Hire in Botswana
Botswana is one of the biggest economies in Africa. It is rich in minerals. Botswana boasts of being the second-largest producer of diamonds in the world. World’s leading diamond producer, De Beers, relies on Botswana for much of its diamond business. Apart from the mining industry, Botswana is rich in biodiversity and natural beauty. It has two national parks that are home to elephants, wolves, hyenas, African civets, African buffaloes, etc. The parks attract millions of tourists from across the world.
The employment scenario in Botswana suffered a lot because of the pandemic. Sectors such as tourism were completely shut down because of the lockdown. Moreover, the lockdowns in various parts of the world devastated the global economy, due to which the demand for diamonds plummeted. The unemployment rate in 2020 stood at 24.5%. With the pandemic subsiding, it is expected that Botswana’s economy will make a good comeback in 2021.
Overview of Botswana
Population- 2.3 million
GDP Per Capita: USD 7,961 (2019)
After the easing of lockdown restrictions and increase in demand for diamonds, the Botswana economy is set to grow at an impressive 8.3% in 2021. The recovery will be uneven as it will depend on the domestic and international economic environments.
Botswana has a GDP of USD 18.34 billion, which makes it an upper-middle economy. It has a vibrant economy that provides access to the Southern Africa market. Its economy is highly correlated with the global economy, which is why it contracted 8% in 2020 after the pandemic devastated the global economy. Botswana’s economy is set to make an impressive comeback with the global economy stabilizing and an impressive vaccine campaign in developed countries.
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A Brief Glimpse of Industries
- Botswana’s mining industry is one of the main drivers of its economy. It is one of the largest producers of gems in the world. The diamond mines produced 25 million carats of diamond in 2020. The country plans to increase its production by 37% in 2021.
- Tourism is the next big industry after mining. It accounts for 12% of Botswana’s GDP. The Okavango Delta is one of its kind and attracts millions of tourists every year. The two national parks in the country, Chobe National Park and Central Kalahari Game Reserve, are home to one of the largest free-ranging elephant herds in the world.
- More than half the population in Botswana is engaged in agriculture, while the sector only contributes 2.8% to the country’s GDP. The people in rural areas mainly depend on money sent by their family members from urban areas.
- Botswana has one of the largest coal reserves in the world. The Masama Mines holds an estimated 390 million tons of coal. Despite its enormous reserves, Botswana only has two operating coal mines.
- The Government of Botswana knows it has been heavily dependent on minerals in the past. It knows that overreliance is risky, and it has been trying to grow non-mineral-based industries for the last few decades.
Cost of Living
The cost of living in any country depends on a variety of factors. The cost to live might differ drastically from one city to another, even in the same country. Moreover, it also depends on a person’s lifestyle. However, we can calculate the average cost of living in Botswana. Here are the details:
A Breakdown of the Average Cost of Living in Botswana
It costs around USD 2,000 for a family of four to live in Botswana. A single person can live with USD 560. Here are the rental costs in Botswana:
||Cost (in USD)
|One-bedroom apartment in the city
|One-bedroom apartment outside the city
|Three bedroom apartment inside the city
|Three-bedroom apartment outside the city
Botswana is a considerably affordable place to live. Things are a little expensive in the capital, Gaborone. However, the additional expense is offset by the opportunities available in the city.
Botswana’s government has invested a lot in public healthcare, and the system is excellent. However, the wait times and quality of service vary. This is why expats prefer private healthcare.
According to Mercer’s cost of living survey, Gaborone was 199th out of 209 cities. This means that it is inexpensive to live there.
The Top Sectors that are Expected to Hire in Botswana in 2021
The mining sector contributes significantly to the economy of Botswana. With the pandemic and the lockdowns that ensued, the mining industry shrank by a quarter in 2020. In 2021, we are seeing restrictions being lifted due to the vaccine. The global economy has bounced back. As a result, the demand for coal, diamond, and other minerals has risen again. Botswana estimates that its mining sector will grow by 37% this year. This sector is expected to be the main driver of employment in the country.
The tourism industry in Botswana took a nosedive because of the Coronavirus pandemic. With its diverse wildlife and scenic national parks closed, the sector that employed a significant amount of people saw its worst period in the recent past. The government expects that the industry will bounce back this year.
The service sector in Botswana contributes about 60% to the GDP and employs approximately 59% of the population. In recent years, this industry has grown thanks to the substantial diversification efforts of the Government.
Unemployment is still a huge problem. The unemployment rate has gone up to a staggering 24.5%, and youth unemployment remains 32%. It will be a huge challenge for the government to tackle this issue. They will have to improve infrastructure, make a public investment, focus on essential services (education, healthcare, and social security), and improve the business environment.
Top Skills in Botswana
Botswana has an incredible talent pool. It is one of the wealthiest countries in Africa. With experts saying that the pandemic will be over soon, the unemployment issue will be addressed. It will have a plethora of job opportunities for its populace shortly.
Major industries hiring the most in Botswana include:
- Mining, Minerals, and Energy
- Creative Industries
- Transport and Logistics
Top Skills City-wise Occupation-wise
Botswana is a small country. There are only a handful of cities in the country. The capital Gaborone has the most opportunities of all. It is the financial hub of Botswana. It is the headquarters of the stock exchange as well as the most prominent banks. There are a lot of opportunities in the services sector with jobs in hospitality, banking, retail, finance, and a host of other industries.
Francistown is another big city with a population of about 100,000. The main drivers of the city’s economy are mining, agriculture, and commerce. The city is a transport hub. The railway line here links the country to Bulawayo in Zimbabwe. The line also connects Gaborone and Lobatse with Francistown. After the Taki Nickel Mine closed, the economy of Francistown collapsed. The government plans to revive it, and it has classified it as a Special Economic Zone.
Hiring Cost in Botswana
Hiring is a long-drawn process. Even then, there’s no way of knowing whether the people hired will perform as per expectations. There are many costs associated with hiring, such as:
- The cost of onboarding
- The opportunity cost of taking interviews, overseeing the hiring process, and other formalities
Salary Structure for Various Roles
The following table reflects the average annual salary drawn by employees of various sectors in Botswana:
||Average gross monthly salary by survey (in Botswana Pula - BWP)
||Average gross monthly salary (in US Dollars - USD)
Employment Laws in Botswana
The employment agreement is binding between the employer and employee. The Employment Act lays down the guidelines for working conditions. It says that non-citizens need to have a work permit. The working hours are restricted to 9 hours a day for a 5-day workweek. One hour of rest should be provided during work hours. For workplaces with more than five days a week, the work hours are restricted to 8 hours a day. One day of continuous rest should be given every week. Collective arguments are binding on all parties to the agreement according to Section 37 of the Trade Disputes Act of 2003.
The main laws governing employment relationships in Botswana are:
- Employment Act
- Employment of Non-Citizens Act
- Workers Compensation Act No. 23 of 1998
- Trade Disputes Act, 2003
- Trade Unions and Employers Organization Act, 2003
How Can Skuad Help You With Hiring in Botswana?
Companies want to take advantage of the impressive talent pool of Botswana. However, hiring is not easy. One needs to grasp the local laws and regulations, business practices, customs, and culture. Skuad is a one-stop solution that will take care of all employment-related responsibilities. You will have more freedom to focus on significant matters, and you can focus on business expansion. Connect with Skuad Experts to know more.