The Economic Freedom Index produced by Economic Freedom of the World has rated Botswana with the best economic environment for growth in the whole of Africa and is rated No.26 among all less developed countries in the world with an index rating of 5.6. South Africa, Botswana's closest African rival on the index, with 4.9 points lies in 34th position world wide.
Not such good news for Botswana, however, is its failure to reach the a position in the 46 most competitive economies as rated by the IMD World Competitiveness Year book which bases its ratings on "the ability of a country to create added value and thus increase national wealth by managing assets and processes, attractiveness and aggressiveness, globality and proximity, and by integrating these relationships into an economic and social model". South Africa is rated at 44.
One of the problems facing Botswana, and being actively addressed by the authorities is that the countries wage bill presently outstrips its productivity - according to a recent World Bank survey. This is largely due to the small population and sudden largesse from diamonds which affected the comparatively few educated and trained people at the time of Independence a mere 30 years ago. As competition for jobs increases, as is happening, so too will productivity.
Such changes have already been seen by one of Botswana's newest and most successful foreign investments. Hyundai is presently embarking on a massive expansion of its motor assembly plant in Gaborone. It has proved that its progressive training methods result in productively tapping the resources of the presently unemployed.
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