The 2019 Index of Economic Freedom puts Botswana’s score at 70%, making its economy the 36th freest in the 2019 Index. Its overall score has decreased by 0.4 point, with declines in judicial effectiveness, government integrity, and fiscal health exceeding improvements in the score for tax burden, labor freedom, and government spending.
Botswana is ranked 3rd among 47 countries in the Sub-Saharan Africa region, and its overall score is above the regional and world averages. Through fiscal discipline and sound management, Botswana has transformed itself from one of the world’s poorest countries to a middle-income country. Economic policy is guided by the government’s efforts to diversify the economy away from dependence on the volatile mining sector and towards agriculture, services, and manufacturing. The regulatory environment encourages growth, and openness to foreign investment and trade promotes competitiveness and resilience. The independent judiciary provides strong protection of property rights.
Sparsely populated Botswana has a land area larger than Spain and is dominated by the vast Kalahari Dessert. Botswana has abundant diamond and other natural resources, a market oriented economy, and one of Africa’s highest sovereign credit ratings, and ecotourism in its extensive nature preserves is helping to diversify the economy.
The 2019 Index further says increase in Botswana’s property rights and intellectual property rights scores caused its overall score in the Property Rights Alliance’s 2017 International Property Rights to improve as well. Courts enforce commercial contracts. Botswana remain rated the African continent’s least corrupt country, but there are almost no restrictions on the private business activities of public servants, and an increase in tender-related corruption has been reported.
The top personal income tax rate is 25 percent, and the top corporate tax rate is 22 percent. Other taxes include property, inheritance, and value-added taxes. The overall tax burden equals 24.9% of total domestic income. Over the past three years, government spending has amounted to 33.7 percent of the country’s output, and budget deficits have averaged 1.8% of GDP. Public debt is equivalent to 15.6% of GDP
The regulatory environment protects the overall freedom to establish and run a business relatively well. A one-stop shop for entrepreneurs is in place, and the process for business closings has become easy and straightforward. Employment regulations are relatively flexible, maize, diesel, and petroleum are subject to price controls, and the government continues other subsidies through state-owned enterprises.
The combined value of exports and imports is equal to 97.1% of GDP. The average applied tariff rate if 0.6%. As of June 30 2018, according to WTO, Botswana had 21 nontariff measures in force. Foreign investment in some sectors is restricted. Generally, adhering to global standards in the transparency of banking supervision, the financial sector provides considerable access to credit and has expanded.
Meanwhile, Botswana recorded a trade gap of P339.5 Million in May 2019 compared to P2.5 Million surpluses in the same month a year ago. Imports soared 56% of P6,5 Million, boosted by acquisitions of diamonds at 425%. Main imports partners were South Africa at the value of 53% of total imports, followed by Canada 20.1%, France 5.8% and Russia 5.6%. In contrast, exports declined 9.6% to P6 Million, amid lower sales of diamonds (-8.3%); machinery and electrical equipment (-26.8) and vehicles and transport equipment (-49.9%).
Main export partners were Belgium at 24% of total sales, India 20%, the UAE 17.4% and South Africa 8.4%. Balance of Trade averaged P-96.72 Million from 2005 until 2019, reaching an all-time high of P4102.21 Million in March 2017 and a record low of P-6683 Million in July of 2012.
Balance of Trade in Botswana is expected to be -116.59 Million Pula by the end of this quarter, according to the Trading Economics Global Macro Models and analyst’s expectations. Looking forward, Balance of Trade in Botswana is estimated to stand at -91.10 in 12 months’ time. In long-term the Botswana Balance of Trade is projected to trend around P255 Million in 2020, according to Trading Economics models.
Money supply in Botswana decreased to P170 Million in April from P175 Million in March 2019. Money supply averaged P121 Million from 2008 until 2019, reaching an all-time of P181 Million in October of 2018 and a record low of P652 Million in October 2009. Central Bank Balance Sheet in Botswana increased to P77275 Million in April from P74225 Million in March 2019. Central Bank Balance Sheet in Botswana averaged P68852.80 Million from 2007 until 2019, reaching an all-time high of P89975 Million in April 2015 and a record low of P50627 Million in January 2007.
Bank Lending Rate in Botswana remained unchanged at 6.5% in May from 6.5% in April 2019. It averaged 9.4% from 2009 until 2019, reaching an all-time high of 17% in January 2009 and a record low of 6.5% in October 2017. The Bank Lending Rate is expected to be 6.8% by the end of this quarter, according to Trading Economic Global Macro Models and Analysts expectations. Looking forward, analysts estimate Bank Lending Rate in Botswana to stand at 6% in 12 months’ time. In the long-term, the Botswana Bank Lending rate is projected to trend around 6.8% in 2010.
