Botswana’s economy has rebounded from the 2008 global economic downturn. Good management of public finance has resulted in budget surpluses in recent years. The regulatory environment encourages growth, and openness to foreign investment and trade promotes competitiveness and resilience.
The financial sector is fairly well developed, with an independent central bank and little government intervention. The independent judiciary provides strong protection of property rights. In an effort to lessen dependence on diamond production, the government has instituted competitive corporate tax rates, streamlined the application process for business ventures, and committed to increased transparency.
BACKGROUND
The Botswana Democratic Party has governed this multi-party democracy since independence from Britain in 1966. The most recent elections, held in 2014, were the most competitive in the country’s history. President Ian Khama won a second term in October 2014, though the BDP for the first time won less than 50 percent of the vote as opposition groups gained significant support from young and urban middle-class voters. Botswana and the U.S. cooperate closely on military issues and are in talks to have Botswana host a U.S. military airfield. Botswana has abundant natural resources, a market-oriented economy, and one of Africa’s highest sovereign credit ratings. In an attempt to diversify the economy through tourism, Botswana focuses on conservation and developing its extensive nature preserves.
The financial sector is fairly well developed, with an independent central bank and little government intervention. The independent judiciary provides strong protection of property rights. In an effort to lessen dependence on diamond production, the government has instituted competitive corporate tax rates, streamlined the application process for business ventures, and committed to increased transparency.
BACKGROUND
The Botswana Democratic Party has governed this multi-party democracy since independence from Britain in 1966. The most recent elections, held in 2014, were the most competitive in the country’s history. President Ian Khama won a second term in October 2014, though the BDP for the first time won less than 50 percent of the vote as opposition groups gained significant support from young and urban middle-class voters. Botswana and the U.S. cooperate closely on military issues and are in talks to have Botswana host a U.S. military airfield. Botswana has abundant natural resources, a market-oriented economy, and one of Africa’s highest sovereign credit ratings. In an attempt to diversify the economy through tourism, Botswana focuses on conservation and developing its extensive nature preserves.
