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Economy of Bosnia and Herzegovina

The economy of Bosnia and Herzegovina is a transitional, upper middle income economy. Bosnia and Herzegovina declared independence from socialist Yugoslavia on 1 March 1992. The main trading partners are Germany, Italy, Austria, Turkey and other neighboring Balkan countries.

Overview
Bosnia and Herzegovina is an upper middle-income country which has accomplished a great deal since the mid-1990s. Today, it is an EU candidate country and is now embarking on a new growth model amid a period of slow growth and the global financial crisis. Bosnia and Herzegovina is a small, open economy, dominated by services, which accounted for 55% of gross domestic product (GDP) in 2016, with a moderately developed industrial and manufacturing sector (23% and 12%, respectively), and a limited agricultural base (about 6% of GDP).

The konvertibilna marka (convertible mark or BAM) - the national currency introduced in 1998 - is pegged to the euro, and confidence in the currency and the banking sector has increased. Implementation of privatization, however, has been slow, and local entities only reluctantly support national-level institutions. Banking reform accelerated in 2001 as all ; foreign banks, primarily from Western Europe, now control most of the banking sector. A sizable current account deficit and very high unemployment rate remain the two most serious economic problems. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare for an era of declining assistance.

The United States Embassy in Sarajevo, Bosnia and Herzegovina produces the Country Commercial Guide – an annual report that delivers a comprehensive look at Bosnia and Herzegovina's commercial and economic environment, using economic, political, and market analysis.

According to Serbian American economist, Branko Milanović, Bosnia and Herzegovina did the best job in the transition from socialism to capitalism when compared to the other republics of the former Yugoslavia. From 1985 until 2021, Bosnia and Herzegovina performed the best on the annual average GDP growth per capita (1.6%), Slovenia (1.4%), Croatia (1%), Serbia without Kosovo (0.9%) and North Macedonia (0.5%).

At the time of the Socialist Federal Republic of Yugoslavia (SFRY), Bosnia and Herzegovina was an important mineral processing centre and provided the other republics with basic mineral commodities in exchange for current consumption goods. While large amounts of public capital investments poured in during the 1970s, productivity levels remained low, often due to the limited capacity of public managers. Under former republican premier Džemal Bijedić, and Yugoslav president Tito, metal-product industries were promoted in the republic, resulting in the development of a large share of Yugoslavia's metal products plants.

Merging small firms into larger agglomerates was a common practice in the SFRY to preserve employment levels. As a result, four large conglomerates emerged in Bosnia and Herzegovina over time: Energoinvest (energy sector), Unis (automotive and defence industry, which partnered with Volkswagen in the early 1970s), Šipad (wood processing) and RMK Zenica (steel industry, later acquired by ArcelorMittal). Construction and defence were important industries of the Bosnian economy, despite their low efficiency and, ultimately, supply excess. The defence industry was particularly developed in the southern districts and around Mostar, which was also a relevant metallurgical centre (Aluminij Mostar). Machinery production was concentrated in the north, particularly around Banja Luka. The Tuzla district was renowned for its chemical industry. The automotive industry, which developed in the 1950s with the production of vehicle components, extended later on to passenger and commercial vehicles, with plants in Sarajevo, Mostar and Banja Luka. Agriculture was not highly developed, despite its importance for employment and the presence of the large Agrokomerc conglomerate based at the north-west border with Croatia.

Tito had pushed the development of metal industries, and electro-energetic sector, in the republic with the result that Bosnia and Herzegovina were a host of large numbers of industrial firms. Some of them were worked with World brand names, companies like Coca-Cola, Pepsi, Marlboro, Volkswagen and SKF. Big Companies like Energoinvest, UNIS, Hidrogradnja, Vranica, RMK Zenica, TAS Sarajevo, FAMOS Sarajevo and BNT Novi Travnik, have yearly income in billions of USD$ at that time. Building sector companies bringing large amounts of income in USD$. Unemployment at that time is very low. Work force is highly skilled, with highly professional, educated managers, engineers, science experts, which use western world's newest technologies in large scale areas. Before the war, Yugoslav premier Ante Marković, made some preparations for privatization, in economy, finance, and industry sectors, but the war ceased development in these actions.

The economy suffered heavily from the war in Bosnia and Herzegovina, with over €200 billion in material damages and GDP (excluding services) reduced by 90% between 1990 and 1995. Today, most of the above-mentioned companies have been privatised. The economy remains fragile, primarily consumption driven and vulnerable to external fluctuations. This was seen with the global economic crisis, which pushed Bosnia and Herzegovina into recession in 2009 and 2012 (with GDP growth of -3% and -0.8%, respectively) and severe floods in 2014, which caused damage of approximately 15% of GDP. Since 2015, annual GDP growth has increased to more than 3%. Still, the country registered a current account deficit of 4.7% of GDP in 2017, decreasing from 5.3% in 2015, resulting from a reduction in its trade deficit, which nevertheless remains large (17.4% of GDP in 2017).

A Central Bank of Bosnia and Herzegovina was established in late 1997, debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Bosnia and Herzegovina convertible mark, was introduced in mid-1998. In 1999, the Convertible Mark gained wider acceptance, and the Central Bank dramatically increased its reserve holdings. Due to Bosnia's strict currency board regime attaching the Bosnian mark to the Euro, inflation has remained low in the entire country.

With an uneasy peace in place, output recovered in 1996–99 at high percentage rates from a low base; but output growth slowed in 2000–02. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community. Support for East European Democracy (SEED) assistance accounts for 20%-25% of economic growth in Bosnia and Herzegovina. However, growth has been uneven throughout the post-war period, with the Federation outpacing the RS. According to World Bank estimates, GDP growth was 62% in the Federation and 25% in the RS in 1996, 35% in the Federation and flat in the RS in 1997, and continued growth in the Federation in 1998.

Movement has been slow, but considerable progress has been made in economic reform since peace was re-established. Banking reform lagged, as did the implementation of privatization. Many companies (mainly factories) that were privatized faced massive problems, causing the owners to reduce salaries and deny the workers their salaries, and some of the new owners and tycoons destroy that factories.

Macro-Economic
The following table shows the main economic indicators in 1997–2023.

Present

Overall value of foreign direct investment (1999–2011): From 1994 to 2011, €6.4 billion were invested in the country.
 * 1999: €166 million
 * 2000: €159 million
 * 2001: €133 million
 * 2002: €282 million
 * 2003: €338 million
 * 2004: €534 million
 * 2005: €421 million
 * 2006: €556 million
 * 2007: €1.628 billion
 * 2008: €1.083 billion
 * 2009: €434 million
 * 2010: €359 million
 * 2011: €313 million
 * 2022: €730 million

The top investor countries (1994–2007):
 * Austria (€1,294 million)
 * Serbia (€773 million)
 * Croatia (€434 million)
 * Slovenia (€427 million)
 * Switzerland (€337 million)
 * Germany (€270 million)
 * Italy (€94.29 million)
 * Netherlands (€63.52 million)
 * United Arab Emirates (€56.70 million)
 * Turkey (€54.81 million)
 * All Other Countries (€892.54 million)

Foreign investments by sector for (1994–2007):
 * 37.7% Manufacturing
 * 21% Banking
 * 4.9% Services
 * 9.6% Trade
 * 0.30% Transport
 * 1% Tourism

By some estimates, grey economy is 25.5% of GDP.

2017
In 2017, exports grew by 17% when compared to the previous year, totaling €5.65 billion. The total volume of foreign trade in 2017 amounted to €14.97 billion and increased by 14% compared to the previous year. Imports of goods increased by 12% and amounted to €9.32 billion. The coverage of imports by exports has increased by 3% compared to the previous year and now it is 61 percent. In 2017, Bosnia and Herzegovina mostly exported car seats, electricity, processed wood, aluminium and furniture. In the same year, it mostly imported crude oil, automobiles, motor oil, coal and briquettes.

The unemployment rate in 2017 was 20.5%, but The Vienna Institute for International Economic Studies is predicting falling unemployment rate for the next few years. In 2018, the unemployment should be 19.4% and it should further fall to 18.8% in 2019. In 2020, the unemployment rate should go down to 18.3%.

On 31 December 2017, the Council of Ministers of Bosnia and Herzegovina issued the report on public debt of Bosnia and Herzegovina, stating that the public debt was reduced by €389.97 million, or by more than 6% when compared to December 31, 2016. By the end of 2017, public debt was €5.92 billion, which amounted to 35.6 percent of GDP.

As of 31 December 2017, there were 32,292 registered companies in the country, which together had revenues of €33.572 billion that same year.

In 2017, the country received €397.35 million in foreign direct investment, which equals to 2.5% of the GDP.

In 2017, Bosnia and Herzegovina ranked 3rd in the world in terms of the number of new jobs created by foreign investment, relative to the number of inhabitants.

In 2017, 1,307,319 tourists visited Bosnia-Herzegovina, an increase of 13.7%, and had 2,677,125 overnight hotel stays, a 12.3% increase from the previous year. Also, 71.5% of the tourists came from foreign countries.

2018
In 2018, Bosnia and Herzegovina exported goods worth 11.9 billion KM (€6.07 billion), which is 7.43% higher than in the same period in 2017, while imports amounted to 19.27 billion KM (€9.83 billion), which is 5.47% higher.

The average price of new apartments sold in the country in the first six months of 2018 is 1,639 km (€886.31) per square meter. This represents a jump of 3.5% from the previous year.

On June 30, 2018, public debt of Bosnia and Herzegovina amounted to about €6.04 billion, of which external debt is 70.56 percent, while the internal debt is 29.4 percent of total public indebtedness. The share of public debt in gross domestic product was 34.92 percent.

In 2018, 1,465,412 tourists visited Bosnia-Herzegovina, an increase of 12.1%, and had 3,040,190 overnight hotel stays, a 13.5% increase from the previous year. Also, 71.2% of the tourists came from foreign countries.

In 2018, the total value of mergers and acquisitions in Bosnia and Herzegovina amounted to €404.6 million.

In 2018, 99.5 percent of enterprises in Bosnia and Herzegovina used computers in their business, while 99.3 percent had internet connections, according to a survey conducted by the Bosnia and Herzegovina Statistics Agency.

