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The role of the services sector in Botswana's diversification

Briefing/policy papers

Written by Dirk Willem te Velde, Massimiliano Cali

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