Botswana and its Development

by Developed Africa 8. October 2013 09:00

Developed Africa attended the launch of the new investment authority for Botswana in the UK yesterday evening: the Botswana Investment and Trade Centre

The aim of the BITC is to attract investment to Botswana as well as to further trade links, and this is something which Developed Africa believes is necessary in order to further develop Botswana and its interests. 

This move is necessary to further investment interest into Botswana, as Botwsana's history has shown, investment and private partnership fosters growth very well indeed. To see this we just have to look at the way in which Botswana conducted its investment into diamond mining when diamonds were discovered in 1967 in the town of Opara in the central district of Botswana. Instead of having divided up the diamonds on district lines, the government decided that the state as a whole would own any diamonds found, which encouraged a sense of inclusion. As the OECD reported:

Sound macroeconomic policies and good governance have parlayed the country’s diamond resources into a remarkable transformation from one of the poorest countries in the world at independence to upper middle-income status"

The investment into mining the diamonds was done with the mining company DeBeers along the lines of a 50/50 takings for the country and the company. This partnership led to much development for Botswana, as not only did the company provide thousands of jobs for local people, but they put a lot of investment into roads and infrastructure in the country. The New York Times reported how Debeers has:

built roads, hospitals and schools in Botswana; worked to help the country deal with H.I.V. and AIDS; and been involved in and paid for a hundred other things that have helped make Botswana an African success story"

This success can also be seen to bet the product of the 6-yearly National Development Plans which set out a strong 6-year agenda for development and economic governance in order to ensure that the country continued along the lines that the government believed it should be taking and was not affected by the decisions of aid donors. 

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