In 2018, Bosnia and Herzegovina received 783.4 million KM (€400.64 million) in direct foreign investment, which was equivalent to 2.3% of GDP.

In 2018, the Central Bank of Bosnia and Herzegovina made a profit of 8,430,875 km (€4,306,347).

2019
The World Bank estimates that the economy grew by 2.8% in 2019.

Bosnia and Herzegovina was placed 83rd on the Index of Economic Freedom for 2019. The total rating for Bosnia and Herzegovina is 61.9. This position represents some progress relative to the 91st place in 2018. This result is below the regional level, but still above the global average, making Bosnia and Herzegovina a "moderately free" country.

On 31 January 2019, total deposits in Bosnian banks were KM 21.9 billion (€11.20 billion), which represents 61.15% of nominal GDP.

In the second quarter of 2019, the average price of new apartments sold in Bosnia and Herzegovina was 1,606 km (€821.47) per square meter.

In the first six months of 2019, exports amounted to 5.829 billion KM (€2.98 billion), which is 0.1% less than in the same period of 2018, while imports amounted to 9.779 billion KM (€5.00 billion), which is by 4.5% more than in the same period of the previous year.

In the first seven months of 2019, 906,788 tourists visited the country, an 11.7% jump from the previous year.

In the first six months of 2019, foreign direct investment amounted to 650.1 million KM (€332.34 million).

2020–2022
2020 saw a contraction in the economy of around 4.7%, caused by the COVID-19 pandemic, with increased costs by the government, before bouncing back in 2021. Employment rates have been climbing, however youth unemployment in 2022 was still over 33%.

2023
As of 30 November 2023, Bosnia and Herzegovina had 1.3 million registered motor vehicles.

Sarajevo

Sarajevo industries now include tobacco products, furniture, hosiery, automobiles, and communication equipment. Companies based in Sarajevo include BH Telecom, Bosnalijek, Energopetrol, FlyBosnia, Sarajevo Tobacco Factory, and Sarajevska Pivara (Sarajevo Brewery).

Sarajevo has a strong tourist industry and was named by Lonely Planet one of the top 50 "Best Cities in the World" in 2006. Sports-related tourism uses the legacy facilities of the 1984 Winter Olympics, especially the skiing facilities on the nearby mountains of Bjelašnica, Igman, Jahorina, Trebević, and Treskavica. Sarajevo's 600 years of history, influenced by both Western and Eastern empires, is also a strong tourist attraction. Sarajevo has hosted travellers for centuries, because it was an important trading center during the Ottoman and Austria-Hungarian empires.

Today, Sarajevo is one of the fastest developing cities in the region. Various new modern buildings have been built, most significantly the Bosmal City Center, ARIA Centar and the Avaz Twist Tower, which is one of the tallest skyscraper in the Balkans. A new highway was recently (2006–2011) completed between Sarajevo and the city of Kakanj. Due to growth in population, tourism and airport traffic the service sector in the city is developing fast and welcoming new investors from various businesses.

Sarajevo has one of the most representable commercial infrastructures in South-East Europe. The Sarajevo City Center is one of the biggest shopping centres in South-East Europe, after its completion in 2014. Airport Center Sarajevo which will be connected directly to the new airport terminal will offer a great variety of brands, products and services.

In 1981, Sarajevo's GDP per capita was 133% of the Yugoslav average.

In 2011, Sarajevo's GDP was estimated to be 16.76 billion US$ by the Central Bank of Bosnia and Herzegovina, comprising 37% of the total GDP of the country.

Mostar

Mostar's economy relies heavily on tourism, aluminium and metal industry, banking services and telecommunication sector. The city is the seat of some of the country's largest corporations.

Along with Sarajevo, it is the largest financial center in Bosnia and Herzegovina, with two out of three largest banks in the country having their headquarters in Mostar. Bosnia-Herzegovina has three national electric, postal and telecommunication service corporations; These three companies banks and the aluminium factory make a vast portion of overall economic activity in the city.

Aluminij is one of the most influential companies in the city, region, but also country. In relation to the current manufacturing capacity it generates an annual export of more than €150 million. The partners with which the Aluminij does business are renowned global companies, from which the most important are: Venture Coke Company L.L.C. (Venco-Conoco joint Venture) from the US, Glencore International AG from Switzerland, Debis International trading GmbH, Daimler-Chrysler and VAW Aluminium Technologie GmbH from Germany, Hydro ASA from Norway, Fiat from Italy, and TLM-Šibenik from Croatia[5]. Mostar area alone receives an income of €40 million annually from Aluminij.

Prijedor

Prijedor is the sixth largest city in Bosnia and Herzegovina. It is an economically prosperous municipality hosting a wide range of industries, services and educational institutions. The city's geographical location close to major European capitals has made it an important industrial and commercial hub nationally. It has a developed financial sector, 11 international banks are represented, 5 microcredit organizations and a foundation for development. The city's huge economic potential is in the strategic geographical location being close to Zagreb, Belgrade, Budapest and Vienna. Giving it one of the best climates for economic expansion in Bosnia and Herzegovina.

The agricultural land around the city, raw minerals in the municipality and growth of high educated population in the city proper gives it a unique combination of both being able to produce sophisticated industrial products, food and service branches.

Zenica host today the Bosnian part of ArcelorMittal Steel Company, former RMK Zenica, which employ about 3000 workers, steel company from Luxembourg with over 320,000 employees in more than 60 countries. It also has companies specialized in the chemical industry such as Ferrox a.d., producing iron oxides-pigments. BosnaMontaza AD., one of Bosnias most specialized steel manufacturers, manufacturing: steel construction, pipelines, reservoirs, technological equipment, cranes and energy plants. Other companies such as the Croatian food company Kraš has one of its biggest facilities in Bosnia and Herzegovina in Prijedor, producing confectionery products under the brand names MIRA and Kraš. Brand names such as "Prijedorčanka" is one of the leading producers of the alcoholic beverage Rakija in Bosnia and Herzegovina. Prijedor is also a big enterprise producing cellulose and paper for export.
 * Companies

In 2022, the sector with the highest number of companies registered in Bosnia and Herzegovina is Services with 39,707 companies followed by Retail Trade and Wholesale Trade with 12,060 and 11,970 companies respectively.

 * Agricultural sector

Among this Prijedor has a fruit growing production, gardening production, crop farming production, mill and bakery industries, stock farming production, processing industries and a milk industry.

Lake Saničani, near Prijedor, is one of the biggest commercial fish-farming lakes in the southern Europe.

Prijedor municipality takes up 8340.6 hectares (5845.0 private property and 2495.6 state property). Plowed fields and gardens take up 340.26 hectares, orchards 23.86 hectares and vineyards 5 hectares. All cultivated soil takes up 402.06 hectares.

The service sector in Prijedor is growing rapidly and this reflects in the growth of hotels, stores, roads, educational facilities and shoppings centers that are being built in the city. Making it a growing commercial hub in Bosnia and Hercegovina.
 * Service sector

Banja Luka

Although the city itself was not directly affected by the Bosnian War in the early 1990s, its economy was. For four years, Banja Luka fell behind the world in key areas such as technology, resulting in a rather stagnant economy. However, in recent years, the financial services sector has gained in importance in the city. In 2002, the trading began on the newly established Banja Luka Stock Exchange. The number of companies listed, the trading volume and the number of investors have increased significantly. A number of big companies such as Telekom Srpske, Rafinerija ulja Modriča, Banjalučka Pivara and Vitaminka are all listed on the exchange and are traded regularly. Investors, apart from those from Slovenia, Croatia and Serbia, now include a number of investment funds from the European Union, Norway, the United States, Japan and China.

A number of financial services regulators, such as the Indirect Taxation Authority of Bosnia and Herzegovina, Republika Srpska Securities Commission and the RS Banking Agency are headquartered in Banja Luka. This, along with the fact that some of the major banks in Bosnia, the Deposit Insurance Agency and the Value-added tax (VAT) Authority are all based in the city, has helped Banja Luka establish itself as a major financial centre of the country.

In 1981 Banja Luka's GDP per capita was 97% of the Yugoslav average.

Energy
The country has been a heavy user of energy compared with the EU, with artificially low prices providing a disincentive to make savings. Heavily reliant on lignite coal for power generation, in 2021 Bosnia and Herzegovina is one of very few countries still making plans to expand coal energy generation.

 * Statistics

Renewable power
The first wind farm was built in 2018.
 * Wind and Solar

The 2030 plan envisages 1.5 GW of solar power and 0.5 GW of wind power capacity being built.

In 2021 the country had around 2076 MW of installed hydropower capacity larger than 10 MW, with 180 MW of small hydropower units.
 * Hydro power

Fossil fuels
In 2021 electricity production came from five main lignite coal power plants generating up to 2065 MW.
 * Coal

Tuzla Thermal Power Plant was supposed to close unit 4 in 2022 however the government has extended this lignite coal generators life. Kakanj Power Station was also supposed to have closed unit 5 in 2022 under the 2006 Energy Community Treaty.

Under the 2030 plan a number of coal power stations will close or convert to biomass.

 * Breza coal mine
 * Gacko coal mine
 * Kakanj coal mine

 * Kamengrad coal mine
 * Kongora coal mine
 * Stanari coal mine

 * Tušnica coal mine
 * Ugljevik coal mine
 * Zenica coal mine

Tourism

The tourism sector has been recovering and helping the economy altogether in the process, with popular winter skiing destinations as well as summer countryside tourism. Bosnia and Herzegovina has been a top performer in recent years in terms of tourism development; tourist arrivals have grown by an average of 24% annually from 1995 to 2000. The European region's solid growth in arrivals in 2007 was due in significant part to Southern and Mediterranean Europe's strong performance (+7%). In particular, Bosnia and Herzegovina were among the stronger players with a growth of 20%.

In 2012, Bosnia and Herzegovina had 747,827 tourists an increase of 9% and 1,645,521 overnight stays which is a 9,4% increase from 2012. 58.6% of the tourists came from foreign countries.

