Botswana

WHY BOTSWANA?
Botswana is stable, peaceful and transparent
We have been at peace since our birth as an independent, sovereign nation in 1966;
We have zero tolerance for corruption, and we boast of a sound legal system and adherence to the rule of law;
We have been consistently rated as the least corrupt country in Africa by Transparency International.

Botswana is committed to sound fiscal policy, economic freedom and has a steady and dramatic growth rate.

HIGHEST SOVEREIGN CREDIT RATINGS : We have the highest sovereign credit rating in Africa according to Standard and Poor’s and Moddy’s ranking with corresponding positive outlook;
Botswana ranks 2nd as the freest economy in Africa;
Botswana GDP in 2016 was USD 15.6 billion with per capita GDP of USD 6.972 with a growth of 4.3% from 2015 level;
We have one of the fastest economic growth rates in the world with the economy projected to grow by 4.7% and 5.3% in 2017 and 2018 respectively.

BOTSWANA OPENS THE DOOR TO A MASSIVE MARKET :
We provide investors with preferential market access to the Southern African Development Community (SADC), entire market place – over 293 million people in 14 countries, with the combined GDP of more than USD 700 billion;
We open up duty – free access to South Africa, Namibia, Lesotho and Swaziland through the Southern African Union (SACU);
Botswana is in the heart of economies in the region that are expected to grow by an average of 5% between 2015 and 2020.
We provide duty – free and quota – free access to the European Union (EU) market through the EU – SADC EPA agreement and duty – free quota free access for more than 6800 products into the United States of America (USA) market through the Africa Growth Opportunities Act (AGOA) agreement.

The quality of Botswana’s workforce is second to none in Africa.The workforce is well educated– 82% are literate– and most speak English;There are no labor tensions;Our people are peaceful and responsible, and the different communities maintain harmonious relations.

The Government of Botswana wants to make your investment work for you.

We have no foreign exchange controls or restrictions on business ownership;
Taxes are very low – 15% for manufacturing, IFSC and Innovation Hub companies, maximum 22% corporate tax for other sectors; and maximum 25% for individual;
We allow remittance and full repatriation of profits and dividends;
Duty – free import of machinery and equipment for manufacturing purposes;
Possible tax holidays for 5 – 10 years under the Developmental Approval Order;

The workforce is well educated (82% are literate) and most speak English, government allows for 200% tax allowance for training costs;
Preferential incentives in Special Economic Zones;
Effective investor facilitation through the Botswana One Stop Service Centre (BOSSC)
Botswana is committed to continued growth
We are consistently investing in new and improved core infrastructure such as power plants, fiber-optic networks, roads, railways and international banking institutions;
We are establishing ourselves as centre for innovation, including R&D via the Botswana Innovation Hub.

Investment Secctors

AGRICULTURE
Economic diversification has been the priority concern in recent and current national development plans (NDP 9&10). Given the agricultural sector’s decreasing share in GDP, there is a need to diversify agricultural production and promote the potential for investment in agro-industrial and supply chain development.

Investment Opportunities
Grain/fruits and vegetables Value Chains Investment
Botswana is a Net Food Importing Developing Country (NFIDC) the opportunity to increase domestic production of basic foodstuffs, particularly cereals (grain sorghum and maize) and pulses. Cereal national demand stands at 200 000 tons per year, of which only 17% is supplied through local production. Investments in arable agriculture will; stimulate private sector development, create employment, create value-addition opportunities, and enhance food security and ultimately exports.

The Zambezi River will supply irrigation to will help increase 20 000 hectares of agricultural development.
projects include horticulture packaginG Tomato paste production ,SUFLOWER PROCESSING.

Livestock Value Chains Investment
Dairy farming has been identified as a potential area of growth and investment in the domestic agricultural sector.
Botswana is renowned for cattle farming and potential exists to expand the rawhide processing and tanning industries. A study on the Economic Diversification of Selebi-Phikwe, in 2006 noted that Botswana produces around 360,000 cattle hides per year, with the majority being exported in raw form.
Pork/Beef Products; Botswana is a net importer of pork products. According to the 2011 LEA study on pork value chain development in Botswana, in 2008/09, local pork production stood at 441.1 million tons while imports were 952 million tons. Traditional suppliers of pork products are South Africa and Namibia. The Southern African Customs Union (SACU) Region has a net import demand currently met by supply from Brazil, offering a regional market for pork exports. There are opportunities to invest in pig rearing, slaughter facilities, and grain/feed production. Botswana has exported fresh and frozen beef products to Europe since Independence. Further investment opportunities exist in domestic production; fodder/feed production; transportation and processed meat for domestic and export markets.
Further Information can be sourced from the Agriculture Hub at +267 3689092.

