RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/G/35
15 April 1998
(98-1425)
Original:  English
TRADE POLICY REVIEW
BOTSWANA
Report by the Government
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the
Government of Botswana is attached.
Note :  This report is subject to restricted circulation and press embargo until the end of the meeting of
the Trade Policy Review Body on Botswana.Botswana WT/TPR/G/35
Page 3
TABLE OF CONTENTS
Page
I. EXECUTIVE SUMMARY 5II. INTRODUCTION 6
III. THE CURRENT MACROECONOMIC AND TRADE ENVIRONMENT 6
IV. BOTSWANA'S MAJOR TRADE AND INVESTMENT POLICY OBJECTIVES 7
V. MAJOR FEATURES OF TRADE AND INVESTMENT-RELATED POLICIES 8
VI. BOTSWANA'S TRADING ENVIRONMENT WITH REGARD TO REGIONAL AND
MULTILATERAL ARRANGEMENTS 11
(a) The Southern African Customs Union (SACU) 11
(b) The Southern African Development Community (SADC) 11
(c) The Lomé Convention 12
(d) The proposed EU/RSA Free Trade Agreement 12
VII. OUTLOOK FOR TRADE AND INVESTMENT IN BOTSWANA 13Botswana WT/TPR/G/35
Page 5
I. EXECUTIVE SUMMARY
1. The policy statement of the Government of Botswana centres on the following elements:
(i) the current macroeconomic and trade environment;
(ii) Botswana's major trade and investment policy objectives;
(iii) the salient features of trade and investment policy;  including policy instruments and
sectoral policy patterns;
(iv) the institutional framework for trade, in cluding trading arrangements with the SACU
and the SADC;  and the outlook for trade and investment in Botswana.
2. On the macroeconomic front, the economy of Botswana continues to record an impressive
rate of growth, registering an increase of 7.5% in 1996/97, compared to 5.6% the previous year.  With
the increasing integration of the global economy, the challenge facing Botswana is to sustain this
growth, especially in the non-mining sectors which are an important source of job creation.  The
centrepiece of government policy, in this regard, will be the maintenance of an appropriatemacroeconomic environment whose elements include a disciplined fiscal stance, an unwavering anti-
inflationary monetary policy, productivity-related wage increases, positive real interest rates, and a
competitive exchange rate regime.
3. With regard to trade, Botswana is committed to the process of trade liberalization.  For a
country with a small popul ation and a landlocked position, it has little choice but to look beyond its
borders to market its products and services.  However, Botswana's economic base remains narrow,
with one third of GDP in 1996 and some 50% of government revenues in the same year stemmingfrom the mineral sector.  Government policies need to continue to support the diversification of the
economy away from its dependence on the resource industries of mining and agriculture.  These
policies also need to be supportive of business so it can withstand increased competition resulting
from the opening up of the economies in the region and the dismantling of trade barriers.
4. Accordingly, the Government of Botswana has put in place a range of policies aimed at
increasing the productivity and competitiveness of Botswana firms so that they can withstand the
pressure of international competition for goods and services.  Foremost among these policies are the
new Industrial Development Policy and the National Policy on Vocational Training and Education
both adopted by Parliament in December 1997.  Others include the Standards Act, the Industrial
Property Act, and  the establishment of the Botswana Export Credit Insurance and GuaranteesCompany.  New legislation planned for 1998 that have a bearing on trade and investment include the
development of a Competition Policy and a Competition Law, and a Copyright Act, as well as a
policy on small, medium and micro-enterprises (SMMEs).
5. The MCI role and capacity statement also addresses the trading environment with regard to
regional and multilateral arrangements for Botswana's trade and investment regimes.  Morespecifically, it examines the major trade agreements of which Botswana has been a signatory.  These
agreements include the SACU, SADC and the Lomé Convention.  It also examines implications that
the proposed EU/RSA Free Trade Agreement could have on the BLNS countries.
6. In conclusion, the overall outlook for trade and investment in Botswana is promising.  With
regard to future trading arrangements, the country ha s an active interest not only in the reform of the
internal structure of SACU, but also in the establis hment of a tariff that reduces the current anti-export
bias and encourages opening to the broader Southern African Region and to the world.WT/TPR/G/35 Trade Policy Review
Page 6
II. INTRODUCTION
7. The first Trade Policy Review of Botswana by the WTO was a welcome opportunity for
Botswana to examine her trade and investment environment as well as to assess the current tradepolicies and practices.  The document (WT/TPR/S/35) has served as a useful basis for the following
policy statement.
