BOTSWANA

INVESTORS HANDBOOK
2017
 3
Table Of Contents
Abbreviations 4 SACU/MERCOSUR PTA 82
[Link] welcomes you 5 Importing and exporting 82
Tariff and Tax Exemptions 82
Importing 82
[Link] Botswana 11 Other Duties And Taxes 83
Botswana Governance 13 Exporting 83
Licenses and Quotas 84
Duty-Free Zones 84
[Link] And Botswana’s international
rankings 14
[Link] Facilitation 85
Part 1: Company and Business Name registration 86
4. The Economy: Performance 1.1 Reservation of company or business name 86
and Outlook 19 1.2 Requirements for company registration 86
Trade investment and related policies 21 1.3 Company registration process maps 87
International trade: an overview 22 Part 2: opening a business bank account 88
Inflation 26 2.1 general information required by all banks 88
New project developments and structural highlights 29 2.2 Additional requirements by particular Banks 88
First national Bank 88
Barclays 88
[Link] climate 39 BancABC 88
Corporate tax rates- resident company 40 2.3 Account opening for regulated credit and financial institutions 88
Double tax avoidance Agreements 40 Part 3: Licensing 89
Other benefits 41 3.1 Trading license 89
Bilateral investment treaties 41 3.2 Manufacturing license 91
3.3 Liquor License 92
[Link] Investment Opportunities 42 3.4 Financial Services Licensing 93
Mining Sector 44 3.5 Banking License 93
• Diamond Beneficiation 44 3.6 Bureau De Change License 94
• Coal 46 3.7 Micro-Lending License 95
• Soda Ash 52 3.8 requirements for Registration of insurance company 95
Cargo, Freight & Logistics Sector 55 3.9 Tourism License 96
Leather And Leather Goods Sector 60 3.10 Mining License 98
Automotive Sector 64 Part 4 : Tax Registration 99
Agriculture Sector 67 4.1 Company Tax and Vat 99
Financial And Business Services Sector 69 4.2 Individual Tax Registration 99
ICT Sector 71 Part 5: Work and Residence Permits 100
Health Sector 74 5.1 Checklists for work and residence permit applications 100
Education Sector 75 5.2 Categories and Criteria for Assessment of the
Point-Based System 102
5.3 Standard criteria for assessment of work & Residence
[Link] Agreements 76 Permit renewal Applications 105
Preferential Market Access Agreements 78 5.4 Cost of Applying for permits 106
Current Trade Negotiations 78 Part 6: Utilities 107
Non-Reciprocal Agreements 78 6.1 Water Connections 107
Cooperative Frameworks 78 6.2 Power Connections 107
World Trade Organization (WTO) 78 6.3 Telephone Connections 108
Southern African Customs Union (SACU) 78 Part 7: Incentives for investors 109
SADC trade Protocol 79 7.1 incentives for investors 109
Bilateral Agreements 79 7.2 IFSC Company Certification 109
Botswana/Malawi Bilateral Agreement 80 7.3 Development Approval order 110
SACU and European Free Trade Association (EFTA) FTA 80 Part 8: Process road map for investors 110
Generalized System of Preference (GSP) 80
African Growth and Opportunity Act (AGOA) 80
Interim Economic Partnership Agreements 81 [Link] Investment And
SACU/US Trade, Investment And Development Trade Centre 111
Cooperation Agreement (TIDCA) 81 Brand Botswana 114
 4
Abbreviations
The stunning beauty of
the Okavango Delta,
the unimaginable vast
Abbreviations

AGOA African Growth Opportunity Act

ASYCUDA Automated System for Customs Data
BITC Botswana Investment and Trade Centre
BNLS Botswana, Namibia, Lesotho and Swaziland
BOB Bank of Botswana
BOBS Botswana Bureau of Standards
BOCRA Botswana Communications Regulatory Authority
BPC Botswana Power Corporation
BPO Business Process Outsourcing
BTO Botswana Tourism Organisation
BURS Botswana Unified Revenue Services
CIPA Companies Intellectual Property Authority
CITES Convention on International Trade in
Endangered Species of Wild Fauna and Flora
CIU Collective Investment Undertaking
CV Curriculum Vitae
DAO Development Approval Order
DTA Treaty Double Taxation Avoidance Treaty
EFTA European Free Trade Association
EIA Environmental Impact Assessment
EPA Economic Partnership Agreement
FTA Free Trade Agreement
FDI Foreign Direct Investment
IFSC International Financial Services Centre
ILA Industrial Licensing Authority
IPP Independent Power Producer
ISP Internet Service Provider
MIGA Multilateral Investment Guarantee Agency
NBFIRA Non-Bank Financial Institutions Regulatory Authority
OECD Organisation for Economic Cooperation and Development
PAYE Pay As You Earn
PTA Preferential Trade Agreement
SACU Southern African Customs Union
SADC Southern African Development Corporation
SEZ Special Economic Zones
SLA Service Level Agreement
TIDCA Trade, Investment and Development Corporation Agreement
TIN Tax Identification Number
UNCTAD United Nations Conference on Trade and Development
USTR Office of the United States Trade Representative
VAT Value Added Tax
WUC Water Utilities Corporation
WTO World Trade Organisation

 One

Botswana
5

Welcomes You

Botswana
Welcomes
01 You
 6

Honorable Minister Of Investment, Trade and Industry

VINCENT T. SERETSE

“Botswana has achieved impressive economic performance over the past four decades due to a
number of factors. These include prudent macroeconomic management, consistent economic
policies, political stability and good governance. The country has maintained a high economic growth
rate, resulting in accumulation of substantial foreign reserves and substantial investment in the
development of our human resources.”
 7
Botswana Welcomes You
Botswana is highly rated by international Botswana has opportunities to access
organisations on a number of economic international markets through bilateral and
indicators, based on its impressive multilateral agreements. These include the
performance. Botswana has also been Southern African Customs Union (SACU),
consistently rated by Transparency which gives market access to South
International as the least corrupt country Africa, Namibia, Lesotho and Swaziland,
in Africa, and is ranked amongst the and the Southern African Development
least corrupt countries in the world. Community (SADC), trade protocol which
This clearly shows that our Government gives access to a market of some 250
institutions are efficient, effective and million people. The African Growth and
transparent. Thus creating a conducive Opportunities Act (AGOA) offers Botswana
environment for the seamless operation access to the USA market. The EU-SADC
of the private sector. Highly significant too EPA agreement provides duty free, quota
are the rankings of Standard and Poor’s free market access for products coming
and Moody’s, which gives Botswana the from Botswana, and other ACP countires.
highest soverign credit rating in Africa and
among the highest in the world consitently In this regard Botswana has unlimited
for a period spanning a decade. access which provides an opportunity
...Botswana has
for Botswana to send her products into
opportunities
Botswana acknowledges the important 28 EU countires without duty, qouta or
to access
role that foreign direct investment plays any encumbrance. The market access
international
in economic development, and encourages opportunities make it attractive for
markets through
international firms to choose the country investors to use Botswana as a base for
bilateral and
as a destination for their investment. With doing business, and target both regional
multilateral
no exchange controls, free movement of and international markets at preferential
agreements...
capital is permitted and companies are rates.
able to bring in key expatriate personnel
who are needed to establish operations in The “Botswana Investor Handbook”
Botswana. contains information on the country’s
policies, as well as up-to-date information
Our Government policy is orientated on economic indicators, the investment
towards sustainable growth and climate and the opportunities that the
diversification through coordinated country presents. The Government of
efforts and contributions from various Botswana has created an attractive and
sectors of the economy, including mining, enabling environment that encourages
agriculture, services, energy and tourism. private sector participation in the
development agenda. I invite potential
Attracting foreign investment and investors to use the Handbook and
encouraging joint venture enterprises to explore the significant investment
between local and foreign investors are opportunities that our country offers.
some of the key issues that will assist Through the Botswana Investment
in the transfer of skills and ensure that and Trade Centre (BITC) website (www.
the private sector plays a pivotal role in [Link]), BITC regional offices
the development process. To this end, in South Africa, the United Kingdom and
continuous review of the investment India, the Head Office in Botswana, the
climate has remained an important priority personnel and all necessary resources are
in ensuring that Botswana fully exploits at your service.
its potential as an investment location of
choice.

..................................................................................
Honorable Minister Of Investment , Trade and Industry
VINCENT SERETSE
 8

Our Pride, Africa’s jewel for

foreign direct
Your Destination investment.

Botswana is a Land of Stunning Beauty

The stunning beauty of the Okavango Delta, the unimaginable vastness of the Central Kalahari Game
Reserve, the isolation and other-worldliness of the Makgadikgadi, the astoundingly prolific wildlife of
the Chobe National Park make Botswana a very unique destination.

It is Rich in Natural Resources

Minerals, energy, protected environmental areas, agriculture, pastureland and non-timber forest
products give Botswana natural capital that amounts to one-third of its total wealth.

Botswana’s Beauty and Wealth are Manifested in its Very Special People
There is a unique wisdom in Botswana that translates into practical reality in numerous ways. Batswana
have created a world-class business environment., a functioning democracy, a sound legal system and
high credit rating making Botswana one of the world’s most attractive destinations for investment.

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 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.
 9
Botswana is Committed to Sound Fiscal Policy and Economic Freedom
• We are ranked as the world’s Second most Attractive Investment Location by New
York University’s Altman’s Baseline Profitability Index (BPI), (2015);
• We have the Highest Sovereign Credit Rating, and were named the 2nd freest economy
in Africa (2017);
• We have one of the fastest growth rates in per capita income in the world.

Botswana Opens the Door to a Massive Market

• We provide investors with preferential access to the Southern African Development

Community’s (SADC) entire marketplace – over 290 million people;
• We open up duty-free access to South Africa, Namibia, Lesotho and Swaziland;
• We provide duty-free and quota-free access to the European Union (EU) market.
• We continue to negotiate additional trade agreements with various countries and are 82%
commited to continental free trade in Africa. are literate.

The Quality of Botswana’s Workforce is Second to None in Africa

Taxes
• The workforce is well educated — 82% are literate — and most speak English; are very low
• There are no labour 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 corporations and 25% for individuals;
• We allow remittance and full repatriation of profits and dividends;
• We offer duty-free import of machinery and equipment for manufacturing purposes.

Botswana is Committed to Continued Growth

• We are consistently investing in new and improved core infrastructure such as power
plants, fibre-optic networks, roads, railways and international banking institutions;
• We are establishing ourselves as a centre for innovation and R&D via the Botswana
Innovation Hub.
10
 two

About
Botswana
11

About
Botswana
02
 12
About Botswana
Location Within Africa Cities
Botswana is centrally located Gaborone is the capital and
in the heart of Southern largest city with a population
Africa. It shares borders of 231,626 (Population and
with Zambia in the north, Housing census 2011), which
Namibia in the north and is approximately 10% of the
north-west, Zimbabwe in total national population.
the north-east and South With an area of 169 km2 , the
Africa in the south and south- city’s wider agglomeration is
east. Its central location in home to 421,907 inhabitants.
the Southern Africa region Francistown is the second
makes Botswana the perfect city located in the North
gateway for reaching the Eastern part of the country.
whole of the Southern African
Development Community
(SADC) region. Botswana is a
Population
2,024,904 (Population and
perfect investment and trade
Housing Census 2011).
hub.

Area Adult Literacy Rate

Botswana has a surface area Botswana prides herself in
of 581,730 km2 of which 84% rising literacy rates shown
is the Kgalagadi Desert. below, which are amongst
the highest literacy rates in
Africa.

85.9 88.6
90 81.2 83.2
71.8
70

% 50

30

10

-10 2001 2003 2010 2013 2014

Year
Source: BITC based on Stats Botswana, 2014 data

Languages Electricity Supply

English is the only official language. Botswana’s energy is mainly from coal-
Setswana is the most widely spoken fired plants. Small diesel generators
language in Botswana, and is considered are used to power rural areas. The bulk
the national language. As of 2011, about of domestic electricity production is
80% of the population spoke Setswana. generated by the Morupule coal-fired
station.

Currency Ministry of Mineral Resources, Green

The Pula is the currency of Botswana. ISO Technology and Energy Security has
4217 code is BWP, and there are 100 thebes overall responsibility for power. The
to one Pula. Pula is the Setswana word for Botswana Power Corporation (BPC), a
“rain”. parastatal under this Ministry, generates,
transmits and distributes electricity in
Botswana. BPC imports electricity to meet
13
the rural electrification programme that
the domestic demand of 13 % from ESKOM, Government embarked on in the past 5
from the Zimbabwe Electricity Supply years.
Authority and, since 1991, from Zambia.
Although Botswana is ideally suited for
Consumption per capita is estimated at being powered through solar energy since
874 kWh. Almost all of Botswana’s power she enjoys over 300 days of sunshine per
comes from the coal-powered Morupule year, the contribution of solar energy to
Power Station. The country is undertaking the national energy balance is insignificant.
a rural electrification programme and Solar energy is currently used for home
a 15-year planning programme is being lighting, water heating, electricity
developed to cater for the expected production for telecommunications
increase in supply of electricity across equipment in rural areas where access
the Botswana grid. ABB Transmission and to conventional electricity is difficult.
Distribution, a South African company, Significant business opportunities exist
has undertaken numerous projects in in the production of solar energy and the
Botswana, building power lines. Almost manufacturing or assembly of solar energy
all villages have been electrified through equipment.

