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					                                                                                        Country Brief

                                                                                    BOTSWANA
                                                                                        August 27, 2009


EXECUTIVE SUMMARY

Botswana has a reputation of being the best managed and among the most economically successful
countries in Africa. Its credit rating for example is the highest of any African nation, it has the fourth
highest per capita income in Africa, foreign exchange reserves are bountiful and the external debt is very
low. Elections are held on a regular basis and are deemed free and fair and corruption is not tolerated.
Prudent management of the diamond resources has been key to the economy’s success. A sovereign
wealth fund has been established to invest much of the proceeds from diamond exports. The veneer of
wealth and success however tends to obscure a number of troubling problems. There is for instance a
very high level of HIV/AIDS that is an enormous burden on the economy, the distribution of income is
among the most unequal in the world, about half the population relies on subsistence farming for their
livelihood, the unemployment rate is very high, the infrastructure is inadequate and the electrification rate
is just 39%. In addition, the economy is too dependent on the mining sector which employs just 3.8% of
the paid workforce.


Geography

Botswana is a landlocked country in southern Africa
that is slightly smaller than Texas and which borders
Namibia, Zimbabwe and South Africa. The climate is
semiarid subtropical (hot and dry for most of the year).
There are frequent droughts. The rainy season is from
January to March. The Kalahari desert covers more
than three quarters of the area of the country. The
population is 1,990,876. Gaborone is the capital,
commercial center and the largest city. It has a
population of 224,000.       Arable land accounts for
0.65% of the area of the country, 61.1% of the
population lives in urban areas (UN estimate for 2010),
21.1% of the country is covered by forests and 0.01%
of the land area is devoted to permanent crops. The
median age is 21.7 years, the birth rate is 22.9 per
1,000 people, the death rate is 8.5 per 1,000 people,
34.8% of the population is under 15 years old, 28.2%
is between 25 and 44 and 3.9% are 65 years and
older. The population growth rate is 1.2% (UNDP
estimate for 2005-2015). The time zone is 2 hour
ahead of Greenwich meantime. The official language
is English. It is the language of government and is the
language for instruction for all subjects at primary and secondary school. Setswana is the “national”
language and is spoken by 80% of the population. It is offered as a compulsory school subject at primary
and secondary school. Botswana is a former British colony that received its independence on September
30, 1966.




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SECTION SUMMARY AND TREND

Political Environment - Government & Civil Liberties                                      Trend


 Free and fair elections are held on a regular basis. Freedom of expression, speech,
 assembly and the press are guaranteed by the constitution and are generally
                                                                                           Positive
 respected. The judiciary is independent and free of political interference. The legal
 system though is burdened by staffing shortages and a large backlog of cases.

Economic Overview                                                                         Trend
 Infrastructure
 Only 32.6% of the road network is paved. Much of it needs to be rehabilitated. The
 international airport near the capital is being expanded and upgraded to increase        Stable
 passenger capacity and enable it to accommodate long haul jet liners. Passenger
 rail service was terminated because of the poor state of coaches and large losses.
 There is almost universal access to clean drinking water.
 Energy Sector
 Coal generates virtually all the electricity. There are no indigenous sources of oil,    Negative
 hydro power or natural gas. The electrification rate is just 39%. About three
 quarters of the electricity that is consumed is imported from South Africa.
 External Accounts
 Exports of diamonds, copper and nickel have traditionally guaranteed a current
 account surplus. However, the global recession has prompted a deep plunge in             Negative
 mineral exports and as a result, the current account will record its first deficit in
 2009 since 1990. The deficit should narrow next year as the global economy
 rebounds.
 External Debt
 The government has pursued a very prudent borrowing policy and as a result, the
 external debt is very manageable. To finance the swelling budget deficit, the            Positive
 government has borrowed $1.5 billion from the African Development Bank. It has
 plentiful foreign exchange reserves to pay back the loan.
 Agriculture Sector
 Botswana is not well suited for large scale agriculture production because the           Negative
 rainfall is relatively sparse (the average annual rainfall is just 18.7 inches), more
 than three quarter of the country is covered by desert, there is a limited amount of
 fresh water resources and arable land accounts for just 0.65% of the area of the
 country. It is a net food importer.
 Informal Economy                                                                         Negative
 According to the World Bank, the informal economy is equal to 33.4% of GDP.
Business Environment                                                                      Trend

 Openness to Foreign Investment
 Foreign investment is encouraged. There are no foreign exchange controls, no
 legal distinctions are made between domestic and foreign companies, profits,             Positive
 capital, dividends and interest can be freely remitted without limitations, foreigners
 can invest in the stock exchange and nationalization of property is forbidden by the
 constitution. Most foreign investment is in the mining sector.
 Financial Sector
 There is a small financial sector that is mainly dominated by foreign banks. The         Positive
 banking sector has not been undermined by the global financial crisis. At the end of
 2008, past due loans were 5.0% of total loans. This was down from 8.0% in 2007.
 Corruption
 Corruption is not tolerated. Botswana is ranked 36 of 180 nations in Transparency        Positive
 International’s 2008 corruption perception index. This is the highest ranking of any
 sub-Saharan nation. Laws against corruption are effectively enforced.
                                                                                                      2
 Human Capital                                                                            Trend

  Botswana is ranked ranks 126 of the 179 countries and territories in the UNDP
  Human Development Index for 2008. The life expectancy is 61.9 years, 26% of the
  population is considered to be undernourished, 55.5% of the population lives on         Stable
  less than $2 a day and the literacy rate is 82.9%. Education is a major priority. In
  FY07/08, the government allocated 25.1% of its budget to education. AIDS is a
  major heath care problem.
 Economic Outlook                                                                         Trend


  The economy retreated sharply following the onset of the global financial crisis as
  demand for diamonds, copper and nickel plunged. In the year ending the first
  quarter, the economy contracted by 20.3% from the same period of 2008. The worst
  though appears to be over and business conditions are expected to rebound
                                                                                          Positive
  strongly as the global economy strengthens later in the year and into 2010. After
  falling by 10.4% in 2009, the IMF is forecasting a 14.3% advance in 2010. The
  sharp drop in demand in the mining sector during the fourth quarter of 2008 and the
  first three months of 2009 highlights the need to diversify the economy and make it
  less dependent on the swings in the commodity cycle.


I. Political Environment

 Index                                                     Rank              Score
                                                                             Political Rights: 2.0/7.0
 Freedom House Index 2009                                  Status: Free
                                                                             Civil Rights: 2.0/7.0
 Bertelsmann Transformation Index 2008                     N/A               N/A
 Fund for Peace - Failed State Index 2008                  116/177           68.8/120.0
 World Bank Gov Indicator 2008, Political Stability        81.3 Percentile   0.96

1. Government

The chief of state and the head of government is President Seretse Khama Ian Khama who has held the
office since April 1, 2008. He assumed the presidency when President Festus G. Mogae stepped down
on April 1, 2008 and designated Khama to serve out the remainder of his term. The president is elected
by the National Assembly to a 5-year term and is eligible for re-election. The last election was held on
October 20, 2004 when President Mogae won 52% of the votes in the National Assembly. The next
election will be conducted in October 2009. Cabinet members are appointed by the President.

There is a bicameral Parliament that consists of the House of Chiefs and the National Assembly. The
House of Chiefs is a largely advisory body that consists of 15 members of which 8 are chiefs of the
principal tribes. Members serve for 5 years. The National Assembly has 63 seats of which 57 are directly
elected by popular vote, 4 are appointed by the majority party, 1 is the President and 1 is the Attorney-
General. Members serve for 5 years. Suffrage is 18 years. The National Assembly elections were last
held on October 30, 2004 and the next balloting will be in October 2009. The Botswana Democratic Party
has 44 seats in the National Assembly and the Botswana National Front has 12. The Botswana
Democratic Party has held power since independence. Elections have been judged by international
monitors to be free and fair.

2. Civil Liberties

Freedom House has designated Botswana as “free” and has assigned it a rating of 2 out of 7 for political
rights and 2 out of 7 for civil rights. The lower the rating the higher the degree of political and civil
                                                                                                         3
liberties. Botswana is not ranked in the Bertelsmann Transformation Index. It is 116 of 177 in the Fund
for Peace Failed State Index (the lower the number the higher the degree of economic and political
dysfunction) and is ranked at the 81.3 Percentile in the World Bank’s (WB) Political Stability Governance
Indicator.

