From Rags to Riches: Unveiling Botswana's Economic Triumph | Botswana Economy | Econ 

The key to the success of Botswana's economy lies in its good governance. The future of Botswana will depend on this factor rather than on diamonds.

Sir Khama was one of the very few african leaders who didn't fill his own pockets but rather worked towards the betterment of his country and the result today shows.

Botswana GDP 1961: $300 million Botswana GDP 2022: $20 billion GDP growth in 61 years: 66,667% or 7.1% compound growth on average

Botswana is landlocked, imagine if it had access to the sea, it would be way richer than it actually is now.

**4:05 Dutch settlers map is wrong. SORRY! Hi! Awesome people of the internet. -Comments and suggestions are welcome. -Please share videos with people who you think might enjoy this content. -Don't forget to subscribe for more economics content! You are awesome :)

It's sad how certain facts are overlooked by the Western media when it comes to telling African stories. Botswana's success lies in both its pre - and post independence political history.

Great video, friend. Botswana is a oerfect example of what hreat leadership (Seretse Khama) and socioeconomic systems (democracy and capitalism) can do for a country. As a African myself (Nigerian) it annoys me when most people only attribute Africa's current problems to "colonialism or racism", effectively removing personal responsibility of us Africans, and ignore more important factors like geography, climate, socioeconomic systems, political unity and leadership. Thanks for focusing on those areas in this video.

Botswana is an example that good governance and capitalism work. Our second president, Sir QKJ Masire, was actually responsible for what we admire about Botswana. There is no doubt Botswana will grow spectacularly in the next three decades. Watch. Botswana is building that key digital knowledge economy. A lot is happening here under President Masisi .

The important thing to bare in mind is that Botswana has gone forward since independence. Now when you compare South Africa to Botswana, South Africa has gone backward. OK there are some good points like more people have houses, electricity and water. Generally everywhere else South Africa has gone bacward. In my opinion I can put it down to one major difference. Botswana has law and order which South Africa doesn't. In South Africa criminality starts right at the top and then filters all the way down.

From Botswana. Well researched, can't say I picked anything not true. However, I must say on the last issue regarding the direction the country has taken under Khama & Masisi is somewhat tricky because locally its seen as a power play between the two. On Economic Populism & Protectionism however I must say its something we have seen under Masisi and he has a huge support on that, mainly because Batswana felt we have been under South African Economic Influence for so long that we have become too dependent even for the simplest of goods. Every president has talked about it but Masisi finally did something about it for example under previous administrations they would impose and import restriction on certain goods especially vegetables when there was a local surplus, Masisi on the other hand went a step further by banning the importation of vegetables for good and made a list of all goods they felt could be produced locally because its one of things local farmers and producers had for the longest time cried about especially that South African supermarkets preferred their goods over our own. The local supermakets Choppies & Sefalana slowly took over the market and prioritised Botswana goods, now with this import restriction even south African ones are forced to comply. The other issue of concern was the Debeers Deal that previous governments argued was a state secret, Masisi argued against that and pointed issues that he felt was unfair, arm twisted them to make few concessions and that the deal should be made aware to the public something which even the opposition argued so its seen as a big win for him because he's more concerned with one issue you raised of mineral beneficiation, to cut polish locally and marketing and selling of rough diamonds something which the previous deal said only Debeers can do, now Botswana has brought started its own Diamond company to sell rough diamonds (Okavango Diamond Company) and brought in some companies like HB Antwerp which will but from government company directly. He even speaks about beneficiation in jewellery etc. These are some of the issues that have been a hot issue especially that some experts saw government as having given concessions to Debeers or arguing that at independence it was a better deal but it had to evolve over time especially looking at post-diamond era so that Botswana can continue playing in that space, with some arguing that government should invest in synthetic diamonds as well. Abuse of power, I believe all presidents have in one way or another has done it even pre Khama-Masisi era, however to me what's more encouraging has been the ability of our Institutions like Judiciary, Ombudsman or parliament to call president/government to order or make rulings against them. In Botswana government still lose alot of cases against ordinary citizens which is good

Botswana is diversifying its economic portfolio. It has opened up significant trade routes connecting Durban to the northern markets of DRC, Tanzania, and Uganda through a partnership with its neighbour Zambia which as an equally stable political environment.

