Botswana
Diamonds aren't forever
Botswana has long been held up as a development success story. One of the poorest countries in the world when it achieved independence in 1965, rapid economic growth – based largely on diamond and coal exports – and strong political institutions have transformed the landlocked nation into an upper-middle income country, one of the few African states to escape the “resource curse”. But with the government currently spending more than 10% of GDP in COVID-19 stimulus, some fear an opportunity to diversify away from dirty industry is being missed.
With little government debt, large foreign currency reserves and the highest sovereign credit rating in Africa, Botswana’s economy has delivered an average standard of living comparable to Mexico. The country is among the top ten in the world for the number of female CEOs, and recently decriminalised homosexuality.2
But this progress has not been distributed equally. With the fifth highest levels of income inequality in Africa, Botswana’s wealth has failed to trickle down, with fully half the population classified as either poor or vulnerable.3, 4
Environmental impacts are also beginning to mount. Drought and desertification are major issues: a largely arid, desert nation, Botswana’s water reserves are under intense pressure from mining industries, overgrazing of livestock, and rapid population growth.5
Prior to the COVID-19 crisis, Botswana's government was taking some steps to redirect economic growth towards a more inclusive and holistic form of development, with legislation covering the Sustainable Development Goals, natural capital, eco-tourism and conservation financing.
However, the response to COVID so far has shown little consideration of green recovery measures. The 2020 Economic Recovery and Transformation Plan (ERTP) provides unconditional support to the environmentally-harmful mining sector, and only vaguely gestures towards sustainability or decarbonisation.
In the face of an intensifying COVID global recession, the country’s reliance on coal and diamond sectors increasingly looks like a liability. With diamond reserves dwindling and demand slumping, Botswana has an opportunity to diversify towards a green economy that will do more than provide wealth at the top - and there are hopes that the forthcoming ERTP Implementation Plan will contain more concrete measures in this direction. Doubling down on outdated growth models, however, could see Botswana's prosperity seriously endangered.
Policy Scores
Last updated 23 Oct 2022
Green COVID-19 Recovery
Botswana has implemented two economic stimulus packages in response to the pandemic in 2020 (with support to date totalling approximately 10% of GDP). A short term COVID-19 relief package provided immediate relief to vulnerable households, support to healthcare and businesses (in the form of wage subsidies, tax deferrals and government backed loans) - with the government contributing 4 billion pula (or 2% of GDP), alongside the private sector, civil society and development partners.
In September 2020, as an addendum to the Mid-Term Review of Botswana's National Development Plan (NDP) 11, parliament approved a USD$1.7 billion Economic Recovery and Transformation Plan (ERTP). Spanning 2.5 years, the plan aims to facilitate economic growth, accelerate economic transformation and increase resilience of the economy. Support prioritises agriculture, tourism, infrastructure and a digital transition without green conditionality, implying the potential for substantial negative environmental impacts. Measures also include providing unconditional support to the environmentally-harmful extractives sector - for example, providing rebates on diesel use for diamond mining companies. Under the sections titled 'Greening the Recovery' and 'Renewables', the ERTP simply acknowledges an opportunity to reduce fossil fuel subsidies, consider the introduction of carbon taxes, and commits to preparing a Renewable Energy Roadmap, without putting forward any precise green initiatives. Further, the plan sets out that all of the initiatives are proposals to be further screened and prioritised, and financing remains uncertain with the government doubling the domestic borrowing limit to raise funds.
Overall, policies are currently entirely lacking in substantive green commitments, though the forthcoming ERTP Implementation Plan is anticipated to contain more concrete measures. Despite this, there is a real risk that business-as-usual support and the lack of any meaningful consideration of a green recovery in the ERTP to date will undermine the opportunity to transition towards a greener, more resilient, and inclusive economic model.
Botswana has implemented two economic stimulus packages in response to the pandemic in 2020 (with support to date totalling approximately 10% of GDP). A short term COVID-19 relief package provided immediate relief to vulnerable households, support to healthcare and businesses (in the form of wage subsidies, tax deferrals and government backed loans) - with the government contributing 4 billion pula (or 2% of GDP), alongside the private sector, civil society and development partners.
