Why has manufacturing developed slowly in Botswana?

Industrial development in Botswana has been constrained by several key factors that have limited the growth of the manufacturing sector:

• High Operational Costs: The development of manufacturing has been hindered by the high costs associated with power and water, which are essential for industrial production.1
• Resource and Skill Gaps: There has been a notable lack of appropriate management and labor skills necessary to support a robust manufacturing base.1
• Market Size: The domestic market in Botswana is relatively small, which limits the scale and viability of local manufacturing operations.1

Historically, manufacturing activity was largely confined to meat processing in Lobatse. While there has been some expansion into textile production and specialized industries—such as the sophisticated diamond-sorting and valuing facility established by De Beers S.A. in Gaborone—the country continues to rely heavily on imports for machinery, transport equipment, and consumer goods, many of which are serviced or manufactured by multinational companies based in neighboring South Africa.12