Botswana must accelerate economic diversification and transition toward a more decentralised, private-sector-driven open economy if it is to unlock its full potential. This was the central message delivered by Presidential Envoy on International Relations and Economic Development, Dr Farman Kamalabadi, during a high-level dialogue at the Botswana Economic Forum in Gaborone today.
Dr Kamalabadi described Botswana as a uniquely peaceful, highly enlightened, and resource-rich nation—but one restrained by complacency and an overly centralised economic architecture.
Despite decades of stability and mineral-driven prosperity, he noted that the national economy remains 80 percent government-driven, with only 20 percent powered by the private sector. This imbalance, he warned, is slowing transformation and deterring investors—including the 75 high-value investors recently brought into Botswana through his engagements. Remarkably, after months of follow-ups and active facilitation, only two were able to secure even non-binding MOUs.
Kamalabadi pointed to several root causes: a pervasive receiver mentality, reluctance to open up the economy, over-protectionist policies, a slow bureaucratic culture, and delayed diversification beyond diamonds. These, he stressed, are creating unnecessary bottlenecks to growth.
He argued that structural reforms are now urgent, calling for:
Decentralising government authority—moving from over-control to strategic, wise oversight
Fast-tracking business approvals and reducing bureaucratic drag
Privatising more state assets
Expanding private-sector participation to rebalance the current 80:20 ratio
Embedding entrepreneurship even within government systems
Opening the country to more skilled immigration and foreign joint-venture enterprises
Leveraging regional integration and major cross-border projects
Driving an active, open circular-economy model to boost job creation, especially for the youth
Drawing from global economic patterns, Kamalabadi cautioned that excessive protectionism and rigidity invariably lead to stagnation, rising unemployment, weakened credit ratings, and a downward poverty spiral—outcomes Botswana can still avoid.
He emphasised that Botswana’s opportunity lies in vitalising the private sector, empowering entrepreneurial activity, and embracing bolder economic openness. With the right reforms, he said, Botswana can not only reverse looming risks but position itself as a competitive, high-growth economy on the continental and global stage.
Progressive Institute
