Economic and financial characteristics of three range-based livestock Systems on communal land in Botswana were studied. Small-scale traditional livestock keeping is inherently efficient and provides important household income. However, these private Returns are attributable to subsidies, and economic efficiency is very low, due to open access. Low input, unfenced cattle-post, production is economically efficient, but the returns to land are low. Fenced commercial ranching is not privately or economically viable in the more remote communal land. Loss of favoured European market access for beef could make all the Systems studied economically unsound. Current subsidies to livestock production might be more economically efficient if they were redirected, from input costs reduction, to directly support initiatives which enhance average herd productivity.