Freedom of expression, speech and the press are guaranteed by the constitution and are generally
respected. Independent media exists which criticizes the government. There is only one national
television station, Botswana Television. It is state owned. Opposition parties have accused it of limiting
coverage of opposing views of government policy. The government also owns the Botswana Press
Agency, a free, nationally distributed newspaper, and 2 FM radio stations. The government occasionally
censors or restricts news stories that it believes are “undesirable.” In December 2008, it passed a Media
Practitioners Bill that established a media regulatory body and mandated the registration of all media
workers. The measure was severely criticized by the opposition. There are no limitations or restrictions
on using the internet. Freedom House ranks Botswana 78 of 195 in its Freedom of the Press survey for
2009 and characterizes the press as “partly free.”

Freedom of religion is guaranteed. All religious organizations however must register with the
government. Academic freedom is generally respected as is freedoms of assembly and association.
Nongovernmental organizations operate freely and without harassment. The constitution prohibits
arbitrary arrest and detention, and the government observes these prohibitions. Workers, with the
exception of police officers and members of the armed forces and the prison service, can form and join
unions. Unions are largely concentrated in the public sector, mineral extraction, railway and banking
sectors. More than 30 employees are required to form a trade union. Of the 298,900 formally employed
workers in 2005 only about 10% were union members. The right to strike is severely limited and virtually
all strikes have been ruled illegal. Unions are allowed to engage in collective bargaining.

The judiciary is independent and free of political interference. The legal system though is burdened by
staffing shortages and a large backlog of cases. There have been allegations that the police occasionally
resort to beatings to obtain evidence and elicit confessions.

II. Economic Overview

Mining was the largest sector of the economy in 2008, accounting for 41.2% of the total followed by the
central government at 15.4%, wholesale and retail trade had a 7.3% share and banks and insurance was
responsible for 5.7%. Agriculture was 1.8% and manufacturing was 3.4%. Of all the paid workers as of
June 2008, 45.2% were employed by the central and local governments and government controlled
companies, 14.5% were in wholesale and retail trade, 11.5% worked in manufacturing and 6.4% were in
construction. Mining and quarrying, which is the largest sector of the economy, employs just 3.8% of the
paid workforce. The unemployment rate was estimated at 17.6% in September 2008.

The minimum hourly wage for most full-time workers in the private sector in 2008 was 3.80 pula (about 55
cents based on the average exchange rate for 2008). As of September 2007, average monthly earnings
were 3,530 pula. The average for workers in government companies was 8,478, in finance, it was 8,198
and for mining and quarrying, it was 7,065. The law permits a maximum 48-hour workweek.

The law sets the minimum age for employment at 14 years. Only an immediate family member may
employ a child 13 or younger. No one under 14 can be employed in any industry without permission from
the Commissioner of Labor. According to the 2005-06 labor survey, slightly fewer than 38,000 children
between the ages of seven and 17 were employed in the formal sector in 2006. About half were younger
than 14. More than 60% of employed children worked in agriculture, 20% in retail trade, and 4% in
private homes. Most employed children worked up to 28 hours per week.

Consumer prices rose by 0.9% in July and were 6.0% above their year ago levels. This was down from a
recent peak of 15.1% in the year to November 2008.




                                                                                                        4
The crops grown are millet, sorghum, corn, peanuts and sunflowers. Diamonds, copper, nickel, potash,
coal, iron ore and silver are the major natural resources. Diamond, copper, coal and nickel mining and
textiles are the principle industries.

The economy grew at an annual rate of 5.5% between 1999 and 2008. This compares to increases of
4.6% for Namibia and 3.9% for South Africa. According to the IMF, the per capita income in 2008 was
$7,554. This was 109% above the level of 1999 and it placed Botswana 67 of 179 countries and
territories that the IMF compiles per capita data for. Botswana has the highest per capita income of any
sub-Saharan African nation except Gabon, the Seychelles and Equatorial Guinea. The relatively high per
capita income however paints a deceptive picture of the standard of living. More than half the population
relies on subsistence farming for their livelihood. The distribution of income meanwhile is very unequal.
The Gini coefficient, which measures the inequality of income distribution, is 60.5 (the higher the number
the more unequal the income distribution). By comparison, it is 57.8 in South Africa, 40.8 in the US and
24.9 in Japan.

The diamond sector is critical to the economy, accounting for 30% of GDP and 50% of government
revenue. In 2005, Botswana was the largest producer of diamonds by value and the second largest by
volume. Debswana is the major producer of diamonds. It is a 50:50 joint venture between the
government and De Beers (45% owned by Anglo America) and is the largest non-government employer
in the country. It operates 4 open pit diamond mines. All diamonds are sorted and valued by the
Botswana Diamond Valuing Company, which is a subsidiary of Debswana.

Botswana along with South Africa, Namibia, Lesotho and Swaziland, is a member of the Southern African
Customs Union (SACU). Within SACU, no tariffs exist on goods exported among the member states. The
SACU was formed on December 11, 1969 and came into force on March 1, 1970. All customs duties are
paid into South Africa’s National Revenue Fund. The revenue is then shared among the member states
according to a revenue-sharing formula. South Africa is the custodian of this pool of funds.

1. Infrastructure

There are 25,798 km (16,021 miles) of roads of which 32.6% are paved. The US State Department Travel
Advisory for Botswana for March 2, 2009 said, “Traffic circulates on the left…While the roads in major
population centers are generally good, many roads have been damaged by heavy summer rains… poor
lighting makes driving at night on rural highways particularly hazardous. Occasional rolling power outages
mean that many traffic lights and street lamps do not work properly.” The Trans-Kalahari Highway links
Gaborone and Windhoek. The OECD 2005/06 African Economic Outlook report for Botswana noted that
“Funding for road maintenance has been insufficient, giving rise to a maintenance backlog of 1,792 km;
as a result, the existing road network is deteriorating, with some of the deterioration reaching a critical
state.”

There are 77 airports of which 10 are paved. Sir Seretse Khama International Airport, which is located
15km north of the capital, is the main international airport. Air Botswana is the national carrier. It is
government owned. South African Airways is the only major airline to service the airport. There are flights
to Capetown, Harare and Johannesburg. The government has begun a $61 million expansion of the
airport that involves building a new passenger terminal and extending the main runway from 3,000m to
4,000m. The project will enable wide-body aircraft to use the runway, thus allowing the airport to handle
direct international flights instead of having to rely on the Johannesburg airport. SinoHydro Corporation of
China is the contractor. Work is expected to be completed by the start of the football World Cup
tournament, which will be held in South Africa in June/July 2010.

The Civil Aviation Authority (CAA) is a government entity that is responsible for operating the airports.

The railway system consists of 888km of track. It is operated by Botswana Railways (BR), which is a
government entity. On February 27, 2009, BR announced that all passenger service would be
suspended as of April 1, 2009. In a press release, BR noted that according to the maintenance program,
“the fleet of coaches were to be overhauled at 500,000km or every 5 years, which ever was to occur
first…To date…on average, the passenger coaches have never been overhauled over the past 15 years.

                                                                                                            5
Due to the lack of overhaul, the passenger service is running at a risk of having accidents and poses
problems in terms of predictability and sustainability of the service. Much of the coaches are not in good
working order and present a safety hazard…the passenger service of Botswana Railways accounts for
less than 10% of BR’s operating revenues and have consistently made losses of P30 million per
annum…With the development challenges that the country faces, it is not prudent for us to adopt a model
of subsidy for rail passenger service at this stage. Furthermore, in light of the current economic
conditions, Government’s focus on more critical development initiatives is essential.” The passenger
coaches will be sold to raise funds as part of a plan to recapitalize BR, which sustained a P78 million loss
in 2008. The company requires a recapitalization of close to P600 million.

The governments of Namibia and Botswana are considering the construction of a 1,500 mile rail link
between the 2 countries that will carry coal from the Mmamabula Coalfields of southeastern Botswana to
either the ports of Walvis Bay or Luderitz in Namibia. The Mmamabula Coal field is being developed by
CIC Energy (listed on the Toronto and Botswana stock exchanges and headquartered in the Bahamas).
The rail infrastructure would be developed by CIC Energy and the relevant stakeholders in Namibia and
Botswana, including the governments of the two countries. The estimated cost of the rail link is $6 bln.

