Financial Sector Overview
Botswana has experienced rapid growth, a remarkable economic transition and is now one of the top performing economies in Africa. From a poor country status at the time of its independence in 1966, Botswana has become a top-middle-income country in the last 50 years. This success can be attributed to strong democratic institutions and efficient economic management of the country's resources, particularly the rational use of diamond revenues, of which Botswana is the world's largest producer by value. The average economic growth of GDP was 4.88% between 2010 and 2017, above that of sub-Saharan Africa (3.87%). The main driver of Botswana's growth remains extraction and processing of diamonds for export (88% of exports in 2016), although the contribution of the mining sector to GDP declined sharply from 47% in 1986 at around 20% in 2017. Despite efforts to diversify the economy, the economic base remains narrow and growth has not been sufficiently inclusive.