As the depletion of natural resources in many African countries becomes mainstream within the next few decades, it would be interesting to see if many African economies would be able to diversify their economies into sustainable ones. The growth of Botswana and Rwanda has been both impressive and interesting to observe over the past three decades. I wonder if such growth would have been possible in a country with a significantly larger population and much more diverse ethnicity. Scalability seems to be a significant issue in initiating sustainable economies.

The thing that kills most African countries including mine🇸🇴 and draws them to chaos is not tribalism, extremist or illiteracy. It's corruption. Corruption breeds greed then division ,bad governing and finally ends with chaos and violence . Botswana root for success is honesty governing almost zero corruption and open and free market. That is a lesson for other African countries to learn.

The way you assert that Botswana was capitalistic while its failing neighbours were socialist is laughably un-nuanced. Debswana is 50% state owned, that is to say, socialised, and it is for that reason alone that the state was able to bring in the revenues to invest in socialised services like education and healthcare. The “secret” to its success was not its embrace of the “free market” - if it had done that, De Beers would have a monopoly on diamond production and the state would see nothing. Rather, Botswana’s success lies precisely in its close regulation of market functions with considerable state involvement. If you think that’s more capitalistic than socialistic, you’re doing your audience an academic disservice.

The main reason Africa is poor is dictatorship. Not colonisation and slavery. Botswana has proved that unequivocally.

Botswana has really shown the way to economic development through democracy, prudent husbanding of its natural resources and stringent anti-corruption. But Namibia is not far behind. Indeed our two presidents, not withstanding their age differences, 61 years vs ours 82, have forged a strong bond of personal friendship. To that extent that when our president was admitted a minor medical procedure, next day President Masisi flew to Windhoek State House to visit his friend, check on him and wish him well...true friendship.

The key to a diverse economy is personal liberty and free markets- if people are free to pursue what is best for them personally capital will move where the opportunity for success can be found - it may well be in areas that you would never plan for - an example of this is New Zealand- when in the 90s they end sheep farming subsidies the amount of sheep fell but production of lamb and other products went up - also the spare land was found to be good for wine growing so there was a massive boom in the privation and export of wine around the world - the moral of the story is to allow people/ families/ communities and businesses to direct their path to prosperity- if it’s built from the ground up its more sustainable

A big big thank you to Seretse Khama, a real giant of Africa. Shocking that so many African leaders today are consumed by greed & corruption. It will be nigh impossible for all African leaders to be like Seretse Khama.

Love your animations 🙌🏼 Where do you learn to animate like that?

Big up Botswana watching from cape town south Africa

This is a fantastic video. I want to visit!

Many other African countries were not involved in the slave trade. The more likely reason for Botswana's success is that 1) it did not have a substantial settler population with European and western vested interests to sabotage its development 2) it is essentially monoethnic- like most European nations-who like pontificating about democracy -so ethnic competition is not present unlike most multiethnic African states ( and I dare say even the USA as shown by recent events) 3) It has a tiny population~2.7 million - so competition for resources amongst the population is basically nil 4) with this tiny population, the West does not consider it a threat- therefore they can hold it up as an example to other African countries

South Africa's downward spiral is inevitable unless its institutions fundamentally changed. The book/papers by economist Acemoglu on Why Nations Fail gives clear analyses for the two countries. The extremely extractive nature of South Africa's institutions means that the economy can grow extremely fast to a certain point, but then will inevitably collapse because there will be many vying for the control of such extractive institutions, leading to corruption and state collapse. For Botswana, it benefitted from both having foresighted leaders, as well as the fortunate position of not being subjected to the slave trades. There are so many videos on Botswana, but the critical fact that it never got deeply involved in the slave trade is never mentioned.

contrary to the popular views here that small population is an advantage for Botswana, I honestly think it is a rather a disadvantage for a vast country with scattered population like Botswana. Imagine billions buildings, roads, bridges and taking amenities like Water and electricity to every corner of the country service a population of less than 100 000 thousands? Despite its stability, Peace and stable economy, Botswana is unable to attract big manufacture firms because its small population. Over years, firms like Hyudai assembly plant relocated to South Africa because of Botswana small market.

Great video Very intersting

Other independent governments faced challenges as these resources became more of a curse than a blessing due to issues such as greed, corruption, tribal conflicts, Western neo-colonisation, Western trap treaties and Western modern exploitation of Africa.

