The Influence of Geological Potential and Investment Climate on Botswana’s Competitiveness

Abstract

Objective: This article's objective is to evaluate Botswana's attractiveness to investors in mineral exploration. Botswana's competitiveness and ability to attract exploration and mining investment have declined in recent years. Method: Questionnaires were used as part of a mixed methodology to collect data that was subjected to empirical analysis. From a possible 231 respondents including exploration and mining companies, mining consultants, a research firm, and a mining association, a representative sample of 100 were chosen and given the survey through a stratified random sampling process. The data was analyzed using SPSS and both descriptive and inferential analyses were utilized. Result: This study finds that Botswana is only moderately successful in luring exploration investment. Botswana's ability to entice exploration investment is influenced by factors including the country's political stability, mining tax, mineral policy, license approval, quality of geological data, availability of skilled labor, adequate infrastructure, a streamlined licensing process, effective relevant institutions, and clear rules and regulations. Conclusion: The study recommends that Botswana regulators should consider improving mining tax incentives and continue removing bureaucratic requirements that delay the licensing process, as this may result in a more favorable mining environment that encourages both domestic and international mining interests.