Botswana has traditionally been a strong economic partner of
South Africa. The foundation for this relationship dates back to
the establishment of the Southern African Customs Union
(SACU) in 1910. As former British colonies, both South Africa and
Botswana share many institutional, political, economic and
cultural traditions. As a result, South Africans generally find the
operating environment both familiar and reassuring.
The country's spectacular growth over the last three
decades has its origin in the prudent management of its rich
diamond resources. The South African-based diamond giant,
De Beers, has been the most significant investor since 1968 in
this sector through its joint partnership with the Botswana
government in the holding company, Debswana. However,
South African investment in other sectors has increased
substantially since 1994, with the dismantling of apartheid and
the growing outward expansion of South African business
activity into the rest of Africa.