According to an estimate of the World Tourism Organization, Bosnia and Herzegovina will have the third highest tourism growth rate in the world between 1995 and 2020.

Of particular note is the diaspora population which often returns home during the summer months, bringing in an increase in retail sales and food service industry.

In 2017, 1,307,319 tourists visited Bosnia and Herzegovina, an increase of 13.7%, and had 2,677,125 overnight hotel stays, a 12.3% increase from the previous year. Also, 71.5% of the tourists came from foreign countries.

Challenges of doing business
While business regulations are of comparable strictness as in most countries in Central Europe, many problems persist. Post-war high percentage of unemployment (16.85%) remains high, and the economical progress is very slow. Complicated bureaucracy system, complex procedures and often misconducted audition and regulation by public officers also make for volatile and insecure business environment, which is considered major hindrance to foreign investment into the country's industrial and manufacturing potential.

The workforce is comparably cheap, with average net salary being €580, and average gross salary being €891, and good skilled, especially in sectors present in pre-war economy. However, with slow but persistent know-how obsolescence, workforce exodus, high unemployment and long average time outside labor market for the unemployed, need a foreign-owned business investing in industry sectors where the country could be competitive.

Bosnia and Herzegovina is also lacking a good e-governance structure, as well as good methods to enforce administrative accountability, both of which are considered necessary for more conductive business climate. Today it takes between 3–5 weeks to register a company in the country (and in some business sectors it can still take months to acquire all required permits, mostly due to administrative inefficiency), and many other business related administrative procedures are similarly convoluted and time-consuming.

Political corruption is one of the more acute problems in Bosnia and Herzegovina, and along with size of administration and its inefficiency, the biggest detriment to tax money being spent where it should be spent – on services to the population and the economy.

Bosnia and Herzegovina has been preparing for an era of declining international assistance. Country's most immediate task remains economic revitalization to create jobs and income. After the 2014 riots, both administrations have shyly started the reform, dealing with some of the many pressing issues to local economy, but the overall process is still considered slow and tenuous by the populace and local as well as foreign economic analysts.

Infrastructure

The Bosnian government has issued an international tender for the construction of the 350 km long Pan-European Corridor Vc in Bosnia and Herzegovina which will passes along the route Budapest-Osijek-Sarajevo-Ploče. The highway along this corridor is the most significant roadway in Bosnia and Herzegovina and the shortest communication route between Central Europe and the Southern Adriatic. The routing of the road passes through the central part of the country in the north–south direction from Donji Svilaj to the border of B&H, north from the Croatian port of Ploče, following the rivers Bosna and Neretva. More than 50% of the total population and the economic activity of Bosnia and Herzegovina lies within the zone of influence along this route.

As of August 2018, 200 km motorway has been completed.

Due to annual growth of nearly 10% the Sarajevo International Airport extension of the passenger terminal, together with upgrading and expanding the taxiway and apron is planned to start in Fall 2012. The existing terminal will be expanded with 7.000 square metres. The upgraded airport will also be directly connected to the commercial retail center Sarajevo Airport Center making it easy for tourist and travellers to use the time before the flight for some last minute shopping.

International rankings
2021-22 UN Human Development Report.svg categories (based on 2021 data, published in 2022)
 * 74th in Human Development Index (2021)
 * 60th in inequality-adjusted Human Development Index (2021)
 * 97th in Democracy Index (2022)
 * 48th in Henley Passport Index (2023)
 * 81st in Human Capital Index (2020)
 * 88th in Quality of Nationality Index (2018)
 * 72nd in Legatum Prosperity Index (2023)
 * 63rd in Social Progress Index (2022)
 * 90th in Ease of Doing Business (2020)
 * 39th in Economic Complexity Index (2021)
 * 92nd in Global Competitiveness Report (2019)
 * 68th in Index of Economic Freedom (2023)
 * 61st in Global Peace Index (2023)
 * 110th in Corruption Perceptions Index (2022)

title: Economy of Bosnia and Herzegovina


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Transport in Bosnia and Herzegovina

Bosnia and Herzegovina has facilities for road, rail and air transport. There are five international road routes and 20 state highways, with bus connections to many countries. Railways total just over 1,000 km with links to Croatia and Serbia. There are 25 airports, seven of them with paved runways. The Sava River is navigable, but its use is limited.

Roadways

 * total: 21,846 km
 * paved: 11,425 km (4,686 km of interurban roads)
 * unpaved: 10,421 km (2006)

International

 * E65
 * E73 (Pan-European corridor Vc), A1 highway
 * E661
 * E761
 * E762

State highways

 * M-1.8
 * M-2
 * M-4
 * M-4.2
 * M-5
 * M-6
 * M-6.1
 * M-8
 * M-11
 * M-14
 * M-14.1
 * M-14.2
 * M-15
 * M-16
 * M-16.1
 * M-16.2
 * M-16.3
 * M-16.4
 * M-17
 * M-17.2
 * M-17.3
 * M-18
 * M-19
 * M-19.2
 * M-19.3
 * M-20

National and international bus services
Bosnia & Herzegovina is well connected to other countries in Europe. The main bus station of Sarajevo has its own website. The main provider of international bus connection in Bosnia & Herzegovina is Eurolines. There are routes to Croatia, Germany, Austria, France, Netherlands, Montenegro, Belgium, Denmark, Sweden and Serbia. Despite Bosnia & Herzegovina's geographical closeness to Serbia, there is only one bus a day, which takes more than 8 hours due to the lack of proper roads.

Railways

 * Total: 1,032 km standard gauge:  (2006)

Rail links with adjacent countries

 * Same gauge:
 * Croatia - yes
 * Serbia - yes
 * Montenegro - no

Waterways
Sava River (northern border) open to shipping but use is limited (2008)

Ports and harbours
Gradiška, Brod, Šamac, and Brčko (all inland waterway ports on the Sava none of which are fully operational), Orašje, Bosnia

Merchant marine
none (1999 est.)

Airports
Air transport begin in Bosnia and Herzegovina during the period of the Kingdom of Yugoslavia when the flag-carrier Aeroput inaugurated a regular flight linking the national capital Belgrade with Podgorica in 1930, with a stop in Sarajevo. A year later Aeroput inaugurated another regular flight starting in Belgrade and then stopping in Sarajevo and continuing towards Split, Sušak and Zagreb. By mid-1930s Aeroput inaugurated two routes linking Belgrade and Zagreb with Dubrovnik through Sarajevo, and, in 1938, it inaugurated an international route linking Dubrovnik, which was becoming a major holiday destination, through Sarajevo, to Zagreb, Vienna, Brno and Prague.

25 (2008)

Airports - with paved runways
total: 7

2,438 to 3,047 m: 4

1,524 to 2,437 m: 1

under 914 m: 2 (2008)

Airports - with unpaved runways
total: 18

1,524 to 2,437 m: 1

914 to 1,523 m: 7

under 914 m: 10 (2008)

Heliports
6 (2013)

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/

title: Transport in Bosnia and Herzegovina


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Armed Forces of Bosnia and Herzegovina

The Armed Forces of Bosnia and Herzegovina (Oružane snage Bosne i Hercegovine or OSBiH) is the official military force of Bosnia and Herzegovina. The BiH armed forces were officially unified in 2005 and are composed of two founding armies: the Bosniak and Croat Army of the Federation of Bosnia and Herzegovina (VFBiH) and the Bosnian Serbs' Army of Republika Srpska (VRS).

The Ministry of Defence of Bosnia and Herzegovina, founded in 2004, is in charge of the Armed Forces of Bosnia and Herzegovina.

Chain of command
In accordance with the Constitution of Bosnia and Herzegovina (Article 5.5a), Bosnian Law of defense and Bosnian Law of service the supreme civilian commander of the Armed Forces of Bosnia and Herzegovina is the collective Presidency of Bosnia and Herzegovina. The collective Presidency directs the Ministry of Defence of Bosnia and Herzegovina and the Armed Forces. Former Bosnia and Herzegovina ministers of defence include Nikola Radovanović, Selmo Cikotić, Muhamed Ibrahimović, Zekerijah Osmić, Marina Pendeš and Sifet Podžić. , the minister is Zukan Helez. Former Chiefs of Joint Staff of the Armed Forces of Bosnia and Herzegovina include Lieutenant colonel general Sifet Podžić, Lieutenant colonel general Miladin Milojčić, Lieutenant colonel general Anto Jeleč and Colonel general Senad Mašović. The current Chief of Joint Staff is General Gojko Knežević. Conscription was completely abolished in Bosnia and Herzegovina effective on and from 1 January 2006.

Defence law
The Bosnia and Herzegovina Defence Law addresses the following areas: the Military of Bosnia and Herzegovina, Government Institutions, Entity Jurisdictions and Structure, Budget and Financing, Composition of Armed Forces of Bosnia and Herzegovina, War Declaration, natural disasters, conflict of interests and professionalism, Oath to Bosnia-Herzegovina, flags, anthem and military insignia, and transitional and end orders.

History
The AFBiH was formed from three armies of the Bosnian War period: the Bosniak Army of the Republic of Bosnia and Herzegovina, the Bosnian Serb Army of Republika Srpska, and the Croat Defence Council.

The Army of the Republic of Bosnia And Herzegovina was created on 15 April 1992 during the early days of the Bosnian War. Before the ARBiH was formally created, there existed Territorial Defence, an official military force of the Republic of Bosnia and Herzegovina, and several paramilitary groups such as the Green Berets, Patriotic League, and civil defence groups, as well as many criminal gangs and collections of police and military professionals. The army was formed under poor circumstances, with a very low number of tanks, APCs and no military aviation assets. The army was divided into Corps, each Corps was stationed in a territory. The first commander was Sefer Halilović.

The Army of Republika Srpska was created on 12 May 1992. Before the VRS was formally created, there were several paramilitary groups such as the Srpska dobrovoljačka garda, Beli Orlovi, as well as some Russian, Greek and other volunteers. The army was equipped with ex-JNA inventory. It had about 200 tanks, mostly T-55s and 85 M-84s, and 150 APCs with several heavy artillery pieces. The Air Defense of VRS shot down several aircraft, like F-16, Mirage 2000, F-18 and one Croatian Air Force MiG-21. The VRS received support from the Yugoslav Army and FR Yugoslavia.

