Botswana has maintained one of the world’s highest economic growth rates since independence in 1966. Diamond mining has fueled much of the expansion and currently accounts for one quarter of GDP, approximately 85% of export earnings, and about one-third of the government’s revenues. Tourism is the secondary earner of foreign exchange and many Batswana engage in subsistence farming and cattle raising. Through fiscal discipline and sound management, Botswana transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $17,700 in 2015. Two major investment services rank Botswana as the best credit risk in Africa.
Botswana’s economy is highly correlated with global economic trends because of its heavy reliance on a single luxury export. According to official government statistics, unemployment is 19.5%, but unofficial estimates run much higher. De Beers, a major international diamond company, signed a 10-year deal with Botswana in 2012 and moved its rough stone sorting and trading division from London to Gaborone in 2013. The move was geared to support the development of Botswana’s nascent downstream diamond industry.
Following the 2008 global recession Botswana’s economy recovered in 2010. However, the Government of Botswana estimates the economy grew by only 1% in 2015. This was primarily due to the downturn in the global diamond market; water and power shortages also played a role. In October 2015 President Ian KHAMA announced a stimulus plan to boost the economy through projects in agricultural production, construction, manufacturing, and tourism development. In 2016, Botswana entered its fourth year of drought, detrimental to Botswana’s small, but vital agriculture sector.
The prevalence of HIV/AIDS is second highest in the world and threatens the country’s impressive economic gains.
Bostwana was designated as AGOA Eligible Country on October 2nd 2000. Bostwana has been declared eligible for Apparel Provision on August 27th 2001 and benefits the Lesser Developed Country Special Rule for Apparel (3rd country fabric) and Lesser Developed Country Rule for Certain Textile Articles (Category 0). Regarding the Category 9 Textile Products, Bostwana is only eligible to export Handloomed / Handmade, but not the folklore annex and ethnic printed fabrics.