Botswana has a very tiny population of a mere 2.5 million people. Singapore and Hong Kong each have much higher population (5.45 million and 7.4 million). Botswana only had to not mismanage their mineral wealth which accounts for near 80% of their economy with diamonds alone constituting 62%. I don't think what Botswana has done is relevant to the other African countries with much larger populations and less mineral wealth. Botswana is like the Kuwait of Africa.

Can the next video be about Rwanda?

0:00: Sub-Saharan Africa has 30% of the Earth's mineral resource reserves, including oil, uranium ore, gold, and diamonds. 0:16: The region has a history of conflicts, from slavery to dictators and civil wars. 1:36: Botswana is an exceptional case in sub-Saharan Africa, being the second largest producer of gem diamonds and having a high level of economic freedom. 6:04: Botswana's economic growth between 1960 and 1990 was the fastest in the world, driven by the diamond industry. 7:06: Diamonds account for a third of Botswana's GDP, half of its public spending, and three-quarters of its foreign earnings. 7:19: The government's wise utilization of diamond revenues led to heavy investments in infrastructure, healthcare, and education, contributing to further economic growth. Recap by Tammy AI

God bless Botswana for. Honest leadership

You have to mention that Botswana's gdp per capita is only 6800 nominal, the 19k figure is PPP. If it would be 19k nominal that would make Botswana as rich as Czech Republic and slightly under Portugal or even Spain. No way

I live in Botswana

Besides the confluence of diamond resources and the tradition of wise management that Seretse Khama pioneered, it's the homogeneity of the Botswanan population (who are mainly Tswana) as well as the democratic and egalitarian traditions of the Tswana people that have led Botswana to its current run of stability. I hope that stability keeps up!

Another little correction request 👉👈the maps are inaccurate, the territory of modern day Mozambique has never been dutch, but Portuguese back then

Like Vegeta said; "the great ones practice the basics."

As a motswana i can comfirm we keep of growing

Good video but please fix the names of the countries on your charts.. hard to look at Angota and Namibbia

Botswana's success of good leadership is rare for the African continent. Elsewhere in Africa, you only see leaders looting the state coffers or *still* blaming colonialism for their failures. So much resource wealth (DRC, Zambia, Ivory Coast) and oil wealth (Nigeria, Angola) and yet, somehow these countries remain largely poor!

On your map you're depicting Mozambique as being settled by the Dutch? Wasn't it always a Portuguese territory?

After china i think Botswana has the most impressive growth

Some footages they dont reflect our Country eg 10:20 thats not Botswana, we are not crowded like that, nor we use scooters like that. 😅. But otherwise Job well done. I appreciate your efforts for such a presentation on our Country.

Fun fact: the Mexican state of Chihuahua and Botswana have almost the exact same shape on a map

Lore of From Rags to Riches: Unveiling Botswana's Economic Triumph | Botswana Economy | Econ momentum 100

Great

My pride My Botsa

The history of the country right from how it was formed matters a lot, don’t as me about Ethiopia….that’s huge population with different huge communities. Very different and difficult to manage

Botswana also shares a border with Zambia 🇿🇲 (see Kazungula Bridge)

How can they implement the policies if they risk facing sanctions.

As a Dane I love to see other democratic countries fight/properly manage corruption and reap the rewards. Good country, good democracy.

Great video but u are using images of other cities to depict Botswana like Nairobi at 6:05

What Africans can do when there isn’t to much corruption

If any country in africa has politices stability it will success without doubt

Correction world number 1 producer of gem diamonds but second to russia in industrial diamonds

Diamonds are forever!!

Funny how De Beers have a good relationship with Botswana's government and don't have a good relationship with the government in their homeland, very strange.

Maybe I missed it, but there's no mention of all the debts that these colonised nations were burdened with as the price of their "independence"?! They are still paying those debts, plus interest, to all the colonisers!

They have only 2,6 million people in that huge and mineral rich country..totally different ball game most of those other African countries like South Africa and Nigeria Ethiopia and everything between got to divide their GDP with 213 Million thats why gdp/per head is so peer in nigeria for example and botswana diesnt deal with terrorism from the Sahel Region and is sadly a multi-religios country it doent help…botswana is mainly christian the had only one colonizer…nigeria had the Arab and then the europeans there are tensions between religious groups Botswana is well governed…BUT its not just governance..all those factors and more that I mentioned plays a huge part in the economic development of a country

Good Job Botswana

There are a number of inaccuracies.