The Croatian Defence Council was the main military formation of the Croatian Republic of Herzeg-Bosnia during the Bosnian War. It was the first organized military force to control the Croat-populated areas, created on 8 April 1992. They ranged from men armed with shotguns assigned to village defence tasks to organized, uniformed, and well-equipped brigade-sized formations that nevertheless employed part-time soldiers. As time went on, the HVO forces became increasingly better organized and more "professional", but it was not until early 1994, that the HVO began to form guards brigades, mobile units manned by full-time professional soldiers.

In 1995–96, a NATO-led international peacekeeping force (IFOR) of 60,000 troops served in Bosnia and Herzegovina, beginning on December 21, 1995, to implement and monitor the military aspects of the Dayton Peace Agreement. IFOR was succeeded by a smaller, NATO-led Stabilization Force or SFOR. The number of SFOR troops was reduced first to 12,000 and then to 7,000. SFOR was in turn succeeded by an even smaller, European Union-led European Union Force, EUFOR Althea. , EUFOR Althea numbered around 7,000 troops.

The Bosnian Train and Equip Program
The program to train and equip the Bosnian Federation Army after the signing of the Dayton Peace Agreement in 1995 was a key element of the U.S. strategy to bring stable peace to Bosnia. The Train and Equip Program also calmed the concerns of some Congressmen about committing U.S. troops to peacekeeping duty in Bosnia. Creating a stable and functioning Federation Army that could deter Serb aggression had the prospect of allowing NATO and U.S. troops to withdraw from Bosnia within the original 12-month mandate, which the administration assured Congress was all it would take to stabilize the country. The program conducted an “international program review” in April 1998 to demonstrate to U.S. partners that it had been well managed and successful and to solicit additional contributions. The event was attended by 20 current and potential donor countries and an air of satisfaction prevailed.

The Dayton Peace Agreement left the country with three armies under two commands: the Bosniak and Bosnian Croat armies within the Federation of Bosnia and Herzegovina, facing their recent adversaries the Army of the Republika Srpska. These three forces together had around 419,000 personnel in regulars and reserves. This force size and orientation was totally at odds with the international peacemakers' vision. Slow reductions did take place. By 2004, the two warring factions had reduced their forces to 12,000 regulars and 240,000 reserves but had made virtually no progress in integrating the two into one new force, though the basis of a state defence ministry had been put in place via the Standing Committee on Military Matters (SCMM). Conscription for periods of around four months continued, the costs of which were weighing down both entities.

The restructuring of the three armies into the Armed Forces of Bosnia and Herzegovina represents part of a wider process of 'thickening' the central state institutions in Bosnia and Herzegovina. To mitigate some of the potential controversy around restructuring, the Office of the High Representative (OHR) made use of evidence of malpractice in Republika Srpska military institutions. Firstly, from 2002 onwards, OHR utilised a scandal around the provision of parts and assistance to Iraq in breach of a UN embargo (the so-called Orao affair) to support the cause for bringing governance of the armies under the level of central institutions. Following this, in 2004, the process was accelerated, drawing its justification from new evidence of material and other forms of support flowing from Republika Srpska armed forces to ICTY indictee Ratko Mladić. OHR condemned the ‘systematic connivance of high-ranking members of the RS military’ and noted that measures to tackle such systematic deficiencies were under consideration. This was quickly followed by the expansion of the mandate for a Defence Reform Commission, which ultimately resulted in the consolidation of three armed forces into one, governed at the level of the central state.

As the joint AFBiH began to develop, troops began to be sent abroad. Bosnia and Herzegovina deployed a unit of 37 men to destroy munitions and clear mines, in addition to 6 command personnel as part of the Multinational force in Iraq. The unit was first deployed to Fallujah, then Talil Air Base, and is now located at Camp Echo. In December 2006, the Bosnian government formally extended its mandate through June 2007. Bosnia and Herzegovina planned to send another 49 soldiers from the 6th Infantry Division to Iraq in August 2008, their mission being to protect/guard Camp Victory in Baghdad.

Structure
The Military units are commanded by the Armed Forces of Bosnia and Herzegovina Joint Staff in Sarajevo. There are two major commands under the Joint Staff: Operational Command and Support Command.

There are three regiments that are each formed by soldiers from the three ethnic groups of Bosnia and Herzegovina: Bosniaks, Croats and Serbs and trace their roots to the armies that were created during the war in BiH. These regiments have their distinct ethnic insignias and consist of three active battalions each. Headquarters of regiments have no operational authority. On the basis of the Law on Service in the Armed Forces of Bosnia and Herzegovina, the regimental headquarters have the following tasks: to manage the regimental museum, monitor financial fund, prepare, investigate and cherish the history of the regiment, the regiment publish newsletters, maintain cultural and historical heritage, give guidance on holding special ceremonies, give guidance on customs, dress and deportment Regiment, conduct officer, NCO and military clubs. Each regiments' three battalions are divided evenly between the three active brigades of the Army.

Operational Command

Overall the brigades are multinational with over 50% Bosniaks, 30% Serbs, 15% Croats and about 4% of other ethnic groups.

 * Operational Command, in Sarajevo
 * 4th Infantry Brigade, in Čapljina
 * 1st Infantry Battalion, in Livno (Croat troops)
 * 2nd Infantry Battalion, in Bileća (Serb troops)
 * 3rd Infantry Battalion, in Goražde (Bosniak troops)
 * Artillery Battalion, in Mostar
 * Reconnaissance Company, in Čapljina
 * Signals Platoon, in Čapljina
 * Military Police Platoon, in Čapljina
 * 5th Infantry Brigade, in Tuzla
 * 1st Infantry Battalion, in Zenica (Bosniak troops)
 * 2nd Infantry Battalion, in Kiseljak (Croat troops)
 * 3rd Infantry Battalion, in Bijeljina (Serb troops)
 * Artillery Battalion, in Žepče
 * Reconnaissance Company, in Tuzla
 * Signals Platoon, in Tuzla
 * Military Police Platoon, in Tuzla
 * 6th Infantry Brigade, in Banja Luka
 * 1st Infantry Battalion, in Banja Luka (Serb troops)
 * 2nd Infantry Battalion, in Bihać (Bosniak troops)
 * 3rd Infantry Battalion, in Orašje (Croat troops)
 * Artillery Battalion, in Doboj
 * Reconnaissance Company, in Banja Luka
 * Signals Platoon, in Banja Luka
 * Military Police Platoon, in Banja Luka
 * Tactical Support Brigade, in Sarajevo
 * Armored Battalion, in Tuzla
 * Engineer Battalion, in Derventa
 * Military Intelligence Battalion, in Sarajevo
 * Military Police Battalion, in Sarajevo
 * Demining Battalion, in Sarajevo
 * Signal Battalion, in Pale
 * CBRN Defense Company, in Tuzla
 * Air Force and Air Defense Brigade, at Sarajevo Air Base and Banja Luka Air Base
 * 1st Helicopter Squadron, at Banja Luka Airport
 * 2nd Helicopter Squadron.png 2nd Helicopter Squadron, at Sarajevo Airport
 * Air Defense Battalion, at Sarajevo Airport
 * Surveillance and Early Warning Battalion, at Banja Luka Airport
 * Flight Support Battalion, at Sarajevo Airport and Banja Luka Airport

Brigades under the Support Command control
Within the armed forces, there are a number of services. These include a Technical Service, Air Technology service, Military Police service, Communications service, Sanitary service, a Veterans service, Civilian service, Financial service, Information service, Legal service, Religious service, and a Musical service.

Uniform and insignia
Armed Forces of Bosnia and Herzegovina were unified in 2005 and at that time they needed a uniform for the newly founded Armed Forces. MARPAT was designated as the future camouflage pattern to be used on combat uniforms of the AFBiH.

Insignia is found on military hats or berets, on the right and left shoulder on the uniform of all soldiers of the Armed Forces. All, except for generals, wear badges on their hats or berets with either the land force badge or air force badge. Generals wear badges with the coat of arms of Bosnia surrounded with branches and two swords. All soldiers of the armed forces have on their right shoulder a flag of Bosnia and Herzegovina. All members of the three regiments wear their regiment insignia on the left shoulder. There are other insignias, brigades or other institution are worn under the regiment insignia. The name of the soldiers is worn on the left part of the chest while the name "Armed Forces of BiH" is worn on the right part of the chest. In 2023, members of the Armed Forces of Bosnia and Herzegovina began to wear a new field uniform of high-quality cloth and original camouflage schemes with the characteristics of the Bosnian environment.

title: Armed Forces of Bosnia and Herzegovina


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Foreign relations of Bosnia and Herzegovina

The implementation of the Dayton Accords of 1995 has focused the efforts of policymakers in Bosnia and Herzegovina, as well as the international community, on regional stabilization in the countries-successors of the former Yugoslavia. Relations with its neighbors of Croatia and Serbia have been fairly stable since the signing of the Dayton Agreement in 1995.

Diplomatic relations
List of countries which Bosnia and Herzegovina maintains diplomatic relations with:

Bosnia and Herzegovina does not maintain Diplomatic relations with 🇧🇹 Bhutan, 🇨🇫 Central African Republic, 🇰🇮 Kiribati, 🇱🇸 Lesotho, 🇲🇬 Madagascar, 🇳🇷 Nauru, 🇵🇼 Palau, 🇵🇬 Papua New Guinea

EU accession
The accession of Bosnia and Herzegovina to the European Union is one of the main political objectives of Bosnia and Herzegovina. The Stabilisation and Association Process (SAP) is the EU's policy framework. Countries participating in the SAP have been offered the possibility to become, once they fulfill the necessary conditions, member states of the EU. Bosnia and Herzegovina is therefore a potential candidate country for EU accession.

