ATI
COUNTRY PROFILE
Botswana
As of 2020, Botswana is a moderate economic transformer with an overall ATI score of 34 out of 100. While the economy performs significantly above the African average on the productivity and human well-being dimensions of the DEPTH index, there is significant room for improvement in the areas of diversification, export competitiveness, and technological upgrading.
Gaborone
2.68 million
1.7 %
2.7 %
US $7,250
Botswana’s Performance on the African Transformation Index
The overall African Transformation Index score measures the five dimensions of DEPTH.
Overall score
34.3 /100
Score change
since 2000
At a glance
- As of 2020, Botswana is a moderate economic transformer with an overall ATI score of 34 out of 100.
- While the economy performs significantly above the African average on the productivity and human well-being dimensions of the DEPTH index, there is significant room for improvement in the areas of diversification, export competitiveness, and technological upgrading.
| Score /100 |
Change since 2000 | ||
 |
Diversification |
24.0 |
+2.0
|
 |
Export competitiveness |
3.4 |
-3.2
|
 |
Productivity increases |
70 |
+26.9
|
 |
Technology upgrading |
8.8 |
-0.9
|
 |
Human well-being |
65 |
+8.4
|
Diversification of production and exports measures countries’ capability to produce and export a widening array of goods and services.
Score
24 /100
Score change
since 2000
At a glance
- Botswana's diversification score stands at 24 out of 100, indicating limited progress in diversifying the production and export sectors of the economy.
- The mining sector, particularly diamond mining, remains the main driver of Botswana’s economy, contributing around 20 percent to GDP, while the manufacturing sector remains small.
- Similar to many African countries, Botswana’s manufacturing sector has been shrinking since 2012, contributing less than 10 percent to the economy.
- The service sector remains a major driver of growth, contributing 53.3 percent to GDP (with significant contributions from financial services and tourism) as the country intensifies efforts to diversify the economy away from the dominant mining sector. But challenges remain in broadening the economic base.
- The country’s export basket is still heavily concentrated with the share of the top 5 commodity exports—particularly diamonds—comprising as much as 94 percent of total exports, underscoring the need for greater diversification.
- The economy’s heavy reliance on the capital-intensive mining sector, coupled with the mining sector’s limited integration with the broader economy, has increased the country’s vulnerability to global market fluctuations—as seen during the COVID-19 pandemic and the droughts that occurred in 2018/19 and 2023/24.
Export competitiveness is measured as the ratio of a country’s share in the world’s exports of non-extractive goods and services to its share in world non-extractive GDP.
Score
3.4 /100
Score change
since 2000
At a glance
-
Botswana’s export competitiveness score of 3.4 falls significantly behind the African average of 13.8 , reflecting its ongoing dependence on low-sophistication extractive exports with limited diversification outside the extractive sectors.
-
Like many African economies, Botswana faces challenges in moving up the value chain and expanding into more sophisticated, technology-intensive exports beyond the diamond industry.
-
Despite efforts to increase the share of manufactured and service exports, these still account for only a minor portion of total exports.
Productivity increases measure the value added per unit of labor in agriculture, manufacturing, and services.
Score
70 /100
Score change
since 2000
At a glance
- Botswana's productivity score of 70 remains significantly above the African average of 27.2 with notable improvements in productivity per worker across various sectors.
- While the mining sector has seen significant productivity gains, other sectors, including agriculture and manufacturing, lag behind.
- Productivity in agriculture remains low with value added per worker at $1664, contributing to the sector's declining share of GDP.
- The manufacturing sector has also shown some improvement, but productivity per worker remains relatively low, limiting the sector's contribution to economic transformation.
- Meanwhile, productivity has increased to $67,067 per worker in the service sector and $25,850 per worker in the industrial sector (excluding mining and utilities).
Technology upgrading measures the medium-and high-technology content in total production activities and total commodity exports.
Score
8.8 /100
Score change
since 2000
At a glance
- Botswana scores 8.8 points on technology upgrading, having recorded some good progress in integrating technology into medium and high-tech manufacturing in particular.
- The country has also made progress in adopting new technologies, particularly in the mining and financial sectors.
- However, the overall impact on economic transformation is constrained by the limited size of the manufacturing sector and the slow pace of technology adoption in other areas.
- The share of medium and high-tech exports remains low at 6.99 percent, highlighting the need for further investment in technology-driven sectors to enhance the country's competitiveness.
Human well-being measures economic and social outcomes and enablers in terms of incomes, income inequality, formal employment, and female participation in formal labor markets.
Score
65 /100
Score change
since 2000
At a glance
- Botswana's human well-being score of 65, which is above the African average of 42.5, remains the country’s highest human well-being score over the period under consideration. This perhaps highlights the country’s consistent efforts to improve the quality of life of its citizens over the past two decades.
- Since 1990, the country has made substantial progress in improving the quality of life of its citizens, with a steady increase in GDP per capita, which reached $20,688 in PPP terms by 2020.
- The Gini coefficient has remained relatively stable, reflecting ongoing efforts to address income inequality. But it still remains one of the highest in the world.
- Challenges such as income inequality and unemployment persist, highlighting the need for continued efforts to enhance human well-being across the board.
- The proportion of females in waged and salaried employment stands at 74.45 percent, while 62.07 percent of the labor force is formally-employed.
Discover more from the ATI
ATI Scorecard
Explore the data behind the economic transformation progress of 30 African countries between 2000-2020.
Growth with DEPTH
Explore the ATI in DEPTH and see how African countries performed on each dimension between 2000-2020.
Methodology
Learn more about our methodology, sources, and how we calculate the index.
Country Profiles
To explore the results of the index in greater detail and provide context and analysis, the ATI report includes 11 case studies.
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