Botswana Governance
Head of State eight Setswana paramount chiefs have
automatic membership, advises the
Lieutenant General Seretse Khama Ian Botswana
Khama is the 4th President of Botswana. government on matters of custom and
tradition, including review of draft bills
has an active
After serving as a commander of the
before their consideration by Parliament. parliament, a
Botswana Defence Force (BDF), he entered
politics and served as Vice President Botswana conducts a unique form of National
of Botswana from 1998 to 2008, then communication and consultation with its Assembly,
succeeded the former President Mr. Festus citizens through the medium of the kgotla, which
Mogae as President on 1 April 2008.
traditional communal assembly at which comprises 57
government policies can be discussed.
directly elected
MPs plus a
Parliament Constitution
Botswana has an active parliament, a further four
Botswana’s constitution provides for the
National Assembly, which comprises 57 protection of fundamental rights and
specially
directly elected MPs plus a further six individual freedom (including freedom ....
specially nominated members by the of speech, association and the press), an
President and subject to parliamentary independent judiciary, and equal rights for
approval. all citizens.

Elections take place every five years, Political parties and trade unions have
and the ruling Botswana Democratic the right to demonstrate, but such
Party (BDP) has won successive elections demonstrations tend to be generally
since independence in 1966, with three peaceful, and large-scale political
other parties currently represented in disturbances are virtually unknown.
parliament. The President is the Head of
the Executive arm of government but is The government’s policies include
not directly elected in his/her own right, strategies that maximize productivity, add
but is rather the leader of the party with value throughout the economy, increase
a majority of directly elected MPs. The flows of foreign direct investment (FDI)
President is also constitutionally limited to through an attractive and transparent
two five-year terms of office. fiscal and operating environment and,
intensify marketing Botswana’s products
House of Chiefs through coordinated export promotion.
The House of Chiefs, to which the
 14
three Indices And
International Rankings
 15

Indices &
International
03 Rankings
 16
Indices And International Ratings
Corruption Economic Global
Perception Stability Competitiveness Global Enabling
Index (Credit Ratings) Index Trade

Transparency International Botswana is one of the This is a highly comprehensive From inception the report
assembles composite fastest growing economies index for measuring has highlighted the particular
measures of corruption in the world. The country has national competitiveness, importance of trade
perception in around 176 a stable macro-economic it takes into account facilitation in delivering
countries in the world. The environment and steady the microeconomic and concrete reforms to
Corruption Perceptions Index economic growth. Standard macroeconomic foundations producers and consumers
(CPI) relates to perception & Poor’s (S&P) sovereign of national competitiveness. around the world, most
of the degree of corruption credit ratings 2016 reaffirms The 2016/2017 Global notably in developing
as seen by businessmen and the ratings of “A-” for long Competitiveness Report countries. The 2016
country analysts; it ranges term bonds and “A-2”for analyzed competitiveness report has thrown itself
between 100 (very clean) short term bonds in indicators for 138 countries. wholeheartedly behind the
and 0 (highly corrupt). The domestic and foreign It highlights that, Botswana’s cause of trade facilitation,
2016 (CPI) ranks Botswana currency denominated competitiveness rose up providing additional focus to
at position 35 in the world, borrowing. The prudent for the second consecutive implementation work around
an improvement of 3 places fiscal management and year to position 64th from the globe on 136 countries.
up from the year 2014. Even robust institutional 71st in the year 2015/16, Botswana is ranked in the
though Botswana continues framework continue to which makes it the fourth 65th position in 2016, which
to be the least corrupt reinforce the ratings. competitive economy in Sub- is a major improvement
country in Africa, there Saharan Africa. from the 88th position in the
is need for a close check year 2014. This impressive
as the percentage score performance owes to top
still remains at 63 having performance in the border
dropped by 1 percent in 2013. administration pillar, and
the launch of the National

Global Trade Portal, providing a

Ease of Doing Operational Entrepreneurship
streamlined online platform

Business Risk Index Index (GEI),

for access to all necessary
information on import and
export procedures.

The Doing Business Project Botswana ranks in the A breakthrough advance

investigates how easy or top three key SADC FDI in measuring the Democracy
difficult it is for a local quality and dynamics of
entrepreneur to comply
destinations for low
operational risk. Operational entrepreneurship ecosystems
Index
with relevant regulations in Risk Index provides a at a national and regional
opening and running a small country-comparative level. The GEI comprises of
to medium-size business. It evaluation of the labour, three sub-indices known The Economist Intelligence
measures and tracks changes logistics, trade and as the 3As: entrepreneurial Unit’s Democracy Index
in regulations affecting 10 investment and crime and attitudes, entrepreneurial provides a snapshot of
areas in the life cycle of a security risks to business abilities, and entrepreneurial the state of democracy
business: starting a business, operations. With a score of aspirations of 137 economies. Worldwide for 165
dealing with construction 49.2, Botswana surpasses Botswana ranks in position independent states and
permits, getting electricity, the emerging markets 52 in the world, whereas two territories. The
registering property, getting average of 46.8. Botswana in the Sub-Saharan region Democracy Index is based
credit, protecting investors, is a regional outperformer it’s in 1st position. Further, on five categories: electoral
paying taxes, trading across in the Operational Risks insights reveal that process and pluralism; civil
borders, enforcing contracts Index due to its low level “Improving the conditions liberties; the functioning
and resolving insolvency. of crime and security risk, for entrepreneurship by 10% of government; political
The World Bank’s 2017 Ease its favourable and stable could add $ 7 billion to the participation; and political
of Doing Business Report trade and investment economy” of Botswana. culture. Botswana is the 3rd
profiled 189 countries, environment, and its Democratic country in the
and Botswana ranks at highly literate workforce. sub-Saharan Africa, and in
position 71 and is the third The country has fewer the world it’s the 27th ahead
country in the ease of doing labour market unrests and of advanced economies such
business in Africa. This slight lower security risks than as India, South Africa, Brazil
improvement is a result competitor FDI destinations and Singapore 2016.
of having made dealing in SSA.
with construction permits
easier by eliminating the
requirement to submit a
rates clearance certificate to
obtain a building permit.
 17
Botswana’s Unique
Selling Points

Third most Profitable Country At the Heart of the SADC

Globally & Most Profitable in Consumer Market
Sub Saharan Africa (Baseline (292 million)
Profitability Index 2015)

Highest investment grade

sovereign credit rating in Second Freest Economy in
Africa long term “A-” & short Sub Saharan Africa (2017)
term “A-2” (2017)

Africa’s best Investment Competitive Corporate Tax

destination (2017) Rates, & Robust Incentives

Africa’s Best Mining Least corrupt country in

Destination (2016) Africa (2016)

Africa’s third Democratic

Country (2016)
18
 19

The Economy:

Perfomance &
The Economy
four

Performance And Outlook

Outlook
04
 20
The Economy:
Performance And Outlook
Macroeconomic Policy Highlights
The country’s sterling economic performance has been the hallmark of its success owing to prudential monetary and
fiscal policy mix. The BMI (2016) economic risk rating puts Botswana amongst the top performers in SADC with
respect to both short and long-term scores as outlined below in the figure.

Economic Risk Index, Botswana and the region

70
63.3
60
57.9
50
50.2 50.5 45.8
40
40.8 39.8 38.8
% 30

20

10

0
Botswana Mauritius RSA Zambia Seychells Global Regional EME avg
avg avg
Source: BITC based on BMI (2016)

Monetary policy has always highlighted the private sector expectations. Similarly, fiscal
importance of price stability in the form of policy, especially taxation has been relevant
low and predictable levels of inflation and for investment, resource allocation and pricing
an accompanying financial environment that decisions to boost the country’s competitiveness.
fosters savings, investment, international To illustrate; resident companies pay 22%
competitiveness and ultimately the drive for company tax rates and a general withholding
a wider economic base. In this way the central tax of 7.5% while manufacturing companies pay
bank has largely managed to keep inflation a lower 15% operating in the Innovation Hub and
within the 3-6 percent medium term objective International Financial Services Centre (IFSC).
thereby successfully managing inflation and

% Corporate Tax in Selected Econimies (2015)

45
40
40
35 33
35 33
30 30
30 28
25
25 22 22.5
20 20
20
15
15
10
5
0 Botswana Mauritius South Malaysia Thailand Mexico UK USA Japan Germany
Namibia Angola Chile
Africa
OTHER UPPER MIDDLE ADVANCED COUNTRIES
Country SADC INCOME COUNTIRES

Source: BITC based on Bank of Botswana (2015)

 21
Trade, Investment
And Related Policies
In addition to macroeconomic policies, Botswana is deep- efforts to improve the business climate
ly engaged in modern international trade being party to • Measures aimed at harmonizing laws, policies,
bilateral, regional and multilateral trade agreements. and practices to improve the investment
climate in the region
Such arrangements by and large determine
the trade and investment policies the country The SADC Investment Policy Framework (IPF) forms
pursues. For example, attracting investment has the core of the RAPI alongside other pillars like
been placed at the core of the developmental • the SADC IPAs Peer to Peer Learning
integration agenda of the Southern African Mechanisms
Development Community (SADC). Member • Investment Regime Database
States acknowledge that creating a favourable • Model BIT Template
investment climate is central to diversifying
their economies, creating new labour skills, In this way, the pursuit for free trade and more
empowering women, developing infrastructure, market access has to be realized based on regional
and enhancing their participation in regional integration and multilateral trade and investment
and global value chains. All Member States requirements. Special Economic Zones Policy of
recognise the role investment may play in 2011 is a key example that illustrates government
sustaining economic development states to and efforts towards industrialisation and economic
in alleviating poverty. In this manner, SADC is diversification by attracting domestic and foreign
implementing the Regional Action Programme investors to designated zones throughout the
on Investment (RAPI) aimed at improving investor country. The SEZ policy aims to offer enhanced,
climate and removing barriers that hamper doing competitive and investor friendly environment
business among member states and the region. with fast-tracked and streamlined authorization
The RAPI has a combination of the following and licensing of businesses. The SEZ model is
actions for member states; based on the cluster development concept and
agglomeration economies to create productive
• Actions that member states can choose to synergies and reinforced value-chains.
implement to improve the investor climate
internally (examples in Botswana case being The central bank runs an exchange rate policy
World Bank Study on Doing Business Reforms that bolsters competitiveness of domestic
at National Strategy Office, the planned industries at home and abroad. To do this the
Business Facilitation Law, Special Economic bank maintains a stable real effective exchange
Zones) rate (REER) of the BWP against major trading
• Actions to improve the investor climate at partner countries’ basket of currencies. The REER
regional level ( for example cooperation is a trade –weighted exchange rate of the BWP
of IPAs under the Finance and Investment against these currencies, adjusted for inflation
Protocol, FIP) and acts as a measure of relative competitiveness
• Mutual reinforcement of national and SADC of the country’s tradeable goods and services.

REER Appreciation and Subsequent Staniklisation, 2002 - 2010

115 7.5 percent devaluaiton,

February 2004
REER (Index, September 2006

110 12 percent devaluation and

retroduction of crawling
band mechanism, May 2005
105

100

95
Global financial crisis
= 100)

90 causes REER to fluctuate

due to billateral
exchange rate volatiliy
85
2002 Jul 2003 Jul 2004 Jul 2005 Jul 2006 Jul 2007 Jul 2008 Jul 2009 Jul 2010

Source: Bank of Botswana (2016)

 22
International Trade:
An Overview
1. Principal import commodity groups 2016 (BWP Millions)
Import Bill in 2016 reached BWP 66.84 billion. Diamonds constituted 28% of total imported products (BWP18.9bn) followed by
Machinery & Electrical equipment – 14% (BWP9.2bn), Fuel– 13% (BWP8.6bn), Food beverages & tobacco – 11% (BWP7.5bn),
and Chemical & Rubber products-10% (BWP 6.6bn)

Import value reached (SA)mport value reached Namibia’s imported value Canada’s imported value

P66.84 P43.2 P7.02 P3.8

BILLION BILLION BILLION BILLION

Principal imports Composition 2016

Other
Paper Goods 3%
Products 2%

Transport
Equipment 8% Chemical & Rubber
Products 10%

Textiles & Footwear 3%

machinery & Electrical

Equipments 3%

Metals & Metal

Products 5%

Diamonds 28%

Machinery & Electrial

Equipment 14%

Furniture 1%

Fuel 13%

Food Beverages &

Tobacco 11%

Botswana’s import growth or decline is tied import market share are 64.6 %, 10.5, and 5.6%
to the global economic performance, with respectively, however it’s worth noting that in
South Africa, Namibia, and Canada, makeup the year 2016 total imports decreased by 9.5%.
the country’s biggest imports partners. Their
 23
Import by Major Trading Partner (%) 2016
70.0
60.0
50.0
40.0
30.0
20.0
10.0 5.6 2.6 2.6 1.9 1.5 1.4 1.3 0.3
0.0
a ia a a e a y l
ic ib ad di um qu in an om ra
e
Af
r n In gi bi Ch d Is
h am Ca el m er
m
ng
N B a Ki
ut oz
G
So M ed
nit
U

Botswana’s exports are still dominated by Africa 13.6 %, Namibia 11.6% and other countries
primary commodities, mainly diamonds which have less than 10% export market share are; UAE,
are mainly destined to Belgium with 18.9 % of Israel, Singapore, Canada, Switzerland and Hong
share of export market, India has 15.1%, South Kong.

