Botswana
The Economy of Botswana
Forty years of uninterrupted civilian leadership, progressive social policies, and significant capital investment have contributed to Botswana’s status as one of the most dynamic and stable economies in Africa. Botswana has maintained one of the world's highest economic growth rates since independence in 1966, though growth has slowed to 4.7% in 2006.
Through fiscal discipline and watertight policies, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $11,200 in 2006. Two major investment services rank Botswana as the best credit risk in Africa. Botswana has also been assessed as the least corrupt country in Africa by Transparency International.
Diamond mining contributes to more than one-third of GDP and for 70-80% of export earnings. Tourism is a developing sector due to the country's conservation practices and extensive wildlife preserves. Financial services, subsistence farming, and cattle-raising are other important sources of revenue. The focus now is to diversify the economy away, reduce dependency on diamond mining and promote ecotourism.
On the downside, there are high rates of unemployment and poverty. HIV/AIDS infection rates are the second highest in the world and threaten Botswana's impressive economic gains.
The currency of Botswana is the pula.
