Botswana – Political Stability and Market Opportunity
Botswana is one of the most successful governments in Africa, a paramount of civil ordinance, free enterprise and an African nation with a lack of major political risks. Herein lies a unique opportunity for inter-Africa cooperation in infrastructure progression, trade and foreign direct investment. The government of Botswana has reached out to nations throughout Africa, including even the tumultuous state of Zimbabwe - inquiries were made to the Zimbabwe Government on the use of the country’s infrastructure to import electricity from Mozambique, a cabinet minister has recently stated. “The Botswana government has so far only made requests to use the Bulawayo power plant should negotiations succeed but nothing has materialised yet,” the minister added.
Botswana — one of the wealthiest and best-managed economies — was additionally given a $1.5 billion loan last week by the African Development Bank to help it cope with the collapse in diamond prices — the mainstay of its economy.
“We woke up one morning and we could not sell a single diamond. And for the first time, we could no longer believe that diamonds are forever,” said Linah Mohohlo, governor of the Bank of Botswana. Faced with a budget deficit that threatened health and education programs, she said the small southern African nation had to scramble for a foreign bailout.
Botswana serves as a great African precedent of a nation utilizing international cooperation in infrastructure investment (Namibia and Botswana have also signed an agreement to start a railway line that will connect Botswana to the Namibian port of Walvis Bay), a nation whose political stability and economic intuitiveness has and will continue to bear fruit and hopefully garner greater intrigue for FDI worldwide.