19 Jun 2025

Botswana’s competitiveness has declined despite improvements in three individual factors.

According to a press release on IMD World Competitiveness Ranking 2025 yearbook issued by Botswana National Productivity Centre, Botswana ranks 59 out of 69 countries, with a competitive decline of 46.12 from 50.31 in 2024. 

The decline indicates that while Botswana made some progress, other countries improved at a faster pace thereby undermining Botswana’s relative position in the global competitiveness landscape, explains the release.

It further says assessment focused on four core factors; economic performance, government efficiency, business efficiency and infrastructure that influenced national competitiveness. 

According to the release, the results also reflects the broader fiscal challenges currently facing the country including constrained public spending and limited resources to drive competitiveness improving reforms. 

It also states that economic performance remains Botswana’s weakest area this year as it ranks last among all assessed countries,  declining from 64 of 67 countries in 2024 with the country scoring poorly in domestic economy and international trade holding the last position. 

 “However, when observing the indicators that feed into sub-factors, weaknesses were identified in the export of goods, export concentration by product, direct investment stock inflows and unemployment rate,” it states. 

The release says Botswana declined two places from the 2024 ranking of 59^th position in infrastructure while the health and environment sub-factor notably improved by two places to 56 of 69 in 2025 from 58 of 67 in 2024. 

“The country faces significant shortcomings in technological readiness, most notably with internet bandwidth speed rankings sitting at 67^th place. Further shortcomings are indicators in education and health, where pupil-teacher ratio at primary school level takes 61^st place, life expectancy at birth, medical assistance at 64^th and universal health coverage index at 63^rd place which are among the lowest in rankings,” says the release. 

It further states that government efficiency has declined, falling from ranking 38^th out of 67 countries despite an improvement in the factor’s score of 48.68 from 47.38 in 2024 to ranking 41^st out of 69 countries. 

The release says while Botswana excels in offering low employer and employee social security tax rates, both ranks first place and maintains a favourable ratio of government subsidies to GDP in second place, governance related challenges persisted. 

Botswana also faces numerous challenges such as prolonged budget deficits, inefficiencies in business registration processes such as start-up days, start-up procedures, high-income inequality and life expectancy equality and limited progress and Sustainable Development Goals. 

 The release explains that Botswana stands out in one key area which is the world’s most favourable cost-of-living index that ranks third place although, the cost-of-living index is not a reflection of the country’s inflation rate but rather the price of goods and services in the country’s main city. 

 It further states that in 2025, six African countries among them Ghana, South Africa, Nigeria participated with Kenya and Namibia being new entrants. 

 According to the release, Botswana ranks second after Kenya at 56^th place with Switzerland reclaiming the top position followed by Singapore and Hong Kong SAR highlighting competitive dynamics at the top. ENDS