Botswana's Performance on the Resource Governance Index
Botswana received a "weak" score of 47, ranking 30th out of 58 countries, due to a "failing" score for Reporting Practices and "partial" scores for the other components.
(out of 58)
(out of 100)
|41||Institutional & Legal Setting||55|
|30||Safeguards & Quality Controls||53|
Institutional & Legal Setting (Rank: 41st/58, Score: 55/100) learn more
Botswana has comprehensive legislation governing the mining industry, but lacks effective revenue reporting policies, contributing to a "partial" score of 55.
The Botswana Unified Revenue Service (BURS) collects taxes, while the Department of Mines collects mineral royalties and regulates the industry. For non-diamond minerals, licenses are awarded on a first-come, first-served basis. However, the Mines and Minerals Act does not apply to the licensing process for diamonds, which is subject to direct negotiation without restrictions or transparency. Recent attempts to pass a freedom of information law have failed.
Reporting Practices (Rank: 50th/58, Score: 28/100) learn more
With no public information on contracts or environmental impact assessments and incomplete data on critical revenue indicators, Botswana received a "failing" score of 28.
BURS reports mineral revenue, but bundles royalties and dividends together as one statistic. It also publishes information on production volumes and the value of resource exports in annual reports audited by the Office of the Auditor General. The Department of Mines' latest publication on revenue is from 2008 and includes production volumes, the names of companies operating in the country, company-by-company production data, and royalty receipts. The central bank publishes statistics on the value of resource exports, estimates of investment in mining development, license fees, and aggregated figures for all revenues received from mining, including taxes, dividends, and royalties.
Safeguards & Quality Controls (Rank: 30th/58, Score: 53/100) learn more
Botswana's "partial" score of 53 reflects a general lack of government oversight of the mining sector.
There is no legislative review of the licensing process, and commercial confidentiality regulations prohibit parliamentary committees from overseeing negotiations between the Mines Ministry and diamond companies. There is no legal mechanism for appealing licensing decisions.
The Mines Ministry's financial reports are audited and presented to Parliament, but legislative oversight of the budgetary process tends to focus on expenditures rather than revenues. Officials involved in monitoring the mining sector are required to disclose information about their financial interest in extractive activities.
Enabling Environment (Rank: 8th/58, Score: 69/100) learn more
Botswana performed best on this component, with a "partial" score of 69. The country received relatively high rankings on corruption control, accountability, and democracy.
State-Owned Companies (Rank: 32nd/45, Score: 32/100) learn more
Debswana is a 50/50 joint venture between the state and DeBeers. It effectively dominates the diamond industry but has no legal monopoly. Debswana publishes annual reports, which include the names of subsidiaries and mining operations but no financial figures. The government does not report its share of Debswana's revenues either, suggesting that these funds bypass the treasury.
Natural Resource Funds (Rank: 10/23, Score: 52/100) learn more
The Pula Fund is a sovereign wealth fund managed by the Bank of Botswana. It receives part of the government's income from diamond exports as well as excess foreign exchange reserves. The bank, in collaboration with the government, has complete discretion over deposits and withdrawals. Government deposits and the fund's foreign currency holdings are included in the bank's financial statements, but no other data are available.
Subnational Transfers (Rank: 20/30, Score: 50/100) learn more
The central government provides a substantial portion of local governments' revenues, distributing funds based on individual community needs. The government publishes no formula, specific rule, or general information on these transfers.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||7.2||11.6||17.3|
|GDP per capita, PPP (constant 2005 international $)||9,531||11,542||13,021|
|Extractive exports (% total exports)||82||83||79|
|Source: World Bank and USGS.|