Country profile Botswana 2015

Abstract

Diamond extraction, fiscal discipline and sound management (good governance) have yielded positive socio economic dividends for Botswana. The extractive sector remains dominant and mining accounted for more than one quarter of the gross domestic product (GDP) in 2015. The heavy dependence on a diamond sector that is poorly integrated into the local economy remains a major economic challenge for Botswana. The promotion of mineral beneficiation and value addition in line with the Economic Diversification Drive is designed to strengthen domestic linkages and minimize the adverse impact of price fluctuations, as happened in 2009 during the economic meltdown and the resultant decline in the demand for and price of diamonds. Unemployment among youth, HIV/AIDS, poverty, the rise in non-communicable diseases such as diabetes, cancer and cardiovascular ailments, malaria, tuberculosis and inequality are major socioeconomic challenges. Water shortages and the electricity deficit continue to undermine industrial development and economic performance. Similarly, low rainfall in Botswana owing to climate change is a serious threat to food security and livelihoods.