Diamonds and Botswana's economy

Before independence, Botswana was ranked as one of the poorest countries in the world. However, between the mid 1960s and 1980s, Botswana's economy grew thirty fold with its GDP growing from $80 per capita to $1000 per capita. Although the mining of diamonds did not start until 1970, this growth in economy was due in part to foreign aid, the import of beef to EU countries, agriculture and livestock production.

Other than diamonds, Botswana had other mineral resources such as, copper, coal, nickel, soda ash and gold. However, it is universally acknowledged that diamonds underpin the country's economy. Diamonds account for 70-80% of export earnings, one third of the GDP and half the government's revenue. To be continued....

Escaping the claws of apartheid!

For years Botswana's economy was linked to that of South Africa. Botswana, as a landlocked country had no access to the sea and depended on S.A sea ports to import and export goods or any form of trade with other countries. It also depended on S.A for the provision of the much needed family income generated through migrant labour. Ironically, Botswana or Bechaunaland at the time did not support the apartheid government of South Africa. But having a poor economy and geographically disadvantaged Botswana was at the mercy of South Africa. As well, the white ruled Rhodesia (now, Zimbabwe) posed the same type of problem for Botswana. Botswana relied on Rhodesia for transport of people and goods to and from the country through Rhodesian Railways (now, Botswana Railways).

Strategically placed between South Africa, Rhodesia and the South African administered South West Africa (Namibia), Botswana became very important in the political events of the 1960s. Botswana's capital city was Mafikeng, South Africa and there was also a customs agreement that S.A should give a small percentage of its customs and excise revenue to Bechuanaland in return for unrestricted passage of goods. Botswana's currency was the South African Rand and it was not until 1965 that Botswana introduced its own currency (pula). With all the assistance Bechuanaland received from S.A and Rhodesia during the period of the African liberation struggle, Botswana could not put sanctions on both territories fearing the harmful consequences to its economy as well as security. By independence in 1966, it was not clear how the small landlocked country would be able to sustain itself without Britain. Therefore, when diamonds were discovered in 1967, there was a glimmer of hope for the small country. (B.W Oitsile, "Botswana and the Liberation Struggle in South Africa and Zimbabwe: The Government and People against White Racist Rule." M.A Thesis, 2010. Chapter: 2) My next discussion will focus on how the discovery of diamonds paved way for economic independence in Botswana.

History of diamond mining in Botswana

Bechuanaland which had been under British protection for some time held its first ever general elections in 1965. The Bechuanaland Democratic Party (BDP) under the leadership of Seretse Khama won these elections. In 1966 Bechuanaland was declared independent with Seretse Khama as its first president. In 1967, a year after independence, diamonds were discovered. From then on Botswana's economy started to strive.