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Financial Sector Overview

Economic Landscape

Botswana has experienced rapid growth, a remarkable economic transition and is now one of the top performing economies in Africa. From a poor country status at the time of its independence in 1966, Botswana has become a top-middle-income country in the last 50 years. This success can be attributed to strong democratic institutions and efficient economic management of the country's resources, particularly the rational use of diamond revenues, of which Botswana is the world's largest producer by value. The average economic growth of GDP was 4.88% between 2010 and 2017, above that of sub-Saharan Africa (3.87%). The main driver of Botswana's growth remains extraction and processing of diamonds for export (88% of exports in 2016), although the contribution of the mining sector to GDP declined sharply from 47% in 1986 at around 20% in 2017. Despite efforts to diversify the economy, the economic base remains narrow and growth has not been sufficiently inclusive.

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At a Glance

At a Glance Source
Population in thousands (2017): 2,291.66
GDP per capita (current US$) 2017 - World Average 10,721.61: 7595.61
Account (%) age 15+) - (2014 vs 2017): 52% | 51%
Agriculture Orientation Index - Credit (Agriculture, Forestry and Fisheries share of GDP) (2015 vs 2016): 0.98 | 1.11
Financial Inclusion Strategies: • Financial Inclusion Roadmap and Strategy 2015-2021• SADC Financial Inclusion Strategy 2016-2021
Domestic credit provided by financial sector (% of GDP) 2017: 17.05
Made or received digital payments in the past year (% age 15+) (2014 vs 2017): 42% | 42%
Remittances % of GDP for 2017: 0.0012
Mortgage Interest Rate / Mortgage Term (years): 8.42% | 25

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Latest News & Events

Mar 27, 2019 | DailyNews; All Africa
Women's Finance House Botswana, otherwise known as Thusang Basadi, has funded close to 3 800 women to start businesses.

Latest Publications

Jul 31, 2018 | FinMark Trust | FinMark Trust
Jul 31, 2018 | FinMark Trust | FinMark Trust
Jun 30, 2018 | Bank of Botswana (BoB) | BoB
Sep 30, 2017 | Bank of Botswana (BoB) | BoB
Apr 30, 2017 | A.B. Fanta, K. Mutsonziwa, B. Berkowitz et al. | FinMark Trust
Mar 23, 2017 | D. Chamberlain, A. Carmago, W. Coetzee | FSD Africa