8. This statement centers on the following issues:
(i) the current macroeconomic and trade environment;
(ii) Botswana's major trade and investment policy objectives;(iii) major features of trade and investment-related policies, including policy instruments
and sectoral policies;
(iv) Botswana's trading environment with regard to regional and multilateral arrangement
including long-standing arrangements wi th the SACU and mo re recently with
SADC;  and
(v) the outlook for trade and investment in Botswana.
III. THE CURRENT MACROECONOMIC AND TRADE ENVIRONMENT
9. The economy of Botswana has continued to record an impressive rate of growth over the
years recording real growth of 4.1%, 3.1% and 7%  in 1993/94, 94/95 and 95/96, respectively.  The
moderate growth in 1993/94 was attributed to  a slow recovery in the world economy and an
improvement in commodity prices.  Much of this growth is attributable to the good performance of
the mining sector, which accounts for a third of the gross domestic product (GDP).  The contributionof the non-mining sector to the GDP has, however, continued to register a significant growth rate;
increasing from 5.6% in 1995/96 to 7.5% in 1996/97.  GDP per capita in Botswana, which was
equivalent to US$2,790 in current 1993, prices was five times higher than the average for sub-Saharan
Africa which was equivalent to US$520.
10. With the increasing integration of the global economy, the challenge facing Botswana is to
sustain the growth of its economy, especially the non-mining sectors, which are an important source
of job creation.  The centerpiece of government policy in this regard will be the maintenance of an
appropriate macroeconomic environment whose elements include a disciplined fiscal policy, an
unwavering anti-inflationary monetary policy, productivity-related wage increases, positive real
interest rates, and a competitive exchange rate regime.
11. Considerable progress has been made iny§ br inging down the inflation rate to a single-digit
level.  With continuing monetary restraint, low gr owth in wages, low inflation in the RSA and in the
industrial economies, as well as a stable pula exchange rate against the currencies of Botswana's
major trading partners, the rate of inflation in the country fell to 7.8% in December 1997, from 9.6%
in December 1996.  It is expected to reach to 7.0% in 1998.
12. Although revenue from customs duties and excise taxes have made significant contributions
to government revenues, diamonds have been the dominant source.  The Government derives profits
from diamond mining through royalties, taxes and dividends on its 50% shareholding in the
Debswana Diamond Company.  These revenues have permitted the Government to support
expenditure on infrastructure, health, education and other social services while achieving budgetsurpluses in most years.  From 1993 to 1996, budget surpluses of P881 million, P879 million, P197
million and P270 million, respectively, were recorded.Botswana WT/TPR/G/35
Page 7
13. Major reforms of the tax system have also taken place in an effort to attract foreign direct
investment as well as to increase the disposable income of the average taxpayer.  Corporate taxes
were lowered to encourage investment, from an overall of 35% to 25% in 1995;  and onmanufacturing, they were lowered to 15%.  The public sector is going through a phase of transition.
There are a number of initiatives to improve productivity in the public service.  This is in realization
of the increasing competition and the need to privatize, commercialize and/or contract out some of the
government services.
14. A number of private enterprises have also undergone various forms of transformation
including restructuring and/or downsizing of operati ons in response to changes in the international
business environment.  This has had a positive effect on productivity in the recent past as
organizations still produce to capacity despite the reduced workforce and some of them, for instance
the National Development Bank, have become profitable.
15. With regard to sectoral developments, there has been growth in the tourism, agriculture, and
manufacturing sectors.  Tourism is a potential major source of foreign exchange.  The outlook for this
sector is also very good.  Arrivals increased by 5.3% in 1996, to over 700,000 tourists, while receipts
increased by 14.6% to US$178 million the same year .  According to the recent report of the World
Tourism Organization, Botswana is ranked seventh in terms of destinations for tourists amongst major
African destinations and it is the third most preferred tourist destination in the SADC region.
16. With regard to the performance of agriculture, over 250,000 cattle were destroyed to eradicate
the cattle lung disease in Ngamiland in 1997, the sector recorded a decline of 0.2% in growth.  On theother hand, the manufacturing sector's value added stood at 5.2% in 1996/97 compared to 6.5%
in 1995/96.  The diversification of markets for textil e products and the export of new products such as
motor vehicles are encouraging signs.  The manufacturing base also includes chemicals, plastics,
paper, metals, and electrical products.
