South Africa and Botswana share a number of commonalities, although the two countries are distinctly different in
terms of economic performance, population size, and human capital development. This paper provides an analysis of
human capital development factors that contribute to differences in the human capital index score of the two countries.
In 2013, the World Economic Forum published the first edition of the Human Capital Report which measures human
capital using an index based on four pillars: (1) education; (2) health and wellness; (3) workforce employment; and (4)
enabling environment. Botswana’s human capital index score is higher than that of South Africa even though both
countries have negative human capital index scores. The indicators that show the fundamental differences between
South Africa and Botswana are education, health and wellness as well as workforce employment. The differences are
discussed in terms of their implications to policy formulation.