As a wealthier African country, Botswana has successfully obtained middle-income status for its 1.64 million citizens although 30 percent of the population does live in poverty conditions partly attributed to the AIDS/HIV epidemic. The Botswana economy heavily depended on diamond mining with its national currency the pula currently one of the soundest currencies within Africa.
Economic Statistics
Total GDP as measured by PPP stands at $16.5 billion USD (2005) with corresponding GDP/Capita at $10,000 USD. Market GDP was estimated at $9.25 billion USD (2005). GDP growth is forecasted at 3.5 percent for 2006 and 3.5 percent for 2007. Inflation is estimated at 8.9 percent for 2006, and 5.8 percent for 2007. The current account is in surplus at 11 percent of GDP (2003), modest trade surplus. Foreign exchange reserves stood at $6.12 billion USD (2005). Public debt is at 7.3 percent of GDP. Unemployment is upwards of 40 percent. No oil & natural gas production, modest oil importer. Major industry segments include agriculture, tourism, financial services, diamond mining (30 percent of GDP and 70 percent of export earnings).
CURRENCY: ISO Symbol ‘BWP’, Botswana pula, pula. At time of review on April 13, 2006, the pula was valued at 5.443 BWP to the US-dollar (USD) and/or 6.58 BWP to the Euroland euro (EUR). Currency regime is composite - currency basket. The pula is pegged to a basked of currencies including the South African rand which has significant weight and the IMF’s Special Drawing Right. No exchange controls, the pula is fully convertible. The currency name ‘pula’ is translated into ‘rain’.
CURRENCY HISTORY: the pula came into circulation in 1976 replacing the South African rand at par. Historical quotes for the pula include year: 1987 at 1.677 BWP to the US-dollar (USD), year 1989 at 2.01, 1991 at 2.107, 1993 at 2.42 BWP to the USD, 1994 at 2.68, 1995 at 2.77, 1996 at 3.32, 1997 at 3.65, January 1998 at 3.854, year 2001 at 5.84, 2002 at 6.33, 2003 at 4.95, 2004 at 4.69 and year 2005 at 5.11. The pula was stable during the 1990’s, in February 2004 the pula was devalued by 7.5 percent, May 2005 a further 12 percent devaluation.
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