LEA Knowledge Bank (original) (raw)

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Welcome to LEA

Knowledge Bank

SMME Employment (Formal)

144,178

SMME contribution to GDP

14.3%

SMME Employment (Informal)

174,452

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Agriculture

Botswana prioritizes agriculture, with 46% of the land zoned for Agricultural production. The sector has potential to create many jobs and currently contributes only 2% to GDP due to low productivity and competition from mining and tourism. Livestock, mainly beef production, generates 80% of agricultural GDP. The government focuses on building resilience in food supply chains and domestic production. In 2022, it restricted imports of 16 horticulture products to boost local production. Development financing has also been restructured and the National Development Bank has been designated to be an agriculture bank to support increased investment and development in the sector.

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Services

According to Statistica International, in 2020, the service sector contributed 65.8% to GDP, up from 55% in 2010. It is the largest employer, especially in hospitality, retail, construction, and transport. Trading services can promote economic diversification and export potential. The dominant services are tourism, transport, construction, and finance. Other services include education, health, communications, and professional services, supporting the rest of the economy. Transport and logistics facilitate industry supply chains and determine competitiveness.

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Tourism

The Botswana government identified tourism as a sector that could contribute to the diversification of the economy from its reliance on the diamond and other minerals. Tourism contributed 13.1% of Botswana’s GDP in 2019, increasing from 6.3% in 2000. In 2019, travel and tourism accounted for 8.9% of total employment in Botswana. The country’s principal tourist attractions are its game reserves, wildlife, and wilderness. The tourism sector encompasses accommodation and food services, transport services; both road and air, professional guide services, game driving and boat cruising, culture and entertainment.

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Technology & Innovation

Digitalization is a priority pillar in Botswana Reset Agenda as the Government sees digital transformation as central to our national development agenda. Digitalization has an immense potential to unlock and enable high productivity in the global space and among Batswana. The Authority continues to adopt innovation and leverage on digital technologies to offer services online.

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Manufacturing

In Botswana, manufacturing contributes 5.5% to GDP, mainly from diamond and beef processing, textiles, and veterinary medicine. The sector employs 7.4% of formal labor, second only to public service. It faces challenges due to reliance on imports for inputs and machinery, and limited domestic demand. Large-scale manufacturers need export markets. Opportunities exist in leather processing, food processing, textiles, jewelry, and concrete products.

Sectors

5

Technology & Innovation