Botswana is a land filled with unique natural beauty, thanks to its vast wild reserves, the largest inland delta, the Okavango, home to a rich variety of wildlife, including giraffes and hyenas, cheetahs, wattled cranes and many more.
The southern African nation is one of the most developed countries in Africa, and its economy ranks among the best in Africa.
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Geography and Location
Botswana is a landlocked country in the centre of Southern Africa, bordered by Namibia, Zambia, Zimbabwe and South Africa. A significant part of the country is covered by deep Kalahari sand, but there are also rocky hills to the southeast.
The land surface area is 581,730 km2 (224,607 sq mi), making it the 48th-largest country in the world, which is the approximate size of France and Madagascar.
Botswana Population, People and Language
According to the last 2022 Population and Housing census, the total population is 2,344,179, with an annual growth rate of 1.92%. The population density was reported at 4.1495 sq. Km in 2020, according to World Bank development indicators.
The urban population is 1,715,465. That’s 71.56% of the total population as of 2021. The urbanisation rate is 2.88%, according to the CAHF Botswana Profile 2021.
The median age in Botswana is 24 years, according to different sources.
Setswana is the primary language spoken by over three-quarters of the population. English is the official language. Other languages include Kalanga (sekalanga), Sarwa (sesarwa), Ndebele, Kgalagadi, and Tswapong.
It’s one of the most sparsely populated countries in the world.
Median Age Group
The nation’s population is a youthful one on average
The population growth rate is quite high
Urbanisation is one of the highest on the continent.
Botswana Real Estate and Investing
Botswana real estate is still largely underdeveloped and has excellent growth potential.
The 2020 pandemic affected the Botswana economy, as has been the case elsewhere across the globe. It disrupted supply chains drastically, causing negative growth rates.
That said, the favourable economic environment and the stability in the real estate sector have created a positive outcome for property values.
The residential rental market improved in Q1′ 2021 with average prices increasing by 11.1%, compared to negative indicators in 2020. The increase was due to a good rental market for lower-end properties in terms of demand and supply.
Domestically, real GDP is projected to expand by 8.8% in 2021, driven mainly by the expected recovery of mining activity and anticipated improvement in global output.
According to Statista, the gross domestic product in the current prices of Botswana was forecast to grow between 2022 and 2027 by 7.1 billion U.S. dollars (+39.44%). The GDP is estimated to amount to 25.06 billion U.S. dollars in 2027.
Average rental yields are 6% to 8%
Other Investor information
Botswana has been ranked as the least corrupt country in Africa.
Ease of Doing Business
Regional – 7th
Ease of Doing Business
International – 86th
Taxation in Botswana
- Capital Gains Tax – from selling property are subject to 22%
- Corporate Income Tax (CIT) – Capped at 25%
- Capital Transfer Tax (CTT) – 12.5%
- No Property Tax
Botswana has enjoyed one of the highest economic growth rates in the world in recent years. This has been primarily propelled by the mining sector, specifically diamonds, which constitute over 90% of the mining sector. Like many other countries, Botswana’s economy was adversely affected by the COVID-19 pandemic and shrunk by 24% in Q2 2020.
The nation’s good governance effectively utilised the abundant wealth of diamonds and other natural resources to grow, enhance, and develop the economy. Botswana is a market-oriented economy with one of Africa’s highest sovereign credit ratings. Ecotourism in the country’s extensive nature preserves is helping to diversify the economy and also helping bounce back economic growth.
The national GDP of Botswana was $17.64 Billion in 2021, with GDP Per capita at $7347.
ARE Research: World Bank Data
The major economic sectors for Botswana are as follows;
- Trade, hotels and restaurants, transport and communications – The sector accounted for approximately 18.7% of GDP, with external analysts attributing tourism to 4 – 7% of GDP.
- Mining & quarrying – The mining sector significantly contributes to Botswana’s economy, accounting for 35% of the national GDP. The country is the largest producer of diamonds by value and volume. Minerals constitute about 80% of the national exports. Other minerals produced are Other minerals produced are coal, aggregate, brickmaking clay, dimension stone, gemstones, gold, soda ash and salt.
- Manufacturing – According to world bank data, this sector contributed 5.41% to GDP in 2020. It has a wide range of sub-sectors, including clothing and textile, food & beverages; Jewellery making; metal products; wood; paper; leather & related products; plastic & rubber products; chemical products; Vehicles etc.
- Finance & business services – This sector represented approximately 15.3% of GDP.
- Construction – The industry contributed 6.8% to the national GDP in 2020.
- Agriculture, Forestry and Fishing – The agricultural sector contributes just over 2% of the national GDP and is dominated mainly by cattle rearing and subsistence farming. Sorghum and maize are the major crops grown. Other crops include millet, beans, groundnuts and sunflower.
The mining sector accounted to 88.2% of foreign earnings 2020.
An estimated 80% of the sector is dominated by cattle rearing.
This sector contributes about 16% to the national GDP.
Emerging Sectors in Botswana
Renewable energy is one of the sectors the Government of Botswana seeks to expand, including coal-bed methane and solar power. The Government has initiated developing a 300-500GW solar project with plants in Botswana and Namibia.
Tourism in Botswana should be a significant economic prospect and a potential for tremendous growth, owing to the country’s unique and fabulous natural resources, a significant advantage to this sector. The industry has often targeted the high-end market. However, the Government is actively promoting this sector by improving and upgrading infrastructure in the different game reserves and parks and pushing for investment and joint ventures in the industry.
Key Projects in Botswana
The Government approved a leather industry park, estimated at 25m USD, that will create about 7000 jobs at total capacity.
Botswana is among the most conducive investment environments in Africa. The real estate industry is largely untapped, making it an excellent investment potential, especially in mid to low-income housing.