Botswana

Botswana is a landlocked country in southern Africa. It is bordered by Zambia to the north, Zimbabwe to the northeast, South Africa to the southeast and south, and Namibia to the west. Formerly the British protectorate of Bechuanaland, Botswana changed its name on independence in 1966. The country is internationally renowned for its mineral extraction, particularly diamonds, and has received acclaim for its progressive environmental efforts, which have had a positive impact on its growing tourism sector. Botswana is the largest diamond producing country in the world by value.

Key facts about Botswana

Full name:

Republic of Botswana

Capital:

Gaborone

Population:

1 842 323 (July 2008 est.)

Area:

600 370 sq km

Monetary unit:

Pula (BWP)

Main exports:

Diamonds, copper, nickel, soda ash, meat, textiles

Government:

Parliamentary republic

Mineral regime

The discovery of diamonds in 1967, after a protracted search of twelve years, dramatically changed the pace of development in the country. Two of the world's most valuable diamond mines, Jwaneng and Orapa, are located in central Botswana, and the combined earnings of these two mines, joined with that of the Letlhakane mine in the central Kalahari, account for 77% of Botswana’s total export earnings and 45% of the country’s GDP.

In 1999, Botswana’s Parliament passed a new Mines and Minerals act with the objective of attracting investors. Government no longer has rights to free participation, but rather has an option to acquire 15% in new ventures on commercial terms. A retention licence was also introduced, allowing a company to retain rights for a period of three years and renewable once for a period of not more than three years over a confirmed discovery should market conditions prevent the deposit from being viably exploited immediately. The grant, renewal and transfer of licences has been made more automatic and predictable, being subject to only a few explicitly stated conditions and with little or no scope remaining for the Minister to exercise discretions or impose unspecified terms.