2. Principal export commodity groups 2016 (BWP millions)

In 2016 Botswana exported goods worth BWP 80.3bn. Botswana’s export commodities were highly concentrated in the mineral
sector, diamonds (88%)-BWP70.8bn, copper nickel (3%)-BWP2.6, salt & Soda Ash (1%)-BWP0.7bn. The non-mining sector
contributed as follows: Machinery & Electrical Equipment 3%-BWP2.1bn, Meat and Meat products 2%-BWP1.1bn, Other goods
1%-BWP1.1bn, Others e.g. hides& Skins, iron steel products, Plastic & Plastics products, textiles, vehicles transport equipment’s
contribution was negligible around 2.3%.

Vehicle &
Salt & Soda Transport
Meat & Meat Ash 1% Equipemnt 1% Other Goods
Products 2% 1%

machinery & Electrical

Equipments 3% Copper &
Nickle
3%

Diamonds 88%

Source: Statistics Botswana, BITC Calculation

 24
Export by Major Trading Partner (%)
20.0 18.9

18.0
16.0 15.1
14.0 13.6

12.0 11.6

10.0 9.7

8.0
6.1
6.0 5.6 5.0
4.0 2.6 2.5
2.0
0.0
l
di
a
ic
a ia es e
or
e da nd
g
um r ib at ra na
n
gi In Af ir Is ap la Ko
el am g Ca er g
B u th N Em in itz on
S
So ab Sw
H
Ar
d
te
ni
U

Source: BITC based on national statistics (2016)

Annual National Accounts Summary (2016)

GDP IS GDP Per Real GDP

P 170 billion capita is growth rate
P 76,446.4 is 4.3 %

Inflation Total Imports Total Exports

rate Is P 66.84 is P 80.3
Av (2.8%) billion billion

Source: BITC based on national statistics (2016)

Contribution to GDP by Economic Activity 2016
25
In 2016, Mining and Trade, Hotels & Restaurants percent respectively. The graph below depicts
remains the major contributors to GDP, their sectorial contributions;
contributions stood at 19.9 percent and 18.3

Taxes on Other Taxes on

Import 5% products
5%
Socila & Agriculture
Personal 2%
Services 5%

Mining
20%

General
Government 14% Manufacturing 5%

Water & Electricity 0%

Construction
6%

Finance & Business

Services 14%

Trade, Hotels &

Resturants 18%
Transport &
Communication 6%

Source: BITC based on national statistics (2016)

 26
National Output (GDP at current
prices; BWP million, 2012-2016)
Botswana’s real GDP growth has increased by forecast that Real GDP growth will increase by an
an average 4.5% in the past five years, with the average of 4.7% for the next five years.
mining sector still dominating in terms of added
value. Business Monitor International (BMI) has

GDP at Current Prices (million) 2012 2013 2014 2015 2016

Agriculture 2,961.3 2,876.9 3,045.3 3,214.5 3,393.4

Mining
19,286.5 24,243.4 32,403.0 25,819.9 33,825.9

Manufacturing
6,523.2 7,285.1 7,740.3 8,441.7 8,777.0

Water and electricity

-621.2 -123.2 -581.5 -219.2 464.0

Construction
7,464.5 7,997.9 8,689.7 9,606.6 10,574.9

Trade, hotels and restaurants

16,896.7 21,211.3 26,182.3 23,711.4 31,021.2

Transport and
communication 6,325.3 6,906.2 7,788.2 8,559.3 9,643.4

Finance
& business service
16,467.8 17,717.0 19,284.3 21,517.5 23,154.8

General government
16,923.7 17,731.0 19,946.0 22,491.1 24,423.2

Social & personal services

6,750.2 7,344.1 8,138.4 8,653.0 9,259.3

Value Added
98,978.1 113,189.7 132,636.1 131,795.8 154,536.9

Taxes on Import
5,560.5 6,403.1 7,107.4 7,541.6 8,054.3

Other Taxes on Products

5,804.8 6,083.2 6,691.5 7,205.1 7,782.0

TOTAL GDP 109,870.4 125,158.3 145,868.4 145,923.5 169,688.0

 27
Real GDP Growth
Growth in Botswana will recover at a gradual pace over 2017 economic boost over 2017. The Global Economic
after a recession in 2015, where the economy contracted by 0.3 Prospects (2017) forecast real growth of 4.0 %
%. This was due to the subdued demand for mineral exports, and 4.3% in 2017 and 2018 respectively. Further,
resulting from the the low comodity prices globally. the World Output (GDP) is forecast to increase
by 2.7 % in 2017, compared to an estimate of 2.3%
Although the country reamins exposed to the growth in 2016.
external forces, the Government’s Economic
Stimulus Programme (ESP) will provide a modest

Real GDP growth

12.0
10.0
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0
-8.0
-10.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017f 2018f

Real GDP growth Average

Source: World Bank

Below is an illustration of expected GDP growth of Botswana compared with the rest of the world,
emerging markets and developing economies (EMDE) and middle-income economies.

GDP: Real GDP growth

5.0

4.0

3.0

2.0

1.0

0.0

-1.0
World Advanced United Euro Area Japan EMDE Botswana
Economies States

2014 2015 2016e

 28
Inflation
World inflation was benign in 2015. Inflation fell from 3.5 to 3.3 fell from 3.1 to 2.8 percent in 2015. Overall,
percent in 2015 owing to weak world demand, low commodity inflation fell from 3.8 percent to 3.1 percent
prices and persistent excess capacity in advanced economies. and within the country’s range of 3.6 percent
medium-term objective. Thus, the Botswana
Similarly, international oil prices declined economy was experiencing modest demand and
markedly in 2015 reaching an all-time low in six restrained growth in personal income, in the face
years against the already subdued world demand of declining fuel prices (one of the largest import
and a well-supplied market. Brent crude oil products) as well as other factors like low food
prices declined by 39 percent from USD 62.34 inflation. On the external front, inflation was
to USD38.01 between December 2014 and 2015. also declining in major trading partners. Similarly,
At the same time, the trade weighted inflation the Pula was getting strong against the Rand
between Botswana and major trading partners (thereby reducing imported inflation).

Botswana Annual Inflation Rates

12.6

8.2 8.5
7.5
6.9
5.9
4.4
3.1 2.7

2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: BITC Research based on Stats Botswana, 2016
 29
Inflation outlook: global inflation is forecast recently embarked on numerous infrastructure
around 3.4 percent in 2016, a bit higher than the project such as the power and electricity through
3.3 percent recorded in 2015 in the face of low the Northwest electricity transmission grid as
commodity prices, weak global demand and well as the rehabilitation of Morupule A power
continuing spare capacity in advanced nations. plant. Here, the ministry has allocated a stagger-
Pressure on domestic inflation is expected to be ing BWP 3.43bn and additional BWP 1.34bn being
limited and inflation is forecast to fall within the commitments under the 2016/17 financial year
requisite 3.6 percent range. and 2015/16 supplementary budgets respective-
ly. It is no surprise that Botswana tops the entire
Government’s commitment to improved infra- Sub-Saharan Africa on the infrastructure risk-re-
structure is another key milestone worth noting. ward index at 52.8/100 as shown below.
To illustrate this, the Ministry of Mineral Resourc-
es, Green Technology and Energy Security has

Risk-reward rankings, select SSA countries

Botswana Namibia Egypt RSA Nigeria Kenya Mozambique

Source: BITC based on BMI data (2016)

Thus, Botswana is the most attractive in Africa giving an overall score for return on investment.
ahead of key competitors. The risk-reward index In addition, a weighted average of risks on
takes into account current industry size and both political and economic conditions (such
growth prospects, the degree of openness of as operational risk, regulatory issues, industry
the market to new foreign investors together sophistication) and country risks and rewards
with the political and economic conditions score, give risk-reward score with 100 being the best.
30
 31
New Project Developments
And Structural Issues:
Highlights
Botswana is expected to ramp up the production
32 a BWP 812.56 (USD 73.21) per megawatt hour.
Construction is expected to commence to-
of coal through coal-fired plants in the near future wards the end of 2016, supplying power to
and attain full independence with respect to gen- the national grid by 2020. Additional plans in-
eration of electricity by year 2020. The refurbish- clude a possible further expansion by 300 to
ment of Morupule A and the advent of indepen- 1200MW thereafter.

dent power producers (IPPs)-representing private • Similarly, Shumba coal is in the process of de-
investment will boost thermal power production. veloping a solar power station to generate
Similarly, Shumba Energy is in the process of fi- 200MW earmarked for the Kalahari copper
nalising the power producer agreement (PPA) belt.

ahead of construction on the Sechaba Coal power

Water - Key for Investment
plant set to commence by 2018/19.
• The country is also undertaking construction
The Introduction of IPPs in Botswana is a signifi- of a USD 1.6bn water pipe line from Zambezi
cant milestone and stands to boost future gen- river to the south of the country. This pipe
eration potential. It gives the government a win- line was originally planned for the Zambezi
dow of opportunity to divert scarce resources agro-commercial project in the north-west
toward investment in other sectors while at the but government had to prioritise.
same time bringing in expertise and efficiency in
the private sector.
Transport - The required backbone
Power - Key Focus For Governvment • There is a need for robust transport infra-
structure especially in the face of possible
• A joint venture between the Japanese giant mining investment and the subsequent need
Marubeni and the South Korean Pasco Energy to reach export markets. Being a land-linked
will expand Morupule B Power plant and have economy, Botswana has to have clear and re-
secured a contract worth USD 800mn. This liable conduits in the form of roads to near-
is expected to ramp up production from the by ports. The 1500km, US 15bn Trans-Kalahari
current 600MW by additional 300MW. Once railway is one huge project that will go a long
ready, the joint-venture will sell to Botswana way in harnessing such efforts linking Bo-
Power Corporation electricity under the first tswana and the Namibia port of Walvis bay.
power purchasing agreement for 30 years at

...first power
purchasing
agreement for
30 years at a
BWP 812.56
(USD 73.21)
per megawatt
hour
Botswana
33
Railways Investment opportunity overview

Project Description:
[Link]-Kazungula-Mmamabula-Lephalale railway lines
[Link] of wagon maintenance workshop (Mahalapye)

Key project metrics:

[Link] Mosetse–Kazungula–starts from Mosetse on the Francistown Sua
Pan Rail Line linking with Zambia Rail network at Kazungula. It covers a
distance of 367km from Mosetse to Kazungula.
The Mmamabula -Lephalale route starts at Dibete and continues in an
easterly direction. Part of the route is situated within Botswana and the
rest in South Africa: Botswana = 56 km; South Africa = 67 km

[Link] workshop will undertake repairs and refurbishment of wagons,

locomotives-operations which are currently outsourced abroad

Business model:
Government finances

Investment costs:
1. Estimated Costs for the project is US$ 115,994,879.95 which translates
to an estimated BWP11,961,359,913.80 for the construction of Mosetse/
Kanzungula and Mmamabula/Lephalale Rail Links.
2. Workshop will cost about USD 15 million.

Expected return: N/A

Government Improved social development

support

Key Commitment to infrastructure development

Investment
rationale

Contact Botswana Railways +267 363 3346

details

Project Location
Botswana
34
Railways Investment opportunity overview

Project Description:
[Link]-Kazungula-Mmamabula-Lephalale railway lines
[Link] of wagon maintenance workshop (Mahalapye)

Key project metrics:

[Link] Mosetse–Kazungula–starts from Mosetse on the Francistown Sua
Pan Rail Line linking with Zambia Rail network at Kazungula. It covers a
distance of 367km from Mosetse to Kazungula.
The Mmamabula -Lephalale route starts at Dibete and continues in an
easterly direction. Part of the route is situated within Botswana and the
rest in South Africa: Botswana = 56 km; South Africa = 67 km

[Link] workshop will undertake repairs and refurbishment of wagons,

locomotives-operations which are currently outsourced abroad

Business model:
Government finances

Investment costs:
1. Estimated Costs for the project is US$ 115,994,879.95 which translates
to an estimated BWP11,961,359,913.80 for the construction of Mosetse/
Kanzungula and Mmamabula/Lephalale Rail Links.
2. Workshop will cost about USD 15 million.

Expected return: N/A

Government Improved social development

support

Key Commitment to infrastructure development

Investment
rationale

Contact Botswana Railways +267 363 3346

details

Project Location
 35
Infrastructure Investment opportunity overview

Project Description: AIRPORT CITY

The SSKIA Airport City desires to transform the SSKIA into a
vibrant commercial centre through a series of logistical, retail, and
recreational developments.
Key project metrics:
1. Airport centre - which will include retail and offices including an
entertainment area measuring 50 000m2.
Hotel and conferencing facilities to host international events. The
area zoned for this use is approximately 200 000 m2.
2. Cargo hub which will be the core of logistics for the distribution and
export of goods and freight using the multi-modal transport system
- (556 000m2).
3. Free Trade Zone – a zone with special incentives for the investors
(500 000m2).
Commercial and mixed use zones – mixture of retail and office
buildings – approx. 500 000m2.
4. Recreational area – approximately 650 000m.
5. Servicing of land with all the backbone infrastructure such as water,
telecommunications, power, sewer etc.
Business model:
Various models BOT, BOOT amongst others in the form of – private
sector development, PPP, government funded etc.
Investment costs: USD 61 million.
Expected return: N/A

Government Improved social development

support

Key To transform the value of land and leverage on its development for
Investment the purpose of revenue generation from non-aeronautical activities
Rationale such as amongst others leasing concessions just to highlight a few.

