Overview

Botswana is the world's largest producer of diamonds and the trade has transformed it into a middle-income nation. Botswana is trying to reduce its economic dependence on diamonds, moving to boost local business and employment by encouraging more value to be added to diamonds locally. Botswana protects some of Africa's largest areas of wilderness. It is sparsely populated, because it is dry. The Kalahari Desert, and most areas are too arid to sustain any agriculture other than cattle.

Economic Indicators 2021 and 2022

Capital City	Gaborone
Country size	582 000 km2
GDP at current prices	R224.2 billion
Population	2,346,179  (2022)
Independence Day	30 September
Website	www.gov.bw
GDP per capita	R103,080
Real economic growth rate	3.0%
Annual inflation rate	2.8 %
Merchandise imports (intra-SACU Trade)	R65.3 billion
Merchandise exports (intra-SACU Trade)	R10.6 billion

¹ The Source of data for Real GDP growth and Inflation are Member States Economic Background Papers submitted in May 2021, to support the calculation of the 2022/23FY Revenue Shares. GDP per capita is a result of the Secretariat calculations (i.e., GDP per capita =GDP/Popn)

Economic Performance 2021

Botswana recorded a nominal GDP of P195.3 billion in 2021 against P172.6 billion in 2020. GDP is forecast at P223.2 billion in 2022. Growth is estimated to have rebounded to 9.7 percent for Botswana in 2021 mainly driven by both mining and non-mining sectors after a contraction on 8.5 percent in 2020 due to the pandemic. However, growth is expected to moderate to 4.3 percent in 2022 amid better global economic prospects and buoyed by the fight against the pandemic and relaxation of international travel and tourism.

With reference to balance of payments, the merchandise trade account balance of P20.1 billion (11.6 percent of GDP) was recorded in 2020 compared to the lower rate of 4.4 percent of GDP recorded in the first half of 2021. This reflects net foreign exchange outflows as payments for imports and various government obligations and other offshore investments eclipsed earnings from exports, transfers, and foreign investment. 

The economic growth rate is forecast at 4.2 percent for 2023 against the anticipation that non-mining sector growth (water, electricity and finance) would be bolstered by accommodative monetary policy.