful democracy in Africa. Being a Motswana means that you are the embodiment of a certain compendium of values, including a commitment to peace and harmony, consultative dialogue, democracy, and looking out for others. Batswana are unique because they abhor violence, bullying, autocracy, and anything
that abuses trust. Batswana are unique because they embrace other nationalities. I am proud to be a Motswana and would not trade that for anything.
What would you like people to know about Botswana’s history?
Botswana has a rich history that is worth reading, and when you do, you will find values that any peace-loving person globally associates with. Botswana is built on principles of peace and dialogue. We are of the strong conviction that it is always better to jaw-jaw rather than war-war. You find this in our idiomatic expressions, and the narrative of our history is replete with examples of leaders who sought to venture out and speak on behalf of their people and others so that there is peaceful coexistence, social harmony, and non-discrimination. For a very long time, we stood out as an oasis of peace at a time when the Southern African region was reeling under the yoke of apartheid, where racial discrimination and subjugation were institutionalized. We have never experienced war, whether civil or external. We have no known enemies. We intend to have none. Botswana’s story is an amazing one, with a GDP on an upward trajectory of 1.9% in the fourth quarter of 2023. Further to this, Standard & Poor’s credit rating for Botswana stands at BBB+ with a stable outlook. Furthermore, Moody’s credit rating for Botswana was last set at A3 with a stable outlook.
Why would you say that Botswana is the diamond of Africa?
The reason I would say, without an iota of doubt, that Botswana is the diamond of Africa is not only because we are home to the continent’s and the world’s richest diamond deposits, but because we have also managed them exceptionally well. We have not allowed diamonds
to cause us any harm as a people. Our diamonds are for development. We have institutions of governance and robust management controls that, for decades, enabled Botswana to comply with Best Principle Practices. Proceeds from our diamonds go toward national development for the benefit of our people, in terms of impact and wealth. They are mined out of a governance system and structure that is clean and organic in the same way as diamonds themselves were made over 3.3 billion years ago. That is the reason why our diamonds are valuable; they were formed before the dawn of the human race. Our diamonds do not belong to political leadership or any particular
group or tribe; they belong to every Motswana, and that is why we promulgated legislation that promotes mineral wealth for all. Diamonds belong to the state. That is to say, there are no private mines in Botswana. These diamonds are what make us what we are. I know of no country in the world that has used its resources and benefits from diamonds as prudently, as frugally, and as effectively for its people and development as Botswana. So, this title, that Botswana is the diamond of Africa, is most apt. I might even suggest that Botswana is the diamond of the world.
What is your vision for the country’s future?
Botswana is marching forward with a lot of energy and vigor. We are transitioning from a resource-based economy to a knowledge-based economy. We want to trade with our intellectual capital because we are acutely aware that our natural endowments, such as our mineral wealth,
are finite. Our mental capacity, energy, and zeal to solve global problems, combined with a well-structured and managed country that attracts the world’s best minds to generate, register, and patent their solutions in Botswana, is the way to go. I am really glad we are making headway and we continue to attract conferences, meetings, institutions, and the best minds to come and locate in Botswana and thrive. Throughout the remainder of my presidency, this is the direction I want to take my country. I trust that those succeeding me in our democratic system will sustain the trajectory of our country toward prosperity.
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