11 June 2025
South Africa, once the envy of other African nations due to its tremendous wealth, has fallen behind Botswana in gross domestic product (GDP) per capita. GDP per capita is a key economic indicator representing a country’s gross domestic product divided by its population.
It is widely used as a measure of a country’s living standard and economic prosperity, providing insight into the average income of its people. Botswana is a landlocked country in Southern Africa, neighbouring South Africa, Namibia, and Zimbabwe. It has a population of approximately 2.5 million people.
The country is defined by the Kalahari Desert and the Okavango Delta, which become a lush habitat for animals during the seasonal floods.
It is a popular tourist destination for those who want to experience the African bushveld, spot the Big Five, or go on a hunting expedition.
Botswana’s economy is heavily reliant on diamond mining, which contributes significantly to the country’s government revenue and exports. The recent shift away from natural diamonds has put Botswana’s economy at risk, as the country has an overdependence on mining. The government is actively working to diversify the economy beyond mining, with a focus on tourism, agriculture, and manufacturing.
It has shown some progress in addressing challenges with high unemployment and poverty, social inequality, and the need to diversify its economy. Despite these challenges, including its geographic location and concentrated economy, Botswana still achieved a higher GDP per capita than South Africa.
Botswana’s real GDP has grown at an average rate of 2.8% per year since 2013. South Africa’s real GDP only grew at 0.8% over the same period.
Botswana produced a nominal GDP of R354 billion in 2024, much lower than South Africa’s GDP of R7.4 trillion.
Although South Africa’s economy is larger than that of Botswana, Botswana’s real GDP, which excludes the effects of inflation, has been growing at a much higher rate. Due to its lower population and higher economic growth, Botswana surpassed South Africa in GDP per capita in 2016. Botswana’s latest 2024 economic data indicated that its GDP per capita stood at R140,603 per person, while South Africa’s GDP per capita stood at R116,477.
This means that the average individual in Botswana has a higher level of economic well-being than the average individual in South Africa. The chart below shows the GDP per capita for South Africa and Botswana over the last two decades.
Source: https://rb.gy/3qihgl
