ABOUT THIS COUNTRY
Botswana is a completely landlocked country in the centre of Southern Africa. The country covers an area of about 582,000 sq.km² and is relatively flat at roughly 900 metres above sea level, with gentle undulations and occasional rocky outcrops. The Kalahari Desert occupies more than 70 % of the country, with valleys and pans etched across the landscape. The eastern part of Botswana contains the highest (1,500 metres) and the lowest (500 metres) points of elevation, with hills and deep valleys, whereas the flat vast western portion of the country is semi-arid with rocky outcrops.
The mining sector, and in particular diamond mining, is the major contributor to the export base, and government policy endeavours to reduce the vulnerability arising from the heavy dependence on diamonds. The livestock industry contributes about 80 % of agriculture’s share of Gross Domestic Product (GDP). Beef processing accounts for about 80 % of the livestock industry, and over 95 % of beef production is exported. Tourism continues to play an increasingly significant role in the diversification of the economy. Botswana’s impressive economic performance over the past four decades is mainly due to the success of its export sector
Reasons to invest in Botswana:
- Stable Economy: Since independence in 1966 Botswana Democratic Party has won in all elections has led the country to date.
- No foreign exchange controls: Foreign exchange controls were abolished in 1999.
- Access to huge SADC (Southern African Development Community) market of 200 million people, Europe and the USA
- SADC headquarters is located in Botswana. Southern African Customs Union (SACU) allows movement of goods amongst South Africa, Swaziland, Lesotho, Namibia and Botswana free of customs duty
- Botswana has duty free and quota free access to Europe
- African Growth Opportunities Act enables Botswana texport tthe USA on a liberal basis.
- Botswana has trade agreement with Zimbabwe
- Low tax regime
- Company tax 22%
- Dividend tax 7.5%
- Personal income tax maximum marginal rate 25%
- Manufacturing companies tax 15%
- International Financial Services Companies tax 15% with 0% dividend tax
- Ever-expanding network of Tax treaties include countries like the UK, Zimbabwe, Mauritius, South Africa, France, India, Barbados, Lesotho, Swaziland, etc.
- Botswana is one of the best performing economies of Africa. It does not have foreign exchange controls and it is a low tax regime. These are strong general reasons motivating investors to invest in Botswana
Agriculture
Manufacturing
Energy
Health
Agriculture
- Production; Currently Below Capacity. Opportunity exists in; Cereals 45%, Pork 65%, Honey 45%, Small Stock 70%, Vegetables & Fruits 65% , Dairy 11%,
- Processing (Value Addition; Beef, Cattle & Small stock Hides (currently exported without processing 300K cattle hides)
- Agriculture Finance & Insurance; 1 company currently providing insurance services but there is opportunity for more financial products.
- Ostrich Sector; Under utilised Multi Species abattoir.
- Grey Water Recycling; For irrigation purposes
Manufacturing
- 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
- Beneficiation of Raw materials (beef, leather, minerals, glass manufacturing)
- Textile Industry Strategy has been developed to upgrade the garments industry
- Economic efficiency and international competitiveness
- Special Economic Zones
- Production of goods and services for export
- Raw materials in abundance
Energy
- Electricity: About 80% is imported
- Coal Reserves: are estimated at about 200 billion tonnes
- Solar: Botswana has high levels of irradiation (Sunshine) (2300kWh/m2); potential for solar projects
- Transmission infrastructure Renewable energy technologies
Health
- Pharmaceutical Manufacturing industries- Botswana imports 100% of the consumed pharmaceutical products from Europe, Asia and the Americas.
- Manufacturing of biomedical equipment- 100% of biomedical equipment is imported
- Diagnostic Facilities (imaging and laboratory)- A significant number of samples for diagnostic & laboratory analysis are referred to South Africa and the turnaround time to receive results is a challenge
Tourism
Mining
Automotive Industry
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.
- The government encourages new investments and joint ventures in tourism and continues to play a major role in the development of tourism projects. New hotels (including U.S. brands) and conference facilities have opened in the past few years, increasing the country’s ability to host international conferences and events. The government continues to upgrade infrastructure in wildlife-protected areas (natural parks and game reserves). Government regulators continue to approve the opening of lodge sites within four of the largest national parks.
- Joint ventures are being sought for hotel expansions and start-ups along the Trans-Kalahari Highway, joining Botswana and Namibia, and development of lodges in Kgalagadi Transfrontier Park, Central Kalahari Game reserve, Makgadikgadi Pans National Park, and forest reserves surrounding Chobe National Park.
Mining
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. 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.
Automotive Industry
- 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.
Key opportunities include:
- The supply of parts and components to South Africa’s automotive sector
- The supply of replacement parts for vehicles of large scale projects (e.g coal, agriculture, mining)
- The expansion of existing component manufacturing industries (e.g batteries, ignition wiring sets)
- R & D services for automotive sector (e.g extreme whether and terrain testing)
- Development of vehicle maintenance service offering for cross border/regional vehicles
- Establishment of skills development/training facilities for auto mechanics and technicians
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