Introduction to Botswana

Botswana is a landlocked country in the centre of Southern Africa. The territory covers an area of 580,000 km2, 70% of which is covered by desert, but also shrubland and marshes. Botswana is best known for its rich animal diversity, unspoiled wilderness and unique wildlife habitat, drawing tourists from all parts of the world. In addition, the country is endowed with diamonds, copper and nickel. In fact, the largest uncut diamond in the world, with 1,109-carats, was recently discovered in the Lucara mine in Botswana. Over the past 50 years Botswana has transformed from one of the least developed countries in the world to an upper middle income country.

The banking sector in Botswana remains stable with adequate capital levels and pro stability indicators. However, short-term liquidity stress across the banking sector in the latter half of 2014 occurred, as well as a marginal decline in asset quality during this same year. Nevertheless, the majority of banks continue to satisfy both prudential and regulatory requirements.

Micro enterprises are an important economic contributor in Botswana. The last survey, which was taken in 1999, estimated the existence of around 50,000 micro enterprises, followed by 6,000 small enterprises and 300 medium sized enterprises within the country. 70% of micro enterprises in Botswana are located in rural areas, 75% of which are owned by women. The trading (65%) and manufacturing (25%) sectors are the main sectors in terms of business activity. 80% of small enterprises, on the other hand, are estimated to be urban based. The majority of them are designated to the services sector (40%), followed by manufacturing (20%) and retailing (16%).The vast majority of medium sized enterprises are involved in some form of manufacturing.




The technical assistance operation is financed under the Cotonou agreement by the EU in support of EIB.
The Technical Assistance component of the project is implemented in a consortium led by Frankfurt School of Finance & Management.