Contact Ministry of Agriculture, Botswana +267 3689000

details

Project Location
Infrastructure
36
Investment opportunity overview

Project Description:
Zambezi Integrated agro-commercial project
Key project metrics:
A feasibility study to diversify agricultural production, reduce
imports & ensure food security through 25,000ha for production
being (15,000ha for rainfed & irrigation of field crops and 10,000ha)-
fruits completed. Project composition includes irrigation and rain-
fed infrastructure and transmission lines.
On-going, land being sought from Chobe Land Board. Clearing of
2,500ha to take place (September 2016-March 2017), subject to
availability of land.

Business model:
Government procurement

Investment costs:
BWP 3,8 billion

Expected return: N/A

Government Improved social development and self-sufficiency in food

support
Key To reduce food importation bill and attain food security for the
Investment country

Contact Ministry of Agriculture, Botswana +267 3689000

details
Project Location
Infrastructure
37
Investment opportunity overview

Project Description:
Various infrastructure development projects: power, water and
transport
Key project metrics:
1. Morupule B Power plant expansion worth USD 800mn. Construction
is expected to commence towards the end of 2016, supplying power
to the national grid by 2020. Additional plans include a possible
further expansion by 300 to 1200MW thereafter.

2.
Developing a solar power station to generate 200MW for the
earmarked for the Kalahari copper belt.

3. Construction of a USD 1.6bn water pipe line from Zambezi River

to the south of the country to stem water shortages and drive
investment

4. The 1500km, US 15bn Trans-Kalahari railway is one huge project that

will go a long way in harnessing such efforts linking Botswana and
the Namibia port of Walvis

Business model:
PPP model
Investment costs:
Totaling over USD17bn

Government Improved social development

support
Key Commitment to infrastructure development
Investment
Rationale

Contact BITC , Botswana +267 363 3346

details
Project Location
 38
Infrastructure Investment opportunity overview

Project Description:
Botswana Communications Regulatory Authority (BOCRA) reviewed its
licensing framework to induce competition and reduce the monopoly powers
that is held by the Mobile Network Operators.

Key project metrics:

1. Network Facilities Providers (NFP); These are licensees to own, operate or
provide physical infrastructure carry service, applications and content such as
International Gateway Systems (Satellite or Terrestrial), Cable Transit Systems,
Satellite Hub Systems, Tower Management, Broadcasting Signal Distributer,
Public Land Mobile Cellular Systems, Public Fixed Systems as well as Uplink
Satellite Broadcasting Stations. NFP is also divided into regional, national and
international categories, to allow for bigger and smaller enterprises to find
niche and invest.

2. Services and Applications Providers (SAP); being non-infrastructure services

and applications to end users using infrastructures of the NFP. Examples are:
Mobile Virtual Network Operator (MVNO) and satellite services.

Investment costs: P100 000 (ISP) to P 1.8 billion (Telecom operator). 1% of net
turnover fees is paid to BOCRA as the cost of regulation and an additional 1%
of net turnover related fees is paid to the Universal
Access and Service Fund (UASF).

[Link] Sector: Under broadcasting sector there are also Content Services
Providers (CSP). These are licensees who will provide content material in the
form of speech or other sounds, text, data, images, whether still or moving
solely for broadcasting (TV and Radio). The licences available under the CSP
category include: Radio broadcasting, television broadcasting as well as
subscription management services.

Investment costs: P5000.00 plus 1% of net turnover (for broadcasting service and
subscription management services). An additional amount of up to 1% goes
to the UASF

[Link] Sector: There are also investment opportunities in this sector. These
include but are not limited to; Public Postal Operators and Courier Service
Operators.

Investment costs: P20,000.00 plus 0.05% of Net Turnover (for courier services).
The Sector also pays an additional fee of up to 1% of Net Turnover fees to the
UASF

Business model: Public tender

Expected return: N/A

Government Improved access to telecommunication and ICT services

support
Key Commitment to Infrastructure development
Investment
Rationale
 39
Project Location

Contact details

BOCRA, Botswana
Tel: +267 3957755/3685500
[Link]
40
 five

Climate
Investment
41

Investment
Climate
05
 42
Investment Climate
Botswana offers a profitable, stable, secure and sustainable investment environment. BITC pro-
vides administrative and business support aimed at facilitating investor application relating to
business registration, licensing, work and residence permits. It provides information and advice to
potential and existing investors to facilitate the establishment and or expansion of their business.

• Availability of sector specific investment incentives (IFSC and economic hubs,

Agriculture, Innovation, Diamond, Education)

• No foreign exchange controls.

• Corporate tax is only 15% for manufacturing companies and IFSC companies.

• Botswana is the most transparent country in Africa, according to Transparency

International. (There is an official policy of zero tolerance for corruption).

• Low personal income tax, the highest bracket being only 25%.

• Zero corporate tax under Development Approval Order.

• Industrial relations are good and trade unions are not militant.

Low personal
Corporate Tax Rates- Resident Company
income tax, Tax Definition Basic
the highest Manufacturing taxable income 15%
bracket being
Capital gains 22%
only 25%.
Foreign dividends 15%

Mining taxable income (exclude diamonds) 22%-55%

Other taxable income 22%

Accredited innovation hub business taxable income 15%

IFSC company- approved services income 15%

IFSC- other taxable income 22%

Standard rate 30%

Corporate Income Tax Rate; Non-Resident Company

Tax Definition Basic

Standard rate 30%

Access to an Expanding Double Taxation Avoidance Treaty Network

Double Tax Avoidance Agreements
Botswana has a growing network of In instances where DTAAs treaties are not
Double Taxation Avoidance Agreements already in place, legislative framework
(DTAAs). At present, there are thirteen (13) as set out in the Income Tax Act, allows
treaties in force, and a further thirty two (32) at various accredited companies a unilateral credit of
stages of negotiation and ratification. up to 15% for withholding taxes suffered
Botswana will continue to grow its DTAAs in jurisdictions with which Botswana
treaty network with key African states, does not yet have a DTAAs. In the case of
major investor nations and international Collective Investment Undertaking (CIU),
financial centres. this unilateral credit may not typically
apply as the CIU will have no tax liability.
Bilateral Investment Treaties
43
Active
South Africa Sweden Mauritius

France Namibia Seychelles

Barbados United Kingdom Zimbabwe

India Russia Mozambique

Zambia

Awaiting Ratification
China Ireland Swaziland

Malawi Lesotho Tanzania

Serbia and Montenegro Luxembourg Belgium

Portugal Singapore Malta

Czech Republic

Under Negotiations
Angola Kenya Qatar

Nigeria Uganda Democratic Republic of Congo

Germany Netherlands Israel

Malaysia Japan Korea

Canada Libya Turkey

Liberia Saudi Arabia Kuwait

Cyprus

Source: Ministry Of Finance and Development Planning (2016)

Other Benefits
Currency Denomination
A Botswana IFSC business is allowed to denominate its capital in any of the internationally recognized currencies and this measure
allows the business to be cushioned from losses brought about by the exchange rate risk and exchange rate movements.
Bilateral Investment Treaties
Botswana’s model Bilateral Investment Treaty Malaysia, Mauritius, and Switzerland. Botswana
(BIT) provides for non-discriminatory treatment also signed a bilateral investment treaty in
of foreign investors. According to the WTO SACU 1997 with the Overseas Private Investment
Trade Policy Review, Botswana has investment Corporation (OPIC), which provides guarantees
promotion and protection treaties with Belgium for U.S. private investors.
and Luxembourg, China, Germany, Ghana,

Incentives - Spedu Region Fiscal

• 5% for first 5 years; 10% thereafter

• Zero customs duty on imported raw material

Provide rebate of Customs duties and Value • Added Tax under Schedule
4 - Rebate Item 470.03, and VAT Act Third Schedule - Item 470.03 for
manufacturing done exclusively for export outside Common Customs Area (CCA)

• Provide rebate of Customs duties and Value Added Tax for importation of raw
materials under Schedule 3 of the customs tariff and VAT Act.
 44
Key
Investment
six Opportunities
 45

Key Priority
Sectors for
06 Investment
 46
Mining Sector
Opportunities for investment in the mining sector include prospecting, expansion of existing mining
projects, new mining projects, beneficiation of minerals and business opportunities resulting from
links with other sectors.

Diamonds Beneficiation
Beneficiation of diamonds is a particularly prom- • Ancillary Support Services: These encompass
ising avenue for adding value to natural resourc- the provision of specifically tailored services
es. The establishment of the Botswana Diamond to the diamond sector such as banking, se-
Hub in the later stage of NDP10 was intended curity, insurance, certification and brokerage
to develop a sustainable secondary diamond in- services.
dustry in Botswana. In the continuing expansion • Support and Outsourcing: Provision of gen-
of diamond ancillary businesses, twenty eight eral services which are not unique to the di-
(28) cutting and polishing companies have been amond industry, such as general security ser-
licensed and are in operation. Although a signif- vices, information technology and support,
icant proportion of these companies are locat- accounting and human resources services.
ed in and around Gaborone, there is also scope • Economic Spin-offs: Industries that will ben-
for establishing operations in other parts of the efit from the growth and activity in the dia-
country. mond sector such as hotels, restaurants and
transportation services.
DTCI Relocation – Opportunities for Investment
The current sales agreement offers huge poten-
and Business tial for transforming Botswana’s economy more
broadly as well as its specific role in the global di-
Opportunities in the diamond sector present
amond industry. Initiatives driven by the private
themselves in the following forms: sector are crucial if maximum benefit is to be de-
• Direct Opportunities: These include areas rived, while the role of Government is to ensure
such as diamond trading, cutting and polish- that an enabling environment is maintained.
ing.
Diamond security
47 Tourism
• Frequency of diamond movements will in- • As more siteholders visit Gaborone, appropri-
crease with different siteholders shipping ately packaged tourism opportunities should
at different times; security risk, but also in- increase.
creased opportunities for the security indus-
try. Health
• Demand for health services is likely to in-
• Potential for money laundering and other blue crease with the increase in the diamond in-
collar crimes. dustry population.

• Potential for local security companies to par- Education
ticipate in diamond transport and protection • Education needs for children of expatriates.
of diamond premises.
• Skills development.
Communication
• High-speed Internet services, ICT managed Banking
services, communication infrastructure, etc. • US$3–6 billion will be transacted in Botswana
every year, this will require the banking sec-
Transport tor to be fully capitalised to participate in the
• Air travel (charter services and commercial transaction.
flights linking Botswana to other diamond and
business centres). • Establishment of specialised banks (e.g., dia-
mond banks).
• Local transport such as transit buses,
executive taxis and limousine services, car
rentals, etc.
Investment Opportunities
48
In 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. Botswana coals occur within the Karoo Basin which covers an area of about 70% of the entire country.
The spread of coalfields is sparse, covering, Dukwi, Foley, Serule, Bobonong, Morupule, Moiyabana, Mmamabula,
Mmamantswe, Letlhakeng, Dutlwe and Ncojane, with total deposits at Letlhakeng and Dutlwe at over 70 000 tonnes (mt)
each. 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.