In September 2020, as an addendum to the Mid-Term Review of Botswana's National Development Plan (NDP) 11, parliament approved a USD$1.7 billion Economic Recovery and Transformation Plan (ERTP). Spanning 2.5 years, the plan aims to facilitate economic growth, accelerate economic transformation and increase resilience of the economy. Support prioritises agriculture, tourism, infrastructure and a digital transition without green conditionality, implying the potential for substantial negative environmental impacts. Measures also include providing unconditional support to the environmentally-harmful extractives sector - for example, providing rebates on diesel use for diamond mining companies. Under the sections titled 'Greening the Recovery' and 'Renewables', the ERTP simply acknowledges an opportunity to reduce fossil fuel subsidies, consider the introduction of carbon taxes, and commits to preparing a Renewable Energy Roadmap, without putting forward any precise green initiatives. Further, the plan sets out that all of the initiatives are proposals to be further screened and prioritised, and financing remains uncertain with the government doubling the domestic borrowing limit to raise funds.
Overall, policies are currently entirely lacking in substantive green commitments, though the forthcoming ERTP Implementation Plan is anticipated to contain more concrete measures. Despite this, there is a real risk that business-as-usual support and the lack of any meaningful consideration of a green recovery in the ERTP to date will undermine the opportunity to transition towards a greener, more resilient, and inclusive economic model.
Governance
National green economy plan
Botswana lacks a specific overall green economy strategy, but both the 2016 National Development Plan (NDP 11) and Vision 2036 make explicit commitments to inclusive growth, sustainability, and prosperity for all. NDP 11 sets out sectorial policies, budget and indicators up to 2023, with Vision 2036 providing a long-term strategic framework, and both policies incorporate the Paris Agreement and SDGs. Although Vision 2036 is rhetorically ambitious, it lacks concrete targets.
Botswana lacks a specific overall green economy strategy, but both the 2016 National Development Plan (NDP 11) and Vision 2036 make explicit commitments to inclusive growth, sustainability, and prosperity for all. NDP 11 sets out sectorial policies, budget and indicators up to 2023, with Vision 2036 providing a long-term strategic framework, and both policies incorporate the Paris Agreement and SDGs. Although Vision 2036 is rhetorically ambitious, it lacks concrete targets.
Inclusive governance
Existing policy clearly mentions the need to consult civil society, in particular local communities, to improve transparency and accountability. Vision 2036, Botswanas flagship SD strategy, was informed by broad consultations across 103 localities, including schools, professional bodies, NGOs, and trade unions. Gender equality and equity is a key goal of NDP11. Data on standards of inclusive corporate governance are limited, but provisions for employee consultation are input are absent.
Existing policy clearly mentions the need to consult civil society, in particular local communities, to improve transparency and accountability. Vision 2036, Botswanas flagship SD strategy, was informed by broad consultations across 103 localities, including schools, professional bodies, NGOs, and trade unions. Gender equality and equity is a key goal of NDP11. Data on standards of inclusive corporate governance are limited, but provisions for employee consultation are input are absent.
SDG business strategy
No SDG business strategy is currently available. The Botswana Stock Exchange has announced a plan to develop voluntary sustainability guidelines for domestic listed firms, with incentives for the best-performing companies, but as of July 2019 these have yet to be published.
No SDG business strategy is currently available. The Botswana Stock Exchange has announced a plan to develop voluntary sustainability guidelines for domestic listed firms, with incentives for the best-performing companies, but as of July 2019 these have yet to be published.
Wealth accounting
A member of the World Banks Wealth Accounting and the Valuation of Ecosystem Services (WAVES) initiative since 2010, and a founding signatory to the 2012 Gaborone Declaration for Sustainability in Africa, Botswana is pioneering natural wealth accounting in the areas of water, tourism ecosystems, mineral resources, and energy. New macroeconomic indicators including adjusted net national income, adjusted savings, and national wealth accounts are in the early stages of adoption.
A member of the World Banks Wealth Accounting and the Valuation of Ecosystem Services (WAVES) initiative since 2010, and a founding signatory to the 2012 Gaborone Declaration for Sustainability in Africa, Botswana is pioneering natural wealth accounting in the areas of water, tourism ecosystems, mineral resources, and energy. New macroeconomic indicators including adjusted net national income, adjusted savings, and national wealth accounts are in the early stages of adoption.
Finance
Green finance plan
Following Botswanas 2016 High-Level National Symposium on Sustainable Finance, the government announced a road-map towards a long-term Sustainable Finance Initiative, although this has yet to be launched. Part of the Biodiversity Financing Project, which seeks to facilitate investment in biodiversity through innovative subsidies, offsets, markets, and other financial instruments.