In Botswana, the bank lending rate is weighted average rate of interest charged on loans by commercial banks to private individuals and companies. Consumer Credit in Botswana increased to P361 Million in May from P355 Million in April 2019. It averaged P202 Million from 2007 until 2019, reaching an all-time high of P361 Million in May 2019 and a record low of P632 Million in January 2007.
Loans to Private Sector in Botswana decreased to P228 31,20 Million in May from P228 61,39 Million in April 2019. The sector is averaged P144 Million from 2007 until 2019, reaching an all-time high of P232 Million in November 2018 and a record low of P437 Million in January 2007. Foreign Direct Investment in Botswana increased by P745 Million in the first quarter of 2019. It is averaged P886 Million from 2004 until 2019, reaching an all-time high of P363 Million in the fourth quarter of 2015 and a record low of P-143 Million in the first quarter of 2016.
Minister of Presidential Affairs, Governance and Public Administration, Kabo Morwaeng together with Permanent Secretary to the President (PSP) Elias Magosi, this week refused to name and shame the worst performing Ministries and to disclose the best performing Ministries since beginning of 12th parliament including the main reasons for underperformance.
Of late there have been a litany of complaints from both ends of the aisle with cabinet members accused of providing parliament with unsatisfactory responses to the questions posed. In fact for some Botswana Democratic Party (BDP) backbenchers a meeting with the ministers and party leadership is overdue to address their complaints. Jwaneng-Mabutsane MP, Mephato Reatile is also not happy with ministers’ performance.
Bokamoso Private Hospital is battling a P10 million legal suit for a botched fibroids operation which resulted in a woman losing an entire womb and her prospects of bearing children left at zero.
The same suit has also befallen the Attorney General of Botswana who is representing the Ministry of Health and Wellness for their contributory negligence of having the unlawful removal of a patient, Goitsemang Magetse’s womb.
According to the court papers, Magetse says that sometimes in November 2019, she was diagnosed with fibroids at Marina Hospital where upon she was referred to Bokamoso Private Hospital to schedule an appointment for an operation to remove the fibroids, which she did.
Magetse continues that at the instance of one Dr Li Wang, the surgeon who performed the operation, and unknown to her, an operation to remove her whole womb was conducted instead. According to Magetse, it was only through a Marina Hospital regular check-up that she got to learn that her whole womb has been removed.
“At the while she was under the belief that only her fibroids have been removed. By doing so, the hospital has subjected itself to some serious delictual liability in that it performed a serious and life changing operation on patient who was under the belief that she was doing a completely different operation altogether. It thus came as a shock when our client learnt that her womb had been removed, without her consent,” said Magetse’s legal representatives, Kanjabanga and Associates in their summons.
The letter further says, “this is an infringement of our client‘s rights and this infringement has dire consequences on her to the extent that she can never bear children again”. ‘It is our instruction therefore, to claim as we hereby do, damages in the sum of BWP 10,000,000 (ten million Pula) for unlawful removal of client’s womb,” reads Kanjabanga Attorneys’ papers. The defendants are yet to respond to the plaintiff’s papers.
What are fibroids?
Fibroids are tumors made of smooth muscle cells and fibrous connective tissue. They develop in the uterus. It is estimated that 70 to 80 percent of women will develop fibroids in their lifetime — however, not everyone will develop symptoms or require treatment.
The most important characteristic of fibroids is that they’re almost always benign, or noncancerous. That said, some fibroids begin as cancer — but benign fibroids can’t become cancer. Cancerous fibroids are very rare. Because of this fact, it’s reasonable for women without symptoms to opt for observation rather than treatment.
Studies show that fibroids grow at different rates, even when a woman has more than one. They can range from the size of a pea to (occasionally) the size of a watermelon. Even if fibroids grow that large, we offer timely and effective treatment to provide relief.
The Alliance for Progressives (AP) President Ndaba Gaolathe has said that despite major accolades that Botswana continues to receive internationally with regard to the state of economy, the prospects for the future are imperilled.
Delivering his party Annual Policy Statement on Thursday, Gaolathe indicated that Botswana is in a state of do or die, and that the country’s economy is on a sick bed. With a major concern for poverty, Gaolathe pointed out that almost half of Botswana’s people are ravaged by or are about to sink into poverty. “Our young people have lost the fire to dream about what they could become,” he said.