RMB investor guide: Botswana | Moneyweb

According to this report, the mining sector would be a good place for investors to look for opportunities. The report states that the mining industry accounts for almost 42% of Botswana's GDP, and is the single biggest contributor to economic growth. However it says that there is potential for diversification from the mining sector, which will improve GDP growth in the long term. This resonates what the current President, Seretse Khama Ian Khama stated in the state of the nation address. RMB stated that, "the surprise discovery of natural gas and other minerals unique to the area including the country's extensive coal reserves are options for future diversification". Other attractive sectors include tourism and financial services. They account for 11% and 10% of GDP respectively with tourism development focusing mainly on the high-end of the international market. Botswana developed a market oriented monetary policy in the 1990s in order to expand financial sector development and be competitive with other African developing countries. RMB said the country has relaxed interest rates and exchange controls with commercial banks having the freedom to determine their own deposit and lending rates. The support from government to develop the financial sector is the reason for an influx in international commercial banks in the country.