Following Botswanas 2016 High-Level National Symposium on Sustainable Finance, the government announced a road-map towards a long-term Sustainable Finance Initiative, although this has yet to be launched. Part of the Biodiversity Financing Project, which seeks to facilitate investment in biodiversity through innovative subsidies, offsets, markets, and other financial instruments.
Green fiscal & monetary policy
Fiscal and monetary reforms are not currently clear in Botswana, though the NDP ensures the government is advised by the Thematic Working Group on Sustainable Environment. Participation in the Biodiversity Financing project is facilitating discussion of biodiversity focused fiscal reform.
Fiscal and monetary reforms are not currently clear in Botswana, though the NDP ensures the government is advised by the Thematic Working Group on Sustainable Environment. Participation in the Biodiversity Financing project is facilitating discussion of biodiversity focused fiscal reform.
Safe & accountable banks
In 2019 the Bank of Botswana began conducting stress tests on the banking sector to assess the resilience of banks to credit, liquidity and interest rate risks. Having recently been adopted, testing does not yet include social or environmental risk, and there is no mention of green or social factors in the Bank's 2020 Annual Report.
In 2019 the Bank of Botswana began conducting stress tests on the banking sector to assess the resilience of banks to credit, liquidity and interest rate risks. Having recently been adopted, testing does not yet include social or environmental risk, and there is no mention of green or social factors in the Bank's 2020 Annual Report.
Pricing carbon
Botswana remains highly dependent on high-carbon fuels for energy, especially coal, and has no plans in place for carbon pricing or trading schemes.
Botswana remains highly dependent on high-carbon fuels for energy, especially coal, and has no plans in place for carbon pricing or trading schemes.
Sectors
Green sectoral policy plan
No specific inter-sector co-ordination currently exists, although a thematic working group on sustainable environment operates under the National Development Plan. The WAVES initiative is developing policy for water, minerals, energy and tourism sectors while the Ministry of Finance and Development Planning is working on various sectoral appraisals.
No specific inter-sector co-ordination currently exists, although a thematic working group on sustainable environment operates under the National Development Plan. The WAVES initiative is developing policy for water, minerals, energy and tourism sectors while the Ministry of Finance and Development Planning is working on various sectoral appraisals.
Small business support
No recent law on green SMEs. Existing regulation for small businesses falls under the Cooperatives Act (1989), the Policy on SMMEs (1999), and the Small Business Act (2004), and makes no mention of sustainability or green business models.
No recent law on green SMEs. Existing regulation for small businesses falls under the Cooperatives Act (1989), the Policy on SMMEs (1999), and the Small Business Act (2004), and makes no mention of sustainability or green business models.
Carbon budgeting
Committed at the 2015 Paris Agreement to reduce overall emissions by 15% by 2030, but this goal lacks legal provisions, specific policy commitments or any budgeting process.
Committed at the 2015 Paris Agreement to reduce overall emissions by 15% by 2030, but this goal lacks legal provisions, specific policy commitments or any budgeting process.
Clean energy policy
The government is co-developing a national plan to harness the countrys world-leading solar energy potential, but Botswanas current renewable energy target of 10% is lacking in both ambition and specificity.
The government is co-developing a national plan to harness the countrys world-leading solar energy potential, but Botswanas current renewable energy target of 10% is lacking in both ambition and specificity.
People
Green jobs
Some provision is given to green and sustainable jobs within the National Development Plan, with poverty alleviation and lowering unemployment the main goals. Knowledge development, skills training and the potential for new kinds of environmental employment are recognised as critical to sustainable development, but policies are stronger on aspiration than substance.
Some provision is given to green and sustainable jobs within the National Development Plan, with poverty alleviation and lowering unemployment the main goals. Knowledge development, skills training and the potential for new kinds of environmental employment are recognised as critical to sustainable development, but policies are stronger on aspiration than substance.
Pro-poor policy
Poverty reduction is a national priority and addressed across much of government policy, although few existing initiatives explicitly incorporate environmental and sustainability factors. Some Local Economic Plans do address key linkages between poverty and the environment, and the UNs Poverty Environment Initiative (PEI) has provided funds and training at the district level to further this work.