Botswana is landlocked and therefore does not have a port. It uses Port Walvis in Namibia for exports
and imports.

The Waters Utility Corporation is a state owned company that provides and distributes water and also
operates water treatment facilities. Botswana is one of the few sub-Saharan nations that provides near
universal access to clean drinking water to all of its citizens.

2. Energy Sector

Botswana does not have any indigenous sources of oil, natural gas or hydropower. It consumes and
imports about 15,000 barrels of oil a day. There is no oil refinery and as a result, all refined petroleum
products are imported. Coal is the major indigenous energy source. It is responsible for providing 99.4%
of electricity. Most of the electricity is generated from the Morupule power coal plant, which is operated
by Botswana Power Corp (BPC), the state owned utility company. Of all the energy that is consumed,
coal accounts for 31.5% of the total, oil 36.5% and biomass 33.1%.

Debswana operates the Morupule coal field, which produced 984,838 tons of coal in 2005 and has an
estimated 9 bln tons of reserves. More than half of the mine’s production goes to fuel the Morupule
power plant. Coal is exported to Zimbabwe, Zambia and the Democratic Republic of the Congo.
Debswana has announced plans to increase production at the Morupule Colliery with the goal of lifting
production to 3.8 mln tons a year. The increase in production is designed to accommodate the growing
need of the BPC, which has plans to build four 150 MW coal-fired power plants alongside the existing four
33 MW stations at Morupule. CIC Energy is developing the Mmamabula Energy Project which involves
constructing a coal fired power facility and a coal mine. In March 2009, it signed a contract with the
Shanghai Electric Group to construct a 1,200 MW power plant. It is expected to be completed in 2014.
About 80% of the financing for the power plant will come from debt and 20% will be from equity. The
estimated cost of developing the mine and constructing the power plant is $3 bln. Financing is expected
to come from the Industrial Development Corporation of South Africa, the IFC, the African Development
Bank, the Export Import Bank of China, the Export Credit Insurance Corporation of South Africa and
South African banks. A signing of a definitive loan agreement was expected in 2010. The project
however suffered a set back in July when Eskom of South Africa announced that it was not ready to
commit to purchasing power from the project. It was expected to buy three fourths of the output while
BPC was expected to buy the remainder.

BPC is the major generator, transmitter and distributor of electricity. It also imports electricity from South
Africa and Zambia. In 2008, more than 72% of the country’s power requirements were met through
imports, mainly from South Africa. A small Independent Power Producer (IPP), Bemco, supplies the
town of Ghanzi in Western Botswana. The electrification rate is just 39%. The power supply is inadequate
and there are power blackouts.


                                                                                                            6
3. External Accounts

The trade account experienced a dramatic deterioration in 2008 in response to higher food and oil costs
and increased imports of vehicles and transportation equipment. A deficit of P2.896 bln was recorded as
imports leaped ahead by 42.2% and exports rose by 2.3%. This was equivalent to 3.2% of GDP. In 2007,
there was a surplus of P6.880 bln. This worsening trend continued into 2009 with the trade deficit surging
ahead by 2,103% in the first 5 months from the similar period of 2008 to P4.580 bln as imports dropped
3.0% while exports slumped 38.9%. The steep descent in exports was largely the result of a 39% fall in
the value of diamond exports and a 53.2% decline in the value of copper and nickel shipments. In
response to the slump in global diamond demand, 3 of Debaswana’s mines were closed between
February 25 and April 14 and 1 was shutdown for the rest of the year.

Diamonds are the largest export accounting for 62.6% of the total in the first 5 months of 2009 followed by
copper and nickel at 15.0% and textiles had an 8.3% share. With respect to imports, machinery and
electrical equipment were 18.7%, vehicle and transportation equipment were responsible for 13.1% and
fuel had a 12.6% share. The UK was the largest export market at 53.1% while South Africa was second
at 20.5%. China was third with 4.6%. South Africa was the dominant source of imports at 74.8%
followed by the UK at 5.4% and China with 4.0%.

Remittances and tourism are not important sources of transfer and invisible income. According to the
2008 World Bank Migration and Remittances Factbook, remittances totaled just $141 mln in 2007 and
were equal to 1.1% of GDP. Tourism plays a small role in the economy. In 2008, the net tourist surplus
was P1.837 bln, which was equal to 2.0% of GDP. The travel and tourism sector accounts for 4.4% of
total employment. The largest source of transfer income is Botswana’s share of the SACU custom
revenue, which is included in the government transfer account of the current account. In 2008, there was
a P6.511.bln net surplus in this account, which was equal to 7.1% of GDP.

The current account registered a surplus every year between 1991 and 2008. Last year, the surplus
dropped 53.5% to P5.122 bln in response to the steep deterioration in the trade account. It was equal to
5.6% of GDP. It is likely that the long string of current account surpluses will end this year as the trade
account plunges further into deficit. In the first quarter of 2009, there was a current account shortfall of
P3.103 bln. In the similar period of 2008, there was a surplus of P3.307 mln.

Foreign exchange reserves in May were P57.521 bln and were equal to 22½ months worth of
merchandise imports.

The government has established a sovereign wealth fund, the Pula Fund, to invest some of its earnings
from the diamond sector. It was set up in 1996 and has $6.9 bln in assets. The Sovereign Wealth Fund
Institute has given the Pula Fund a transparency rating of just 3 out of 10.

4. External Debt and Budget Balance

Botswana has a very low level of indebtedness. As of the end of FY07/08 (fiscal year starts April 1), the
total government debt was just P3.972 bln, which was equal to only 5.0% of GDP. Of this amount,
P1.772 bln or 44.6% was external debt, the bulk of which is owed to multilateral organizations. A prudent
                                                                                                        th
fiscal policy is the major reason for the low external debt. Fiscal year 07/08 for example was the 5
consecutive FY that the budget was in surplus. The surplus for 07/08 was equal to 4.8% of GDP. The
mining sector is the most important source of government revenue, contributing 38.5% of the total in
07/08 followed by custom and exercise taxes (mainly SACU receipts) at 27.4% and non mineral income
taxes were 13.6%. External grants accounted for only 2.0% of budgetary receipts. With respect to
spending, social services were 47.9% of the total, education had a 25.1% share and health care was
responsible for 10.6%

The sharp decline in the mining sector, which has plunged the economy into recession, has wrecked
havoc on the budget. It recorded a small deficit in 2008/09 and for 09/10, a shortfall of 13.5% of GDP is
anticipated. To help finance the shortfall, the government borrowed $1.5 bln from the African
Development Bank in June. This was the first such borrowing in 17 years.

                                                                                                          7
5. Agriculture Sector

Botswana is not well suited for large scale agriculture production because the rainfall is relatively sparse
(the average annual rainfall is just 18.7 inches), more than three quarter of the country is covered by
desert, there is a limited amount of fresh water resources and arable land accounts for just 0.65% of the
area of the country. More than half of the population earns their livelihood from subsistence farming.
Farm productivity is limited by poor access to credit, the intense heat, the low level of mechanization,
desertification, the low level of electrification in rural areas and periodic droughts. In addition, there is just
10 sq km of irrigated land.

Agriculture’s share of the economy has declined from 40% at the time of independence to just 1.8% at
present. An estimated 80% of agriculture's output comes from livestock production, mainly beef. Over
95% of the beef production is exported. There are an estimated 2.5 million heads of cattle, which is
greater than the population. Only 20% of the country is suitable for grazing. Overgrazing is a major
environmental problem.

Botswana is a net importer of food. In 2007, cereals such as wheat, corn and rice accounted for 2.6% of
total imports, vegetables and fruits were 2.2% and dairy products and eggs were 1.5%.

6. Informal Economy

Botswana has a very large informal economy. According to the World Bank, it is equal to 33.4% of GDP.
               th
It is ranked 54 of 104 nations that the World Bank compiles data on the informal economy for. Informal
and self employment accounts for 35% of the workforce. Most of informal workers are in the agriculture,
domestic and street vending sectors.