Figure 1: Coal Deposits In Botswana

Coalfield Tonnes (Mt Defined/Published Resource Location

Figures (Mt) M/Ind/Inf

Dukwe 1,604 +1,969 Sowa/Dukwe

-1,500 Exploration target

Foley 6,860 3,377+860 Sese/Mabesekwa

3-6,000 Exploration target

Serule 9,685 915 Lechana/Tshimoyapula

-3,900 Exploration target

Bobonong 179 None declared Poorly Explored

Morupule 18,072 190 MCL

7,234 Kgaswe
2,400 Morupule South

Moiyabana 3,539 1,460 Moiyabana

+5,000 Exploration target Kweneng

Mmamabula 23,213 2,925+442+2,512+3,144+2,493 MME/MMNC/MMS/MMW

Mmamantswe 2,898 1,300 Mmamantswe

Letlhakeng 70,353 4,230+2,654 Takatokwane remainder

poorly explored

Dutlwe 71,740 None declared Poorly explored

Ncojane 4,725 None declared Poorly explored

Total 212,868 60,021(28%)

From DGS, Chatupa, 1998 (Reviewed by Barlow Jonkey)

Coal Investment Opportunities
49
Botswana will remain attractive to foreign the long term. In the medium term, coal will be
investment, particularly from China, as China will utilized for electricity generation domestically.
continue to seek to plug its supply deficit in copper Coal is starting to play an increasingly important
and coal. Given our expectation that mining costs part in Botswana’s energy mix, with the country
in South Africa will rise considerably over the positioned to become an electricity exporter by
coming years, Botswana could gain a regional 2018. The government is exploring opportunities
competitive advantage. Strong demand growth for coal benefaction, which would see coal
for coal in China and India will allow Botswana supplies converted into liquid energy products.
to export coal into the seaborne market over

Opportunity 1: Exploration & Mining For Export

Botswana has extensive, and largely unexploited, • Compares favourably with South African
coal resources which when developed can form exports
part of the Government’s effort to diversify the • The market studies concluded that the
economy. global demand for seaborne thermal coal
• The demand for coal-for-energy has will continue to grow strongly as domestic
increased significantly nationally, regionally demand in a number of key countries
and internationally outstrips supply.
• A number of coal licenses have already been
issued to some investors. Additional licenses • The growth in demand will be driven by the
may be granted for further exploration and developing nations of Asia, especially China
mining under the new tendering dispensation and India. Demand for seaborne thermal coal
• 24 new mines are possible to open, possibly grew from 250 Mt in 1995 to 650 Mt by 2010,
stepping production up to 100 million tonnes an annual growth rate of nearly 6.7%.
/yr.
• Coal washing to improve quality for export • This growth is expected to continue, with
markets and residuals (middling) for power demand reaching nearly 1,100 Mt by 2025.
generation • Europe will continue to be a large importer
• Quality of Botswana’s coal is suitable for of coal but only limited growth in demand is
export market expected.
• It is in-line with Indian requirements
• Might also be accepted in Europe market
Opportunity 2: Energy Production
50
(a) Electricity Generation
The Botswana government has passed legislation an overall electrification rate of 77 per cent.
allowing for the participation of independent Quality of Electricity Supply (Value) is 2.7/7, and
power producers in the electricity sector. The Quality of Electricity Supply (Rank) is 119/140.
government is focusing on developing coal fired
power as its main source of electricity generation Botswana has a major opportunity of becoming
due to abundant reserves of coal, as it is a cheap an energy hub for the region; as the region is
source of fuel for electricity generation. The in high demand for power. There are already
opening of the Zizabona power interconnector ongoing projects such as refurbishment and
in the next few years will greatly increase the extension of existing Morupule Power Station
opportunity for cross-border trade in electricity and coal bed-methane projects in exploration.
with Zambia, Zimbabwe, Botswana and Namibia. Opportunities to build Greenfield coal fired
The abundance of sunshine is conducive to power stations are abundant for domestic and
the development of on-grid and off-grid solar regional power requirements in SADC, COMESA
power production. In the South-Saharan Africa, and EAC. Below is an indication of the current
Botswana has better electrification rates; with high demand for electricity;

No Country Committed Generation Capacity, MW

2013 2014 2015 2016 TOTAL
1 Angola 389 640 550 1,246 2,825
2 Botswana 600 _ _ 300 900
3 DRC 55 _ 580 _ 635
4 Lesotho _ _ 35 _ 35
5 Malawi 64 _ _ _ 64
6 Mozambique _ 150 300 300 750
7 Namibia - _ 120 50 170
8 RSA 923 3,105 2,543 1,322 7,893
9 Swaziland _ _ _ _ _
10 Tanzania 60 160 500 1,100 1,830
11 Zambia 230 180 435 494 1,339
12 Zimbabwe _ 300 30 300 630
TOTAL 2,321 4,535 5,093 5,122 17,071
Average Electricity Tariff, USc / KWh
51
14

12
11.5

10 9.8
8.7 8.6
4.8
8 7.5
7 6.8
6 8.9 5.7
6 4.8
4

0
NAMPOWER

TANESCO
ESCOM

ESKOM

ZESCO
SNEL

ZESA
EDM

ENE
BPC

SEC
LEC

Coal-fired generating technologies & Investment Cost

Country Technology Net Electrical Overnight Investment Cost (USD/kWe)
Capacity Conversion Cost (USD/
(MWe) Efficiency kWe)
(%) 3% 7% 10%

Belgium Ultra-super- 750 46 2 307 2 448 2 648 2 807

critical

Germany Hard coal 700 46 1 643 1 744 1 887 1 999

Lignite 900 43 2 054 2 180 2 358 2 499

Japan Ultra-super- 704 41 2 496 2 649 2 866 3 037

critical

Korea Pulverised 960 43 1 218 1 289 1 386 1 463

(PC 1000)

Pulverised 766 41 1 252 1 317 1 407 1 477

(PC 800)

Netherlands Ultra-super- 1 070 46 1 620 1 720 1 860 1 971

critical

Ultra-super- 777 46 2 746 2 914 3 152 3 341

critical

Ultra-super- 1 554 46 2 660 2 823 3 054 3 237

critical

Portugal Pulverised 605 51 3 067 3 255 3 521 3 732

Pulverised 605 46 2 533 2 689 2 909 3 083

United Supercritical 750 43 2 496 2 609 2 765 2 886

States pulverised
Non-OECD countries

China Ultra-super- 1 000 45 813 863 933 989

critical

South Africa Pulverised 4 693 40 2 222 2 222 3 157 3 652

(b) Coal Bed Methane
52
Botswana’s mining industry is heavily reliant on is along the eastern margin of the basin, where
heavy fuel oil / diesel. Diesel cost ~ gas equivalent the carbonaceous sequence can be up to 80m in
ranges from AUD 25/GJ to AUD 30/GJ. Strong thickness and contains up to 30% by volume of
incentive for companies to convert to gas. Coal coal. Reservoir modelling of the results obtained
beds within the study area contain an estimat- indicates that a reasonably large percentage
ed gas-in-place resource of 60 trillion cubic feet (15-20 %) of Coalbed Methane (CBM) gas in place
(Tcf). The associated carbonaceous shales are es- could potentially be developed at a gas price of
timated to contain an additional 136 trillion cubic $2.00/thousand cubic feet at the wellhead.
feet resulting in combined 196 trillion cubic of
gas in place. The highest development potential

Opportunity 3: Coal To Liquids (Ctl)

The low price of coal compared to the high price of other • CTL provides one of the most affordable al-
fuel sources, whether oil (currently trading at $600 per ternatives to conventional petroleum pro-
ton), ‘unconventional’ oil, or gas, provides a degree of duction.
longer term investment certainty that has generated a • In Sub-Saharan Africa; South Africa has been
significant amount of interest in CTL fuels worldwide operating CTL for many years, a broadening
(World Coal Institute, 2015). and growth of the market will drive both ex-
isting providers and new entrants to develop
• CTL plants are one of the most cost effec- more efficient and cost effective processes
tive of the alternative fuel, particularly when to gain the market advantage
overall operating costs and the low cost of • CTL capital investment costs range around
coal are considered. $50, 000 - $70,000 per barrel of daily capac-
• Through ongoing technological development ity, compared to $100,000 - $145,000 per
the capital cost of CTL plants is expected to barrel of daily capacity for biomass to liquids
decrease. plants (World Coal Institute 2006).
Market Potential
53
There are currently few alternatives to liquid fu- fuel that can be produced in the CTL process.
els, which make CTL the best and profitable op- It is has great promise as a domestic fuel. DME
tion. There is a strong growing demand in devel- can also be used as an alternative to diesel for
oping economies as the economies develop. As transport.
an alternative source of liquid fuel from oil liquid,
coal derived fuels can play a significant role. Top Importers of Crude oil (Value imported in
2015 USD’ 000)
• In the transport sector, as consumers pur- • China 134,341,241
chase more vehicles and oil prices and as • USA 132,595,566
more stiff environmental measures are to be • India 72,321,670
called for. • Korea Republic of 55,132,262
• Japan 44,998,801
• Health impacts and local air quality concerns, • Germany 36,441,624
have driven for clean cooking fuels. Coal-de- • Netherlands 35,411,906
rived dimethyl ether (DME) is one of a suite Source: ITC

CTL Opportunity
The benefits of CTL can be beneficial and real- than 200 billion tonnes of coal resources to
ized in countries that rely heavily on oil imports reduce reliance on petroleum product im-
and are abundant with coal reserves. Botswana ports.
has high abundance of coal and this opportuni- • The 20 000-barrels-per-day project, which
ty is very lucrative, and has to be fully exploited. will also produce fertilizer, is funded by Bo-
There are a number of developments which have tswana’s unlisted Coal Petroleum and South
already been undertaken; African private company Kumvest. It will run
over three phases from 2016 until 2020.
• In collaboration with Pyro Carbon Energy • Botswana imports all its liquid fuel to meet
(PCE), BITRI has taken the opportunity to ex- the country’s annual consumption of 1.2 bil-
plore Botswana’s coal to add value to the lion liters. The plant will require 4.3 million
country’s natural resource. Liquid fuels from tonnes per year of coal, which it will source
coal provide ultra-clean transport fuels for from the country’s operating coal mine,
use in the existing supply infrastructure, and Morupule.
cooking fuels; • The project, which is set to create more than
• Funders of a 4.2 billion dollar coal-to-liquids 9 000 jobs, is expected to have a positive 830
plant in Botswana will start construction in million dollar impact on Botswana’s balance
2016, which aims to tap the country’s more of trade.

Opportunity 4: Coal Downstream Activities

• Coal to gas: production of gas and coal fertilizers complementing downstream
combustion products like fly-ash for cement activities in agriculture. Nitrogenous fertilizer
production market expected to reach US$113,998.2 million
• Fertilizer production-of nitrogen based by 2018. FAO highlights that ‘Africa region
fertilizers complementing downstream likely to remain a major exporter of phosphate,
activities in agriculture. Nitrogenous fertilizer followed by Nitrogen
market expected to reach US$113,998.2 million • Provision of Services and Equipment to
by 2018. FAO highlights that ‘Africa region is growing Coal Industry
likely to remain a major exporter of phosphate, • Clean Coal technologies – opportunities for
followed by nitrogen R&D
• Provision of services and equipment to the • Development of Infrastructures; mainly rail
growing Coal Industry way line to reach the market. The alternative
• Clean coal technologies – opportunities for options are :
R&D • Through Zimbabwe to Mozambique in
• Development of infrastructures; mainly rail East (complex)
way line to reach the market. The alternative • Trans-Kalahari through Namibia (simpler)
options are : at an estimated cost of BWP136 billion
• Coal to gas: production of gas and coal (US$15billion)
combustion products like fly-ash for cement • Through South Africa’s (Waterberg area)
production and use existing infrastructure (limited
• Fertilizer production-of nitrogen based capacity)
 54
Investment Opportunities
In Soda Ash
Opportunity 1: Chromium Production
For the production of pure chromium, the iron of air. The chromium is oxidized to the hexavalent
has to be separated from the chromium in a form used in stainless steel, other alloys and
two-step roasting and leaching process. The steel plating in the car industry.
chromite ore is heated with a mixture of calcium
carbonate and sodium carbonate in the presence

Opportunity 2: Chemicals – Applications

a. Sodium dichromate uses include: b. Sodium Chromate uses include:
• Main ingredient of chromium chemicals, • Corrosion inhibitor in petroleum industry,
• Water softener in laundering, • Dyeing auxiliary in textile industry,
• Additive to swimming pools to raise the • Wood preservative,
PH and neutralize effects of chlorine, • Red blood cell volume diagnostic.
• Food additive (E500) acidity regulator,
anti-caking agent and raising agent. c. Sodium Silicate uses include:
• Wetting agent, brick industry i. Spray dried detergents
• Tannery and fur industry for leather and ii. Soap manufacturing
fur tanning; iii. Water treatment
• Chemical industry for producing non- iv. Deflocculation of ceramic clays
organic pigments, catalyzers and other v. Foundry - C02 and self set Process
chrome-containing elements; vi. Soil consolidation
• Textile industry for fabric pickling; vii. Tube winding adhesives
• Other industries in passive mixtures viii. Welding electrode manufacture
content, in antifreeze liquid for engines,
acetylene cleaning and chemical reagents

Opportunity 3: Swimming Pool Care

Soda Ash is widely used for water treatment in swimming pools to increase swimming pool alkalinity (Increase Ph). The final
product requires minimal processing and it is sold to consumers in packs of 500gr – 4kg. There is potentially an opportunity for
an investor to proceed with the following:

• Set up operations nearby Sowa Town There are estimated 170.000 pools in South
production plant to pack soda ash in Africa (3 per 1000 inhabitants) corresponding
consumer ready pack sizes in order to satisfy to 100,000 pools in rest of Southern Africa.
the domestic and other markets north and Assuming that:
west of the borders
• Set up operations nearby Botash’s South • Swimming pools open 6 months per annum
Africa depot to pack soda ash in consumer- • 1kg of soda ash is required per swimming per
ready pack sizes in order to satisfy the South month
African market • Price of consumer pack is USD 3.00 per kg

The operations could be set up in parallel with salt

packing facilities to ensure maximum synergies.
Opportunity 4: Potassium Chloride
55
Potassium chloride is a naturally occurring compound made up of potassium and chlorine, and its uses
include:
• Agriculture – Fertilisers, animal feeds • Food supplement – Against a condition called
• Food processing – Salt substitute “Hypokalaemia”
• Water softener – Sodium chloride substitute • Industry
• “Three drug cocktail” – One of the three active • Radiation monitoring equipment
ingredients for lethal injections used in the • Common batteries
USA • To melt ice