Poverty reduction is a national priority and addressed across much of government policy, although few existing initiatives explicitly incorporate environmental and sustainability factors. Some Local Economic Plans do address key linkages between poverty and the environment, and the UNs Poverty Environment Initiative (PEI) has provided funds and training at the district level to further this work.
Participatory policymaking
The National Policy on Gender and Development (2015) provides a detailed framework for mainstreaming gender perspectives across government policy and process, and the country achieved successfully achieved some of its gender targets under the Millenium Development Goals (such as eliminating gender disparities in education). In 2019, the Botswanan High Court decriminalised homosexuality, though issues around marginalised minority ethnic groups such as the Basarwa remain. Policy impact assessments processes are unclear, with environmentally focused assessments limited by capacity constraints.
The National Policy on Gender and Development (2015) provides a detailed framework for mainstreaming gender perspectives across government policy and process, and the country achieved successfully achieved some of its gender targets under the Millenium Development Goals (such as eliminating gender disparities in education). In 2019, the Botswanan High Court decriminalised homosexuality, though issues around marginalised minority ethnic groups such as the Basarwa remain. Policy impact assessments processes are unclear, with environmentally focused assessments limited by capacity constraints.
Innovative social protection
Although the National Development Plan incorporates universal healthcare as a goal, few pilot programmes or clear policies exist on achieving this target. Some mention of innovative financing models to reduce cost burdens on families, and a 2016 AIDS policy aims to provide treatment to all HIV-positive citizens.
Although the National Development Plan incorporates universal healthcare as a goal, few pilot programmes or clear policies exist on achieving this target. Some mention of innovative financing models to reduce cost burdens on families, and a 2016 AIDS policy aims to provide treatment to all HIV-positive citizens.
Nature
Ocean & land conservation
Although SDGs 14 & 15 are not individually singled out, the SDGs are in general well-covered within Botswanan government policy. A 2017 Voluntary National Review set out a roadmap for implementing SDGs, but focussed mainly on SDGs 1 (No poverty), 2 (Zero Hunger), 3 (Good health and well-being), 5 (Gender equality), 9 (Industry, innovation and infrastructure), and 17 (Partnership for the Goals).
Although SDGs 14 & 15 are not individually singled out, the SDGs are in general well-covered within Botswanan government policy. A 2017 Voluntary National Review set out a roadmap for implementing SDGs, but focussed mainly on SDGs 1 (No poverty), 2 (Zero Hunger), 3 (Good health and well-being), 5 (Gender equality), 9 (Industry, innovation and infrastructure), and 17 (Partnership for the Goals).
Natural capital accounts
As one of the first five countries to join the Wealth Accounting and Valuation of Ecosystem Services (WAVES) initiative, Botswana is beginning to integrate natural capitals into existing national frameworks and economic accounts, with the aim of informing policy decisions.
As one of the first five countries to join the Wealth Accounting and Valuation of Ecosystem Services (WAVES) initiative, Botswana is beginning to integrate natural capitals into existing national frameworks and economic accounts, with the aim of informing policy decisions.
Natural capital committee
Botswana does not have its own natural capital commission but the WAVES initiative provides technical reports, policy recommendations and a roadmap for future delivery on natural capital. However, WAVES is an external project run and funded by the World Bank, so in the long term the Finance Ministry will have to assume many of its duties when WAVES ends.
Botswana does not have its own natural capital commission but the WAVES initiative provides technical reports, policy recommendations and a roadmap for future delivery on natural capital. However, WAVES is an external project run and funded by the World Bank, so in the long term the Finance Ministry will have to assume many of its duties when WAVES ends.
Nature-based fiscal reform
Conservation funding is provided for under NDP 11 with the establishment of the National Environment Fund (NEF) and the Tropical Forest Conservation Fund (TFCF), financing environmental management activities. No green fiscal or monetary reforms yet announced.
Conservation funding is provided for under NDP 11 with the establishment of the National Environment Fund (NEF) and the Tropical Forest Conservation Fund (TFCF), financing environmental management activities. No green fiscal or monetary reforms yet announced.
References
- Our World In Data, “Botswana GDP per capita in 2011 prices”, accessed August 2019
- AAT Comment, “Gender Empowerment in Botswana”, August 2016
- Sunday Standard, "Botswana's income inequality still among the highest in the world", April 2014
- World Bank, "Income growth in rural Botswana lifts thousands out of poverty", December 2015
- Michael B.K. Darkoh, “Desertification in Botswana”, RALA Report no. 200