Thesis (MBA)--Stellenbosch University, 2006. / The aim of this study was to investigate reasons/factors affecting the decline in Foreign Direct Investment (FDI) in Botswana. It has been observed that there are many factors that help explain why the inflow of (FDI) is skewed towards developed nations. Principal amongst them is the population factor, that is, bigger markets and the level of technology. In the case of developing countries in general and Botswana in particular it was found out that FDI was attracted by the prospects of making massive profits. Therefore multinational companies invest mostly in developing countries which are endowed with natural resources such as ()iI, diamonds, gold and platinum. Although Botswana is endowed with diamonds and other natural resources, it has not been attracting the much needed FDI. Reasons advanced for its failure to attract good FDI include among others, small population, the bureaucratic civil service, lack of good infrastructure and lack of well trained human resources in the fields of science, engineering and financial services.