III. Business Environment

 Index                                                                 Rank                  Score
 Economic Freedom of the World Index 2008                              60/141                7.0/10.0

 Heritage Foundation Economic Freedom Index 2009                       34/179                69.7/100.0

 World Economic Forum – Global Competitive Index 2008-                 56/134                4.25/7.00
 2009
 Milken Institute Capital Access Index 2008                            68/122                4.28/10.00

 UNCTAD – Inward Potential Performance Index 2004-2006                 78/141                0.175/1.000

 World Bank Ease of Doing Business 2009                                38/181                n/a

 World Bank Gov Indicator 2008, Regulatory Quality                     67.1 Percentile       0.52

 World Bank Gov Indicators 2008, Rule of Law                           68.9 Percentile       0.64

 Transparency International Corruption Perception Index 2008           36/180                5.8/10.0


1. Summary of Indices

Botswana is ranked 38 of 181 in the World Bank’s 2009 ease of doing business survey. This compares to
a ranking of 52 of 179 in the 2008 survey. It has the highest ranking of any sub-Saharan nation except
Mauritius and South Africa. Botswana is ranked 80th in starting a business, 73rd for employing workers,
43rd in getting credit, 92nd in enforcing contracts, 29th in registering property, 38th in protecting
investors, 17th in paying taxes and 26th in closing a business. With respect to the World Bank’s
governance indicators, it performs above average. It is ranked at the 67.1 percentile for regulatory quality
and for rule of law, it is at the 68.9 percentile.

                                                                                                                8
Botswana is ranked 60 of 141 in the Fraser’s Institute Freedom of the World Index, 68 of 122 in the
Milken Institute Capital Access Index, it is 78 of 141 in the UNCTAD Inward Potential Performance Index
for 2004-2006, it is 34 of 179 in the Heritage Foundation’s Economic Freedom Index and 56 of 134 in the
World Economic Forum’s (WEF) 2008-2009 Competitiveness Index.

2. Openness to Foreign Investment

The government encourages foreign investment to spur growth, employment and exports. No legal
distinctions are made between foreign and domestic companies. All foreign exchange controls were
abolished in February 1999. Capital, dividends, profits, interest, royalties, wages and management fees
can be freely remitted without limitation or restrictions. Foreign companies are allowed to own 100% of a
domestic company. Foreign investors can open foreign exchange accounts. The Constitution prohibits
the nationalization of private property. The government does not require investors to locate in specific
geographical areas, use a specific percentage of local content, manufacture substitutes for imports, meet
export targets, or use local sources of financing. Incentives are offered to foreign investors including
exemptions from sales taxes for importing machinery and equipment needed for the production of
exports. According to the US State Department Investment Climate Statement, “the government adheres
to transparent policies and maintains effective laws to foster competition and establishes clear rules of the
game. Bureaucratic procedures are streamlined and open, although somewhat slow, and not excessively
overbearing compared to other African countries….The government tender process is open, and lobbying
of The Public Procurement and Asset Disposal Board or its members is strictly prohibited…Government
procurement practices do, however, involve some preference schemes and reserve certain tenders for
100% citizen-owned companies.” The judiciary is independent and there are adequate laws governing the
settlement of commercial disputes. However, there are long delays in judicial proceedings.

The government encourages foreign investors to transfer technology and skills, employ nationals in
supervisory, middle and senior management roles and establish joint ventures with local companies.
There are several sectors that are closed to foreign investors. Among them are manufacturing school
furniture and uniforms, welding, bricklaying, street vendoring, butchery, fresh produce, gasoline stations,
liquor stores, bars other than those related to hotels, supermarkets, excluding chain stores and franchise
operations, clothing boutiques, road contracts, railway maintenance, cement, bricks, bread baking,
sorghum milling and transportation of the mail. The granting of work permits to expatriates may be
contingent on the establishment of demonstrable "localization" efforts.

The corporate tax rate is 15%. It is only 5% however for manufacturing companies. There is an
additional corporate tax of 10% and as a result, the effective corporate tax rate is 25% except for
manufacturing firms who pay a 15% rate. Losses can be carried over for 5 years to offset gains. Farming
and mining companies are able to carryover losses indefinitely. There is a 15% withholding tax on
dividends. Capital gains are taxed as ordinary income except for stock sales which are exempted from
taxes. There is a 15% withholding tax on interest for non residents and a 10% withholding tax for
residents. The top income tax rate is 25%. There are no payroll, social security, capital allocation or
wealth taxes. The VAT is 10%.

3. Foreign Investment

Data from the UNCTAD indicate that FDI in 2007 was $495 mln. This was above the $489 mln level in
2006 and represented 24.4% of gross fixed capital formation. The total stock of FDI (book value) at the
end of 2007 was $1.300 bln, which was equal to 11.3% of GDP.

Most of the foreign investment is in mining, particularly in diamonds. De Beers’ (which is 45% owned by
Anglo American) joint venture with the government in Debswana is the largest foreign investment.
Among the other companies with operations or investments are AON and Marsh McLennan in insurance,
H.J. Heinz and Nestle in food, South African Breweries in beer brewing, McDonalds and Kentucky Fried
Chicken in fast food, Colgate Palmolive in personal care products, Grant Thornton, Deloitte and Touche,
PricewaterhouseCoopers, KPMG, Ernst & Young in consulting and auditing, DHL and Federal Express in
freight packaging and transportation, Avis in car rentals, Sun International (South Africa) in hotels, BP and
Shell in retail gasoline, Iamgold (Canada) in gold mining, Discovery Metals (Australia) and African

                                                                                                           9
Copper (UK) in copper, Hanna Mining (Canada) in copper and silver mining, Rio Tinto in diamond mining,
Norilsk Nickel (Russia) has a stake in the nickel producer BCL Mine, which the government also has a
large holding in, Falconbridge of Canada (owned by Xstrata of Switzerland) has operations in the nickel
sector and Zulu Energy (US) has explored for methane gas.

4. Privatization

In 2000, the government established the Public Enterprise Evaluation and Privatization Agency (PEEPA)
to oversee the privatization of state holdings. It has the authority to decide the extent of foreign
participation in the privatization process and determine the means that will be used to promote citizen
participation in denationalizing state controlled companies. The PEEPA has indicated that in certain
circumstances, local investors may be given preference in the privatization process. Restrictions can be
imposed on foreign participation for “strategic reasons.” The government privatization policy was dealt a
setback by the failure to sell off Air Botswana because of its poor financial condition. There are plans to
privatize Botswana Telecommunications (BTC), the Botswana Building Society and the National
Development Bank. There is strong opposition to privatization because of concerns it will lead to job loses
at a time of high unemployment. All state companies have been commercialized. They are expected to
operate as commercial entities and receive no government subsidies or special treatment.

5. Financial Sector

Botswana has a small financial sector. There are 8 commercial banks; Barclay’s, Standard Chartered
(UK), First National Bank (South Africa), Stanbic (South Africa), Bank Baroda (India), Banc ABC, Bank
Gaborone and Capital Bank. There are also 1 investment/ merchant bank and 1 microfinance institution.
As of the end of 2008, past due loans were 5.0% of total loans. This was down from 8.0% in 2007. Banks
can lend to non-resident companies without the specific approval of the Bank of Botswana. The
government owns the Botswana Development Corporation (BDC) and the National Development Bank
(NDB), which offers long-term loans and equity capital to finance commercial business development.

There is a stock exchange; the Botswana Stock Exchange (BSE). Foreigners can buy shares.
Government and corporate bonds and stocks are traded on the exchange. On the “main board”, there
are 19 domestic and 4 foreign companies listed. At the end of 2008, the market capitalization was
$41.758 bln. Domestic companies however accounted for just 8.8% of the total. The DCI Index stumbled
last year in line with all global markets, slipping by 16.5% (a 30.3% fall in US dollars). This brought the 5-
year year return to 184.9% (67.8% advance in US dollars). In the year to date period ending August 26,
the DCI declined 4.3% (a 5.5% rise in US dollars).

Non-residents are able to trade in and issue Pula-denominated bonds with maturities over 1 year,
provided such instruments are listed on the Botswana Stock Exchange. Residents are permitted to invest
overseas and borrow offshore.

The Pula operates under a crawling band foreign exchange regime. In 2008, it fell by 19.0% against the
dollar. It rose 11.8% against the South Africa rand. In the year to date period ending August 26, 2009, it
rebounded by 10.2% against the dollar but slipped by 8.7% against the rand.

