Introduction to Contemporary Africa Step 2. History Essay

INTRODUCTION TO CONTEMPORARY AFRICA
Project Country: Botswana
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STEP 2: ECONOMY
CURRENCY
The currency of Botswana is known as pula which means rain. Rain is scarce and it is considered most valuable and a blessing. The currency code is BWP which is made up of one hundred shield coins and was first printed in 1976. (Makgala, C. J. 2008).
One Botswana Pula is equivalent to 0.086 US dollars
MAJOR ECONOMIC FEATURES
Current Demographic And Economic Features.
Botswana had a population of 2.2 million as at 2019. The proportion of children below 15 is 32%, 63% for those between fifteen and sixty-five years and 5% for those above sixty-five years. In 2019 female population was estimated to be 1.17 million while male population was estimated to be 1.09 million.
Natural Resources, Imports And Exports.
The country has wide varieties of minerals which include: Diamond, copper, gold, nickel and soda ash. The main features of economy are natural resources, tourism and agriculture. These main features drive the economy. Major exports are natural resources and beef. These exports generate 50% of government revenues. Diamond constitutes the largest exports followed by beef. The country imports metal products, textile, food, beverages, chemical, wood and machinery. In 2018 total value of exports was 6.5 billion US dollars while imports stand at 6.2 billion US dollars.
Trading Partners
Botswana is a member of a regional trading bloc Southern Africa Custom union whose main aim is trade. Her trading partners are Namibia, South Africa, Lesotho and Swaziland. This trading bloc provides less on non-tariff and favorable trading agreements. Namibia has the largest market share with 30% followed Botswana 27%, South Africa 23%, Lesotho 11% and Swaziland 9%.
How People Cope With Economic Situations
Botswana is mostly a desert country and only 0.7% of the total land is arable and supports agriculture. Agriculture provides livelihood to over 70% of the rural population and accounts to half of food needs in the country. Those in urban areas earn their living through manual jobs, employment and engaging in business activities. Those in rural areas earn their living through subsistence farming and livestock keeping. Beef farming is in large scale and locals earn money through sale beef meat which is exported (Colclough, C., et al 1980).
ECONOMIC POLICY
How Colonial Policies Impacted Economy
British introduced hut tax which didn’t depend on ability to pay but rather cash payments. Since most families could not afford to pay tax, they were forced to sell their livestock cheaply to pay. This led to increase in poverty level. The current policies have ensured that the government reduces the poverty levels. Colonial policies also resulted in lower GDP, and slow economic growth therefore forcing current policies to be put in place to revive the economy and increase the GDP.
Impacts Of Domestic Policies
The government through central bank of Botswana has over time analyzed key economic policies that impact the economy. These policies aim at collecting of economic statistics and researching on economic a...