TITLE:
Analyzing the Economic Impact of Botswana’s SEZ Policy on National Growth: A Systematic Review
AUTHORS:
Chidozie Njoku, Mojewa S. Bonang
KEYWORDS:
Special Economic Zones (SEZs), Botswana, Economic Growth, Foreign Direct Investment, Industrial Diversification, Systematic Review, Economic Policy, Employment Generation, GDP Growth
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.3,
May
14,
2025
ABSTRACT: Botswana has traditionally relied on its mining sector, particularly diamond exports, as the primary driver of economic growth. However, this reliance exposes the country to risks associated with global commodity price volatility and resource depletion. To mitigate these challenges and promote economic diversification, the government introduced a Special Economic Zones (SEZ) policy. This study systematically reviews the economic impact of Botswana’s SEZs on key national indicators, including foreign direct investment (FDI), employment generation, industrial output, and GDP growth. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, the study synthesizes empirical and theoretical literature from 2000 to 2023. Findings indicate that Botswana’s SEZs, such as those in Selibe-Phikwe, Pandamatenga, and Lobatse, contribute positively to investment attraction, industrial diversification, and employment creation. However, challenges such as infrastructure deficits, regulatory inefficiencies, and limited regional integration hinder their full potential. Comparative analyses with SEZ models from China, Poland, and Ethiopia highlight critical success factors, including investor-friendly policies, streamlined regulations, and strong global value chain integration. Despite limitations related to data availability and publication bias, this study provides valuable insights for policymakers on optimizing SEZ strategies to enhance Botswana’s economic growth.