17. Other sectors performed well during 1996/97;  transport and communications grew by 13.6%,
trade, hotels and restaurants by 10.6%, and banks, insurance and business services grew by 7.1%.
The construction industry realized strong recovery  with growth of 5.6% as compared to 1.6% and
2.7%, respectively, in the previous two years.  Th e water and electricity sectors also grew by 4.9%
after a decline of 0.9% in the previous year.
IV. BOTSWANA'S MAJOR TRADE AND INVESTMENT POLICY OBJECTIVES
18. Botswana's trade and investment policy objectives are embedded in National Development
Plan 8 (1997/98-2002/03), as well as in major pol icy development documents adopted by Parliament
over the last few years, which have direct or indirect implications on trade and investment.  The most
significant of these include the new Industrial Development Policy adopted in December 1997.  The
National Policy on Vocational Training and Education, an Act establishing the Botswana ExportDevelopment and Investment Aut hority (BEDIA);  an Act establishing the Botswana Bureau of
Standards;  an Act establishing the Botswana Telecommunications Authority (BTA);  an Act creating
the Botswana Export Credit Insurance and Guarantees Company (BECI) to provide export insurance
for commercial risk coverage;  and an Export Credit Re-insurance Act to cover political risk are
meant to foster export-led industrialization through improved productivity training and ensuringproduction of high quality goods.  The overall policy is to promote sustainable diversification of the
economy away from the minerals and diamonds in particular.WT/TPR/G/35 Trade Policy Review
Page 8
19. Botswana is committed to the process of trade liberalization as evidenced by its being a
founding member of the WTO.  For a country with a small population and a landlocked position, it
has little choice but to look beyond its borders to market its products and services.
20. As stated earlier, Botswana's achievements on the economic front, have resulted from sound
and effective management and fiscal prudence.  It should be noted that Botswana's open-door policy
towards trade and investment has also contributed to its success.  Furthermore, in the process of
diversifying its economy away from its dependence on the resource industries of mining and
agriculture into competitive manufacturing, the Government has made effective use of technicalassistance in planning and implementing its development programmes.
21. The overall effect of these measures is that the 1997 World Economic Report ranked
Botswana third in terms of competitiveness, after Mauritius and Tunisia, on its competitiveness index
for the African continent.  This demonstrates Botswana's commitment to compete internationally.
Despite this achievement the Government of Botswana is keenly aware that continued effort will beneeded to further enhance productivity through improved management techniques, labour force
training and the adoption of appropriate technologies, and to maintain the costs of the factors of
production at a competitive level.
22. In order to retain its competitive edge, Botswana's foreign trade policy will need to ensure
free and dependable access for its industrial products and services, to regional and international
markets.  Equally important, the tariff policy will need to focus on reducing the cost of capital goods
and components imported from outside the SACU comm on market.  It is in this context that the
ongoing renegotiations of the SACU agreement become critical.
V. MAJOR FEATURES OF TRADE AND INVESTMENT-RELATED POLICIES
23. Despite continued rapid economic growth and some progress towards diversification,
Botswana's economic base remains narrow, with one third of GDP in 1996 and some 50% of
government revenues coming from the mineral sector.  Major exports were in the traditional areas ofdiamonds, copper/nickel matte and beef, which represented 80.3% of total exports.  The Government,
recognizing the dangers of a mineral-led growth ha s introduced policies aimed at diversifying the
economy.
24. Perhaps the most fundamental development that has taken place has been the gradual opening
of the economy of Botswana and those of other countries in the southern African region to thepressures of international competition.  Furthermor e, increased competition resulting from lower trade
barriers has been reinforced by more efficient transportation, which enables foreign goods to reach
southern African markets more cheaply and thus increase import competition.  The combined effects
of tariff reductions, lower transportation costs and productivity gains by foreign suppliers make it
essential that domestic policies be directed towards higher productivity growth and increasedcompetitiveness.
25. It is against this background that the Government of Botswana has put in place a range of
policies aimed at increasing the productivity and competitiveness of Botswana firms so that they can
withstand the pressures of international competition for goods and services.