International organizations
Bank for International Settlements, Council of Europe, Central European Initiative, EBRD, Energy Community United Nations Economic Commission for Europe, FAO, Group of 77, IAEA, IBRD, ICAO, International Criminal Court, International Development Association, IFAD, International Finance Corporation, IFRCS, ILO, International Monetary Fund, International Maritime Organization, Interpol, IOC, International Organization for Migration (observer), ISO, ITU, Non-Aligned Movement (guest), Organization of American States (observer), OIC (observer), OPCW, Organization for Security and Co-operation in Europe, Southeast European Cooperative Initiative, United Nations, UNCTAD, UNESCO, UNIDO, UNMEE, UPU, WHO, WIPO, WMO, WToO, WTrO (observer)


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History of Botswana

The history of Botswana encompasses the region's ancient and tribal history, its colonisation as the Bechuanaland Protectorate, and the present-day Republic of Botswana. The first modern humans to inhabit Botswana were the San people, and agriculture first developed approximately 2,300 years ago. The first Bantu peoples arrived c. 200 CE, and the first Tswana people arrived about 200 years later. The Tswana people split into various tribes over the following thousand years as migrations within the region continued, culminating in the Difaqane in the late 18th century. European contact first occurred in 1816, which led to the Christianization of the region.

Facing threats from German South West Africa and the Afrikaners, the most influential Tswana chiefs negotiated the creation of a protectorate under the United Kingdom in 1885. The British divided the territory into tribal reserves for each of the major chiefs to rule, giving the chiefs more power than they had previously, but it otherwise exercised only limited direct control over the protectorate. The British government took a more active role beginning in the 1930s. Botswana supported British involvement in World War II and many fought as part of the African Auxiliary Pioneer Corps.

A power struggle took place in the 1950s between the Ngwato chief Seretse Khama and his regent Tshekedi Khama. Seretse's marriage to a white woman, Ruth Williams Khama, led the British to ban him from the protectorate. He returned in 1956 with popular support, and tribes moved toward elected government as an independence movement formed. A national legislature was created in 1961, and political parties were formed. Seretse became the leader of the Bechuanaland Democratic Party, which was endorsed by the British government to lead post-independence, and it saw overwhelming support in the first election in 1965. The Republic of Botswana was granted full independence in 1966.

With a strong mandate, Seretse and his party implemented liberal democracy and began developing infrastructure in what was one of the world's poorest nations. Extensive diamond deposits were discovered in 1969, causing a massive reorganisation of Botswana's economy. The Debswana mining company was created in 1978, and Botswana became the world's fastest growing economy. The HIV/AIDS pandemic became a crisis in Botswana in the 1980s, and the 1990s came with the introduction of political factionalism after the political scandal of the Kgabo Commission. Political conflict within the Botswana Democratic Party continued over the following decades with a split occurring in 2010 and the exile of former president Ian Khama at the behest of his protege Mokgweetsi Masisi in 2021.

Prehistory
Stone tools in present-day Botswana date back to two million years ago. These include Acheulean axes, which may have been used by homo erectus or early modern humans. Hominin migration to the Kalahari Desert is estimated to have happened prior to Marine Isotope Stage 6, 186,000 years ago. Hunter-gatherers inhabited the areas around a paleolake, Lake Makgadikgadi, as well as Tsodilo and ≠Gi by approximately 40,000 years ago. Virtually all permanent water supplies were associated with early humans 20,000 years ago. Detailed study of southern Africa in the Stone Age has been limited. By 5,000 years ago, the ancestors of the Khoisan peoples were the only people living in present-day Botswana.

Ancient history
The San people were joined by the Khoe people approximately 2,300 years ago when the Khoe migrated to the region from eastern Africa. Agriculture and ceramics first appeared in the region at this time, and the domestication of animals first took place approximately 2,000–2,200 years ago. Among the earliest crops were pearl millet, finger millet, sorghum, Bambara groundnuts, cowpeas, and cucurbits. The earliest livestock included sheep, goats, and cattle.

The Kgalagadi people were the first of the Bantu peoples to settle in present-day Botswana, arriving c. 200 CE. The first Tswana people (singular Motswana, plural Batswana) are estimated to have arrived c. 400 CE. These Bantu peoples brought iron and copper tools to the region and settled along permanent waterways. Over time, the Tswana people organised themselves into separate tribes, called a morafe (plural merafe), each led by a chief called a kgosi (plural dikgosi). This system produced a more hierarchical government relative to others in the region. Cattle became a central part of society in the region, and ownership of cattle denoted one's status. The early history of the Tswana people remains largely unknown because little archaeological evidence has been left.

Post-classical period
The Taukome people arrived in present-day Botswana by the 7th century, and their possession of glass beads indicates early connection to Indian Ocean trade. Trade routes connected tribes throughout the Kalahari Desert by 900 CE, and access to the Indian Ocean trade expanded in the region over the 10th century. The Toutswe people became the predominant group in present-day Botswana during the 11th and 12th centuries as they became wealthier through ownership of cattle. Specularite mining became widespread during this period.

Neighbouring present-day Botswana during the 11th and 12th centuries were the people of Leopard's Kopje, who formed the Kingdom of Mapungubwe and projected influence throughout the region. Their influence declined by the 13th century, and they were replaced as the regional power by Great Zimbabwe as the gold trade became a driving factor in the region's economy. It controlled many of the tribes that existed in what is now northeastern Botswana. After the fall of Great Zimbabwe in the 15th century, several other states developed. The Kingdom of Butua, formed by the Kalanga peoples, was established on the present-day Botswana–Zimbabwe border. Migration of Tswana peoples through present-day Botswana occurred over the following centuries as they were displaced by native and colonial populations from the south. Large migrations of Kalanga and Sotho–Tswana peoples into present-day Botswana occurred during the 15th and 16th centuries. The Hurutshe, Kgatla, and Kwena peoples split from the Phofu dynasty in the Transvaal region amid drought and hereditary conflicts, eventually migrating north to present-day Botswana.

Early modern period
The Tswana people had a presence throughout present-day Botswana by 1600. According to oral tradition, the pastoralist Herero and Mbanderu peoples split from the Mbunda people in the 17th century as Tswana cattle raids scattered the groups. Oral tradition also holds that the Yeyi people migrated from the upper Chobe River into the Okavango Delta in the 18th century, though contact between the Yeyi and the Khoe may have existed much longer. Different Tswana tribes were able to separate and form independently from one another as the region's primary asset, cattle, is easily transported. The first Tswana state was formed by the Ngwaketse people in the mid-18th century. Subsequent states were formed by the Kwena people, the Ngwato people, and the Tawana people over the following decades.

19th century
The Difaqane, a period of conflict, migration, and displacement in southern Africa, took place during the late 18th and early 19th centuries. During this time, the Tswana people were subject to raids by the Ndebele and Kololo tribes.

The Difaqane triggered extensive migration across the region, causing the Tswana tribes to more thoroughly spread and establish a stronger presence throughout the territory of present-day Botswana. They settled primarily in the hardveld that makes up the eastern region of present-day Botswana. The Kwena and Ngwaketse peoples migrated from Transvaal to the sandveld. The first Kgatla people to settle in present-day Botswana, the Mmanaana people, migrated from South Africa in the early 19th century before settling in Moshupa and Thamaga.

European missionaries first arrived in present-day Botswana in 1816 through the London Missionary Society. This and other missionary groups worked to convert the chiefs to Christianity and to build missionary schools. British traders arrived in the 1830s and engaged in transactions with the chiefs. Chief Sechele I of the Kwena people took advantage of the new trading routes, securing control of British trade for his tribe. The Scottish missionary David Livingstone arrived in Botswana in 1845, where he established to Kolobeng Mission. This was the beginning of heavier European involvement in the Tswana tribes as they established intercontinental trade routes.

The tribes reestablished their nation states in the 1840s as each established several towns and villages of varying sizes. Governance was based around the kgotla, a deliberative forum in which the chief or a regional leader heard the concerns of most male citizens before making decisions.

The 19th century Tswana people used several economic ideas that were rare in southern Africa, including credit, service contracts, and the mafisa system of the rich loaning cattle to the poor in exchange for labour. They also had a conception of private property by the mid-19th century, and both married men and married women were entitled to land rights. The men typically herded cattle while the women grew crops. Sorghum was the region's most commonly grown crop in the 19th century. Land was widely available, but droughts meant that farming was inconsistent. The influx of European settlers nearby allowed the Tswana tribes to incorporate themselves into the global economy.

Sechele I requested a British protectorate in 1853 to end regional conflicts, but he was denied. By the 1860s, migration out of the region increased as Batswana men travelled to work in South African mines. The discovery of the Tati Goldfields triggered the first European gold rush of Southern Africa in 1868. The major chiefs were all Christians by the 1870s. By the end of the decade, chief Khama III of the Ngwato people seized control of British trade from the Kwena people.

Formation of the protectorate
The United Kingdom feared increasing German influence in the region, and it agreed to form the Bechuanaland Protectorate. The British wished to preserve its influence over the Tswana tribes, as they provided a connection between southern and central Africa. Tswana chiefs also feared encroachment by German South West Africa and the Afrikaners, and they believed that the alternative to British control was settler colonialism by Germany.

The region was divided into tribal land, ruled by the chiefs, and crown land controlled by the United Kingdom. Eight tribes were recognised by the British upon the creation of the protectorate. The largest four were given tribal reserves: the Kwena, the Ngwaketse, the Ngwato, and the Tawana. Three smaller ones were also recognised: the Kgatla, the Tlokwa, and the Malete. An eighth, the Tshidi, were also recognised and given a reserve crossing the border between the protectorate and South Africa. While members of non-Tswana minorities were allowed to participate in Tswana society and governance, they were given no tribal reserves of their own. The introduction of tribal reserves altered the nature of Tswana governance, as tribes had previously been less defined and subject to expansion or shifting. With territories divided into tribal jurisdictions, Batswana were no longer able to easily leave a tribe. The protectorate initially extended to the Ngwato, but it was extended to reach the Chobe River in 1890. Other Tswana peoples lived to the south of the protectorate and were later absorbed into South Africa.

