Botswana, an upper-middle-income country, has experienced significant economic developments alongside notable challenges. In 2024, Botswana's nominal GDP was estimated at $21.90 billion, with a per capita GDP of $7,859 (nominal) and $20,158 (PPP). The economy is primarily driven by the services sector, accounting for approximately 70.6% of GDP, followed by industry at 27.5%, and agriculture at 2%. Inflation in 2024 was around 4%. Unemployment remains a significant concern, with rates reported at 23.4% in 2023.
Poverty and Inequality
However, this economic success has not been evenly distributed, and rural poverty remains a pressing challenge. Botswana faces challenges with poverty and inequality. The poverty headcount ratio decreased from 17.0% in 2019 to 14.5% in 2022. However, in 2021, 20.8% of the population was considered multidimensionally poor.
To diversify the economy and promote sustainable development, the Government of Botswana is focusing on sectors like agriculture, tourism, and manufacturing. The Vision 2036 and the National Development Plan 12 (NDP 12) emphasize inclusive economic growth and food security, aligning with FAO's global mandate to eradicate hunger and poverty.
Rural Poverty Context
Rural areas in Botswana face persistent poverty challenges despite the country's economic growth. Key factors include:
1. Agricultural Vulnerabilities:
- Agriculture employs about 30% of the population but contributes less than 3% to GDP.
- Smallholder farmers struggle with climate variability, low productivity, and limited access to markets, inputs, and technology.
- The sector is further constrained by frequent droughts, soil degradation, and water scarcity.
2. Income Inequality:
- Economic growth has not translated equitably across all regions, with rural areas experiencing higher poverty rates than urban centers.
- Limited rural infrastructure, such as roads and markets, restricts opportunities for income generation.
3. Youth Unemployment and Migration:
- Young people, who constitute a significant proportion of the rural population, face unemployment and often migrate to urban areas, leaving rural communities under-resourced.
4. Food Insecurity:
- Many rural households are net food buyers, making them highly vulnerable to food price shocks and market disruptions.
5. Limited Access to Markets and Technology:
- Rural farmers often face challenges accessing markets, modern farming technologies, and financial services, which restrict their ability to scale operations and improve productivity.
6. Gender Inequality:
- Women, who play a significant role in rural agriculture, often face additional barriers, including land ownership issues, limited access to credit, and lower representation in decision-making processes.