At the Bank of Botswana Certificate Auction on August 25, the weighted average yield for 2-week paper
was 8.71%.

6. Corruption and Transparency

Botswana is not a signatory of either the UN Convention Against Corruption or the African Union
Convention on the Prevention and Combating of Corruption. It is ranked 36 of 180 nations in
Transparency International’s 2008 corruption perception index. This is a modest improvement from its
ranking of 38 of 179 nations in the 2007 index. Botswana has the highest ranking of any sub-Saharan
nation. According to Transparency International, a score of less than 3.0 out of 10.0 indicates there is
“rampant” corruption. Botswana’s score is 5.8. After a series of corruption scandals involving the
government in 1994, an anticorruption body with special powers of investigation, arrest, and search and
                                                                                                           10
seizure was established. It has had a conviction rate of more than 80%. In 2000, the passage of the
Proceeds of Serious Crime Act expanded the mandate of the anti-corruption commission to include
money laundering. Under the Corruption and Economic Act of 1994, anyone found guilty of “cheating for
valuable consideration” is liable to imprisonment for a term not exceeding 10 years or a fine of not more
than P500,000. According to the US State Department’s Climate Statement, “Investors with experience
in other developing nations describe the lack of obstruction or interference by government as among the
country's most important assets. While there remains a high tolerance for conflict of interest in
government/private sector interaction, foreign investor complaints generally focus on the reputed
inefficiency and/or unresponsiveness of mid- to low-level bureaucrats.”

7. Standards Compliance Assessments

 IMF Dissemination Standard                                    Subscription Status
 Special Data Dissemination Standard                           Not a Subscriber
 General Data Dissemination Standard                           Yes, a Subscriber


 IMF Assessment                      Standards Assessed             Dates           Compliance Level
 Reports on Standards         and    Data Dissemination             April 6, 2007   Low
 Codes (ROSCs)                       Accounting and Auditing        May 20, 2006    Mixed

 Financial Sector Assessment
 Programs (FSAPs)


Botswana has been assessed for Data Dissemination as part of the IMF's ROSC program. The report
indicated that there needed to be a “marked improvement in the periodicity and timeliness of data.” The
World Bank has assessed Botswana for Accounting and Auditing. It noted that “considerable efforts have
been made in aligning accounting and auditing practices with international accepted standards and
codes. Corporate accounting and disclosure practices have considerably improved over the last 5 years.
Monitoring and enforcement of financial reporting requirements in the banking sector has contributed to
improved transparency of the financial sector.       Even with progress, there is room for further
improvements.”


IV. Human Capital
 Index                                                       Rank                   Score
 UNDP Human Development Index 2008                           126/179                0.664/1.000

1. Social Indicators

Botswana ranks 126 of the 179 countries and territories in the UNDP Human Development Index for
2008. The infant mortality rate is 12.6 per 1,000 live births, the probability of dying before the age of 40 is
46.8%, 94% of births are attended to by a skilled health care professional, the under 5 mortality rate is
124 per 1,000 live births, 90% of one-year olds are fully immunized against measles, 10% of infants are
born with low birth weight, the maternal mortality rate is 380 per 100,000 live births, 26% of the population
is considered to be undernourished, 96% of the population have access to clean drinking water, 10.7% of
children under 5 are underweight for their age, 47% of the population have access to improved sanitation
facilities, the probability of dying between the ages of 15 and 60 is 46.8%, 30.3% of the population lives
below the national poverty level, 55.5% of the population lives on less than $2 a day and the projected life
expectancy for 2009 (according to the US Census Bureau) is just 61.9 years (62.0 years for females and
61.7 years for males).



                                                                                                            11
2. Access to Technology

There are 73 mainline telephone lines and 612 cellular subscribers per 1,000 people. Internet use is 53
per 1,000 people. There are 48 personal computers per 1,000 people, 9% of households have a
television, there are 154 radios per 1,000 people and there are 57 motor vehicles per 1,000 people. The
per capita consumption of electricity is 1,464.3 kilowatt hours (in the US, it is 12,924 kilowatt hours).

Botswana is ranked 77 of 134 in the WEF’s 2008-2009 Network Readiness Index.

3. Health Indicators

There are 40 physicians per 100,000 people, 270 nurses and midwives per 100,000 people, 10
environment and public health workers per 100,000 people, 20 laboratory health workers per 100,000
people and 20 pharmacists per 100,000 people. In 2004, there were just 38 dentists in the entire country.
There are 240 hospital beds per 100,000 people.

AIDS is a major health care problem. The prevalence of HIV/AIDS is 23.9% of the adult population (15-49
years old). Only Swaziland has a higher rate. In 2007, there were 300,000 people living with AIDS of
which 15,000 were children, there were 11,000 deaths from the disease and 95,000 AIDS orphans. The
prevalence of tuberculosis is 622 per 100,000 people (in the US, it is 3 per 100,000 people), the
prevalence of diabetes is 3.6% of the population between 20 and 79 and the homicide rate is 0.5 per
100,000. In 2007, there were 497 reported road traffic fatalities. The per capita health expenditure is
$815. The mortality rate for cancer is 124 per 100,000 people, the mortality rate for cardiovascular
diseases is 338 per 100,000 people and deaths due to AIDS were 1,020 per 100,000 people.

In a WHO survey of the leading causes of death in 2002, HIV/AIDS accounted for 80% of the total. Tied
for second place, each with 2% were perinatal conditions, Cerebrovascular disease and Ischaemic heart
disease.

The State Department’s travel advisory for Botswana said, “Medical facilities in Gaborone are adequate
for simple medical problems, but facilities outside of Gaborone are limited.”

In the WHO’s ranking of the world’s health care systems, Botswana is ranked 169 of 190 countries
surveyed.

4. Education Indicators

Education is a major priority for the government. In the FY07/08 budget, it allocated 25.1% of total
expenditures to education. The government reintroduced school fees in 2006. The fees can be waived for
families that have a low income. Uniforms and books are also provided free by the government for
students who are poor. School attendance is not compulsory. Primary school begins at age 6 and
continues for 7 years. Of the students who enroll in grade 1, 85% reach the final grade of primary school
and 5% of students repeat grades. The pupil/teacher ratio is 26:1. Secondary education begins at age 13
and is completed in 5 years.

The literacy rate is 82.9% for those 15 years and older. The average for sub-Saharan Africa is 62.3%.
The net enrollment rate in primary school is 85% for girls and 83% for boys. This compares to a regional
average of 71% for girls and 76% for boys. The ratio of primary school age children who are not in
primary school is 16%. The primary to secondary school transition ratio is 97%. The net enrollment rate in
secondary school is 63% for girls and 58% for boys, which compares to the regional average of 24% for
girls and 29% for boys. The gross enrollment for tertiary school is 4%. This is below the regional average.
The school life expectancy is 11.9 years, which is higher than the regional average of 8.6 years.




                                                                                                        12
V. Economic Data, Outlook and Credit Rating

 IMF Country Data Overview 2009 (Est.)

 GDP           GDP:            GDP       per   CPI:     Current Account   Budget        FDI
 Growth                        capita:                  as % of GDP       deficit as    (UNCTAD
                                                                          % of GDP      2007)

 -10.4%        $13.461         $5,415          8.1%     -6.5%             -13.5%        $495 mln
               bln                                                        (Govt.
                                                                          estimate
                                                                          for 09/10)

1. Latest IMF Consultation

The IMF has not conducted an article IV Consultation Report since February 8, 2008.

2. Economic Outlook

The global economic downturn hit Botswana hard as demand for diamonds, copper and nickel, the
principle exports and sources of government revenue, plunged, thus sending both the trade account and
the budget deeply into deficit. In the year ending the first quarter, the economy dropped by a staggering
20.3% from the corresponding period of 2008. The IMF is projecting a 10.4% contraction in 2009. This
would be the first decline since 1993 when the economy experienced a 1.0% retreat. The worst though
appears to be over and business activity is expected to rebound strongly for the rest of the year and into
2010 as global economic activity rebounds. Most encouraging in this regard is that copper and nickel
prices have recovered strongly from their recent lows. On August 24 for example, copper traded at its
highest level in 11 months and nickel was at its highest point in 12 months. The diamond sector
meanwhile is beginning to revive. In July, The Diamond Trading Company, which is part of the De Beers
family of companies and is the world’s largest distributor of rough diamonds, reported that diamond sales
have picked up and are well above their recent cyclical lows. The IMF is optimistic that the economy is
set for a strong rebound and is forecasting growth of 14.3% in 2010.

