Two prolonged and serious droughts in the 1970s and 1980s caused enormous losses of livestock and demanded major food aid programmes in remote rural areas. Yet, despite these obstacles, Botswana remained a haven of peace in turbulent Africa, through sound government, adherence to a free market economy and fortuitous mineral discoveries. As a British protectorate, Botswana had been largely neglected by the British administration and the incoming government of Sir Seretse Khama had very little infrastructure on which to launch a sound economy in 1966. Foreign exchange reserves are, in per capita terms, one of the highest in the world and are sufficient to pay for 26 months of imports. Economic growth can be ascribed to mineral and beef exports, tourism and donor aid.
Diamonds are by far the most important source of income for Botswana.
The discovery of diamonds in 1967, after a protracted search of twelve years, dramatically changed the pace of development in Botswana. These mines are jointly owned by the Debeers mining company and the Botswana government. By value of diamonds, Botswana is the biggest producer in the world, with an annual output of 15 million carats.