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Botswana Lesotho COUNTRY PROFILE 2001 Botswana Lesotho This Country Profile is a reference tool, which provides analysis of historical political, infrastructural and economic trends. It is revised and updated annually. The EIU’s quarterly Country Reports analyse current trends and provide a two-year forecast The full publishing schedule for Country Profiles is now available on our website at http://www.eiu.com/schedule The Economist Intelligence Unit 15 Regent St, London SW1Y 4LR United Kingdom The Economist Intelligence Unit The Economist Intelligence Unit is a specialist publisher serving companies establishing and managing operations across national borders. For over 50 years it has been a source of information on business developments, economic and political trends, government regulations and corporate practice worldwide. The EIU delivers its information in four ways: through our digital portfolio, where our latest analysis is updated daily; through printed subscription products ranging from newsletters to annual reference works; through research reports; and by organising seminars and presentations. The firm is a member of The Economist Group. London New York Hong Kong The Economist Intelligence Unit The Economist Intelligence Unit The Economist Intelligence Unit 15 Regent St The Economist Building 60/F, Central Plaza London 111 West 57th Street 18 Harbour Road SW1Y 4LR New York Wanchai United Kingdom NY 10019, US Hong Kong Tel: (44.20) 7830 1007 Tel: (1.212) 554 0600 Tel: (852) 2585 3888 Fax: (44.20) 7830 1023 Fax: (1.212) 586 0248 Fax: (852) 2802 7638 E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] Website: www.eiu.com Electronic delivery This publication can be viewed by subscribing online at www.store.eiu.com Reports are also available in various other electronic formats, such as CD-ROM, Lotus Notes, on-line databases and as direct feeds to corporate intranets. For further information, please contact your nearest Economist Intelligence Unit office Copyright © 2001 The Economist Intelligence Unit Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Intelligence Unit Limited. All information in this report is verified to the best of the author's and the publisher's ability. However, the EIU does not accept responsibility for any loss arising from reliance on it. ISSN 1352-0865 Symbols for tables “n/a” means not available; “–” means not applicable Printed and distributed by Redhouse Press Ltd, Unit 151, Dartford Trade Park, Dartford, Kent DA1 1QB, UK Comparative economic indicators, 2000 EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 1 Contents Botswana 4 Basic data 5 Political background 5 Historical background 6 Constitution and institutions 7 Political forces 8 International relations and defence 10 Resources and infrastructure 10 Population 11 Education and health 13 Natural resources and the environment 13 Transport and communications 14 Energy provision 15 The economy 15 Economic structure 15 Employment and expenditure 16 Economic policy 19 Economic performance 20 Economic sectors 20 Agriculture, forestry and fishing 21 Mining and semi-processing 24 Manufacturing 24 Construction 25 Financial services 26 Other services 27 The external sector 27 Trade in goods 28 Invisibles and the current account 29 Capital flows and foreign debt 30 Foreign reserves and the exchange rate 31 Appendices 31 Regional organisations 31 Sources of information 32 Reference tables 32 Population 32 Transport statistics 33 Telecommunications 33 Gross domestic product © The Economist Intelligence Unit Limited 2001 EIU Country Profile 2001 2 33 Sectoral origins of gross domestic product 34 Trend of gross domestic product by sector 34 Employment by sector 35 Average monthly earnings by sector 35 Minimum monthly wages 36 Recurrent expenditure for NDP8 36 Government finances 37 Money supply 37 Interest rates 37 Consumer prices 38 Consumer price index 38 Livestock numbers 38 Production of principal crops 38 Mineral production by volume and value 39 Building plans approved 39 Botswana Stock Exchange, domestic shares 39 Foreign trade 40 Exports by destination 40 Imports by origin 40 Balance of payments, national estimates 41 Balance of payments, IMF estimates 41 External debt, World Bank estimates 42 Net official development assistance 42 Foreign reserves 42 Exchange rates Lesotho 43 Basic data 44 Political background 44 Historical background 48 Constitution and institutions 49 Political forces 51 International relations and defence 53 Resources and infrastructure 53 Population 53 Education and health 54 Natural resources and the environment 55 Transport and communications 56 Energy provision 57 