Country Profile
Botswana is a sparsely populated country in Southern Africa covering 581 730 km2 with a population of 1.9 million people. Botswana is ranked 124th out of 177 participating countries measured on the United Nations Development Programme Human Development Index (2007/08). In 1966 Botswana won its independence; since then it has grown from a poor country with USD 80 per capita income to a middle-income country with a USD 5,600 per capita income. The country’s growth, although driven by its diamond industry is anchored in stable democratic governance and sound macroeconomic policy.
Botswana is Africa’s longest continuous multi-party democracy and as such is often presented as an example of exemplary African governance. However like many countries in Southern Africa, Botswana has suffered great loss due to the HIV and AIDS pandemic; the country now has the second highest prevalence (approx. 24%) in the World. In 1990 life expectancy at birth was 64 years, by 2005 it had declined to just 34 years. The government recognizes that HIV/AIDS will affect the economy and is trying to combat the epidemic, including provision of free antiretroviral drug treatment and a nation-wide Prevention of Mother-to-Child Transmission program.
Agriculture provides a livelihood for more than 80% of the population but supplies only about 50% of food needs, accounting for only 3% of GDP. Subsistence farming and cattle-raising dominate this sector. Erratic rainfall and poor soils plague the sector. Tourism is also important to the economy. Substantial mineral deposits were found in the 1970s and the mining sector grew from 25% of GDP in 1980 to 38% in 1998. Unemployment officially is 21% but unofficial estimates place it closer to 40%.
Cooperative Situation
The Cooperative Movement in Botswana is traditionally formed in the shape of a pyramid, having a three tier structure:
- Primary Cooperatives
- Secondary/ Regional Cooperatives
- National Associations
There are an estimated 147 cooperatives having 100 000 members in Botswana. The focus of cooperatives include: Cattle marketing, Savings and Credit, Retailing, Handicraft and Multipurpose.
Botswana’s cooperative movement is quite a recent development when compared to other cooperative movements elsewhere in Africa. In Botswana cooperatives were established by the government immediately after independence and operated to facilitate the interests of government. The movement experienced phenomenal growth in the first two decades of operation and made substantial contributions to rural development. However, reforms undertaken to mobilize liberalization signalled a new era in cooperative development, leading to stagnant growth, donor flight, decline in membership, poor sales and poor management. Emerging multi-purpose cooperatives encountered stiff competition from large chain stores and marketing livestock cooperatives suffered huge setbacks associated with Foot and Mouth Disease. As a result the cooperative movement in Botswana witnessed severe decline.
There is an expectation that the relatively recent emergence savings and credit cooperatives will help to rejuvenate the Botswana cooperative movement.
| 
