Significant mineral (diamond) riches, competent administration, wise economic management, and a relatively small population of little more than two million people have elevated it to the upper middle-income bracket, with a transformation strategy aimed at elevating it to the high-income bracket by 2036.
Botswana has one of the highest per capita incomes in the world, thanks in large part to its diamond industry. The wealth from diamonds accounts for nearly all of Botswana's exports. Diamonds are the main source of income for 95% of the population.
The government has adopted a strategic plan called "From Poverty to Prosperity" to raise the nation's per capita income to $1,500 by 2020. It aims to do this by developing its natural resources, especially its massive diamond deposits, which account for most of Botswana's exports. The plan also calls for increased tourism, mining of other minerals, and development of the service sector.
Botswana has made significant progress toward economic stability over the past few decades, but it remains vulnerable to fluctuations in diamond prices and foreign investment decisions.
In 2014, the World Bank classified Botswana as a high-income country.
Nowadays, the governments of mineral-rich nations must learn how to put their resources to good use and improve their countries' economic development through exports. African nations, in particular, are leaders in minerals such as diamonds, platinum, zirconium, cobalt, bauxite, and others. The main reason for this is the fact that most of these countries possess very low costs of production and high prices for minerals on international markets.
The situation has changed since the early 1990s, when Africa's economies were growing rapidly due to aid from abroad. At that time, they were able to buy expensive foreign products without difficulty. Nowadays, many African countries have become independent states by shedding their colonies or federations. However, they remain poor because it takes a long time to develop an economy from scratch. In addition, most of them suffer from corruption, which prevents investors from putting money into these countries.
The only way for an African country to get rich is via mining exports. The problem is that many mines are owned by foreign companies, which want to maximize profits instead of developing their countries. For example, South Africa's gold industry contributed significantly to its economic growth during the last century. But in recent years, the government has moved toward renewable energy sources because of its concerns about environmental damage caused by mining activities.
Mineral riches can also lead to conflicts because both local communities and governments often cannot control where the mines will be built.
The country is endowed with an abundance of natural resources. Ghana is one of the richer countries in West Africa, thanks to its resources such as timber, gold, diamonds, bauxite, manganese, and oil. Despite having one of the most prosperous economies in the area, it is nevertheless significantly reliant on international funding. In fact, 80% of its revenue comes from foreign sources.
Ghana has the second-largest economy in Africa after Egypt's. It ranks 140th out of 187 countries by GDP per capita. However, there is significant disparity between wealth in Ghana: while some people have access to the best schools, healthcare, and transportation, others do not. The extreme poverty rate is high at 19%.
Ghana is known for its spectacular landscapes, especially around Lake Volta, which features several national parks. There are also many historic sites to see, including the Ashmolean Museum in Accra that displays art from around the world dating back to the 16th century.
People travel to Ghana to work in the mining sector, which has experienced large-scale layoffs due to low mineral prices. However, there is also a growing number of jobs in the tourism industry.
Ghana is one of the fastest-growing countries in Africa, with an average growth rate of 5%. This makes it possible for its population of 24 million people to improve their living standards.
Due to Botswana's reliance on diamonds, sustained worldwide demand is critical to the country's economic health. Diamond exports constitute a significant source of foreign cash for Botswana's economy, as well as a foundation for industrial growth and the strengthening of Botswana's infrastructure. The development sector in Botswana includes programs that aim to improve living standards, promote social equity, and protect the environment. These efforts are intended to reduce poverty rates which remain high despite the presence of large diamond deposits under the territory they claim as their own.
Botswana has made efforts to encourage investment in its tourism industry by offering tax breaks and free land ownership to companies that move into tourism. The government also provides financial assistance to small businesses through microcredit programs like Kiva.com.
In addition to helping its citizens develop economically, the government of Botswana seeks to ensure the security of its people by maintaining peace with its neighboring countries. Relations with South Africa, its former colonizer, have been marked by controversy but Botswana remains committed to achieving peace along its border with South Africa.
Finally, Botswana works to preserve its cultural heritage by protecting areas of natural beauty and archaeological significance. Many structures dating back hundreds of years were destroyed by the use of explosives during the mining boom, so conservation efforts are needed to prevent the loss of more ancient architecture.