26. Outlined below are the salient features of the major government policies that have a direct on
indirect impact on trade and investment in Botswana.Botswana WT/TPR/G/35
Page 9
Industrial Development Policy
27. The new Industrial Development Policy, approved by Parliament in December 1997, sets out
the main policy directions that will be required if  Botswana is to adapt to the growing intensity of
international competition spurred by the advent of globalization, and by increasing competitiveness
brought about by more productive technology and improved operating procedures in business
enterprises throughout the world.  The new policy is trade oriented.  More specifically, the
cornerstone of the policy rests on the encouragement of highly productive and efficient export
industries based, to the extent possible, on local natural resources and integrated with foreign marketsand technology.  Several specific policy thrusts, which the Government will pursue during the
implementation of the policy, with the help of the private sector, will focus on measures to promote
competitive manufacturing and service sector industries, including tourism;  human resource
development and training;  and the acquisition and diffusion of technology.
28. An Act to establish the Botswana Bureau of Standards was passed in 1995.  The Standards
Council was subsequently established in 1996 to govern the activities of the Bureau as an independent
parastatal organization.  Several testing and calibrating laboratories have been identified to participate
in the National Testing and Calibration Systems.  These laboratories assist to test products for
companies that do not have testing facilities as well as to test products bought in as a result of
consumer complaints.  More than 40 manufacturing and service companies have already received
assistance to improve the quality of their products.
29. The process of developing Botswana standards has been initiated and several technical
committees in different areas are in the process of being established.  Priority is being given to areas
that affect international trade such as quality and environment management standards.  The setting up
of national standards will complement the efforts of other institutions to diversify the economy.
Intellectual property legislation
30. The legal environment for science and technology in Botswana needs to be raised to modern
standards.  The Government of Botswana has realized that some of the current legislation does not
provide adequate protection to international standards.  Accordingly, an Industrial Property Act was
passed in 1996.  It will provide better protection both for foreign and Botswana investors, through
patents on inventions, trade-marks and industrial designs.  A new Copyright Act will be introduced in
the near future and a modernized Company Act will also be developed.
Foreign investment incentives
31. The Financial Assistance Policy (FAP) is the most significant positive inducement for
investment in Botswana.  The policy was introduced in 1982, and substantially revised for the third
time in 1995.  It applies only to manufacturing, small-scale mining, mineral processing, agriculture
other than beef production, and tourism, and to selected linking services industries (which supply theprimary sectors).  The incentives are available for small, medium and large scale enterprises.
32. All FAP assistance is provided in the form of  non-repayable grants.  These grants are aimed at
promoting the creation of self-sustainable enterprises, with the proviso that economic and/or social
returns to Botswana are greater than the purely financial returns to the projects assisted.  However,
qualifying businesses must have a reasonable chance of becoming financially viable.  A project mustdemonstrate a real economic rate of return to Botswana of at least 6% in order to qualify for
assistance:WT/TPR/G/35 Trade Policy Review
Page 10
33. The underlying objective of the FAP has been to encourage the employment of unskilled
labour.  Types of assistance include:
- capital grants of P1,000 per job to be created for non-citizen-owned projects (this grant must
not exceed certain percentages of total fixed investment, varying from 40% in urban areas to
85% in rural areas in the west of the country), payable in advance directly to suppliers;
- unskilled labour grant of 80% of wages in years one and two, 60% in year three, 40% in year
four and 20% in year five, payable quarterly in arrears (unskilled labour defined as those
earning between the minimum wage and twi ce the minimum wage, but those earning up to
three times the minimum are eligible for that part of their wage equal to twice the minimum
wage) for the wages of citizen employees only;  and
- training grant of 50% of the training costs per citizen trainee.
34. The total value of unskilled labour and training grants over the five years should not be more
than 50% of the domestic value added over the same period.  All grants are exempt from income tax.The scheme is applicable both to new investment and to the expansion of existing investments.
Expansion is defined in terms of increased empl oyment or volume of output.  Only businesses
deemed to increase the national income and to have a reasonable chance of becoming financially
viable will receive assistance.
Small, medium and micro-enterprises (SMME) policy
35. The development of small, medium and micro-enterprises (SMME's) in Botswana has been
greatly hampered by a very low level of accumulated private savings and, consequently, a lowaccumulation of capital on which to base further growth.  Many business owners have limited skills,
especially basic management skills required to operate a business.  Furthermore, SMMEs find it
difficult to exploit foreign markets opened up by lower trade barriers because they have limited
marketing capacity and quality standards are often difficult to meet.  Financing export shipments is
also a constraint.
