Economic diversification drive strategy botswana

The success of this industry in Botswana can be attributed to the low volume, high value, nature-based tourism in national parks and game reserves taking place mostly in the north of this country Globally Tourism development is increasingly being viewed as an important tool for promoting economic growth and alleviating poverty amongst others.

While Tourism is a multi-sector industry, it is not an industry that is immune to rapid decline due to the effects of global pandemics and other events. This paper addresses strategic interventions to be explored through tourism education for the revival and recovery of Tourism in Botswana. Globally Tourism development is increasingly being viewed as an important tool for promoting economic growth and alleviating poverty amongst others [ 13 ]. Although statistics may vary due to variables being analyzed in this research, over the last few decades, tourism has grown to become one of the most dynamic and fastest growing economic sectors in the world [ 7 ].

Professor faults Botswana economic diversification drive | Sunday Standard

Moreover, it has been known to be a labor-intensive industry, employing directly an estimated 74 million people around the world as of [ 6 ]. Consistent with global trends, in Botswana tourism has been growing substantially over the years. Between and , the number of recorded holiday arrivals in the country grew by an average of 8.

Since tourist arrivals have been estimated to have possibly grown to 1,, international tourist arrivals and in predicted to a further 2,, international tourist arrivals [ 3 ]. This rapid growth has allowed the country to move from being among the poorest to upper middle income status therefore, pulling the majority of the population out of poverty [ 16 ].


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Embracing social, economic and environmental impacts in order to remain sustainable, Tourism is a multi-sector industry, however, it is not an industry that is immune to rapid decline due to the effects of global pandemics and other events. The success of this industry in Botswana can be attributed to the low volume, high value, nature-based tourism in national parks and game reserves taking place mostly in the north of this country [ 3 ]. The need for diversification outside of the UNESCO-listed Okavango Delta and Chobe areas where this nature-based tourism occurs should be well understood with the background that further growth of the industry may be limited by serious weaknesses in the structure of competitiveness and access to opportunities for the indigenous Botswana citizen [ 11 ].

Among the main issues barriers to growth in tourism include Skills, particularly lack of specialized tourism training and difficulties in bringing in skilled labor for advancement of this industry. Other issues have included Air travel connections where no direct, long haul connections are available in the country and regional connections are costly.

Travel Visa requirements have been said to affect the growing tourism supply markets, from countries such as China and India who are not automatically on the visa exemption list of this country, this being argued to often leading to significant delays in arrivals that sometimes end as cancellations.

In the case of conservation endeavors Botswana has long been praised for its strong wildlife conservation efforts, but important challenges in the industry still exist.

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Decreasing wildlife numbers due to drought, habitat loss, and increased poaching although managed significantly stand as a challenge in the country. Policy challenges and approaches to tourism management seem to also work somewhat against the product and geographical diversification of the tourism sector, this affecting some poor communities from a livelihood perspective [ 12 ].

Researchers have pointed out that Tourism was not a priority sector in Botswana until the formulation of regulatory and legislative frameworks in the early s therefore claiming that the industry is still not fully developed at present [ 12 ]. The Tourism Policy preceded the regulatory Tourism Act which sets procedures for licensing, regulation of tourism enterprise categories.

The Tourism Regulations sets the license and training levy fees as well as requirements for grading of tourism establishments which were later driven by the Botswana Tourism Organisation BTO after its establishment [ 9 ]. At present the Draft Revised Tourism policy and the Botswana Tourism Master Plan stand as documents which set future goals for the development of tourism [ 9 ].

Although this structured approach may be viewed at face value as a straight forward means of not only improving the industry but it is important to improving the shortcomings of the industry.

Declared a pandemic, the World Health Organization WHO confirmed that a novel coronavirus known as COVD 19 is the cause of a respiratory illness which was reported to the WHO on 31 December [ 17 ] Since the outbreak of this illness, it has spread rapidly affecting most countries in the world with fatalities and associated unrest and uncertainty worldwide. According to World Tourism Organization [ 17 ] the worldwide outbreak of COVID has brought the world to a standstill, and tourism has been the worst affected of all major economic sectors.

Similarly, on September 11, , when hijacked aircrafts were used as terrorist weapons of destruction in the United States resulted in a rapid decline in the Tourism industry this therefore suggesting that travel and tourism are not only vulnerable to violent events such as terrorism, political unrest, and military conflicts [ 8 ] but not to disease pandemics.

The year is experiencing a drastic decline in tourism globally due to the dramatic impact of the COVID pandemic on this industry globally [ 1 ]. Together with the rest of the world, Botswana is currently faced with preparing comprehensive tourism recovery plans as well as to re-think the tourism sector for effective resuscitation of this industry.

