Botswana, with a population of 2,630,296, is ranked 136th in the world, just behind Qatar. Located in southern Africa, it covers 581,730 square kilometers, ranking 46th globally, just below Madagascar.
Botswana’s economic position in 2022 is relatively stable, with a GDP of $20,355,541,962.85, ranking 116th globally. It is behind Guinea, whose GDP is $20,999,229,260.49. Botswana’s GDP per capita is $7,738.88, ranking 86th worldwide, trailing behind Azerbaijan with a GDP per capita of $7,762.07.
Despite facing challenges, Botswana continues to show resilience and potential for growth in various sectors of its economy.
What are the economic activities of Botswana?
- Primary activities: 1.8% of GDP.
- Secondary activities: 27.5% of GDP.
- Tertiary activities: 70.6% of GDP.
Primary Sector of Botswana
In Botswana, the primary sector, particularly agriculture, plays a vital role in the economy despite contributing only 1.8% to the GDP. With 45.63% of the land dedicated to agriculture, the country thrives on a variety of products including milk, root vegetables, maize, sorghum, beef, game meat, watermelons, cabbages, and goat milk.
The diverse range of crops and animal products reflects the country’s agricultural richness. The favorable climate and abundant natural resources support the growth of these products, showcasing the significance of agriculture in sustaining livelihoods and promoting food security in Botswana.
The diverse geological landscape of the country has led to a rich abundance of natural resources, including diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, and silver. These resources play a significant role in the economy, driving sectors such as mining and manufacturing, and contributing to the country’s economic growth and development.
Secondary Sector of Botswana
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials into finished products for consumption. In Botswana, the main industrial products include diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver, beef processing, and textiles. These products are manufactured for domestic consumption and export, contributing significantly to the country’s economy.
Manufactures play a crucial role in Botswana’s total exports, accounting for a significant 86.27% in 2023, highlighting their vital contribution to the country’s economy and global trade competitiveness.
Tertiary sector of Botswana
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Botswana encompasses services that enhance productivity and meet needs through intangible goods like knowledge and expertise. Key activities include healthcare, education, banking, tourism, transportation, and telecommunications. These sectors contribute significantly to Botswana’s economy by providing essential services and driving growth and development.
Highlighting these, Botswana’s tourism industry, despite attracting 1,830,000 annual arrivals, remains relatively insignificant in the country’s overall economy. With an anual arrivals/population ratio of 0.695739186768333, the impact of tourism on economic growth and development appears marginal, indicating its limited importance compared to other sectors.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 4.3 million subscriptions, equating to 165 per 100 inhabitants. This connectivity fosters technological growth, enhancing innovation and digital services.
Military Activities and Economic Sectors of Botswana
The military is a good example of many economic activities working together. In the primary sector, resources are extracted for military use. The secondary sector focuses on making military equipment. The tertiary sector provides services like training and support. The quaternary sector includes research and development for new technologies. Finally, the quinary sector involves high-level decision-making and strategy to keep the military strong.
In Botswana, the most recent annual military expenditure is 511.9 million US dollars, which is 2.74% of the country’s GDP. The active military force consists of 9,000 personnel, giving a rate of 4 active military members for every 1,000 people in the population.
Biggest company in Botswana
Which is the biggest company in Botswana? The largest company is First National Bank of Botswana, with a market value of $0.64 billion. It operates in the banking industry, which is part of the tertiary sector. The bank was founded in 1990 and serves a vital role in the country’s economy.
International Trade of Botswana
Import Activities of Botswana
Botswana’s import activities are of high importance, accounting for 41.99% of GDP in 2023, totaling $6.42 billion.
Botswana’s main import partners are South Africa (61%), Namibia (9%), Belgium (5%), India (4%), and Canada (4%). The country imports commodities such as diamonds, refined petroleum, trucks, raw sugar, and plastic products.
Exports Activities of Botswana
Botswana’s export activities are of high importance, accounting for 43.47% of its GDP in 2023, totaling $5.5 billion. This demonstrates a significant reliance on international trade for economic growth.
Botswana’s export activities are primarily focused on diamonds, copper ore, insulated wire, coal, and cattle. The country’s top export partners are the UAE, Belgium, India, South Africa, and Hong Kong, with the UAE accounting for 27% of exports.
Botswana economy challenges in 2024
Botswana faces economic challenges in 2024. The diamond-driven growth is declining, leading to high unemployment, especially among youth. The economy contracted due to COVID-19, causing slow recovery. Fiscal challenges persist due to public sector wages.
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