The Kgafela people settled in Mochudi in 1887. This Kgatla group quickly became influential in the region and its name became synonymous with Kgatla. British soldiers led by Charles Warren arrived in 1891 to formally establish the protectorate. Its government was defined, and a commissioner was appointed as its head. The commissioner was given broad powers over the protectorate, so long as he respected previously established tribal law. Its capital was the South African city of Vryburg, meaning that the colonial rulers did not reside in the protectorate and had little direct involvement in its affairs. The centralisation of British rule in South Africa meant that the Bechuanaland Protectorate was economically dependent on South Africa.

The British government believed the Bechuanaland Protectorate to be only a temporary entity and expected that it would soon be absorbed by a British colony. In the meantime, it believed that a self-sufficient protectorate would cost less to maintain. For these reasons, the colonial administration imposed very little direct control of the Bechuanaland Protectorate. The chiefs benefited from these affairs and were able to empower and enrich themselves; they retained broad autonomy, but colonial backing meant that they no longer needed the consent of the tribes to maintain rule. Tribal rule became autocratic, which led to human rights abuses and discrimination against women and ethnic minorities.

Early years of the protectorate
The British planned to eventually incorporate the Bechuanaland Protectorate into the Union of South Africa. In the years after the protectorate's creation, the United Kingdom entered talks with Cecil Rhodes to absorb it into the British South Africa Company. In response, three of the most influential chiefs—Khama III of the Ngwato, Sebele I of the Kwena, and Bathoen I of the Ngwaketse—made a diplomatic trip to the United Kingdom in 1895 and convinced the government not to complete the deal. This set a precedent of chiefs interacting with the British as a unified group and enshrined these three figures as early figures in Botswana's history as an independent nation. Also in 1895, the capital was moved from Vryburg to another South African city, Mafeking. The protectorate was heavily affected by the 1890s African rinderpest epizootic, losing large portions of its livestock and wild game.

When the United Kingdom raised the Pioneer Column to go to war with the Ndebele people, Khama III of the Ngwato assisted by sending soldiers. Botswana became a staging ground for the Jameson Raid in 1896. The Kgatla tribe was later part of the Boer War, fighting alongside the British Army.

The early colonial economy of the Bechuanaland Protectorate remained much the same as the pre-colonial economy. The United Kingdom primarily used the protectorate as a supply of labour, offering high wages to Batswana who migrated south to work in mines. Taxes were also imposed, beginning with a hut tax in 1899, which was then replaced by a poll tax in 1909. Colonial taxes in the Bechuanaland Protectorate were higher than those in neighbouring colonies. These factors caused mass exodus to the south, and the chiefs allowed more generous power sharing with citizens to incentivise them to stay. The United Kingdom considered integrating the protectorate into South Africa as it unified its southern African colonies, but it ultimately grouped them economically by creating the South African Customs Union. By 1910, all tribes had adopted Christianity.

Bechuanaland sent several hundred soldiers to assist the British Army during World War I. The colonial administration established the Native Advisory Council, an annual meeting of the chiefs and other influential people in the protectorate, in 1920. This allowed the British government to hear from and manage the tribes collectively instead of individually.

Sebele II became chief of the Kwena in 1918, succeeding his father, Sechele II. Sechele II had conflicted with the dominant London Missionary Society, permitting an Anglican presence and reinstating many traditional practices such as polygyny, rainmaking, and bogwera. Sebele II continued his father's challenge to the London Missionary Society, to the grievance of the British government. Among the Ngwato people, Sekgoma II was the chief for three years until his death in 1926. His son, Seretse Khama, was still an infant, so Tshekedi Khama became regent. Tshekedi came to be recognised as a representative for all of the Tswana tribes.

Development and increased British influence
In the 1920s, chief Isang Pilane of the Kgatla people oversaw the Bechuanaland Protectorate's first major water development scheme, having sixteen boreholes drilled, seven of which became successful water supplies. These became more common over the following decades as the British government took interest in expanding the protectorate's economy. By the 1930s, Isang Pilane and the Native Advisory Council privatised the boreholes, as they were not maintained under collective ownership. A severe drought occurred in the early 1930s, killing over 60% of the protectorate's cattle.

The British government took a more active role in the protectorate's governance beginning in 1930. That year, it began providing direct funding to the protectorate. Charles Rey was appointed Resident Commissioner of the Bechuanaland Protectorate, and he was responsible for reorganising the economy around cattle exports. An initiative to reform the protectorate toward mining and commercial agricultural development was attempted but saw push back from the chiefs.

Resident Commissioner Rey came into conflict with chief Sebele II, having him exiled in 1931. Sebele II was replaced by his younger brother, Kgari. Further initiatives were attempted by the British government in 1934 to constrain the unchecked power of the chiefs following the overthrow of Sebele II. These initiatives mandated advisory councils that chiefs had to consult and required that the British government be given access to court records. Chief Bathoen II of Ngwaketse and regent Tshekedi Khama of Ngwato issued a legal challenge to these initiatives. Although the British court ruled against the challenge, the new policies were never fully implemented. Other restrictions were adopted through colonial proclamation to limit the ability of the chiefs to levy taxes and seize stray cattle. A new resident commissioner, Charles Arden-Clarke, was appointed in 1936 and worked more closely with the chiefs.

Early years of World War II
Fears of German attack in Bechuanaland grew in the lead up to World War II due to its strategic position between Britain's central and southern colonies in Africa. 11 days before war was declared, the British government warned the protectorate to be on standby, and military forces were organised. Four days after Britain declared war on Germany, Resident Commissioner Arden-Clarke held a meeting with the chiefs where they pledged full support for the war effort. The next day, the high commission issued a proclamation of emergency powers that gave it total control over public activity in the protectorate, but the chiefs were informed that they would be responsible for most enforcement and peacekeeping.

The earliest years of World War II had almost no effect on the people of Bechuanaland, and many only had a vague idea that the war existed. The colonial administration shrank as large numbers of white residents enlisted in the British Army. Those who remained were focused on security planning in case southern Africa became another front in the war. Against the wishes of the chiefs, the colonial administration encouraged Batswana who wished to serve with the British Army to enlist with the South African Native Military Corps. About 700 Batswana men enlisted with the group.

Maintaining the Bechuanaland Protectorate became a low priority for the United Kingdom during the Great Depression and World War II, and the protectorate received no funding from the United Kingdom during the war. The British Empire had relatively little control over Bechuanaland compared to its other territories, and British efforts to control wartime production in the protectorate were unsuccessful. The war drastically altered the protectorate's economy as it went on, introducing shortages, rationing, and higher prices. Profiteering and price gouging were common, and the colonial administration, unable to enforce price controls, resorted to gentlemen's agreements with traders. Taxes were raised and Colonial Development Fund projects were curtailed at the onset of World War II to establish financial independence from the empire. The Control of Livestock Industry Proclamation No. 1 of 1940 was passed to tax cattle, the protectorate's main industry, but it met overwhelming resistance from Batswana and the European Advisory Council. A war fund operated in Bechuanaland, and although the United Kingdom expected that donations be voluntary, chiefs invoked their authority over their tribes to enforce donations. It was replaced by a levy in 1941, but this was less popular and proved difficult to enforce.

Batswana participation in World War II
Military recruitment began in Bechuanaland in 1941. About 5,500 men were trained and sent to war within the first six months. Another 5,000 Batswana men joined the war in 1942. In total, approximately 11,000 soldiers from Bechuanaland fought alongside the British Army during the war. Over 10,000 of these served in the British Army's African Auxiliary Pioneer Corps. The chiefs traditionally had the right to conscript soldiers, and they ignored the colonial government's wishes that military service should be entirely voluntary. Regent Tshekedi Khama of Ngwato made himself unpopular by using military conscription as a tool for control, weaponizing it to silence critics and political opponents. Men who wished to avoid conscription sometimes fled to South Africa or to remote areas like the Okavango Delta swamps and the Kgalagadi bush. Others used more immediate precautions, such as digging holes when recruiters visited.

The chiefs wished to leverage their participation in the war for additional rights within the British Empire, and they feared that British defeat would make them subjects of Germany or South Africa, a fate they wished to avoid. The war effort was also an opportunity to reclaim Tswana men who had migrated to South Africa for mining jobs; the chiefs wished to end this practice and felt they could do so by offering military jobs. Some military pay was deferred to the families of soldiers, and limitations on exports were lifted during the war, causing an influx of money into Bechuanaland.

Relative to other nations in the British Empire, the people of Beschuanaland approved of the war. Many Batswana held a sense of loyalty to the empire or felt that their interests were aligned. Some chiefs, such as Kgari Sechele II of the Kwena and Molefi Pilane of the Kgatla, personally enlisted. They served as regimental sergeant majors, the highest rank available to Batswana.

The High Commissions Territories Corps was stationed in the Middle East from 1946 to 1949.

Independence movement
The end of World War II came with drastic social change. The chiefs came to be seen as less essential to social structure, and many gave up their universal claims over tribal cattle. Other public resources, such as land and labour, were privatised and commodified. Access to education created a class of liberal intellectuals who opposed the rule of the chiefs and began forming their own centres of power in workers' associations and civic groups. By 1946, only 2% of the population had employment outside of agriculture and services. The protectorate saw a major increase in birth rates as part of the mid-20th century baby boom in the years after World War II, accompanied by an increase in life expectancy. The colonial administration began its first development project in the protectorate, a slaughterhouse, in the 1950s. The British, still expecting to merge the protectorate into South Africa, finally scrapped this plan after the beginning of Apartheid. Efforts began to develop a new path for the protectorate's future.

When Seretse Khama came of age, regent Tshekedi Khama attempted to hold on to power. Seretse had married a white woman, Ruth Williams, while studying in the United Kingdom, causing scandal in the Ngwato royal family. Though the public initially opposed the marriage, Tshekedi's unpopularity shifted the issue in Seretse's favour. The issue was raised in the kgotla in 1949, and Tshekedi's rule was overwhelmingly rejected by thousands in attendance. Tshekedi and his supporters fled to the Kwena in exile.

The British government was less tolerant of Seretse's marriage to a white woman. In an attempt to appease the Apartheid government of South Africa, it banished the couple from the protectorate in 1950. This provoked a burgeoning nationalist movement among Seretse's supporters in the protectorate, which fully emerged in 1952. During Seretse's absence, the United Kingdom placed the district commissioner in charge for four years before appointing Rasebolai Kgamane, a supporter of Tshekedi, as regent.

