Economic overview

Formal Economy
Real gross domestic product (GDP) growth was 2.3 percent in 2001/02, less than half the earlier estimate of 5 percent, and considerably lower than the 8.4 percent growth achieved in 2000/01. Official forecasts are that economic growth will recover from 2.3 percent in 2001/02 to around 5 percent in 2002/03. The forecast is based on expected growth rates of 4.5 percent and 7 percent, respectively, in mining and non-mining sectors. (Source: Bank of Botswana Annual Report 2002).

The Mining Industry
There are 5 mines in operation in Jwaneng, Orapa and Letlhakane. The mining sector contributes approximately 40% of GDP, 80% of export earnings and 60% of government revenue. This industry dominates the economy.

Agriculture
Farming provides a livelihood for more than 80% of the population, but produces only about 50% of food needs. Agricultural products include fruit, vegetables, sorghum, pulse, maize, cotton, livestock and dairy products.

Construction Industry
This is the largest employer of the labour force. The amount of employees in construction was calculated at 57,510 of whom non-citizens were nearly 4,000 or 7% (Source: the 1991 census - Central Statistics Office).

Commerce and Industry
The Botswana Bureau of Standards and Standards Council were established to ensure that domestic manufacturers produce quality goods that can penetrate the international markets.

Manufacturing Sector
The small population of the country hinders the growth of the manufacturing sector. The Government reduced the corporate tax rate in 1995 from 35% to 15% to encourage growth in this sector.

Manufacturing GDP grew by 6.5% in 1996, the fastest rate since 1991, and makes up 6% of GDP. Non-mining real GDP growth is forecast at 8% in 1997 and 5% in 1998.

Licensing
There are two bodies in Botswana that issue licenses:

The National Licensing Authority issues licenses for agencies, import and export, external representatives and distributors.

The Local Government Authorities are responsible for licenses for specialised dealers, restaurants, supermarkets and general wholesale. Included in the latter, we also find certain businesses that are totally reserved for citizens such as filling stations, bars and bottle stores, takeaways, general dealers and butcheries.

Manufacturing Licence
The Industrial Development Act of 1988 specifies that citizen enterprises employing ten or more people, or using energy in the excess of 26.8 hp (equivalent to 20kw) as well as all non-citizen enterprises require industrial licenses. In special circumstances an exclusive license may be granted for a maximum of four years with a possible extension of four years.

Intellectual Property
The office of the Registrar of Companies protects and registers patents and trademarks from the United Kingdom and South Africa. A new Industrial Property Act has already been enacted.