The sharp economic downturn in 2009 prompted by the fall in diamond, nickel and copper prices
highlights the necessity to diversify the economy. This is especially important as the mining sector
employs relatively few people. Some success has been made in developing a textile sector, which
accounted for 8.3% of total exports in the first 5 months of 2009. However, more much needs to be done
to expand the manufacturing sector, which accounts for only 3.4% of GDP.

3. Country Credit Ratings


 Credit Rating                      Standard & Poor’s       Moody’s          Fitch Ratings

 (as of date of publication)        A/Negative/A-1          A2/Stable        N/A


Botswana is rated by Standard and Poor’s and Moody’s. S&P has assigned it a rating of A/Negative/A-1
while Moody’s has given it a rating of A2/Stable. These are the highest ratings for any African nation.

For Standard and Poor’s, a rating of BBB- or above is considered investment grade while for Moody’s, a
rating of Baa or above is investment grade.




                                                                                                       13
VI. Membership in international organizations

 Financial Action Task Force (FATF)                      Not a member

 International Center for Settlements of Investment      Signatory on January 15, 1970
 Disputes (ICSID)

 International Federation of Accountants (IFAC)          Yes, a member

 Multinational Investment Guarantee Agency (MIGA)        Yes ,a member

 United Nations Convention Against Corruption            Not a Signatory

 World Intellectual Property Organization (WIPO)         Yes, a member

 World Trade Organization (WTO)                          Signatory on May 31, 1995




VII. Sources for Botswana Brief

Geography

“Africa: Atlas of our Changing Environment”, United Nations Environment Program, 2008
http://books.google.com/books?id=mL8mBtYb3XwC&pg=PA93&lpg=PA93&dq=frequent+droughts+in+bot
swana&source=bl&ots=Ulln6G5AzY&sig=r-EIfwMXqxOeZoUnqQ-
oaBViXdc&hl=en&ei=672CSvLRIpmTtgeL5L3NCg&sa=X&oi=book_result&ct=result&resnum=2#v=onepa
ge&q=&f=false

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

Maps of the World, “About Botswana”
http://www.mapsofworld.com/country-profile/botswana.html

Molosiwa, Annah, “Language and Literacy Issues in Botswana”, Michigan State University
http://cpls.educ.ubc.ca/content/pdfs/4MolosiwaBotswana.pdf

TimeTemperature.com
http://www.timetemperature.com/africa/botswana_time_zone.shtml

UNDP, "2007/08 Human Development Report for Botswana" September 2008
http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_BWA.html

US Census Bureau: “Countries and Areas Ranked by Population: 2009”
http://www.census.gov/cgi-bin/ipc/idbrank.pl

US Census Bureau: International Data Base
http://www.census.gov/ipc/www/idb/country.php

World Travel Guide.com, “Climate of Botswana”
http://www.worldtravelguide.net/country/38/climate/Africa/Botswana.html

World Urbanization Prospects, "The 2007 UN Population Data Base, Entry for Botswana"
http://esa.un.org/unup/index.asp?panel=3


                                                                                         14
Political Environment Table

Bertelsmann Transformation Index
http://www.bertelsmann-transformation-
index.de/fileadmin/pdf/Anlagen_BTI_2008/BTI_2008_Ranking_EN.pdf

Freedom House – “Freedom in the World 2009: Table of Independent Countries
http://www.freedomhouse.org/uploads/fiw09/FIW09_Tables&GraphsForWeb.pdf

Fund for Peace, “Failed State Index 2009”
http://www.fundforpeace.org/web/index.php?option=com_content&task=view&id=99&Itemid=140


World Bank, “World Governance Indicators”, 2008
http://info.worldbank.org/governance/wgi/index.asp

Government

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

Journal of Democracy, January 2005, “Election Watch”
http://muse.jhu.edu/login?uri=/journals/journal_of_democracy/v016/16.1election_watch.html

Civil Liberties

Africa Media Development Institute, “Botswana Country Report”
http://downloads.bbc.co.uk/worldservice/trust/pdf/AMDI/botswana/amdi_botswana6_tv.pdf

Freedom House, “2009 Report for Botswana”
http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7572

Freedom House, “Freedom of the Press 2009”
http://www.freedomhouse.org/uploads/fop/2009/FreedomofthePress2009_tables.pdf

The Friedrich Ebert Foundation, “Unions in Botswana”
http://www.fes.org.bw/03dTradeUnions.htm

US Department of State, "Human Rights Report for Botswana," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/118987.htm

Economic Overview

AllAfrica.com, “Botswana: Unemployment High Despite Growth”, September 23, 2008
http://allafrica.com/stories/200809240089.html

Bank of Botswana, “Consumer Price Data”
http://www.cso.gov.bw/images/stories/Price_CPI/cpi%20july09.pdf

Bank of Botswana “Financial Statistics, June 2009”
http://www.bankofbotswana.bw/sections.php?sectid=557

Botswana Central Statistical Office, “June 2008 Formal Employment Statistics”, Published February 2009
http://www.cso.gov.bw/images/stories/Labour/june_2008_emplo.pdf

Botswana Central Statistical Office, “2007 Labor Report”
http://www.cso.gov.bw/images/stories/Labour/2007%20labour%20report.pdf



                                                                                                    15
Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

DeBeers Website, “Debswana”
http://www.debeersgroup.com/debswana

Derby, Ron and Lourens, Carli, "De Beers funding may be hard sell for Anglo America,” Bloomberg, July
23, 2009
http://www.bloomberg.com/apps/news?pid=20601116&sid=aul3m7X1DYFk

Hanson, Stephanie, “Botswana: An African Success Story Shows Strains,” January 10, 2008, The
Council of Foreign Relations
http://www.cfr.org/publication/15108/%28accessed

International Monetary Fund, “World Economic Outlook Database”, April 2009
http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries

Mbendi Information Services, “Diamond Mining in Botswana”
http://www.mbendi.com/indy/ming/dmnd/af/bo/p0005.htm

O’Donnell, Shannon, “Diamonds Around the World”, June 8, 2007, Creamer Media’s Mining Weekly.com
http://www.miningweekly.com/article/diamonds-around-the-world-2007-06-08

OANDA Currency Site
http://www.oanda.com/convert/fxaverage

Southern African Customs Union website
http://www.sacu.int/

UNDP, "2007/08 Human Development Report for Botswana" September 2008
http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_BWA.html

US Department of State, "Human Rights Report for Botswana," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/118987.htm

Infrastructure

AllAfrica.com, “Botswana: New Civil Aviation Body Aims to Commercialize Airports”, January 23, 2009
http://allafrica.com/stories/200901261656.html

Botswana, “African Economic Outlook Report for 2005/06," Published by the OECD
http://www.oecd.org/dataoecd/11/58/36748457.pdf

Botswana, “African Economic Outlook Report for 2009," Published by the OECD
http://www.africaneconomicoutlook.org/en/countries/southern-africa/botswana/

Botswana Export Development and Investment Authority, “Infrastructure”
http://www.bedia.co.bw/article.php?id_mnu=49

Botswana Railways, “Termination of Botswana Railways' Passenger Service”, February 27, 2009
http://www.botswanarailways.co.bw/press/27feb09.html

CIC Energy Website, “Mmamabula Coalfield”
http://www.cicenergycorp.com/project/info_mmamabula/

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html



                                                                                                      16
Gaotlhogogwe, Monkagedi, “Our Trains Are death traps”, March 2, 2009, Mmegi Online.com
http://www.mmegi.bw/index.php?sid=1&aid=1&dir=2009/March/Monday2

MmegiOnline.com, “Botswana Sees Coal Alternative to Diamonds”. February 9, 2009
http://www.mmegi.bw/index.php?sid=4&aid=20&dir=2009/February/Monday9

Shipping News from the ports of South and Southern Africa, “Walvis Bay”
http://www.ports.co.za/walvis-bay.php

Swindells, Steven, “Botswana Pursues Upgrade Path,” July 24, 2009, Jane’s Intelligence
http://www.janes.com/news/transport/jar/jar090724_1_n.shtml