Potassium Chloride – Applications

I. Agriculture: under stressful situations and aids in digestion
of nutrients for maximum feed efficiency.
In Agriculture, potassium fertilizers
are commonly used to overcome plant III. Medicine:
deficiencies. Potassium chloride (KCl),
the most commonly used source, is also Potassium is a mineral that is found in many
frequently referred to as muriate of potash or foods and is needed for several functions
MOP. Potassium chloride is the most widely of your body, especially the beating of your
used K fertilizer. heart. Potassium chloride is used to prevent
or to treat low blood levels of potassium
II. Animal feeds: (hypokalemia). The lethal effects of potassium
chloride overdoses have led to its use in
Pets and livestock need to be fed potassium lethal injection, as the third of a three-drug
to avoid reaching low potassium levels, combination.
especially during heavy training, as it
is essential to the functioning of many • Who to talk to for more information:
physiological systems, especially to neuro- • Ministry of Health
muscular function that is lost in sweat. It also • Princess Marina Hospital
contributes in improving your pet’s appetite • Private suppliers to health system
Opportunity 5: Detergents/Cleaning products
56
Detergents production is a more value added • Scouring powder
business vs soda ash. Exports in 2015 from South • Powder detergents
Africa were valued around $160 million. Soda Ash
(Sodium Bicarbonate) is used as a base or carrier
for the following applications:

Opportunity 6: Paper Mills and Pulp

Soda helps increase the pH in the pulping process flue gases. Similarly, large amounts of CO2 are
of fibres. The higher pH of the paper-fibres released into the atmosphere through power
solution results to fibres smoothen and swell plants and industrial production processes
facilitating the grinding process of the fibres. (e.g. steel & cement production). Recent
research conducted by Harvard University
Additional potential uses of soda ash include and the University of Illinois have proved that
Flue Gas Desulfurization (FGD) a technology microcapsules made of soda ash can absorb
used to remove sulphur dioxide (SO2) from the carbon dioxide. This is future opportunity for
exhaust flue gases of fossil fuel power plants. implementing technology across Southern
For example, in a typical coal-fired power station, Africa.
FGD will remove 95-99 percent of the SO2 in the
 57
Cargo, Freight & Logistics
Sector
Botswana’s Cargo, Freight & Logistics Industry Overview
Centrally located in SADC, Botswana offers land- from South Africa through Zimbabwe and further
linked access to seven fast-growing markets and north to Zambia and the Democratic Republic
serves as the perfect location of the Congo (DRC), and is able to leverage
to leverage regional trade growth, with intra- favourable port, rail and road infrastructure in
regional transport volumes expected to more neighbouring South Africa and Namibia.
than double within the next two Botswana has committed significant investment
decades. According to the World Economic to develop new and revitalise existing transport
Forum, Botswana has the best landlocked corridors making use of road, rail, airports, dry
infrastructure in Africa and the third best ports and one-stop border posts. Worthy of
logistics operating environment in the region. note is the P1.4 billion Kazungula Bridge Project
linking Botswana and Zambia and opening up
It provides an alternative route to SADC’s other possibilities of accessing SADC further up
highly congested corridors, such as the route by road.

Botswana’s Relatively Competitive Infrastructure In SADC

6
5.2 5.3
5
4.9
5
4.1
3.8
4 3.5 3.5
3.2 3.2 3.2 3.2
3
3 2.6
2.4 2.4 2.3
2.2
SCORE

0
Botswana Mozambique Namibia South Africa Zambia Zimbabwe

Quality of road Quality of railway Quality of port

infrastructure infrastructure infrastructure

Source: WEF Global Competitiveness Report 2016/17

Score: 1-7 (higher average score means higher degree of competitiveness)

Opportunities in the Botswana Cargo, Freight & Logistics Industry

Despite Botswana’s relatively limited market size consumers within a 1,500km radius, and a
and landlocked positioning, its central location regional market of 292 million consumers,
in SADC presents multiple opportunities for perfectly positions the country to capture
investors seeking to tap the cargo, freight and regional consumer freight flows by offering
logistics sector in the region. Among the key bulk breaking, cargo consolidation, dry ports
opportunities in the sector are: and cargo warehousing facilities. According to
GAIN, combined trade volumes in Southern,
292 Million Consumers: Central and Eastern Africa are expected to
reach 4.9 trillion tonnes by 2044.

• Botswana’s central location in SADC with

a catchment area of 100 million potential
Despite Botswana’s relatively limited market size
58 the highly congested Durban Port. The
and landlocked positioning, its central location corridor will enable Botswana to attract
in SADC presents multiple opportunities for cargo away from traditional entry ports in
investors seeking to tap the cargo, freight and South Africa, making Botswana the ideal
logistics sector in the region. Among the key transshipment and
opportunities in the sector are: consolidation hub in SADC.

292 Million Consumers: • The planned Techobanine Corridor will

serve as a heavy haul rail corridor between
Botswana and Mozambique via Zimbabwe,
• Botswana’s central location in SADC with
supporting Botswana’s future coal exports
a catchment area of 100 million potential
through a deep water port in the Matutuine
consumers within a 1,500km radius, and a
district of Maputo province, Mozambique,
regional market of 292 million consumers,
unlocking further trade opportunities with
perfectly positions the country to capture
Asia.
regional consumer freight flows by offering
bulk breaking, cargo consolidation, dry ports
and cargo warehousing facilities. According to Adding to the North-South Spine:
GAIN, combined trade volumes in Southern,
Central and Eastern Africa are expected to • The Kazungula Bridge Development will provide
reach 4.9 trillion tonnes by 2044. a road and rail bridge land link between
Botswana and Zambia, facilitating the export
Coal Deposits: of bulk commodities from Katanga province,
DRC and the transport of coal from Botswana
to copper smelters and refineries in Zambia
• Botswana has 212 billion tonnes of coal
and the DRC. Following the expected
deposits. The country expects to export
completion in 2018, Kazungula will be the
between 72 million and 90 million tonnes per
fastest link between the South African coast
annum in 2024, substantially exceeding the
and the DRC.
current rail capacity of 4.2 million tonnes.
To take advantage of these coal deposits, a
number of opportunities exist: Courier and Express Freight:
• Increasing the capacity of Botswana Railways;
• Transporting coal to South Africa, Namibia Botswana’s air infrastructure is International Civil
and Mozambique for export; and Aviation Organisation (ICAO) compliant, is less
• Transporting coal to the Morupule and congested than OR Tambo International Airport
Mmamabula power stations. and offers a more competitive fee structure.
Botswana has the capacity to serve as a satellite
Emerging East-West Corridors: hub complementing South Africa and to service
niche sectors and underserviced routes, and
thus to expand its air, freight and air passenger
• The Trans-Kalahari Corridor from Walvis
volumes. Botswana’s growing tourism market
Bay Port to Johannesburg via Gaborone will
will be aligned to growing cargo and logistics
provide an alternative to
capacity and opportunities within the country.

Botswana’s Value Proposition In The Cargo, Freight & Logistics Industry

Botswana’s innovative intra-regional corridor Francistown (FRANCON) and Palapye (PALCON),
developments and interconnectivity of road, provide bonded customs facilities and advanced
rail and air cargo provide a model platform to material handling equipment and systems
access local, regional and international markets. reducing lead times and enhancing efficiency for
Three freight villages, the operational dry port in logistics operators.
Gaborone (GABCON) and the planned dry ports in
 59
Services And Value Proposition Of Dry Ports In Botswana

Dry Port Service and Value Proposition

GABCON • Consolidation and deconsolidation hub, with the capacity to handle 1,600 TEUs per
month
• Supports manufacturing activities in Gaborone
• Targeting local, regional and international markets
• Close proximity to Gaborone’s airfreight hub
• Close geographic location to South Africa
• Complete one-stop shop service offering

FRANCON • Consolidation and deconsolidation hub

• Will provide ease of access to landlocked regional markets
• Focus on beneficiation of bulk commodities sourced from mining and other
agriculture initiatives in the DRC, Zambia and Zimbabwe
• In the long term, connection directly to the Trans-Kalahari Railway (TKR) line creating
a direct and functioning East-West link between Kazungula and Walvis Bay

PALCON • Consolidation hub supporting mining activities in Botswana’s coal fields

• Strategically positioned as the sourcing hub for bulk mining commodities destined
for ports at Durban, Maputo, Richards Bay and Walvis Bay
• Focus on development of capabilities to support additional manufacturing and
beneficiation SEZs with links to coal, copper and iron ore mining activities

Botswana also offers the ideal sub-regional air transport small volume,short lead-time cross-
freight and logistics satellite hub which can border cargo and freight via air rather than by
serve as alternative distribution base for freight road. Partnering with internationally established
forwarders and cargo owners seeking to access players will allow for access to extended
the SADC region. Botswana is well-positioned to networks.
 60
Botswana’s Enabling Infrastructure Access By 2018

Source: Fronteir Advisory Analysis, 2015

Botswana’s Proximity to Strategic Ports

Source: Fronteir Advisory Analysis, 2015

 61
Industry Drivers of Botswana’s Cargo, Freight & Logistics Sector

Industries that will drive freight flow growth mining, and tourism will lead to the development
in the short to medium term are export bulk of synergies between these sectors and the
commodities particularly coal but also iron ore, logistics industry. This may be very beneficial
copper from Zambia and the DRC, and to some as input and transport costs are expected to be
extent agricultural exports. The government’s lowered in the short to
prioritisation of other sectors including leather, medium term.
automotive and component manufacturing,

Key Supporting Institutions

Supporting the development of the cargo, conducive to doing business within the cargo,
freight and logistics sector is the Transport Hub, freight and logistics sector. The Transport
which coordinates key projects, initiatives and Hub also co-ordinates engagement between
policy interventions to encourage investment investors and the Ministry of Transport and
and entrepreneurship within the sector. The Communications, the Ministry of Minerals,
Transport Hub engages key stakeholders and Energy and Water Resources and the Civil Aviation
prospective investors to understand their needs Authority of Botswana.
in order to create an enabling environment

Departments and Units Governing Transport and Logistics in Botswana

Dry Port Service and Value Proposition

Department of Established to promote and regulate both public transport and freight
Road Transport and road transport. The department has implemented a number of projects in
Safety accordance with its mandate.
Central Transport Responsible for providing and maintaining the Botswana Government fleet
Organisation used by all ministries and departments.
Directorate The DAI is responsible for Civil Aviation accident investigation as well
of Accident as the publication of reports, implementation of measures and safety
Investigation (DAI) recommendations.

Transport Hub Established to identify and coordinate key projects and policy interventions
required in the transport sector in order to develop Botswana as a transport
hub within the SADC.
Civil Aviation Responsible for the regulation of air transport, providing air navigation
Authority Of services, managing airports and advising government on all aspects of civil
Botswana (CAAB) aviation.

Source: Ministry of Transport and Communication, 2014

 62
Leather and Leather Goods
Sector
Botswana’s Leather Industry Overview
Botswana has an abundance of raw hides and As middle income populations in emerging
skins locally. The country has an annual national markets grow, so too does the global demand for
herd size of 2.5-3.3 million cattle; with an leather products. With a small number of micro
average off-take ratio of 9% estimated only businesses and artisanal enterprises operating
through the Botswana Meat Commission (BMC) as tanneries, hide collectors and leather product
annual throughput, yielding 200,000-300,000 manufacturers, Botswana is in the process of
hides per year. creating a vibrant leather cluster which will kick
start with the development of a leather park in
Lobatse.

Opportunities In The Botswana Leather Sector

Despite Botswana’s relatively limited market these sectors and the leather industry. This
size, its central location in SADC and the may be very beneficial as input and transport
availability of raw material inputs presents costs are expected to be lowered in the short to
multiple opportunities for investors seeking medium term. Botswana exports most of its raw
to tap the leather and leather goods industry. hides whilst importing manufactured products.
The government’s prioritisation of other A noteworthy opportunity exists to manufacture
sectors including automotive and component locally, providing value add to Botswana and the
manufacturing, mining, tourism and logistics will regional and global export market.
lead to the development of synergies between

Botswana’s Export And Import Of Leather & Leathergoods (US$m), 2003, 2008
& 2013

World’s Top Ten Imports of Botswana’s Exports of

Leather & Leather Goods (US$m) Leather & Leather Goods (US$m)

12.00
10.48 11.11 11.09 12.00
10.52
10.00 10.00 9.55
9.12 8.54 9.03
8.00 7.85 8.00

6.00 6.00

4.00 4.00

2.00 2.00
0.13 0.19 0.10 0.20 0.15 0.25 0.17 0.27 0.27
0.00 0.00
HS41 HS42 HS6403 HS41 HS42 HS6403

2013 2014 2015 2013 2014 2015

Source: UNCTADSTAT, BITC Calculations

World’s Top Ten Importers Of Raw Hides And Skins, Except
63
Fur Skins (US$m), 2008 & 2013

World’s Top Ten Importers of Raw Hide,

Except Fur Skin (US$m)
2139
United States 2521
797
Australia 1000
406
France 534
307
Germany 397
301
Netherlands
392
297
Canada
354
271
United Kingdom
312
Italy 221
282
Spain 217
287
New Zealand 196
241
0 500 1000 1500 2000 2500 3000
US$m

2015 2014

Source: UNCTADSTAT, BITC Calculations

World’s Top Ten Importers of

Leather (US$m)
4621
Italy 5560
2628
Brazil 3122
1353
India 1552
1153
United States 1313
1096
Republic of Korea
1202
996
Argentina 1149
961
China
978
Thailand 735
772
German 704
927
China, Taiwan Province of 636
783
0 1000 2000 3000 4000 5000 6000
US$m

2015 2014

Source: UNCTADSTAT, BITC Calculations

World’s Top Ten Importers of

Leather Goods (US$m)
1186
China 1302
262
India 263
256
Italy 287
233
United States 253
229
Germany
287
189
Hungary
188
130
France
136
Poland 103
105
Romania 83
76
Unite Kindom 77
73
0 200 400 600 800 1000 12000 1400
US$m

2015 2014

Source: UNCTADSTAT, BITC Calculations

Among the key opportunities in the sector are:
64
• High premium leather production: • R&D for the leather sector: training rebates
Botswana’s animal and raw hide production and migration laws for innovation are
meets industry and environmental standards supported by modern facilities and a strong
creating opportunities for producing eco- legal framework; and
friendly leather; • Investment in supporting sectors: such as
waste management, training, marketing,
• High premium leather goods production: distribution, logistics and supporting
production of high premium & luxury leather infrastructure particularly around the
products ranging from OEM car seats to prospective leather cluster, the Lobatse
consumables; Leather Park.