This paper based on a desktop study approach, therefore recommends the development of a Tourism and hospitality recovery and strategic transformational plan in order to revive Tourism in the country. The paper places emphasis on the notion that development of Tourism cannot be optimal if it is not undertaken as a partnership that engages all of the stakeholders concerned.

As Botswana has been overly reliant on Diamond mining, although diversification in the mining sector offers potential to support external and fiscal balances in the country, one may conclude that it is not the solution only to sustainable poverty reduction due to its limited job creation potential. Instead, what is required is the development of a more competitive, outward-oriented private sector, particularly in creating among others employment.

While Botswana is praised for its management of resource wealth, it is apparent that the high levels of investment by government in health, education, and infrastructure are not delivering desired outcomes, making it increasingly difficult to meet the objectives of growth, diversification, and poverty elimination [ 12 ]. The tourism industry in Botswana has been criticized for being exclusively nature based therefore lacking inclusiveness for the average indigenous Botswana citizen to take part in Tourism enterprises therefor calling for a major course correction.

This paper therefore views the COVID pandemic as not only a challenge but an opportunity for the country to address other festering problems within the tourism industry that need deeper solutions that will render exponential results through the recovery of this industry in Botswana. Nevertheless, The pandemic being a double edged sward, currently the recovery strategy or restarting of the industry in Botswana is addressing this above mentioned issue in an overdue but necessary change that will not only restart the industry but also allow it to be more inclusive for those who previously could not participate in the low volume high value Nature based tourism.

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REPUBLIC OF BOTSWANA ECONOMIC DIVERSIFICATION POLICIES AND STRATEGIES

Coface Global solutions. Complementary services. Coface Country Risk Conference. Coface Share. Particularly, the authors argue that Botswana as a principal country of investigation is a potential role model, and a site of deep study for researchers of contemporary sustainable resource governance. This is especially when consideration is taken of non-traditional, external investment and international relations sources i. All interviews were conducted in confidentiality, and the names of interviewees are withheld by mutual agreement.

This paper, first, continues the investigation into the existing fiscal and legislative regimes in the country, providing necessary contextualization by examining the ability of these institutions to facilitate or inhibit economic diversification, linkage promotion, and the sustainable management of emerging state partners. Fourth, the paper concludes with a brief exploration of regional value chains and the challenge of burgeoning interaction and influence by non-traditional, resource-hungry state partners.

Collectively, these four sections work to frame whether Botswana is truly a regional model for sustainable, progressive, diversified, and inclusive resource governance. As noted above, Botswana is often argued to be a model success story for the African continent due to its natural resource governance and long-term, sustainable growth. But, by what means has this occurred and what challenges does the country continue to face? Apart from this, Botswana has natural stocks of copper, nickel, soda ash, salt, coal, and precious metals such as gold Natural Resource Governance Institute, The challenge with coal, however, is the availability of export markets, particularly amidst trends in international politics regarding agreements on reducing climate change impacts, and recent announcements by China of plans to limit coal imports Harvey, , p.

Harvey also suggests that Botswana might be home to rich deposits of iron ore, which could fuel a domestic steel industry, supplying critical infrastructure materials for the continued development of the South African Development Community SADC region, but geological evidence from sampling and drilling has not yet produced enough conclusive data to attract direct foreign investment Harvey, , p.


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  7. Corrigan , p. The government has a solid trend of leadership and is credited with prudent management of natural resources. However, the government is revising and updating various pieces of mining legislation. Venables , p. Recognizing the sectoral and material power of the company, Botswana opted to forgo traditional license auctions and instead negotiated diamond extraction rights directly.

    In addition, Collier , p. The intention, Collier claims, was to remove self-interested motivations of regional clans to contest national-level legitimacy in resource control, and to create a supportive foundational national identity. Non-mineral income taxes and mineral royalties and dividends have grown since , benefiting from effective measures to limit illicit financial flows and reduce tax avoidance. Botswana follows a progressive taxation regime that excludes any amount of gross income of a capital nature.

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    Key taxation features include:. Income accruing from different businesses is deemed to accrue from one business, except for capital gains and income from farming and mining. Assessed losses from business can be carried forward for no more than five years, except for farming, mining and prospecting losses, which can be carried forward indefinitely. Special provisions apply to International Financial Services Centre companies and approved manufacturing and mining businesses. Mining capital allowances are granted up to per cent of any mining capital expenditure. Corporate income tax rates differ for resident and non-resident companies.

    Diversification in Botswana's Economy

    For resident companies, taxable mining income excluding diamonds is 22—55 per cent. Other rates, such as approved manufacturing taxable income and accredited innovation hub business taxable income, are as low as 15 per cent.