AUTOMOTIVE
As one of the most affluent economies in Southern Africa with a robust growth outlook, Botswana is home to a growing automotive market. It has a vehicle ownership rate of 206 vehicles per 1,000 people which is far above the African average of 43 vehicles per 1,000 people. Botswana’s automotive market is expected to receive a boost in terms of sales growth in the short to medium term due to the development of domestic coal deposits and the unlocking of agricultural opportunities. To read more about this sector click on: http://www.bitc.co.bw/bitc-investor-handbook

CARGO FREIGHT AND LOGISTICS

Centrally located in SADC, Botswana offers landlinked access to seven fast-growing markets and serves as the perfect location to leverage regional trade growth, with intraregional transport volumes expected to more than double within the next two decades. According to the World Economic Forum, Botswana has the best landlocked infrastructure in Africa and the third best logistics operating environment in the region.
It provides an alternative route to SADC’s other highly congested corridors, such as the route from South Africa through Zimbabwe and further north to Zambia and the Democratic Republic of the Congo (DRC), and is able to leverage favourable port, rail and road infrastructure in neighbouring South Africa and Namibia. Botswana has committed significant investment to develop new and revitalise existing transport corridors making use of road, rail, airports, dry ports and one-stop border posts. Worthy of note is the P1.4 billion Kazungula Bridge Project linking Botswana and Zambia and opening up possibilities of accessing SADC further up by road. Read more here about this sector:http://www.bitc.co.bw/bitc-investor-handbook

EDUCATION
The education sector receives the largest share of total government expenditure. Recurrent expenditure on education averaged 28% of the total in the three years to 2009/10. Investment in education continues to be a priority even in the current planning period, NDP 10, in order to achieve the aspirations of Botswana’s Vision 2016.

The Government emphasises the development of human resources by investing in education and training to raise productivity. Botswana has both private and public institutions of international standard that meet the increasing demands of the rapidly growing economy.

Botswana Education Hub
Botswana provides a unique investment opportunity based on its background and distinctive historical, cultural, geographical, political and economic characteristics. It has a unique investor value proposition to fully leverage and transform itself into an education investment destination of choice, and a centre of excellence in education, by attracting leading tertiary institutions, scholars, researchers and students into the country. The Government of Botswana is fully committed to the establishment of centres of excellence in selected educational opportunities.

Opportunities in this Sector

ENERGY
Botswana has limited exploitable energy resources and currently relies on imports of electricity and all petroleum products.The price of connection to the national grid is a flat rate charge of P5000. The total number of villages electrified as of October 2010 is 344 villages out of a total of 462 (Department of Energy Affairs).
Botswana’s available energy resources include coal, solar and bio-energy (biomass and bio-fuels).

Coal
Botswana has indicated reserves of some 212 billion tonnes of coal. Currently, Morupule mine is the only deposit mined, supplying Morupule Power Station, BCL Smelter and Botswana Ash. The vast majority of Botswana’s coal resources remain undeveloped. The following image and table show coal deposits in Botswana.

FINANCIAL AND BUSINESS SERVICES

IFSC
Certified International Financial Services Centre (IFSC) Companies enjoy competitive incentives including:
A competitive corporate tax incentive framework.
Exemption from Capital Gains Tax and Withholding Tax.
Access to an expanding Double Taxation Avoidance Treaty Network.
Denomination of Share Capital in any major convertible currency.
Botswana has no foreign exchange controls.

