Prior to independence, Botswana’s economy was primarily based on farming, particularly cattle. Even in 1993, some 46% of the country’s land was permanent pasture, while a further 1% was given over to arable farming. Since the 1970s, however, the extraction of mineral resources, particularly diamonds, has become big business, and today the sector accounts for a significant proportion of the country’s wealth. Other areas of importance include tourism and cattle raising.
Total exports in 2000 were valued at around US$2.6 billion, with the bulk of these, some 77% in 1998, going to European Union countries. Other markets included South Africa (18%), and Zimbabwe (3%). Diamonds account for about 75% of all exports, but other goods include agricultural products, foodstuffs, brewing, metal products, paper products and textiles. Export business is the responsibility of the Botswana Export Development and Investment Agency (Bedia).
In the same year, Botswana’s imports were valued at around US$2.2 billion, with around three quarters of these coming from South Africa, which is also the source of most of the country’s electricity. Goods imported range from foodstuffs and textiles to machinery and petroleum products. The country’s other trading partners include Europe, where 10% of the country’s total imports originate, and South Korea, at 5%.
Botswana is an associate member of the European Union, whereby products manufactured in the country enter EU markets free from duties and quotas. In the United States there are no restrictions on textile products from Botswana. Within Africa, Botswana is a member of the Southern Africa Customs Union (SACU), an economic bloc comprising South Africa, Botswana, Namibia, Lesotho and Swaziland. Goods produced in Botswana enter the markets of the other four member states free of duty or any other restrictions. Botswana is also an active member of the Southern African Development Community (SADC), a body which groups together 14 countries within the region.