Botswana economic profile
Botswana is a landlocked country with significant mineral (diamond) wealth, good governance and prudent economic management. The country has enjoyed strong and stable growth since independence. However, the limitations of Botswanaâs diamond-led development model have become more apparent. The slower growth, persistent inequality and stubborn unemployment rates, coupled with increased diamond market volatility, reduced Southern African Customs Union (SACU) transfers and fiscal expansion have resulted in eroded fiscal buffers.
The COVID pandemic has heightened the existing growth challenges, leading to an estimated real gross domestic product (GDP) contraction of 7.9% in 2020 (the largest on record). Botswana has long realised that its dependence on diamonds is unsustainable, and the government and private sector players continue to seek means for economic diversification to foster sustainable economic growth. This exploration of alternative industries and sectors is a priority of the government of Botswana. (Source: The World Bank)
TFSA sector work in Botswana
The main sectors in which TFSA work in Botswana are condiments and high value specialty foods, and cosmetics and natural ingredients. Both sectors are either actively exporting or export ready, and will benefit from trade promotion interventions, technical support with Non-Tarriff Barriers compliance, and market linkage with South African buyers, in particular, as well as international markets of interest. They have a high participation of women in the workforce, with several large women-owned businesses, and export growth will as such have a great, positive impact on women - not least in rural communities where a lot of producers are based.
TFSA works closely with sector organisation Natural Products Association of Botswana (NPAB) to provide producers with the necessary skills and knowledge to grow their export trade.