Today Botswana celebrates the fiftieth anniversary of independence from the United Kingdom, an important moment for the national pride of the African country, which until two years ago was considered the most prosperous of the entire continent.
During these fifty years, Botswana has been the protagonist of a remarkable development, confirmed by the exceptional results achieved both institutionally and economically by the small African nation.
Since 2008, the country’s leader has been Seretse Khama Ian Khama, the eldest son of Sir Seretse Khama, the father of independence and first president of Botswana. During these eight years, Ian Khama, who was re-elected in October 2014, has handled this power following the policies initiated by his predecessors Festus Gontebanye Mogae and Ketumile Joni Masire.
These two presidents ensured stability in the southern African nation with the adoption of a system of government aimed at ensuring an appropriate use of public resources. Seretse Khama Junior has continued on this path, making shrewd political choices which have consolidated the economic and social reforms.
Good governance, certified by the Ibrahim Index, which ranked Botswana as the third best-governed nation in Africa, has allowed political management to be exercised within a compact democratic framework, which has always guaranteed competitive and free parliamentary elections, regularly held in compliance with the Constitution.
All this has encouraged the development of Botswana, which since its independence has usually had a good average annual growth rate and one of the highest levels of GDP per capita in sub-Saharan Africa, over the last three years exceeding seven thousand US dollars per capita.
This performance has undoubted economic importance, as is seen from the fact that at independence, Botswana had two schools, forty graduates and only one fifteen kilometre paved road, no public transport system, electricity or telephone lines and was the third poorest nation in the world.
Moreover, it was certainly not easy to create development in a landlocked country currently populated by just under two million three hundred thousand people, where much of the territory consists of deserts, and endowed with fewer natural resources than many other African countries.
The enormous progress in this first half-century of independence originated with the economic policies adopted by the first president, Seretse Khama, who used a financially sustainable approach, opening up mining to foreign investors and setting up stable international trade links.
In the first six years of government, the father of the country significantly cut public spending, allowing GDP growth that stood at around 15% a year. The Gaborone Executive thus increased its credibility and was able to attract foreign investment through the application of a reduced tax rate for mining companies, and also low income tax. In addition, there has been a total guarantee of respect for private property and very low defence expenditure (in the first ten years after independence the country had no army).
The presence of major foreign investments in the area also pushed away any need for economic aid from the International Monetary Fund and World Bank, which played a purely advisory role.
In the last year, however, the economic miracle of Botswana has suffered a setback. Everything was revealed in September 2015, when President Ian Khama announced that the growth forecasts were reduced by 50% due to the fall in the price of diamonds, of which Botswana is the world’s leading producer.
The diamond trade accounts for about 80% of export earnings, more than 30% of GDP and, according to the World Diamond Council, produces almost a third of state revenues. However, the significant slowdown in demand for gems since the end of 2014 has affected the country’s economy.
This influence is so negative as to force Gaborone to use part of the country’s $ 8.5 billion of foreign exchange reserves to stimulate growth. While a few days ago, in the midst of preparations to celebrate the golden jubilee, the Bank of Botswana announced that economic growth has reached a critical level, as indicated by the slowdown of the economy, the increased pressure on public spending and the major increase in unemployment, which rose to 17.8%.
The central bank governor Linah Mohohlo explained that over the last fifty years, the use of mineral resources has helped Botswana to be placed in the range of middle-income countries, but now new alternatives are needed to sustain economic progress, because minerals are exhaustible resources.
According Mohohlo, to facilitate the smooth implementation of the 11th National Development Plan, the government must ensure that the next phase of economic growth is driven by efficiency and innovation, two pillars that will allow the country to compete regionally and globally.
Meanwhile, today the blue, white and black of Botswana’s flag is waving high in Gaborone’s streets to celebrate half a century of independence.