I don't know why am crying for crying

Diamonds and stability. 😏

de beerskept 90% of the raw diamonds, exploitation at the highest form

0:02 is Djibouti not included? 💀

You go Botswana.

19k dollar 😳🤯😳🤯

talk about algeria economy

Make Brazil

Leaders of Zimbabwe and South Africa will have to answer for how they turned progressive nations to what they are currently

People keep saying that colonialism is the reason why Africa is poor but that's like saying that one video game caused a disaster for the whole industry. Colonialism is bad and it brings problems but corruption is far worse since it's a problem from the inside of the country

@econYT the music you used in this above botswana video is too irritatin, please use good bgms from the next time! its giving me a headache

Unemployment 19% and one of the most unequal societies in the world. Doesnt even sound like the most prosperous country in Africa to me

why do these youtubers always divide in somalias map?

I promise you, unless South Africa's growth starts hitting 4 to 6% soon, there won't be a Botswana success story. They're simply far too dependent on their neighbour for their fortunes to be any different.

Botswana was a product of proper economic policy, stable political enviroment and good governence. Not a product of sitting on a diamond mine, as this is the case for many major dirt poor nations africa.

2:56 "With only 22... (Oh 22%, certainly that's little but not the end of the world) people having attended university (Oh)"

this video has exaggerated some facts, or misrepresented some. A quick google search reveals the GDP per Capita is about USD 6,700 in 2021.

Mozambique was colonise by portugal not germani

How to have a rich country. Do free market capitalism dont do socialism. The more of the former the less of the later the richer itll be. History is crystal clear on that

4:22 this map is just pathetically wrong. The Boer republics were not located in Mozambique (which was Portuguese), they were located in modern-day South Africa. The use of modern borders is bad enough but to place the Dutch somewhere they categorically were not is hilariously wrong.

Wasn't the first president was from of the ruling family?

Whilst there has been growth and improvement, one decent, albeit small city, does not make a great country. No freeways, rail, general infrastructure. So where is all the money going? Yes, I have been and live in Africa

Great video. As somebody from Botswana, I kindly ask you to not use random “African” stock images when talking about Botswana. Its not the right approach. At least mention that you are showing images from other countries. Thank you

Zimbabwe, Zambia, Malawi and Mozambique are Southern Africano Countries.

You focus on the poverty and forget it has over 6 fastest growing economies

Botswana has 2 million people. Most other Frican countries have over 40 million ....

When I was a 12 year old kid. I used to get punched by my brother for saying the word Botswana. What is wrong with saying the word Botswana?

What is success from the pinnacle through which we delve in poverty , the imperialists with their sponsors keeps on drawing a wow picture of a prosperous Botswana,Botswana is a comprador bourgeoisie heaven - she heralds and celebrate the success of her colonial masters ,imperialists from the west - this comprador bourgeoisie have captured our government, her citizens lives in abstract poverty , the Economic monopoly capital by the bourgeoisie leaves nothing much for the down trodden & proletarian class to celebrate,who is Botswana you're referring to - the select few

growth can only be measured when there is equitable growth, Botswana is not developed for Africans, GINI coefficient office of this country is very indicating money is in the hands of the few, the foreigners not the Africans or natives....

Only if you not from Botswana u will talk about success because those diamonds goes to us and Canada

Afrikaners in Mozambique? Since when?

I thought it was better as Rhodesia.

BOTSWANA HAS SOME FORM OF SOCIALISM. ITS NOT WESTERN STYLE CAPITALISM

Small population means that there's a lot more to go around, if they had the Population of Nigeria they would be in a terrible state, this is why population control is necesary.

Is benefits African

Slavery is probably the least significant thing for sub-Saharan Africa. Malaria killed about 50-100 times more people each year.

But doesn't Rwanda have a better growth rate and more developed?

This shows you that you don't have to be a racist, suppressive, White Republic to be successful is economics.

a country shouldn't need to dig for diamonds to make its people successful. pretend diamonds dont exist, what would then make the country a success? it shouldn't ever be about money. money is the root of evil.

Ask the Western countries, particularly US why wars have ensued in Africa for the past 50 years.

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