Seretse Khama inherited a poor country. In 1965 the population stood at about 550,000 with a low level of literacy, and the country was gripped by a bad drought. Fortunately Britain was sympathetic to continuing to cover substantial costs of the new nation's administration costs, although with the discovery of diamonds at Orapa in 1967 by geologists from De Beers, and the subsequent mining operations which began in 1971, this assistance was only needed for six years after independence.
Botswana had long been in the Southern African Customs Union – and in 1969 it succeeded in renegotiating the terms of this, to become more financially independent. (Previously it had received a fixed percentage of total customs union income, rather than the income that was due directly from its own territory.)
During the 1970s Botswana's economy grew steadily, typically by around 12–13%, as Botswana extended its basic infrastructure for both mining development and basic social services for its population. Despite threats from, amongst others, the Marxist-leaning Botswana National Front (BNF), Sir Seretse Khama steered the country on a fairly moderate line – and the BDP were consistently re-elected in generally fair elections.
With civil war in Rhodesia throughout the 1970s, and apartheid regimes in South Africa and South West Africa (Namibia), Botswana's position was tricky. It accepted refugees from neighbouring countries, but refused to be used as bases for resistance organisations. Such neutrality was often severely tried, not least when, in February 1978, the Rhodesian army crossed the border and massacred 15 Botswana soldiers at Leshoma.
Zimbabwe gained independence in 1980, and the same year saw the foundation of the Southern African Development Coordination Conference (SADCC) with the aim of co-ordinating the region's disparate economies in the face of the huge economic muscle wielded by South Africa's apartheid regime.
Sir Seretse Khama died in July 1980 and, as envisaged by the constitution, was succeeded by his deputy, Sir Ketumile Masire. He left behind him an impressive legacy of a stable, prosperous country amidst a changing subcontinent. He had skilfully steered Botswana, with foresight and prudence, during perhaps its most vulnerable period – leaving it with the firm foundations of a democratic tradition, and well-trained executive and administrative branches of government.