• Preferential market access through trade Among the leather sector’s most promising
agreements to key growth markets for opportunities is the supply of inputs to the
leather and leather products: the African automotive sector in neighboring South Africa,
Growth and Opportunity Act (AGOA), Africa’s largest vehicle market and manufacturer.
European Union (EU), Mercado Común del Sur
(MERCOSUR), Southern African Development Due to its close proximity to South Africa,
Community (SADC), and the Common Market Botswana has a delivery time advantage
for Eastern and Southern Africa (COMESA); over major competitors in Asia, Europe and
North America. South Africa’s automotive
• Exporting leather and leather goods to manufacturers produced close to 550,000
high growth markets: growing demand for vehicles in 2013 and are expected to increase
leather and leather goods in China, the US production to 1.2 million units by 2020, providing
and EU has been reflected in high compound regional suppliers with ample opportunities to
annual growth rates (CAGR) in the last five supply components and parts.
years and these countries present significant
export opportunities for Botswana’s leather Stitched leather seats and parts are among
and leather goods; South Africa’s top 10 automotive component
imports.

South African Imports Of Stitched Leather Seats And Parts (ZARm),

2010-2013

Source: AIEC, 2014

Botswana’s Value Proposition In The Leather & Leather Goods Industry

Beyond significant raw material inputs, the The leather cluster will provide a common
proximity to growth markets and the market effluent treatment facility, a training center,
access of Botswana’s leather, the country will and factory shells for investors in wet-blue
also be home to a leather cluster, creating an tanneries and re-tanning and finished leather
enabling environment to facilitate the sector and plants. The park is expected to be completed
providing linkages between players. The Lobatse by the beginning of 2018. Thanks to Botswana’s
Leather Park along with the various associated central location, the country is well positioned to
benefits and enabling infrastructure will be in produce leather goods for the growing SADC and
the form of an industrial park situated 70km from African consumer base. One of the institutions
Gaborone. supporting the leather park development is
 65
the Agricultural Hub. Established in May 2008 policy environment that facilitates and supports
with the aim to promote commercialisation, the development of a sustainable and viable
diversification, investment and employment agricultural industry. The leather and leather
creation in the broader agricultural sector, the goods sector receives support from this and a
Agricultural Hub assists in creating a conducive number of other institutions.

Institutional Support Offered To The Leather Industry

Source: ITC LeatherLine Platform, 2014

Unlike some of its peers in the region, labour- An additional advantage that Botswana offers is
employer relations are harmonious. This is that due to its membership in the South African
a key advantage for an industry that has the Customs Union SACU), its exporters enjoy duty-
opportunity to supply to the automotive & free access to the South African market, the
component manufacturing industry, as it allows continental hub for automotive manufacturing.
timely and uninterrupted supply of inputs to
automotive manufacturing plants in South Africa.
 66
The Automotive
Sector
Botswana’s Automotive & Component Industry Overview
As one of the most affluent economies in Botswana’s automotive market is expected to
Southern Africa with a robust growth outlook, receive a boost in terms of sales growth in the
Botswana is home to a growing automotive short to medium term due to the development
market. It has a vehicle ownership rate of 206 of domestic coal deposits and the unlocking of
vehicles per 1,000 people which is far above the agricultural opportunities.
African average of 43 vehicles per 1,000 people.

Botswana’s Vehicle Market Outlook, 2012-2019f

Source: IMF, 2015, Transparency International, 2015, Bank of Botswana, 2015 & BITC

In recent years, Botswana has positioned itself automotive industry, resulting in a strong
as a supplier of vehicle parts and components increase of vehicle part exports from Botswana.
to the region and especially to South Africa’s

Rapid Expansion of Vehicle Part Exports, 1995-2013

 67
Opportunities In The Botswana Automotive Sector
While Botswana acknowledges its relatively • Diversification of after-sales services for
limited market size, future demand in the private & commercial vehicles
SADC region in particular presents multiple
opportunities for investors seeking to tap the • Development of vehicle maintenance service
automotive and component sector in the region. offering for cross-border/regional vehicles

Among the key opportunities in the sector are: • Establishment of skills development/
training facilities for auto mechanics and
• Supply of parts & components to South technicians
Africa’s automotive sector
The sector’s most promising opportunity is
• Supply of replacement parts for vehicles of the supply of inputs to the automotive sector
large-scale projects (e.g. coal, agricultural in neighboring South Africa, Africa’s largest
projects) vehicle market and manufacturer. South Africa’s
automotive manufacturers produced close
• Expansion of existing component to 550,000 vehicles in 2013 and are expected
manufacturing industries (e.g. batteries, to increase production to 1.2 million units by
ignition wiring sets) 2020, providing regional suppliers with ample
opportunities to supply components and parts.
• R&D services for the automotive sector (e.g.
extreme weather & terrain testing)

South Africa’s Top 10 Automotive Component Imports (ZARm), 2010-2013

Botswana’s Value Proposition In The Automotive & Component Industry

One of Botswana’s strongest value propositions in Asia, Europe and North America. In this regard,
is its location. It is both in close proximity of the Botswana has a proven track record in supply
largest automotive market in Africa, as well as the to the South African components market,
largest automotive manufacturer and exporter in increasing its component exports tenfold in the
Africa − both being South Africa. Botswana has a past 20 years.
delivery time advantage over major competitors
 68
Botswana’s Proximity to Africa’s Largest Automotive Manufacturing Hubs

Gaborone

Gaborone -
Rosslyn: 353km
East London
Gaborone -
Durban: 990km

Gaborone -
Eastern Cape: 1047km

Source: Frontier Advisory Research, 2015

Furthermore, unlike some of its peers in Investors in the manufacturing sector also enjoy
the region, labour-employer relations are one of the most competitive manufacturing tax
harmonious. This is a key advantage for the regimes in the region.
component manufacturing industry, as it allows
timely and uninterrupted supply of parts to The government’s prioritisation of other sectors
major automotive manufacturing plants in South including leather, mining, tourism and logistics
Africa. will lead to the development of synergies
between these sectors and the automotive and
An additional advantage that Botswana offers is components industry. This may be very beneficial
that due to its membership in the South African as input and transport costs are expected to be
Customs Union (SACU), its exporters enjoy lowered in the short to medium term.
duty-free access to the South African market.
 69
Agriculture
Sector
Economic diversification has been the key consider- tion and promote the potential for investment that ex-
ation in recent National Development Plans (NDP ists in agro-industrial and supply-chain development.
9/10). Given the agricultural sector’s decreasing share
in GDP, there is need to diversify agricultural produc-
Grain, Fruit & Vegetables Value Chain Investment Opportunities
Botswana is a net food-importing developing and pulses. Cereal national demand stands at
country (NFIDC) with existing opportunities 200,000 tonnes per year, of which only 17 per
to boost production of basic commodities, cent is met by local production. Investments in
particularly cereals (grain sorghum and maize) arable

Botswana is a net food-importing developing another investment opportunity. Tapping water

country (NFIDC) with existing opportunities for irrigation from the river will help increase
to boost production of basic commodities, output through the 20,000 hectares earmarked.
particularly cereals (grain sorghum and maize) In addition, fish, poultry, and oil milling present
and pulses. Cereal national demand stands at opportunities for processing.
200,000 tonnes per year, of which only 17 per
cent is met by local production. Investments in Similarly, the NAMPAAD, 2000 report identified
arable agriculture will stimulate private sector two possible sites for irrigation: Mmadinare-
development, create employment, create value- Tobane (750 ha, based on water from the Shashe
addition opportunities, and enhance both food Dam), and Selebi Phikwe (1,019 ha based on water
security and, ultimately, exports. from Letsibogo Dam). These two sites present
other production investment opportunities
The Pandamatenga agricultural infrastructure which include horticulture packaging and
development project, located in an area receiving standardisation to link farmers to high-end
the highest rainfall, would create spin-offs markets at farm gate prices. In addition, an
in sunflower processing instead of exporting opportunity exists for tomato paste production
sunflower for processing. The Zambezi Agro- that makes use of surplus production and below-
Commercial Development Project presents standard produce from the packaging plant.
Livestock Value Chain Investment Opportunities
70
Dairy Farming: has been identified as a potential Pork/Beef Products: Botswana is a net importer
area of growth and investment in the agricultural of pork products. According to the 2011 LEA study
sector. Total 2003 to 2010 consumption of milk in on pork value chain development in Botswana,
Botswana was 55.1 million litres of milk; 7.7 million local pork production in 2008/09 stood at 441.1
litres of milk was produced locally and the rest tonnes while imports were 952 million tonnes.
was imports. The consumption figures suggest Traditional suppliers of pork meat are South Africa
that there is scope for import substitution and and to some extent Namibia. Moreover the SACU
expansion of domestic production of milk. This region has a net import demand for the product
presents an opportunity for investment and which is often filled by imports from Brazil. There
diversification but the challenge is high feed are opportunities to invest in piggery production,
cost which could be defrayed by domestic slaughter facilities and grain/feed production,
feed production – another area of potential including transportation. Botswana has
investment. traditionally been a fresh/frozen beef exporter to
the EU. Further investment opportunities exist in
Leather: Potential investment opportunities domestic production; fodder/feed production;
exist in processing raw hides and skins into transportation and processed meat for domestic
finished products, particularly in establishing a and export markets.
wet blue leather tannery. The 2006 study on the
Economic Diversification of Selebi Phikwe noted
that Botswana produces around 360,000 cattle
hides per year, with the majority being exported
in raw form.
 71
Financial and Business Services
Sector
Botswana aims to become a world-class hub for developed and has a higher degree of penetration
cross-border financial and business services into than most other African countries. Botswana’s
Africa and globally. As one of the most affluent life insurance sector is significantly larger than
economies in Southern Africa with a robust the non-life sector. The life insurance sector is
growth outlook, Botswana’s wealthy population also expected to grow faster than the non-life
presents a sizeable market for financial services sector over the next five years. Botswana’s life
such as banking and insurance, relative to insurance sector is one of the largest and best
most other regional economies. Botswana’s developed life insurance markets in SSA.
International Financial Services Centre (IFSC)
supporting regulatory framework provides One of Botswana’s strongest value propositions
regional and international banks, international is its location, being ideally located to provide
business firms, insurance companies and cross-border business and financial services to
investment funds an advantageous platform holding companies, institutions and corporate
to penetrate new markets or consolidate their clients. With a time zone of GMT+2, Botswana is
position in Sub-Saharan Africa’s (SSA) fast- an attractive location for business and financial
growing markets. In addition, Botswana has services, especially those geared towards
the 3rd best Network Readiness Index overall European, African and Middle Eastern markets.
score in Southern Africa. The country thus has The time difference with the US allows for
the third highest propensity in the region to the timely completion and processing of data
exploit the opportunities offered by ICT. At the mining and cleaning as well as salary processing.
beginning of 2015, Botswana’s total banking Botswana is therefore strategically positioned as
assets represented approximately 50% of the a BPO centre, for Africa and globally.
country’s GDP. Botswana’s banking sector is more

IFSC specific incentives

Certified International Financial Services • No foreign exchange controls
Companies in Botswana enjoy competitive • Full exemption from withholding tax when
incentives that include paying dividends, interest, royalties or
management fees to non-residents
• A competitive corporate tax incentive • Full exemption from capital gains tax when
framework disposing of assets in a subsidiary where
• Exemption from Capital Gains Tax and shareholding exceeds 25%
Withholding Tax • Zero rated for VAT
• Access to an expanding Double Taxation • Up to 15% tax credit for withholding taxes
Avoidance Treaty suffered in countries there is no Double
• Denomination of Share Capital in any major Taxation Agreement
convertible currency

Tax IFSC Company Non-IFSC Company

Corporate Tax 15% 22.0%
Value Added Tax Zero Rated 12.0%
Capital Gains Tax Exempt 15.0%
Withholding Tax Exempt 7.5%
IFSC Target Sectors
72
International Insurance
Botswana has positioned itself as an attractive and captive insurance operations that focus on
location for the establishment of internationally the African marketplace.
traded insurance services such as reinsurance

International Business Companies (Regional Holding Companies)

International Business Companies (IBCs) present projects in several sub-Saharan countries and are
the most immediate potential for expansion into typically structured as investment companies or
Africa from an IFSC platform. IBCs are companies regional headquarter operations.
that cut across sectors, have operations or

International Banking
International banking refers to banking within the IFSC ambit can provide are corporate,
transactions denominated in various foreign international, investment and merchant banking,
currencies that cross national boundaries and including leasing finance, asset management,
include international lending and deposits. stock-broking and treasury services.
Among the services which banking entities

International Investment Funds

Business Process Outsourcing (BPO) refers to level of education among Batswana, coupled
an arrangement where an independent entity with the country’s English-speaking population,
manages a business function for a client. Due Botswana is an ideal and competitive location for
to a number of unique factors such as a high BPO entities and call centres in mainland Africa.