US State Department, “Travel Advisory for Botswana”, for March 2, 2009
http://travel.state.gov/travel/cis_pa_tw/cis/cis_1071.html

Waters Utilities Website
http://www.wuc.bw/

Energy Sector

Africapedia, “Africa Electrification rate”
http://www.africapedia.com/wiki/index.php?content_id=266

AllAfrica.com, “Botswana: Morupule Colliery Expansion Speeds Up”, June 26, 2009
http://allafrica.com/stories/200906290909.html

Benza, Brian, “Mmamabula to Slow Botswana Power Plans,” Mmegi
http://palapye.wordpress.com/2009/07/29/mmamabula-delay-to-slow-botswana-power-plans/

Botswana Power Corporation website
http://www.bpc.bw/

CIC Energy website, “Mmamabula Energy Project”
http://www.cicenergycorp.com/project/info_mmamabula/

Debswana website, “Morupule”
http://www.debswana.com/Debswana.Web/About+Debswana/Investments/Morupule+Colliery/

Energy Information Administration, “Country Report for Botswana”, August 18, 2009
http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=BC

Mbendi Information Services, “Electric Power in Botswana”, July 29, 2009
http://www.mbendi.com/indy/powr/af/bo/p0005.htm

UNDP, "2007/08 Human Development Report for Botswana" September 2008
http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_BWA.html

World Bank, “Percentage of electricity from coal sources”
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ENVIRONMENT/EXTDATASTA/0,,contentMDK:2
1083175~pagePK:64168445~piPK:64168309~theSitePK:2875751~isCURL:Y,00.html

External Accounts

BBC, “Botswana Diamond Firm Shuts Down”, February 23, 2009
http://news.bbc.co.uk/2/hi/business/7906425.stm

Bank of Botswana “Financial Statistics, June 2009”
http://www.bankofbotswana.bw/sections.php?sectid=557


                                                                                         17
Botswana Central Statistical Office, “Botswana External Trade Monthly Digest, May 2009”
http://www.cso.gov.bw/images/stories/Trade/may2009.digest.pdf

International Monetary Fund, “World Economic Outlook Database”, April 2009
http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries

Mineweb.com, “Debswana to reopen Botswana Diamond Mines”, April 15, 2009
http://www.mineweb.com/mineweb/view/mineweb/en/page37?oid=81876&sn=Detail

Sovereign Wealth Fund Institute, “Pula Fund”
http://www.swfinstitute.org/fund/pula.php

World Bank, "Migration and Remittances Factbook," 2008
http://econ.worldbank.org/WBSITE/EXTERNAL/EXTDEC/EXTDECPROSPECTS/0,,contentMDK:2112193
0~pagePK:64165401~piPK:64165026~theSitePK:476883,00.html

World Economic Forum, “Travel and Tourism Competitiveness Report for 2009” Country Profile of
Botswana
http://www.weforum.org/documents/TTCR09/index.html

External Debt and Budget Balance

Bank of Botswana “Financial Statistics, June 2009”
http://www.bankofbotswana.bw/sections.php?sectid=557

Central Statistical Office of Botswana, “National Accounts”
http://www.cso.gov.bw/images/stories/National_Accounts/na%2007-
08%20report%20december%2008.pdf

Seria, Nasree, “Botswana Gets $1.5 billion Loan as Diamonds Slump”, Bloomberg, June 3, 2009
http://www.bloomberg.com/apps/news?pid=20601116&sid=azSsoTGIEP3w&refer=africa

Agriculture

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

New Agriculturist, "Country Profile for Botswana” November 2005
http://www.new-ag.info/country/profile.php?a=845

Safari Mappers “Profile of Botswana”
http://www.safarimappers.com/country.aspx?lngcountryid=81

United Nations Commodity 2007 Trade Statistics for Botswana
http://comtrade.un.org/pb/CountryPages.aspx?y=2007

Informal Economy

Nationmaster.com, “Informal Economy by Country”
http://www.nationmaster.com/graph/eco_inf_eco-economy-informal

United Nations, "The Program of Action for Sustainable Development in Botswana with specific reference
to the Cross-Cutting Issues, Country Profile for Botswana"
http://www.un.org/jsummit/html/prep_process/national_reports/botswana_natl_assess.doc

Business Environment Table

Fraser Institute Economic Freedom of the World Index
http://www.freetheworld.com/cgi-bin/freetheworld/getinfo.cgi
                                                                                                    18
Heritage Foundation Economic Freedom Index
http://www.heritage.org/index/Ranking.aspx

Milken Institute Capital Access Index
http://www.milkeninstitute.org/pdf/2008CAI.pdf

Transparency International Corruption Perception Index
http://www.transparency.org/policy_research/surveys_indices/cpi/2008

UNCTAD – Inward Potential Performance Index
http://www.unctad.org/Templates/WebFlyer.asp?intItemID=2472&lang=1

World Bank Ease of Doing Business
http://www.doingbusiness.org/EconomyRankings/
World Bank Governance Indicators
http://info.worldbank.org/governance/wgi/index.asp

World Economic Forum Global Competitiveness Index
http://www.weforum.org/pdf/gcr/2008/rankings.pdf

Openness to Foreign Investment

US Department of State, "Investment Climate Statement for Botswana," February 2008
http://www.state.gov/e/eeb/rls/othr/ics/2009/index.htm

Deloitte, International Tax 2009, “Botswana Highlights”
http://www.deloitte.com/assets/Dcom-
Global/Local%20Assets/Documents/dtt_tax_highlight_2009_botswana.pdf

Foreign Investment

All Africa.com “Botswana: Government to Acquire Bigger Stake in BCL”, September 11, 2007
http://allafrica.com/stories/200709110912.html

BP Website, “BP in Botswana”
http://www.bp.com/sectiongenericarticle.do?categoryId=452&contentId=2000597

Botswana Metals Limited website
http://www.botswanametals.com.au/companyprofile.html

Discovery Metals, “Boseto Copper Project”
http://www.discoverymetals.com.au/ourprojects_maun.cfm

Discovery Nickel Limited, “Project Update North East Botswana Nickel Project,” December 24, 2004
http://www.discoverymetals.com.au/releases/0000000102.pdf

Hana Mining, “Copper and Silver in Botswana”
http://www.hanamining.com/s/Home.asp

Hill, Liezel, “Iamgold Searches Aggressively for Exploration, JVs, Acquisitions”, July 27, 2009, Creamer
Media’s Mining Weekly.com
http://www.miningweekly.com/article/iamgold-searches-aggressively-for-exploration-jv-acquisition-
opportunities-2009-07-27

Reuters, “African Copper posts 1H profit; restarts Botswana Mine”, August 14, 2009
http://www.reuters.com/article/managementIssues/idUSBNG43979520090814



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Shell Oil website
http://www.shell.com/home/content/footer/contact/contact_botswana.html

Sun International website
http://www.suninternational.com/Destinations/Hotels/Pages/default.aspx

UNCTAD, "World Investment Report 2008 - Country Fact Sheet: Botswana," October 10, 2008
http://www.unctad.org/sections/dite_dir/docs/wir08_fs_bw_en.pdf

US Department of State, "Investment Climate Statement for Botswana," February 2008
http://www.state.gov/e/eeb/rls/othr/ics/2009/index.htm

Zulu Enegy website
http://www.zulu-energy.com/

Privatization

US Department of State, "Investment Climate Statement for Botswana," February 2008
http://www.state.gov/e/eeb/rls/othr/ics/2009/index.htm

Financial Sector

Bank of Botswana Banking Supervision Annual Report for 2008
http://www.bankofbotswana.bw/files/attachments/banking%20supervision%20report%202009.pdf

Bank of Botswana Certificate Rates
http://www.bankofbotswana.bw/

Botswana Stock Exchange
http://www.bse.co.bw/

LowTax.net, “Botswana,Country and Foreign Investment Regime”
http://www.lowtax.net/lowtax/html/botswana/jbocfir.html

Oanda.com
http://www.oanda.com/convert/fxhistory

US Department of State, "Investment Climate Statement for Botswana," February 2008
http://www.state.gov/e/eeb/rls/othr/ics/2009/index.htm

Corruption and Transparency

Freedom House, “2009 Report for Botswana”
http://www.freedomhouse.org/template.cfm?page=22&year=2009&country=7572

