How Does Botswana Make Money

Botswana’s economy is mostly dependent on diamond mining. Diamond mining contributes to 50% of the government revenue mainly through its 50:50 joint venture with De Beers in the Debswana Diamond Company.

Country group: Developing/Emerging; Upper

GDP by sector: agriculture: 1.8%; industry: 27

Public debt: 21.7% of GDP (2017 est.)

Population below poverty line: : 16.3% (2016)

Wealth will be defined as a suitable accumulation of resources and possessions of value.’ Under this simple definition, one is wealthy to the extent that one has sufficient food of good quality, clothing appropriate to keep cool or warm, and shelter for protection from the elements.

The Kalahari Desert, a large semi-arid savannah, covers 70% of Botswana. It is, therefore, no surprise that water is such a valued commodity. In fact, Botswana’s currency is called the Pula which translates to rain in Setswana.

Having enjoyed sub-Saharan Africa’s fastest economic growth for much of the last century, this landlocked country has positioned itself to be an important hub for manufacturing and commerce by leveraging its position as a gateway to the Southern African market.

Despite being the world’s third largest diamond producer, its wealthiest individuals made their fortunes through investments in diverse industries outside the mining sector, and they represent some of the biggest homegrown entities on the Botswana Stock Exchange (BSE).

Botswana’s economy is mostly dependent on diamond mining. Diamond mining contributes to 50% of the government revenue mainly through its 50:50 joint venture with De Beers in the Debswana Diamond Company.

Does Botswana have a strong economy?

Botswana’s economic freedom score is 64.8, making its economy the 61st freest in the 2022 Index. Botswana is ranked 3rd among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional and world averages.

Why Botswana is the fastest-growing economy?

Botswana was the world’s fastest-growing economy from 1966 to 1989. Rapid growth was to be expected because of the discovery of large diamond deposits. What is unusual is that the economy has not suffered from the Dutch Disease, as is common in mineral boom economies.

Why Botswana is the fastest-growing economy?

Botswana was the world’s fastest-growing economy from 1966 to 1989. Rapid growth was to be expected because of the discovery of large diamond deposits. What is unusual is that the economy has not suffered from the Dutch Disease, as is common in mineral boom economies.

Is Botswana rich in resources?

Botswana’s mining industry continues to be one of the best and most lucrative in the world, especially diamond mining – Botswana is the world’s leading producer of diamonds by value. The downside of this sector is that its performance is tied to global demand and was therefore hard hit during the COVID-19 pandemic.