The Ngwato tribe rebelled against Seretse's banishment. His supporters petitioned for his return, and riots broke out when they were denied. Seretse was eventually allowed to return in 1956. Throughout this ordeal, power shifted away from the chiefdomship and toward electoral bodies. Tshekedi and Seretse made peace upon Seretse's return, and Seretse became the de facto leader of the Ngwato, though the United Kingdom forbade him from being the official chief. With British support, the Ngwato tribe developed a tribal council, of which both Seretse and Tshekedi were members. Other tribes then established similar tribal councils, which served as checks on the power of the chiefs. Some animosity remained between the two men: Tshekedi wished to retain the tribal government and the power of the chiefs, while Seretse envisioned a representative democracy and weaker chiefs. The amount of power invested in the chiefs became the most contentious issue in the burgeoning independence movement, especially among the Ngwato people and the Khama family.

The Bechuanaland Protectorate Federal Party was the first political party formed in the protectorate when it was created by the Ngwato union leader Leetile Disang Raditladi in 1959. Composed primarily of elites and intellectuals, it advocated a unification of the Tswana tribes. The party failed to gain support and was short-lived. The following year, the Bechuanaland People's Party (BPP, now the Botswana People's Party) was created as a more radical party, objecting to traditional tribal government and gaining appeal among migrant workers. It was led by Motsamai Mpho, Philip Matante, and Kgalemang Morsete. The BPP, created as a Motswana counterpart to the African National Congress party of South Africa, it supported immediate independence and the total abolition of chiefdom. Fearing that the BPP would undermine the existing government and ignite tensions with the Apartheid government of South Africa, the chiefs and the British government restricted its ability to meet.

The protectorate's tribes collectively formed a legislative council in 1961. The Kwena people found themselves under a regent, Neale Sechele, in 1963, meaning that they had little political influence as the independence movement developed. The Bechuanaland Protectorate Development Plan 1963/1968 was drafted through a deliberative process in 1963, creating an outline for the nation's independence.

As the population was politically inactive overall, the United Kingdom came to be one of the leading forces toward independence. Worrying that the BPP was too radical, the United Kingdom encouraged its preferred leader, Seretse Khama, to form a political party. Though Khama agreed with the BPP's antiracist and republican values, he opposed its dogmatic approach to politics and its acceptance of socialism. He agreed to give up his claim over the Ngwato people to serve as a politician, forming the Bechuanaland Democratic Party (BDP, now the Botswana Democratic Party) in 1962. The BDP established itself as the "party of chiefs", and it adopted ideas associated with pre-colonial tribal rule. The United Kingdom supported the BDP, understanding that it would maintain the colonial era livestock trade. By 1963, the Kgatla chief Linchwe was the only chief who opposed the BDP and had political influence, but the Kgatla people were in favour of the BDP, so he remained apolitical. A transition process began with BDP expected to rule an independent Botswana, and the colonial government worked with BDP leadership to prepare them for running a nation. Mpho split from the BPP to create the Bechuanaland Independence Party in 1964. The Botswana National Front (BNF) was founded by Kenneth Koma in 1965 and became the primary opposition party to the BDP.

A conference was held in 1963 to oversee the creation of a new constitution. Internal strife within the BPP meant that the BDP had the most influence over the process. Tshekedi Khama had died by this time, so Bathoen II became the leader of the pro-federalisation faction, believing it would keep power in the hands of the chiefs. The United Kingdom and the Batswana politicians endorsed a unitary national government because Botswana was too poor to divide its resources and because a lack of centralisation would make it vulnerable to attacks from other nations. Federalisation proved politically unviable, so a compromise was made that the chiefs would form the Ntlo ya Dikgosi, an advisory body within the Parliament of Botswana. The chiefs still opposed this arrangement, and in a movement led by Bathoen, the Ntlo ya Dikgosi passed a vote of no confidence in the new government, but its lack of political power prevented it from leveraging meaningful reform. The District Council's Act was passed as another means of limiting chiefs power by creating councils to preside over each district and town, making these elected bodies the primary local authorities.

Gaborone was built in 1965 and declared the new capital, its location chosen as a neutral setting between the major tribes. The constitution was implemented the same year. With this in effect, the United Kingdom granted the protectorate self-governance. 1965 also saw the establishment of the state-owned National Development Bank.

The BDP ran an extensive campaign during the first general election. Led by Seretse Khama and Quett Masire, the party campaigned in almost every village in the protectorate. Unlike other political figures in Bechuanaland, Seretse Khama had appeal across the different tribes. The BDP was subsequently elected to lead the first government. Unlike most inaugural political parties in Africa, the BDP was a moderate conservative party instead of a radical anti-colonial party. After its formation, the Ntlo ya Dikgosi delivered a vote of no confidence in the constitution in 1966, leading to a national campaign in support of the constitution that garnered enough support for the chiefs to end their efforts to challenge it. The protectorate was granted independence as the Republic of Botswana in 1966.

Botswana in 1966
Independence for Botswana meant the implementation of liberal democracy, bringing about elections, human rights protections, and civil service. This allowed for a merit-based system of promotion and the creation of a technocratic bureaucracy. Seretse Khama was elected to serve as the first prime minister and first president of Botswana. A national identity was crafted, bringing together disparate ethnic groups in a single Tswana label, with a culture based on that of the Tswana tribes.

Botswana retained much of its pre-colonial tribal institutions after independence. This was an effect of both the strong centralised government associated with the Tswana tribes and the relatively limited intervention of the British government in colonial times. The deliberative nature of the nation's politics before and after independence was an exception to many other African nations that became authoritarian after independence. Instead of abolishing the chiefdom, the new government incorporated it into the legal system, giving the chiefs judicial powers through the kgotla, subject to appellate courts. A tradition of subservience to leadership, once given to the chiefs, shifted to the presidency. The government reinforced its stability by staffing its civil service with foreign experts, as opposed to other new African countries that often expelled foreign experts.

The United Kingdom continued funding Botswana for the first five years of its existence. At the time of independence, Botswana was an extremely poor nation, more so than most others in Africa. It did not have an educated workforce, with only 40 citizens having university degrees, and there were no known natural resource supplies to support the nation. Botswana was dependent on the Apartheid regime in South Africa for access to the global community, and the majority of Botswana's labourers were migrant workers in South Africa. Botswana came into more direct conflict with Rhodesia, which caused military skirmishes until 1978.

Limited British involvement meant that little development had taken place since colonisation. Literacy was at 25%, and only 10 kilometres of paved road existed. Approximately 90% of the population was in abject poverty, and most of the population were cattle farmers or subsistence farmers. As the nation achieved independence, a severe drought eliminated 30–50% of the cattle population. Other nations had low expectations for Botswana, and throughout Africa it was seen as an Apartheid Bantustan. This relationship with Apartheid was also a factor in Botswana's success as an independent nation: the Batswana leadership wished to avoid the same fate as South Africa should the nation fail, and the diplomatic connections formed with the West to prevent subsumption by South Africa meant that Botswana was more trusting of Western powers and willing to accept their assistance.

The early leadership of Botswana was dominated by the ruling tribal families as well as a small number of highly educated public servants. Their economic and ideological similarities meant that the government remained stable without political infighting. Though Bathoen left his position as chief to pursue politics, most other chiefs accepted their reduced political power in the new government. A lack of corruption gave the state more legitimacy and won the favour of Western allies. Unlike most newly formed African nations, much of the leadership came from the agricultural community, meaning that their interests aligned with the majority. This encouraged the new government to retain colonial-era policies that benefited cattle farmers. The Botswana Meat Commission was created to regulate the beef industry. The BDP's pan-tribal appeal and the mutual interest in establishing independence further incentivised the new government to act in the interest of the majority. Small groups of white settlers remained in the country and objected to its independence. Though they would later be crucial in Botswana's development, mineral rights were given low priority upon independence, and the tribes transferred them to the central government in 1967.

Presidency of Seretse Khama
In 1967, diamonds were discovered in Botswana by the South African diamond company De Beers, and mining began shortly after. Copper deposits were found in Selebi-Phikwe that year, further revealing the nation's mineral wealth. The government partnered with De Beers in 1969 to carry out larger diamond mining operations, and it was involved with a renegotiation of the Southern African Customs Union the same year to greatly improve its economic leverage in the region. A mine in Morupule began producing coal in 1973, providing the nation with a large share of its power supply.

Khama and his administration implemented policies geared toward the creation of infrastructure and public goods, particularly the paving of roads. This came at the expense of commerce and production, which was limited to the funding of livestock. Public welfare programs were also established. The discovery of diamonds ensured that these programs received sufficient funding. These investments and a conservative approach to government spending prevented the Dutch disease scenario that crippled other resource-laden African countries. Education was expanded throughout the nation, and the Tswana language was standardised alongside English at the expense of other languages.

Quett Masire, serving as Vice-President under Seretse Khama as well as secretary general of the BDP, exercised control over the nation's budgeting and spending by creating a series of National Development Plans, subject to the approval of the National Assembly and the Economic Committee of the Cabinet. Iterations of these plans remained a central facet of government policy well after Khama and Masire's successors took office.

Khama took a universalist approach in his administration, avoiding ethnic politics and rejecting the influence of tribal leaders in favour of civil servants. He at times asked individuals to resign if one ethnic group became too influential in the civil service.

The Water Act and the Tribal Land Act were enacted in 1968, creating the Water Apportionment Board and twelve land boards, respectively. These oversaw the apportionment of water and land rights by the state rather than through the ownership of each tribe. The Tribal Grazing Lands Policy was implemented in 1975 to prevent overgrazing, but it proved unsuccessful.

The first election after independence took place in 1969. The BDP did slightly worse relative to its 1965 performance, and Vice-President Masire lost his seat to Bathoen, requiring him to take a specially elected seat. The BPP faded in relevance as the politics of Botswana developed.

