Report finds economic freedom slides

Botswana’s celebrated image as one of Africa’s strongest economic performers is rapidly losing its shine, after the Heritage Foundation’s 2026 Index of Economic Freedom recorded a sharp deterioration in the country’s economic freedom score. Botswana scored 67.7 points, a decline of 2.2 points from the previous year, placing it 48th globally and third among 47 countries in Sub-Saharan Africa, according to The Botswana Gazette. The Heritage Foundation describes Botswana’s regulatory environment as relatively well institutionalised but inefficient, with the country’s business freedom score falling below the world average. That is a major red flag for an economy desperately seeking to attract investment, expand entrepreneurship and create jobs outside government and mining. Botswana’s political stability remains one of its strongest economic assets. The Heritage Foundation says risks to political stability remain low despite the country’s changing political landscape following the 2024 general election and the transfer of power from the long-ruling Botswana Democratic Party. The stability is particularly important for investors who traditionally view Botswana as a relatively predictable destination in a region often affected by political upheaval. However, political stability alone is not enough to guarantee economic competitiveness. The report says Botswana’s rule of law remains relatively well respected. Property rights, judicial effectiveness and government integrity all score above world averages, reinforcing the country’s reputation for institutional stability. But the contradiction is increasingly difficult to ignore: strong institutions coexist with an inefficient business environment. The Heritage findings suggest that what Botswana lacks is sufficient efficiency and dynamism to translate institutional strength into stronger economic performance.