36. Given the importance of SMMEs to economic growth and employment, the Government of
Botswana has set up a task force to review the operational environment of SMMEs, to examine the
current support for SMMEs, and to identify areas where it is inadequate.  The task force is about to
present its report to Government with a view to adopting an SMME policy.
Competition policy
37. The Government has decided to develop a comp etition policy with a view to enhancing the
workings of the market by reducing or eliminating anti-competitive and restrictive business practices
that impede the free operation of the market.
38. Government intervention in the market has been limited to the regulation of certain sectors of
vital importance to the economy such as banking, electricity, telecommunications and water.However, up until now, the Government has not felt the need to intervene in the market to control or
eliminate restrictive business practices, or to curb the abuse of dominant positions of certain firms,
which, in effect, limit access to the market or unduly reduce competition.
39. The situation in Botswana is now different and changing rapidly.  The Government has
therefore begun the process of developing a competition policy with a view to enacting a competitionBotswana WT/TPR/G/35
Page 11
law.  The competition policy and related legislation will become even more critical as the
Government starts implementing the privatization policy.
Investment and trade
40. The general environment for trade and investment in Botswana has improved.  As already
stated, corporate tax rates have been reviewed and are much more competitive;  positive real interest
rates prevail in the market and prospects for long term economic growth in the regional markets are
much better.  The labour force is better educated with most of them having achieved a  ten-year basiceducation.  Real utility prices for electricity and telecommunications are being reduced as Botswana
imports cheaper electricity from neighbouring countries and has introduced competition in the
telecommunications sector.  Finally, the Government is formulating the science and technology
Policy, which will form a conducive base for high technology investment in Botswana.  The policy
will be developed in the current plan period.
41. The general pattern of new investments in manufacturing is more encouraging than in the
previous investment boom.  In general, invest ments are now directed to serve the larger SACU
market, which also has better growth prospects than the markets served  during the first investment
boom.  The investments seem to be more tightly bound into marketing and production networks of
regional and international companies, harbouring modern technology and management approaches.  If
these characteristics can be maintained, sustainable expansion of manufacturing output and expansion
of employment should be forthcoming.
VI. BOTSWANA'S TRADING ENVIRONMENT WITH REGARD TO REGIONAL AND 
MULTILATERAL ARRANGEMENTS
42. Botswana's trading environment with regard to regional and multilateral arrangements and
investment regimes was presented to the WTO Secretariat in detail in the Trade Policy Review
document.  Essentially, the trade policy process in Botswana reflects the history and nature of the
regional trade agreements.  Outlined below are the major agreements that impact on the country's
trade and investment regimes.
(a) The Southern African Customs Union (SACU)43. The SACU Agreement governs Botswana's ta riff policy, with common customs and excise
duties on goods imported from third countries, these duties are largely collected by South Africa;
duty-free circulation of goods within the Customs Union;  and transit rights across South African
territory established under the Agreement.  Revenue from customs and excise duties is distributedamong SACU members from a common pool, held by South Africa, according to a formula which, in
practice, grants 17% of total revenue to each of  Botswana, Lesotho, Namibi a and Swaziland (BLNS),
with South Africa retaining the residual (32%).  The revenue-sharing formula, as well as other aspects
of the SACU Agreement, are currently under re-negotiation.  Botswana places strong emphasis on the
need to democratize the structure of the Agreement;  revise the revenue-sharing formula;  shorten the
time lags in the distribution of revenue;  and create a dispute settlement mechanism.
(b) The Southern African Development Community (SADC)44. Botswana is also a member of the Southern African Development Community (SADC) and
was one of the first three countries to ratify the SADC Trade Protocol which will create a free tradeWT/TPR/G/35 Trade Policy Review
Page 12
area within a specified period of time.  In addi tion to housing the headquarters of SADC, Botswana
has the portfolio responsibility of coordinating agricultural research and training for the region.
(c) The Lomé Convention45. Botswana is a contracting party to the Lomé Convention, a trade and development
arrangement between the EU and the African, Caribbean and Pacific (ACP) States.  Under the Lomé
Convention, Botswana's exports enjoy the advantage of free access to the European market.  The
current Convention (Lomé IV) was concluded for ten years in 1990.  The trade concession under
Lomé have been instrumental in increasing market access for Botswana products, particularly non-traditional exports such as textiles and clothing.