The state-owned Botswana Development Corporation was founded in 1970, and the Orapa diamond mine opened in 1971. By 1973, diamonds made up 10% of Botswana's GDP, and by the end of the 1970s, mining was the largest industry in the country. As the diamond economy developed and investments were made back into the country, Botswana escaped poverty and came to be seen as a success among the other nations in post-colonial sub-Saharan Africa. These developments made Botswana the fastest growing economy in the world. The upper and middle classes saw the most benefit, increasing wealth inequality, but it also meant taxes could be lowered, which earned the support of peasants.

With the 1970s came an increase in locally educated Batswana, who became more influential in government. The BDP was again highly successful in the 1974 election. Minimum wages were introduced the same year, and the country began issuing its own currency, the Botswana pula, in 1976. Within a decade of independence, it was one of the wealthiest nations in the Third World. The economic transformation is referred to as Botswana's "miracle".

Fear of neighbouring white-led governments in Namibia, Rhodesia, and South Africa, as well as the danger of the Angolan Civil War, led Botswana to create a national military in 1977. Prior to this, the Botswana Police Service was responsible for national security. The lack of military meant that Botswana was not susceptible to leading causes of instability in other African nations: military coups and corruption through military spending. The military saw combat the following year when Rhodesian militants attacked Leshoma, killing fifteen soldiers.

In its partnership with De Beers, the government of Botswana formed the Debswana mining company in 1978, acquiring significant income for the state. Mining became the predominant industry of the nation's economy over the following decades, and Botswana became the world's fastest growing economy. Cattle farming saw a corresponding drop and lost the significance that it had previously held.

Presidency of Quett Masire
After Seretse Khama's death in 1980, Vice-President Quett Masire became the president of Botswana. Strong opposition to the BDP-controlled government first arose over the following decade. Opposition parties began winning local elections, interest groups began forming, and five major anti-BDP newspapers began publication. Previously dependent on support by specific ethnic groups, the BNF gained support among the working class. By the 1984 general election, it was a competitive opposition party.

Botswana was part of the Southern African Development Coordination Conference established in 1980 to create a southern African market. The Jwaneng diamond mine began operation 1982, becoming the most lucrative diamond mine in the world. The University of Botswana was created the same year when it split from the University of Botswana, Lesotho and Swaziland.

During the 1980s, South Africa began military incursions into Botswana to seek out South African rebels. In response to the civilian casualties, the government of Botswana increased military spending. 1985 saw the introduction of HIV/AIDS in Botswana, and it became one of the most severely affected countries in the world. Life expectancy in Botswana would drop from 67 to 50 by 1997.

A severe drought affected Botswana from 1982 to 1987, necessitating government food assistance for about 65% of rural Batswana. Mid-way through the 1980s, the diamond industry reached its peak at 53% of the national GDP. By this time, the nation's economy became strong enough that citizens were no longer incentivised to opt for subsistence agriculture or migration for work in South Africa. Entrepreneurship became more widespread, particularly among former government workers who moved from the public sector to the private sector. Free secondary education was established in 1989. Trade unions and other special interest groups developed in the 1980s to influence public policy, although the government was often unwilling to acknowledge them. It responded to the burgeoning labour movement by passing heavy restrictions on unions in 1983. The decade also introduced movements for the recognition of minority ethnicities, rejecting the national Tswana identity.

A landmark constitutional court case brought by Unity Dow ended with a ruling in 1991 that children could inherit citizenship from their mothers as well as their fathers, which was adopted into law with the Citizenship Act of 1995.

The Kgabo Commission was held in 1991 to investigate governmental land boards, and it found that ethical violations had been committed by Vice-President Peter Mmusi and BDP Secretary General Daniel Kwelagobe, both of whom were also members of the Cabinet of Botswana. Facing outrage within the government and among the public, both resigned. The fallout created two polarised factions within the party, one led by the two former cabinet members (the Big Two) and one led by their opponents (the Big Five). Masire chose Festus Mogae as the new vice-president because he was not affiliated with either faction. The Directorate on Corruption and Economic Crime was created in 1994, and a land board tribunal was created to hear appeals of land board decisions in 1995.

The scandal of the Kgabo Commission and the resulting schism in the BDP allowed the BNF to become a more competitive opposition party after the 1994 general election. With the added complication of urbanization reducing the BDP's rural base, opposition parties held a significant minority in the National Assembly. Following Mmusi's death, Kwelagobe aligned with Ponatshego Kedikilwe, and they formed the Barata-Phathi faction of the BDP. The Big Five developed into the A-Team faction.

The murder of a 14-year-old girl caused social unrest in 1994. An outbreak of contagious bovine pleuropneumonia in 1995 caused the deaths of 320,000 cattle. The Agriculture Act of 1995 expanded the process of privatising communal land.

The government began the removal of San people from the Central Kalahari Game Reserve in 1995. While the government offered livestock to incentivise cooperation and argued that it was to help integrate communities that were too remote, international organisations accused the government of coercion and forced displacement to make room for mining.

A series of governmental and electoral reforms were implemented in the final years of Masire's presidency. Election supervision was transferred to an independent body, the voting age was lowered from 21 to 18, postal voting was implemented, and policies were enacted to protect labour rights and gender equality. Masire wished to create a stable order of succession and to ensure that his chosen successor Vice-President Mogae became president, so he worked with the lawyer Parks Tafa to draft a constitutional amendment. This implemented automatic succession and term limits for the presidency. He then forced the amendment through on his own initiative. Reforming the nation's economy, a tentative system of tripartism was implemented to bring together government, the private sector, and labour representatives.

Presidency of Festus Mogae
Masire stepped down as president on 1 April 1998, and he was succeeded by Vice-President Festus Mogae. Mogae made the controversial decision to appoint Ian Khama, commander of the army and the son of Seretse Khama, as the next vice-president, passing his choice through by threatening to dissolve parliament. Although they were officially neutral between the factions of the BDP, Mogae and Khama were both understood to be major figures among the A-Team.

1998 saw one of many splits within the BNF opposition party. It had divided into two factions: the conservatives who held socialist beliefs and the progressives who held social democratic beliefs. Violence at the party's congress saw progressives split off into their own party, the Botswana Congress Party (BCP), which became the main opposition party until they lost most of their seats in the 1999 election. This division of the opposition, as well as the civil reforms of the previous years, allowed the BDP to regain some of the seats that it lost in 1994.

The Botswana–Namibia border came under dispute in 1999 when both countries claimed a territory in the Caprivi Strip. In the 2000s, Botswana invested heavily in the development of an air force. Botswana Television was established in 2000. The Tsodilo Hills became a World Heritage Site in 2001. The San people issued a legal challenge in 2002 to contest their expulsion from the Central Kalahari Game Reserve, but the case was dismissed. Mosadi Seboko of the Lete people became the first female leader of a tribe in 2003. Mogae had one of the government's most prominent critics, Kenneth Good, deported in February 2005.

Presidency of Ian Khama
Iam Khama succeeded to the presidency at the end of Mogae's term on 1 April 2008. After a steady decline, the diamond industry of Botswana stabilised at about 39% of the GDP in 2009. Khama placed emphasis on national security in his administration. During his tenure, the Directorate of Intelligence and Security came to be known for politically motivated espionage and arrests against his political opponents. He also appointed several former military figures in his government

As the BDP chose its leadership in 2009, Khama appointed numerous A-Team figures to party sub-committees despite the victory of the Barata-Phathi during the party's congress. When the party's secretary general Gomolemo Motswaledi consulted with lawyers to question the legality of Khama's actions, Khama had him suspended from the committee. After taking the issue to court, it was found that the incumbent president is immune from legal prosecution, and Khama suspended Motswaledi from the BDP entirely. In early 2010, Khama suspended and then expelled several other members of the Barata-Phathi faction from the BDP. This led to the BDP's first major split in March when the Barata-Phathi faction left the party to form the Botswana Movement of Democracy.

The Botswana Federation of Public Sector Unions (BOFEPUSU) led an unprecedented two-month strike of the nation's civil service to demand a 16% pay raise in 2011, and the government responded by removing thousands of employees from their positions. The removals were overseen by Mokgweetsi Masisi, the Minister for Presidential Affairs. To oppose the government's position, BOFEPUSU facilitated a merger of major opposition parties into the Umbrella for Democratic Change (UDC). This new group was led by Duma Boko, who had taken charge of the BNF in 2010 and moderated its rhetoric.

The BDP retained its majority in the legislature after the following election, but for the first time it did so with only a plurality of the popular vote. Ian Khama then appointed Masisi as his vice-president. According to Mogae, this was done with the understanding that Masisi would appoint Tshekedi Khama II as vice-president after taking the presidency himself. Botsalo Ntuane was elected Secretary General of the BDP in 2015 on a platform of anti-corruption and electoral reform. This threatened the entrenched nature of the BDP, and Ntuane found a political rival in Masisi. Khama was hostile to the press, especially toward outlets that disagreed with his administration's actions. He had two journalists charged with sedition in 2017, but the chargers were later dropped.

Presidency of Mokgweetsi Masisi
Masisi became president at the end of Khama's term on 1 April 2018. As the 2019 general election approached, Masisi developed an image to contrast himself from Khama, presenting himself as an anti-corruption figure while supporting the media and BOFEPUSU. His anti-corruption drive resulted in the arrest of Isaac Kgosi, who had led the Directorate of Intelligence and Security in Khama's administration. Masisi proceeded to reverse many of Khama's policies. As this developed, Masisi and Khama came into conflict with one another and became rivals. Khama attempted to recruit Pelonomi Venson-Moitoi as an alternative BDP candidate against Masisi, and when that failed, he founded his own party, the Botswana Patriotic Front (BPF).

The BDP reclaimed a majority of the popular vote in 2019, but the election was marred by government pressure and sometimes raids against opposition figures. The UDC challenged the results, but they were unsuccessful. The election saw the primary opposition party, the BNF, lose ground to the BCP.

Like most nations, Botswana saw major economic decline during the COVID-19 pandemic, and the country stayed in lockdown for much of 2020 and 2021. Anti-Indian sentiment became widespread as the Indian community in Botswana was relatively wealthy.

Khama fled to South Africa in exile in November 2021, and the government of Botswana charged him with illegal ownership of weapons soon after.

title: History of Botswana