In a surprising development, the President of Botswana, a nation in Southern Africa, announced last week that the country is launching a Citizenship by Investment (CBI) program. This move caught many off guard, as Botswana boasts one of Africa’s top five strongest passports, making it an unlikely candidate for such a scheme.
The decision stems from the government’s efforts to diversify the economy away from its heavy reliance on diamonds. For decades, Botswana has been synonymous with diamonds, which contribute a substantial portion of the national budget. However, the market faces increasing pressure, particularly from synthetic diamonds. This has resulted in a significant decline in government revenue from diamond production and sales.
The situation worsened last year, with the health sector experiencing turbulence due to funding shortfalls. In response, the Botswana government is aggressively pursuing strategies this year to reduce dependence on diamonds.
Early Stages of the Program
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Details remain scarce at this point. The only confirmed announcement is that the Government of Botswana has signed an agreement with Arton Capital to develop the scheme. No information has been released on pricing, structure, or requirements. It’s too early to speculate, but updates are expected as the plan progresses.
Botswana’s Admirable Qualities
Botswana stands out in Africa for several reasons. It consistently ranks among the lowest in perceptions of corruption. The country also performs decently in GDP per capita and excels in security measures, thanks in part to its small population relative to its vast geographic size. These factors make it a stable and attractive destination.
The Power of the Botswana Passport
The Botswana passport offers significant value for travel, far surpassing those of other African nations currently offering CBI programs. As of this writing, it ranks around 60th globally, granting visa-free or visa-on-arrival access to about 84 countries.
Notably, Botswana is one of the few African countries whose citizens enjoy visa-free entry to the UK. Other visa-free destinations include Brazil, Russia, South Korea, and Indonesia, alongside many African nations.
Given the advantages of this passport, questions arise about the program’s pricing and whether applicants will need to spend time in Botswana. In recent years, many countries have tightened restrictions on CBI programs, as they are uncomfortable with the commoditization of citizenship that allows for easy visa-free access to their territories. This issue often affects access to the Schengen zone, which Botswana currently lacks. However, one wonders if the UK might revoke visa-free privileges, as it did recently for Namibia and about 11 years ago for South Africa.
Comparisons and Future Possibilities
Among African countries that have launched or are planning CBI programs, Botswana’s passport is by far the strongest. This raises intriguing possibilities: What if nations like Mauritius or Seychelles followed suit? These two hold Africa’s most powerful passports, with visa-free access to the Schengen zone, the UK, and many other key destinations.
Mauritius is already close to this model, offering Permanent Residency by Investment for substantial property purchases. A full CBI program from Mauritius could rival those in Caribbean nations like St. Kitts and Nevis.
In any case, this is an evolving story. Further announcements from the Botswana government on the scheme’s specifics will be shared as they become available. For now, stay tuned for updates.
