Botswana - losing its sparkle?

By Karen Allen BBC News, Botswana

Botswana may have taken a bad hit during the worst of the global economic slowdown - but it is unlikely to inflict much damage on the ruling Botswana Democratic Party (BDP).

The country is holding its 10th general elections since independence just 18 months after President Ian Khama took over from Festus Mogae - a man credited with propelling this southern African state forward at an impressive rate.

The government has got to think about diversifying Dikampa Tsima Fruitseller

Although there was a lot of Gucci on show during the last of the election campaigns, the country will now have to tighten its belt after its diamond mines were forced to shutdown for a time in response to the global economic crisis.

Some 70% of Botswana's foreign exchange earnings come from diamond exports so when the US demand for diamonds slumped "the effect was felt overnight" explains Balisi Bonyongo General Manager of Jwaneng mine.

After a four-month shutdown, this vast mine is now back at 60% of capacity but it won't resume full production until 2010.

"We used to achieve sales of $500m a month, now we're down to $300m," says Mr Bonyongo.

Beyond the glitter

Diamonds drive Botswana's economy and the social dividend in terms of public spending on health education and infrastructure has been high.

Although most of the mining staff were kept on during the recent shutdown, the after-shocks felt by local businesses have been immense.

Botswana hopes to add more value to its diamonds locally

It has now prompted a debate about shaping a future less dependent on the mines.

"The government has got to think about diversifying," says Dikampa Tsima, whose fruit and vegetable stall serves the mining community of Jwaneng.

"We need to pursue other alternatives so that when there is another shock we have a fallback situation… we need to think about things like agriculture, farming manufacturing," he says.

Diversification is one of the main themes trumpeted by the opposition Botswana National Front (BNF) which claims that the ruling party has danced to the tune of big business at the expense of 60% of the population who live in rural areas.

Tourism and cattle farming are growing sectors in Botswana but there are demands for more irrigation schemes to enable small farmers to feed themselves.

Two-thirds of the country is parched desert.

Spreading knowledge

Botswana will be seeking to build on its "value added" industries in the coming years.

Diamond processing is big business here.

The Israeli-owned firm Motiganz polishes diamonds for export, employing some 230 local staff.

The Jwaneng diamond mine was shut earlier this year

Crammed in its high security state-of-the-art plant are also Indian and Chinese workers who in time are expected to transfer skills to the local population.

Diamond-sorting operations are in the process of being transferred from London to Botswana, promising more jobs.

Away from the economy and with a fresh mandate to govern, the party of President Khama will be watched closely for signs of austerity.

He already faces criticism for being dogmatic in the way that he deals with dissident elements within his own party.

He has dismissed this sharply.

Human rights organisations will be looking at state control of the media and his use of the recently restructured intelligence services for signs of any encroachment into Botswana's democratic space.

Candour

Alice Mogwe of the Botswana Centre for Human Rights indicates that compared to many of its continental cousins Botswana has a good governance record, a legacy which is unlikely to be squandered.

The fact that we called for sanctions to be lifted doesn't mean they should be let off the hook President Ian Khama on power-sharing in Zimbabwe

But she warned that "party factionalism was giving cause for concern" along with "reports of alleged extra-judicial killings which are currently under investigation, and the significant constitutional powers vested in the president."

President Khama is understood to be uncomfortable himself with the powers that come with high office and has indicated that he is ready for an "open debate".

His advisers will have a crucial role to play here, after all he is first and foremost a solider not a natural politician.

As the darling of the region, Botswana may be a small country in terms of the size of its population but it is expected to be courted by the US and the UK to take a stronger leadership role and whip its neighbours into shape.

President Khama has already been an outspoken critic of Zimbabwe's Robert Mugabe following last year's disputed elections.

Now with a shaky unity government in place in Zimbabwe, President Khama says Botswana will continue to keep a close eye on its neighbour and said the recent call for sanctions to be lifted was not a softening of policy.

Speaking with candour he said of the unity government: "It's limping along and there's a real danger that the whole thing could collapse. If it was to collapse for genuine reasons, we would not recognise a Zanu-only government under Robert Mugabe."

"The fact that we called for sanctions to be lifted doesn't mean they should be let off the hook - they need to demonstrate that their heart is still in the process and bring about a new direction for their country."

The president's no-nonsense approach may be ruffling some feathers at home but he is seen by many as decisive and a man who just wants to get the job done.

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