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The role of the services sector in Botswana's diversification

Briefing/policy paper

Written by Dirk Willem te Velde, Massimiliano Cali

Briefing/policy paper

Botswana has experienced one of the most impressive growth rates in the world over the last four decades and the highest rate of per-capita growth in the world between 1965 and 1998. The average growth rate since the 1980s has been 7.8%. Yet, the strategy of economic diversification during the ’80s and ’90s has had limited success, with a small reduction in the share of mining, and an increase in the share of services to the economy. However, this is only the beginning for a sector which should have a bright future given the factor endowments (i.e. landlocked economy, with a reasonable supply of skilled labour and governance) if the relevant policy and regulatory frameworks are put in place.

Dirk Willem te Velde and Massimiliano Calì