IFSC Sectors
International Insurance
Botswana is an attractive location to establish internationally traded insurance services such as reinsurance and captive insurance focused on the African market.
International Business Companies (Regional Holding Companies)
International Business Companies (IBCs) present the most immediate potential for growth in Africa from an IFSC platform. IBCs cut across sectors and operate in several sub – Saharan countries and are typically Investment Companies or Regional Headquarters operations.
International Banking
Banking entities within Botswana’s IFSC can provide corporate, international, investment and merchant banking, including leasing finance, asset management, stock-broking and treasury services.
Business Process Outsourcing and Call Centres
Business Process Outsourcing (BPO) is a rapidly developing sector in Botswana owing to a highly educated, English speaking population. Botswana is an ideal and competitive location for BPO centres and call centres in mainland Africa.
International Investments Funds
The IFSC is continually seeking opportunities to secure the establishment, management and location of more Pan – African investment funds in Botswana.
Opportunities in this Sector
See below for the opportunities in this Sector accross various districts in Botswana…

HEALTH
The Botswana healthcare system is comprised of both Government (Public) and Private Sector service providers. Public Sector healthcare services are provided free or for a minimal fee to citizens and foreign nationals pay reasonable subsidized fees. Healthcare delivery is decentralised with an extensive network of primary healthcare facilities: hospitals, clinics, health posts and mobile stops.

Partnership with international institutions and organizations is expected to strengthen the health care system and improve quality of care.

Specialised outsourced services in partnership with Government available to the public sector, such as haemodialysis and cardiology services.

INVESTMENT OPPORTUNITIES :
Diagnostic Facilities (imaging and laboratory)
Many diagnostic and laboratory analysis services are located outside Botswana a resulting in long delays in analysis.
Pharmaceutical Manufacturing Industries
Botswana imports all of its pharmaceutical products from Europe, Asia and the Americas and all biomedical equipment is imported
Medical tourism
Globally, medical tourism is growing at between 20 and 30 percent annually and is an industry worth about US$100 billion. Botswana expects to improve its service delivery of specialised healthcare through the development of clinical centres and human resource development in the health sciences.
For more information on Health Sector Investment Opportunities, contact the Health Hub at +267 3632689.
Opportunities in this Sector
See below for the opportunities in this Sector accross various districts in Botswana…

ICT
According to the 2011 ICT Statistics Report, the ICT industry is growing; particularly in mobile cellular services, which outpaces the development of fixed telephone lines and internet service provision. The number of mobile subscribers has increased from 106,029 in 2000 to 2,900,263 in 2011; a 2,635% growth. According to the report, Mobidensity (the number of mobile cellular subscriptions per 100 inhabitants) has increased by over 1000% percent from 13 subscriptions in 2000 to 143 subscriptions in 2011, (see table below). The ICT sector in Botswana also includes postal services, print media and radio and television.

LEATHER AND LEATHER GOODS
Botswana has an abundance of raw hides and skins locally. The country has an annual national herd size of 2.5-3.3 million cattle; with an average off-take ratio of 9% estimated only through the Botswana Meat Commission (BMC) annual throughput, yielding 200,000-300,000 hides per year. As middle income populations in emerging markets grow, so too does the global demand for leather products. With a small number of micro businesses and artisanal enterprises operating as tanneries, hide collectors and leather product manufacturers, Botswana is in the process of creating a vibrant leather cluster which will kick start with the development of a leather park in Lobatse. For more information visit: http://www.bitc.co.bw/bitc-investor-handbook

MANUFACTURING
The need to develop a diversified and robust manufacturing sector is a key agenda in government efforts to identify potential growth areas beyond the exploitation of its mineral wealth, which has been central to its transformation into a middle-income country, but which at the same time makes it susceptible to the vagaries of a fickle global economic order. Opportunities presented by the manufacturing sector covers a wide array of sectors such as food and beverages, textiles and garments, jewellery making, metal and metal products amongst others. At a national level, these opportunities are presented through the country’s high import bill, which has led to the government to develop complementary policies (Economic Diversification Drive) to promote the sector. Below are some of the salient features of the manufacturing sector in Botswana:

MINING
According to the Fraser Institute Annual Survey of Mining Companies, Botswana remains the preferred mining and minerals investment destination in Africa
Opportunities for investment in the mining sector include; prospecting and surveys, expansion of existing mining projects, new mining projects, beneficiation of minerals and improved value chain benefits.
Diamonds
The beneficiation of diamonds represents one of the most promising areas of opportunity. The Botswana Diamond Hub was established to develop a sustainable secondary diamond industry in Botswana. To facilitate the establishment of diamond ancillary businesses, 28 licensed cutting and polishing companies are in operation, mainly centred in Gaborone. The potential exists to expand operations to other parts of the country.

An additional US$3 – 6 billion national income per year is expected, requiring increased banking capacity and specialised banking services
Copper/Nickel (Value Added Investment)
BCL mine currently exports raw copper and nickel ore for processing. A domestic refinery could potentially add value to Botswana’s mining sector. Four refinery options have been considered:
For more information on the Copper Nickel Value Addition Opportunity, contact SPEDU at www.spedu.co.bw or +267 2600303.