The economy 57 Economic structure 58 Economic policy 60 Economic performance EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 3 62 Economic sectors 62 Agriculture, forestry and fishing 63 Mining and semi-processing 64 Manufacturing 64 Construction 65 Financial services 66 Other services 66 The external sector 66 Trade in goods 68 Invisibles and the current account 69 Capital flows and foreign debt 70 Foreign reserves and the exchange rate 71 Appendices 71 Regional organisations 76 Sources of information 77 Reference tables 77 Population 77 Government revenue and expenditure 78 Summary of recent fiscal trends 78 Money suply and credit 79 Gross domestic product 79 Gross national product 79 Gross domestic product by sector 80 Gross domestic product by expenditure 80 Migrant miners’ deferred pay and remittances 80 Consumer prices 80 Estimated livestock numbers 81 Commercial banking statistics 81 Principal interest rates 81 Foreign trade 81 Origin of imports cif 82 Destination of exports fob 82 Balance of payments, IMF estimates 82 Balance of payments, national estimates 83 Net official development assistance 83 External debt 84 Disbursed public external debt outstanding 84 Foreign reserves 84 Exchange rates © The Economist Intelligence Unit Limited 2001 EIU Country Profile 2001 4 Botswana Botswana Basic data Land area 581,730 sq km Population 1.7m (2001 government estimate) Main towns Population (1999 government estimates) Gaborone (capital) 213,017 Francistown 101,805 Selebi-Phikwe 49,017 Climate Subtropical Weather in Gaborone Hottest month, January, 19-33°C; coldest month, June, 5-23°C (average daily (altitude 1,000 metres) minimum and maximum); driest months, July-August, 1 mm average rainfall; wettest months, January-February, 105 mm average rainfall Languages Setswana and English Measures Metric system Currency Pula (P)=100 thebe. Average exchange rate in 2000: P5.10:US$1; exchange rate on April 17th 2001: P5.65:US$1 Time 2 hours ahead of GMT Public holidays (2001) January 1st (New Year’s Day), January 2nd, April 13th (Good Friday), April 16th (Easter Monday), May 1st (Labour Day), June 1st (Ascension Day), July 1st (Sir Seretse Khama Day), July 16th (President’s Day), September 30th (Botswana Day), December 25th (Christmas Day) and December 26th (Boxing Day) EIU Country Profile 2001 © The Economist Intelligence Unit Limited 2001 Botswana 5 Political background The Botswana Democratic Party (BDP) came to power in 1967. Although the urban population is becoming increasingly frustrated with high levels of unem- ployment, the BDP’s rural support network has ensured that its power base remains undiminished. The BDP, led by President Festus Mogae, currently occupies 33 of the 44 seats in parliament and will remain in power at least until the next legislative election, which is due by October 2004. Historical background The emergence of a The earliest inhabitants of what is now Botswana were almost certainly the nation state nomadic Basarwa (commonly known as Bushmen). During the 17th and 18th centuries the area was settled by Tswana-speaking peoples whose communities overlapped into what are now South Africa’s North-West and Northern Provinces, as well as Zimbabwe. Europeans began to venture into the region in the early 19th century. In 1872 Khama III emerged as the most prominent indigenous leader and built up a powerful army. As expansionary pressure from the Afrikaners in South Africa increased, intensified by the discovery of gold near Francistown, Khama III sought protection from the British. In 1885 Britain declared a protectorate, British Bechuanaland, over Khama’s people, while annexing Tswana-inhabited territory in the Northern Cape to its own Cape Colony. After the Cape Colony became part of the South African Union in 1910, white South African leaders pushed for the incorporation of the rest of Bechuanaland into the Union. Khama III retained control of local administration, law and justice. He also resisted pressure to grant mining concessions to the British South Africa Company and successfully prevented unification with South Africa. Economically, however, the protectorate remained neglected and became little more than a labour reservoir for South African mines and farms. Cattle ownership remained at the core of Tswana society. Independence A grandson of Khama III, Seretse Khama, founded the Botswana Democratic Party (BDP), which won most of the elected seats in the pre-independence poll of 1965. At independence in September 1966 Mr Khama became the country’s first president. He was a conservative, and favoured the creation of a multi- racial democratic society in which
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