Margaret Sengwaketse is a Research Fellow at the Botswana Institute for Development Policy Analysis (BIDPA). She is currently undertaking research towards a Ph.D. degree at the University of Manchester. Margaret’s thesis explores three possible explanations to manufacturing growth in Botswana; mineral abundance, the trade policy environment, and the general macroeconomic environment. Margaret was kind enough to share her thoughts on some of my questions.
Q>> Can you please give an overview of the work BIDPA does and what your role there entails.
MARGARET>> BIDPA conducts policy research. As one of the researchers I conduct research particularly in the area of international trade.
Q>> Botswana’s economic success has invariably been linked to the mining of diamonds in the country. Is there any basis for fears of a decline in mineral reserves?
MARGARET>> There is definitely reason to worry over declining mineral reserves. Data suggests that Botswana is over-dependent on mining as mining constitutes a significant share in government revenue, national output and exports. A decline in reserves would affect government revenue, output and exports.
Q>> Would you say the Tswana economy is diversified enough for the current economic success to be sustained?
MARGARET>> I have not calculated any diversification indices to give a definite answer. However, national output and export data suggests mining sector share in gross domestic product and exports is significant and has been so since the 1980s. The government has long acknowledged the need to diversify the economy away from over-dependence on mining and has introduced initiatives to stimulate growth in other sectors. However, up to this point I would say that although there has been growth in non-mining sectors, the dominance of the mining sector is still evident.
Q>> In your opinion, is the relatively small population of Botswana (approximately 1.6 million the last time I checked) a limiting factor to economic growth?
MARGARET>> This is one of the most difficult questions I will have to answer I think. A small population means a small domestic market, therefore future economic growth cannot depend on domestic demand. According to literature, export growth is one of the channels through which economic growth can be achieved in small economies. The impressive economic growth that Botswana has achieved was through mineral exports. We have already discussed the dangers of relying on non-renewable resources and that mining cannot sustain growth in the future because minerals are finite. That means other sectors with export growth potential should contribute to economic growth. The key here is diversification because if the economy moves from over-dependence on mining to over-dependence on something else, it is still vulnerable.
Some diversification has been achieved as some sectors such as tourism do contribute to exports. But more needs to be done to increase the contributions of other sectors to export growth. Manufacturing for example, could contribute more to exports than it does currently. But learning to export and increasing export shares takes time, effort and resources and exposure to the international trading environment can be a challenge especially for small and medium firms.
Q>> Botswana has been one of the few African countries funding a significant number of its citizens to study in universities and colleges beyond its borders. Do trends suggest that these Batswana graduates return home upon completion? Either way, is the economy ready to assimilate their skills back home?
MARGARET>> I do not have figures on graduates who have trained and have not returned home to take employment or vice-versa so it is hard to give a definite answer. However, one of the challenges the government has been facing in recent years is graduate unemployment as well as a shortage of key skills. I do not have figures to give you an idea on the scale of the problem.
My thinking is that in as much as the government is committed to skills development and has used its mineral wealth to develop human resources, it cannot be the only employer and some skills have to be absorbed by the private sector. Like most of Africa, the government sector is already large and cannot grow bigger than it currently is. Though mining contributes a significant share to national output and exports, it employs a few people as it is capital intensive. Sectors such as manufacturing and services should absorb the excess sector. However, as we discussed earlier, these sectors need to grow more than they do currently to be able to absorb all these skills.
Q>> Botswana has often been cited, along with Ghana, as one of the few African countries where women are found in influential positions in relatively large numbers. Would you say this is true? If so, why is this so?
MARGARET>> I think the number of women in influential positions in Botswana is impressive. I am not able to relate it to the rest of Africa as I do not have the necessary data. Where women have demonstrated ability and have the necessary skills, I think they have been given the chance to be in influential positions in Botswana. However, it is never easy as women have to work extra-hard juggling all their responsibilities and [still] prove that they are capable.
Q>> Your other roles in life include being a mother and a wife. Any “work-life balance” tips for career-minded African women facing the challenges of raising a family?
MARGARET>> Like you said the key word is balance. It is never easy as parenting is a full-time job. But I try to do as much work as possible at work, leave work-related stuff at work and go home to be a mother and wife. By God’s grace, this strategy has worked for me.
Q>>Thanks so much for your insight and time Margaret!