List of Countries that have signed the African Union Convention on Preventing and Combating Corruption
http://www.africa-
union.org/root/AU/Documents/Treaties/List/African%20Convention%20on%20Combating%20Corruption.
pdf

Transparency International Corruption Perception Index
http://www.transparency.org/policy_research/surveys_indices/cpi/2008

United Nations Convention Against Corruption
http://www.unodc.org/unodc/en/treaties/CAC/signatories.html

US Department of State, "Investment Climate Statement for Botswana," February 2008
http://www.state.gov/e/eeb/rls/othr/ics/2009/index.htm


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Standards and Compliance

International Monetary Fund list of GDDS nations
http://dsbb.imf.org/Applications/web/gdds/gddscountrylist/

International Monetary Fund list of SDDS nations
http://dsbb.imf.org/Applications/web/sddscountrylist/

International Monetary Fund, Report on Observance of Standards and Codes
http://www.imf.org/external/np/rosc/rosc.asp

International Monetary Fund, “Botswana: Report on the Observance of Standards and Codes – Data
Module, Response by the Authorities, and detailed assessment Using the Data Quality Assessment
Framework”, Released April 6, 2007
http://www.imf.org/external/pubs/ft/scr/2007/cr07139.pdf

World Bank, Report on the Observance of Standards and Codes
http://www.worldbank.org/ifa/rosc.html

World Bank, “Report on the Observance of Standards and Codes for the Republic of Botswana,
Accounting and Auditing”, May 20, 2006
http://www.worldbank.org/ifa/rosc_aa_bot.pdf

Social Indicators

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

Kaiser Family Foundation, "Global Health Facts – Health Indicators"
http://www.globalhealthfacts.org/factsheets_custom.jsp#

UN Statistical Division, “1 Year Immunization Against Measles”
http://unstats.un.org/unsd/mdg/SeriesDetail.aspx?srid=563

UNDP, "2007/08 Human Development Report for Botswana" September 2008
http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_BWA.html

US Census Bureau: International Data Base
http://www.census.gov/ipc/www/idb/country.php

World Health Organization, "Core Health Indicators," May 2008
http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&
intYear_select=latest&language=english

Access to Technology

Nationmaster, “Per capita electricity consumption”
http://www.nationmaster.com/graph/ene_ele_con_percap-energy-electricity-consumption-per-capita

Nationmaster, “Motor Vehicles per 1,000 people”
http://www.nationmaster.com/graph/tra_mot_veh-transportation-motor-vehicles

Nationmaster, “Per capita radio statistics”
http://www.nationmaster.com/graph/med_rad_percap-media-radios-per-capita

World Bank, "Information and Communications for Development 2009," May 2009
http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20459133~isCURL:Y~
menuPK:1192714~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html


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World Economic Forum Network Readiness Index
http://www.weforum.org/pdf/gitr/2009/Rankings.pdf

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

Health Indicators

Central Intelligence Agency, “The World Factbook - Country Report for Botswana”
https://www.cia.gov/library/publications/the-world-factbook/geos/bc.html

HIV In site, “Botswana Update, July 2009”
http://hivinsite.ucsf.edu/global?page=cr09-bc-00

Kaiser Family Foundation, "Global Health Facts – Health Indicators"
http://www.globalhealthfacts.org/factsheets_custom.jsp#

UNDP, "2007/08 Human Development Report for Botswana" September 2008
http://hdrstats.undp.org/en/countries/data_sheets/cty_ds_BWA.html

US State Department, “Travel Advisory for Botswana”, for March 2, 2009
http://travel.state.gov/travel/cis_pa_tw/cis/cis_1071.html

World Bank, World Development Indicators 2006, “Health Risks and Public Health Challenges”
http://devdata.worldbank.org/wdi2006/contents/Section2.htm

World Health Organization, "Core Health Indicators," May 2008
http://www.who.int/whosis/database/core/core_select.cfm?strISO3_select=ALL&strIndicator_select=ALL&
intYear_select=latest&language=english

World Health Organization, “Botswana Mortality Country Factsheet for 2006”
http://www.who.int/whosis/mort/profiles/mort_afro_bwa_botswana.pdf

World Health Organization, "Ranking of medical care systems," 2000
http://www.photius.com/rankings/healthranks.html

World Health Organization Road Safety Status, “Botswana Country Profile”
http://www.who.int/violence_injury_prevention/road_safety_status/country_profiles/botswana.pdf

Education Indicators

Bank of Botswana “Financial Statistics, June 2009”
http://www.bankofbotswana.bw/sections.php?sectid=557

Education International, "Education Report for Botswana," June 15, 2007
http://www.ei-ie.org/barometer/en/profiles_detail.php?country=botswana

UNESCO Education Database
http://stats.uis.unesco.org/unesco/TableViewer/document.aspx?ReportId=198&IF_Language=enEcong

US Department of State, "Human Rights Report for Botswana," February 25, 2009
http://www.state.gov/g/drl/rls/hrrpt/2008/af/118987.htm

Economic Data

International Monetary Fund, “Botswana and the IMF”
http://www.imf.org/external/country/BWA/index.htm



                                                                                                 22
International Monetary Fund, “World Economic Outlook Database”, April 2009
http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries

Seria, Nasree, “Botswana Gets $1.5 billion Loan as Diamonds Slump”, Bloomberg, June 3, 2009
http://www.bloomberg.com/apps/news?pid=20601116&sid=azSsoTGIEP3w&refer=africa

UNCTAD, "World Investment Report 2008 - Country Fact Sheet: Botswana," October 10, 2008
http://www.unctad.org/sections/dite_dir/docs/wir08_fs_bw_en.pdf

Latest IMF Consultation

International Monetary Fund, “Botswana and the IMF”
http://www.imf.org/external/country/BWA/index.htm

Economic Outlook

Diamond Trading Company website
http://www.dtc.com/

International Monetary Fund, “Botswana and the IMF”
http://www.imf.org/external/country/BWA/index.htm

International Monetary Fund, “World Economic Outlook Database”, April 2009
http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weoselco.aspx?g=2001&sg=All+countries

Marketwatch.com “Gold Rises as Dollar Falls; Copper Slides from 11 month high”, August 25, 2009
http://www.marketwatch.com/story/gold-rises-as-dollar-falls-copper-contract-slides-2009-08-25

Reuters, “Copper rallies to 10 month peak, Skepticism Grows”, August 14, 2009
http://www.reuters.com/article/marketsNews/idUSLD45605120090813

Reuters, “African Copper posts 1H profit; restarts Botswana Mine”, August 14, 2009
http://www.reuters.com/article/managementIssues/idUSBNG43979520090814

Seria, Nasreen, “Botswana’s economy Shrinks 20.3% as Gem Sales Plunge”, Bloomberg, July 10, 2009
http://www.bloomberg.com/apps/news?pid=20601116&sid=a7RImikNVwpQ

Sunday Standard.com, “Botswana passes through worst as diamond industry partially recovers,” July 26,
2009
http://www.sundaystandard.info/news/news_item.php?NewsID=5434&GroupID=3

Credit Rating

Fitch
http://www.fitchratings.com/corporate/sectors/issuers_list_corp.cfm?sector_flag=5&marketsector=1&detail
=&body_content=issr_list

Moody’s
http://www.moodys.com/moodys/cust/content/loadcontent.aspx?source=StaticContent/BusinessLines/Sov
ereign-SubSovereign/RatingsListGBR.htm&Param=ALL

Standard and Poor’s
http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/ratings_sov/2,1,8,0,0,0,0,0,0,0,4,0,0,0,
0,0.html

Memberships

Financial Action Task Force
http://www.fatf-gafi.org/pages/0,3417,en_32250379_32236869_1_1_1_1_1,00.html

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International Center for Settlements of investment Disputes
http://icsid.worldbank.org/ICSID/FrontServlet?requestType=ICSIDDataRH&reqFrom=Main&actionVal=Vie
wContractingStates&range=A~B~C~D~E

International Federation of Accountants
http://web.ifac.org/about/member-bodies

Multinational Investment Guarantee Agency
http://www.miga.org/quickref/index_sv.cfm?stid=1577

United Nations Convention Against Corruption
http://www.unodc.org/unodc/en/treaties/CAC/signatories.html

World Intellectual Property Organization
http://www.wipo.int/members/en/

World Trade Organization
http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm




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