46. Under the Beef Protocol of Lomé IV, beef exporting countries are granted a 90% tariff rebate
on beef imports.  Botswana has a beef quota (presently, 18,916 tonnes per annum) until the year 2000
when Lomé IV expires.
47. Negotiations for a new Lomé Convention beyond the year 2000 are expected to begin soon.
While appreciating the need to make a future EU-ACP trade arrangement compatible with WTO
rules, it will be incumbent upon the EU to reco gnize the importance of the convention in ensuring
continued market access for developing countries' products to EU member country markets.  The
Lomé Convention is therefore an instrument that Botswana would like to see continued.
(d) The proposed EU/RSA Free Trade Agreement
48. Despite Botswana's membership of the Lomé Convention, the EU/RSA Free Trade
Agreement, which is likely to be signed in the n ear future, could have important implications on the
southern African region.  Botswana is thus concer ned that the proposed Free Trade Area between the
RSA and the European Union does not erode the existing non-reciprocal preferential arrangement
which the SACU members are currently enjoying under the Convention.  These concerns arise out of
the provisions of the current SACU Agreement which gives power to the RSA to set and amend the
common external tariff.
49. The proposed EU/RSA Free Trade Agreement, therefore ratified, will have major
implications on trade at large.  For instance, Botswana and the other BLNS members could find
themselves competing with products  from the EU that would have entered the South African market.
Botswana, for example, may lose the South African beef market in that it will be facing competition
with European beef.
50. Botswana has therefore been following the negotiations between the RSA and the European
Union with keen interest to ensure that products that are sensitive to the survival of the industrial
sector of Botswana are not included in the list of goods to be traded under the proposed free-trade
agreement.
51. In addition, with the possible creation of the SADC Free Trade Area, EU products may
ultimately penetrate the entire southern African region.  A question that remains unanswered is why
the EU wishes to enter into a free-trade agreem ent with the RSA while it is promoting regional
integration through the creation of partnerships with trading blocks rather than individual countries.
In this regard, it may be more appropriate for the EU to sign an agreement with the SADC (a trading
block which the EU has supported both financially and through technical assistance for many years).Botswana WT/TPR/G/35
Page 13
VII. OUTLOOK FOR TRADE AND INVESTMENT IN BOTSWANA
52. As stated earlier, the overall outlook for trade and investment in Botswana is promising.
For 1998, GDP is expected to grow at about 6% per annum, compared to 7% for 1996/97, due to thelower contribution to GDP of the mining sector.  However, high growth rates in the non-mining
sectors of the economy are expected to be driven by strong growth in the construction sector and in
other sectors such as transport and finance.
53. Manufacturing activity is expected to continue to expand, particularly in the textiles and
motor vehicle assembly sectors.
54. Botswana's well established democracy, its well developed infrastructure and well educated
labour force are some of the factors that render the prospects for trade and investment, indeed, quite
promising.  The completion of the trans-Kalahari highway to Namibia should also foster
diversification of trade and investment.
55. With regard to future trading arrangements, Botswana's strong economy and export structure,
as well as its independent currency, make it less dependent on revenue from the SACU revenue pool.
Botswana has an active interest not only in reform of the internal structure of SACU, but also in the
establishment of a tariff structure that reduces the current anti-export bias and encourages opening to
the broader southern African region and to the worl d.  Liberalization of business services, including
telecommunications, finances, insurance and transport, will assist further in developing Botswana's
considerable trading potential.
56. The Government of Botswana is committed to promoting sustainable diversification of its
economy through export-led industrialization.  It is in this context that the Government has
concentrated on developing appropriate policies and legislation to foster this process.  As part of this
process, it is important to have dependable market access both regionally and internationally.  As a
result, Botswana attaches great importance to the current negotiations of SADC and SACU
arrangements.
57. Looking into the future, the 1996 Presidential Task Group for a Long Term Vision for
Botswana (Vision 2016) concluded that "at the end of the next twenty years, Botswana should have
diversified its economy, with mining, agriculture, industry, manufacturing, services and tourism all
making a substantial contribution.  The economy should be in macro-economic balance with stable
monetary, exchange rate, and fiscal policies.  Botswana should have an economy that is sufficientlydiverse to meet the competitive demands of the future, possessing a vibrant and energetic component
to attract investors".  An important part of this work will involve the creation of capacity within the
Ministry of Commerce and Industry to deal with the challenges posed by the new world trade order
and resultant intensified competition.
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