Coal
Botswana has large untapped resources of semi-bituminous coal in various parts of the country estimated at 212 868 million tonnes of which reserves constitute 50 to 60% of this resource, making Botswana the 2nd largest producer after South Africa. Shallow coal seams distributed along the eastern side of the country, allow cost-effective open-pit mining. While the western side of the country has deep seams that have Coal Bed Methane (CBM) potential. Botswana’s coal resources quality compares favorably with other coal available in the market and is suitable for export markets, with high quality resources in the East. This eastern side is well positioned with respect to: existing railway line, power, road and planned railway to ports making coal mining even more feasible. Through new mining houses, Botswana has the opportunity to raise production to between 50 and 100mt/annum especially for power generation (tapping into the SAPP) and export. For more information click on the link: http://www.bitc.co.bw/bitc-investor-handbook

Up to 2012 Botswana had produced an average of less than 1 million tonnes of coal per year for over 30 years. In 2013 over 3 million tonnes were produced and higher production is expected in the future. According to the Botswana Chamber of Mines Market capability study, potential exists for up to 24 new mines producing over 190 million tonnes per year.
The Mmamabula and Morupule coalfields have the greatest potential for new mines (9 each).
Current resource holders have plans to produce over 115 million tons per year of coal for export with room for growth.
The coal intended for Power Generation (75 million tons per year) could sustain a power industry with a capacity of 15 GW of power for domestic and regional consumption.
Incentives to Invest in Botswana Coal,Centrally located in SADC region,The SADC region is experiencing a deficit in electricity supply& Botswana has large easily accessible coal resources

An abundant coal resource allows for efficient localised power production and competitively priced electricity
Easy Distribution via the Southern African power pool (SAPP) from Botswana
SAPP is an extensive network of electricity infrastructure in the region, enabling export of electricity to SADC countries.
Domestic beneficiation of coal
Potential expansion of the coal value chain.
Africa’s Best Mining Destination
For more information on the Opportunities in Botswana’s Mining sector, contact the BITC or the Botswana Chamber of Mines at www.bcm.org.bw or +267 3914685.

TOURISM
Botswana is well known for having some of the best wilderness and wildlife areas on the African continent. With a full 38 percent of its total land area devoted to national parks, reserves and wildlife management areas – for the most part unfenced, allowing animals to roam wild and free – travel through many parts of the country has the feeling of moving through an immense Nature wonderland.
Botswana is a rarity in our overpopulated, over-developed world. Untamed and untameable, it is one of the last great refuges for Nature’s magnificent pageantry of life.
Experience here the stunning beauty of the world’s largest intact inland Delta – the Okavango; the unimaginable vastness of the world’s second largest game reserve – the Central Kalahari Game Reserve; the isolation and other-worldliness of the Makgadikgadi – uninhabited pans the size of Portugal; and the astoundingly prolific wildlife of the Chobe National Park.

There are numerous investment opportunities across the Tourism sector.

Botswana Office
BITC Head Office
Plot 54351, Off PG Matante Road,
Central Business District (CBD)
Exponential Building
Gaborone
Tel: +267 3633300
Fax: +267 3181941/ +267 3170452
Email: enquiries@bitc.co.bw

Francistown Office
Plot 903, Unit A14
Tati River Mall, Francistown
Tel: +267 363 3490
Fax: +267 317 0452
Email: enquiries@bitc.co.bw

India Office
Mr. Moabi Phia
Director, International Business
No 43 Maker Chamber VI
Nariman Point
Mumbai 400 021, India
Tel: +91 2243 602100
Fax: +91 2243 602111
Email: enquiries@bitc.co.bw/  info@bitcin.co.in

UK Office
Mr. Moemedi Mokgosi
Director, International Business
6 Straford Place
London W1C 1AY
United Kingdom
Tel: +44 207 4990031
Fax: +44 207 4918528
Email: enquiries@bitc.co.bw

South Africa Office
Mr. Omphitlhetse B. Senosi
Director, International Business
1 Sandton Drive, The Place, Ground Floor,
Sandton, Johannesburg, 2196
Tel: +27 (11) 8848959
Fax:+27 (11) 883 7798
Email: enquiries@bitc.co.bw