Botswana slips in Global Competitiveness rankings
Pauline Dikuelo | Monday June 29, 2026 06:00
The latest report, released this week, highlights a number of challenges weighing on the country's competitiveness. Amongst these is Botswana's continued dependence on diamonds, which leaves the economy highly vulnerable to fluctuations in global market demand and prices. The country is also facing a widening fiscal deficit driven by increasing spending obligations at a time of declining mineral revenues.
High unemployment, particularly amongst young people, remains a persistent concern, whilst private-sector growth continues to be fragile and heavily dependent on government expenditure. The recent outbreak of Foot and Mouth Disease has further added to the country's economic vulnerabilities by threatening the livestock industry and Botswana's valuable beef export market.
A breakdown of the competitiveness pillars reveals a mixed performance. Economic performance remained unchanged at position 69 out of 70 countries during the reporting period. However, government efficiency declined from 41st position to 44th, whilst business efficiency recorded a sharper drop from 48th to 58th. Infrastructure performance also weakened, falling from 59th to 63rd position.
The report further ranked Botswana 63rd out of the 70 ranked countries in terms of economic resilience, highlighting concerns about the economy's ability to withstand external shocks. Forecast GDP per capita was ranked 58th, whilst the country's forecast real GDP growth performed strongly at seventh position globally, indicating optimism about future economic expansion despite current challenges.
Household consumption expenditure stood at $8.7 billion, placing Botswana in 68th position globally, reflecting the relatively small size of the domestic consumer market.
Despite the decline in overall rankings, Botswana continues to offer several advantages that make it an attractive investment destination. These include a business-friendly environment, political stability and predictability, a skilled workforce, access to financing, government competency, a competitive tax regime, high levels of education and reliable infrastructure.
However, the country experienced declines across several key indicators, including the number of patents in force, transparency, internet usage, protection against bribery and corruption, health infrastructure, protectionism, and electricity costs for industrial consumers.
There were, nevertheless, notable improvements in other areas. Botswana recorded gains in labour force participation, long-term employment growth, exchange rate stability, real GDP growth per capita, exports of goods and commercial services, access to financial services, gross fixed capital formation growth, and the quality of air transportation infrastructure.
Analysts say the findings underscore the urgent need for Botswana to accelerate economic diversification efforts, strengthen private-sector development and create sustainable employment opportunities if it is to reverse the downward trend and improve its standing amongst the world's most competitive economies.