IV. Political Environment

   The U.S. and Botswana have enjoyed excellent bilateral
relations since Botswana's independence in 1966.  Botswana
has a flourishing, multi-party, constitutional democracy.
Each of the elections since independence has been free and
fairly contested and has been held on schedule.  The
constitution vests legislative power in the thirty-eight
seat National Assembly, elected every five years, and
executive power in the President, currently Sir Ketumile
Masire, who was re-elected in 1989 for a second five-year
term.  The country's small white minority and other
minorities freely participate in the political process.

   While there are several active political parties in
Botswana, in practice the country's politics are dominated
by the governing Botswana Democratic Party (BDP).  In
1989, the BDP won 31 of 34 National Assembly seats and the
opposition Botswana National Front (BNF) won 3.  National
elections are expected to be held in October, 1994; the
BDP is widely expected to be returned to power by a
significant majority.

   There are no political issues which affect the business
climate in Botswana.  There is a broad consensus across
the political spectrum that private enterprise should be
encouraged and that foreign investment is crucial to
diversifying Botswana's economy.