Failure to diversify is the bane of our economy

It is always sensible to accept reality. For Botswana, the harsh reality is that history will judge us harshly for the failure to diversify the economy. Five decades after independence, little has been done to diversify our economy and reduce our over- reliance on South Africa. Instead, our imports from South Africa continue to grow, while the second largest economy in Africa imports virtually nothing from us. This is due to the fact that Botswana has failed to diversify its economy and only relies on diamonds as the main contributor to the Gross Domestic

Product ( GDP).

For many years Botswana has been preaching diversification but with little activities happening on the ground. Since the discovery of minerals, especially diamonds, all other sectors of the economy have literally gone into hibernation with little support from the government. Take agriculture for example, a sector which was the main contributor to the GDP before the discovery of diamonds but now contributes less than five ( 5) percent. Botswana relies heavily on South Africa for food. Figures from Statistics Botswana indicate that the total value of food imports in July 2020 stood at over P675 million representing 11.4 percent of the total imports. The most imported goods were Cereals, with Sugars & Sugar Confectionery and Beverages, Spirits & Vinegar coming second at 19.2, and 10.3 percent respectively. Regarding cereals, the most imported in July 2020 was maize corn, followed by wheat and rice at 42.3, 35.8 and 21.1 percent, respectively. Botswana is even failing to reach self- sufficiency in vegetable production. Our sustained failure to diversify our economy means that for Botswana, the discovery of diamonds has been a curse for any other sector as the leadership virtually fell into an economic slumber. This has severe consequences for future generations. It is during these challenging times that real leaders show their mettle and competence. Mining, as the engine of growth, has to be used to stimulate other sectors such as financial services and the IT. While there has been some near certainty in the construction and manufacturing sectors going forward, what disturbs us is that such sectors remain in foreign hands. This basically means that money is being siphoned outside the country, while local companies get the crumbs. This is the same with the tourism sector which is controlled by foreigners.

Time is now for the country to rise above its comfort zones and come with economic and financial instruments that can lift the economy out of its dire straits and create the muchneeded jobs. To diversify the country’s economic structure away from the mining sector, industrialization is the key to Botswana’s future. We need new strategies to grow new industries.