Business Process Outsourcing and Call Centres

The IFSC continually seeks opportunities to location in Botswana of additional pan-African
secure the establishment, management and investment funds.
 73
ICT
Sector
Botswana currently imports much of its ICT products usage is very high at 80%. TV access has reached
and services and the possibility of replacing imports, the remotest parts of the country, covering about
as well as serving unmet and emerging needs, provides 57% of households. Household computer access
attractive opportunities for potential investments and was 13.5% in 2013, matched by 15% internet
partnerships. access and mobile broadband subscriptions per
100 inhabitants grows in tandem with tablets and
Household ICT data highlights significant access smart phones and is high at 74%.
to radio, the pioneer of ICT and mobile phone

Bank the Underbanked across borders, starting from SACU, SADC

• This is a new, innovative mobile money before expanding to Sub-Saharan Africa and
operator that could enable mobile phone also to develop a low cost business model to
number to double as credit account number, half the cost of transferring money. mMoney
enable transactions across mobile networks is a currently a USD50 million business
within the same country, offer remittances expected to grow to over USD170 million by
2017

eWaste in Botswana
• E-Waste is all types of electrical and electronic • $6.0-32.3 million the value of electronic
equipment (EEE) that have been discarded waste in Botswana after 10 years assuming a
by the owner as [Link] includes any item modest 10% increase
containing circuitry or electrical components • 400-500 jobs created will be required to
with either power or battery supply. process the current amount of eWaste in
• $2.3-12.5 million the value of electronic waste Botswana

TV White Space population lives in rural areas

• For most internet access is prohibited due to
• TVWS refers to the unused TV channels. high cost and lack of infrastructure
These channels used to be placed between • $15 for 800Mb of data, mobile internet is still
active TV channels to protect broadcasting expensive
interference. It has been proven that these • Cost of infrastructure is lower vs 3G, 4G
frequencies can be used to provide broadband and can be further subsidised by Kgolagano
internet access. program
• 950.000 people, 43% of the national • No need for licence fee for TV white space

TV Broadcasting (South African Football, NBA and beyond)

and Local content (drama/comedy series,
• Digital migration is happening and BTV is the culture). Due to the digital migration, there is
only free nationwide broadcaster. Growing an opportunity for Private Broadcasters and
public interest is in Religious content, Sports Content Producers (Film producers).

eHealth Africans. eHealth pilot “Kgonafalo” currently

in place a partnership between University of
• eHealth and mHealth are fast growing Pennsylvania, Botswana’s Ministry
sectors that could benefit many millions of
eHealth
74 communication technology to enable
communication in case of emergencies,
• eHealth and mHealth are fast growing mobilizing communities, provide healthcare
sectors that could benefit many millions of professionals with access to information at
Africans. eHealth pilot “Kgonafalo” currently the point of care and enabling the transmission
in place a partnership between University of of information and communication between
Pennsylvania, Botswana’s Ministry of Health, healthcare professionals.
and Orange mHealth. Key focus areas include • Disease Surveillance: This includes the use
women’s health, dermatology, radiology and of mobile phones or tablets to detect and
oral medicine. manage disease outbreaks. Health workers
• Self-care: This involves patients ‘ use collect and communicate real-time disease
of technologies such as smartphone occurrence information at a local level and
applications and smart medical devices share the data with centralized healthcare
to enable adherence to medication and organisations, allowing health officials
access to disease diagnoses and treatment to promptly launch prevention and cure
information. schemes, as well as analyse data.
• Health Monitoring: Involving the use of

BPO, Call centres • Local contact centres to expand if

government and parastatals hives this off to
• Policy uncertainty and labour risk from private sector and Botswana’s private sector
RSA is an opportunity to have call centres hubs domestically
in Botswana. If Plug and Play facilities are
developed in the Gaborone Mixed Economic
Zone this will be an added benefit

eCommerce, Software and App passenger information systems, road safety

and obstacle detections, etc.
Development • Security and forensics: new measures to help
• BITRI’s ICT related research and development in the criminal justice systems have never
is dedicated to technology solutions and been much needed. Opportunities exist for
next-generation products in priority areas appropriate digital evidence collection and
of health( mobile technology, mobile apps, handling, signal processing to obtain key
telemedicine) outlining the following areas issues from recordings, authentication and
worth of investment validation of data/automated identification
• Education: provision of (interactive mobile systems, training dedicated to responsible
solutions), eLearning and self-tests with officers, and public awareness
standard tutorial questions, access to past • Tourism and culture: development of
examination questions, a platform for applications to provide intelligence on lodges
students and private tutors to interact and locations and routes, attraction facilities,
platforms for student interactions mobile devices interfaces to tourism portals,
• Agriculture: (mobile solutions to markets, among others
information, best practices), and platforms/ • ICT: development of new communication
solutions to connect farmers with markets, methods and signal processing techniques for
logistics and transportation services optimal frequency and spectrum allocations
• Transport systems; intelligent transportation through spectrum sensing algorithms,
systems like the application of road radiation level testing for safety, cognitive
sensors, automated statistic gathering, networks and internet.
driver assistance communications, driver/
ICT in Agriculture
75 exceeding previous estimates.
• Cell phones have been a prime example of
• Information and communication technologies how value added information, written and
(ICTs) have the potential to transform verbal can become easily accessible
business in Africa, growing entrepreneurship, • There is an opportunity in
innovation and economic growth. - Traceability, distribution and supply
• Use of modern communication tools can chain management
reduce the overall cost of transactions, - Financial services (mobile payment
access to market, improve communication and mobile money)
and assist producers and traders in terms of - Farm extension services, access to
market intelligence across the value chains. sector knowledge and information
• ICT can become the enabler towards more - Commodity exchange
sustainable and scalable agricultural projects
 76
Health
Sector
The Botswana health system comprises both and mobile stops.
government (public-sector) and private-sector service
The opening of a 450-bed Medical Teaching
providers. Public-sector healthcare services are provided
Hospital in 2014/15, providing both
at minimal fees for citizens while foreign nationals pay undergraduate and postgraduate tuition in
reasonable and subsidised fees. addition to healthcare and research capability,
Private-sector healthcare services are mostly will improve personnel availability and quality of
used by patients who opt not to use public- healthcare.
sector health services. Healthcare delivery is
decentralised, with primary healthcare being Partnership with international institutions
the pillar. Botswana has an extensive network of and organisations will further strengthen the
health facilities: hospitals, clinics, health posts healthcare system and improve quality of care.

Public Sector Investment Opportunities

• Two acute care referral hospitals • Sixteen primary hospitals and three mine
Southern (+500 beds) hospitals (50 to 90 beds)
Northern (435 beds) • Several clinics of different sizes across the
• One referral psychiatric hospital (300 beds) country (some with 20–30 bed capacity)
• Seven district hospitals (bed capacity of 270 –
330)

Private Sector Investment Opportunities

• Two hospitals in Gaborone (up to 300 beds) government in areas of special need in
and a smaller private hospital in Francistown the public sector (e.g. haemodialysis and
• Several private practices offering medical and cardiology services)
allied health services around the country
• Outsourced services or in partnership with

Specialised Medical Services Investment Opportunities

Diagnostic Facilities (Imaging and Laboratory) Medical Tourism
A significant number of samples for diagnostic The establishment of clinical centres of
and laboratory analysis are currently referred excellence will improve delivery of specialist
to service providers outside Botswana and the health services and improve access to health care
turn-around time for receiving results is an for patients seeking high-quality and low-cost
ongoing problem. care. There is need for support from cooperating
partners to consolidate the delivery of these
Pharmaceutical Manufacturing Industries centres through provision of equipment and staff
Botswana currently imports 100 per cent of training to ensure sustainability in the provision
consumed pharmaceutical products from of specialist care. Research has shown that
Europe, Asia and the Americas. globally medical tourism is growing at between
20 and 30 percent annually and is an industry
Manufacturing of Biomedical Equipment worth about US$100 billion.
All biomedical equipment is currently imported.
 77
Education
Sector
The policy framework for the education sector is based on • Promoting lifelong learning
the National Policy on Education, the Revised National • Increasing access and equity at tertiary level
• Improving access to education services by
Policy on Education, the new Tertiary Education Policy,
children with special needs
the National Vocational Training Policy, the National
Credit and Qualification Framework, the Maitlamo The country has invested significantly in
ICT Policy, Vision 2016, and the Science and Technology education and skills development, with more
Policy, together with other government policies. than 25 percent of the total government’s annual
budgets being allocated to the education sector
Key objectives for the education sector include over the past two decades. These investments
the following: were made in order to, amongst others, improve
the human capital development in the country;
• Ten years of universal basic education achieve sustainable improvements in the quality
• Increasing access to senior secondary of education; increase the pool of skills in areas
education that have been identified as critical to improve
• Expanding vocational and technical training the performance of the economy.

Opportunities in the Education Sector


A number of investment opportunities exist in the • Post-Harvest Technology and Food Quality
education sector, and these include investment in Research Institute
the establishment of institutions. The following • Democracy, Governance and Economic
have been identified as opportunity areas: Management Institute
• Centre for Peace and Justice
• Photographic Safari Tourism Training Lodge • Centre for Advancing Sustainable
• Technical School of Mining and Energy Development
• Botswana Academy of Medical and Health • Veterinary science specialist training courses
Sciences for veterinarians
• Business School
 78

Trade
seven

Agreements
 79

Trade
Agreements
07
Overview
80
Preferential Market Access Agreements
• Southern African Customs Union (SACU)
• Southern African Development Community (SADC) Free Trade Agreement (FTA)
• SADC/EU Economic Partnership Agreement (EPA)
• SACU–European Free Trade Association (EFTA) FTA
• SACU-Southern Common Market (Mercosur) Preferential Trade Agreement (PTA)
• Bilateral agreements with Zimbabwe and Malawi

Current Trade Negotiations

• SACU-India PTA
• SADC-EAC-COMESA Tripartite FTA

Non-Reciprocal Agreements
• Africa Growth and Opportunity Act (AGOA)
• Botswana products qualify for preferential market access under the Generalised System of
Preferences (GSP)

Cooperative Frameworks
• Trade, Investment and Development Cooperation Agreement (TIDCA) with the United States

World Trade Organization (WTO)

Botswana became one of the founding members rights, product standards, investment policy,
of the WTO in 1995. The implication of this is trade defence measures and agricultural
that Botswana is bound by all WTO Agreements, policy. In this regard, member states’ policies
Ministerial Decisions and Understandings, which have to be consistent with the obligations
were adopted as a Single Undertaking. The on the Agreements on Agriculture, Trade
obligation on the Single Undertaking means that Related Investment Measures (TRIMS), Trade
all members are bound and must implement Related Intellectual Property Rights (TRIPS),
all the agreements. WTO membership has the General Agreement on Trade in Services
also committed Botswana to participating in (GATS), the General Agreement on Tariffs and
successive multilateral trade negotiations aimed Trade (GATT) and others. Compliance with WTO
at progressive liberalisation of trade. rules is assessed through the Understanding
on the Trade Policy Review Mechanism (TPRM).
The WTO agreements have extended trade These obligations establish the parameters and
policy from a focus on border control issues framework within which Botswana will conduct
into the domestic policy arena, covering issues and negotiate trade agreements with her trading
such as trade in services, intellectual property partners.

Southern African Customs Union (SACU)

The Southern African Customs Union was which entered into force on 15 July 2004.
established in 1910 with Botswana, Lesotho,
South Africa and Swaziland being the founding The Objectives of SACU are
Member States. The Agreement was renegotiated • To facilitate the cross-border movement
and signed in 1969. Namibia acceded to the of goods between the territories of the
1969 Agreement following its independence member states
in 1990. The member states commenced the • To create effective, transparent and
renegotiation of the 1969 Agreement in 1994 democratic institutions which will ensure
after RSA was democratized. The negotiations equitable trade benefits to member states
culminated in the 2002 SACU Agreement (SACUA) • To promote conditions of fair competition in
 the Common Customs Area (CCA)
81 Benefits Include
• To substantially increase investment • Duty-free quota-free access for Botswana
opportunities in the CCA goods;
• To enhance the economic development, • Revenue accruing from Common External
diversification, industrialisation and Tariff
competitiveness of member states • 2002 SACU more democratic, with
• To promote the integration of Member participation in the tariff administration by
States into the economy through enhanced all member states and establishment of
trade and investment institutions such as National Bodies and Tariff
• To facilitate the equitable sharing of revenue Board
arising from customs, excise and additional • Negotiation as a bloc
duties levied by member states
• To facilitate the development of common
policies and strategies.

SADC Trade Protocol

As a SADC member, Botswana is currently committed to the attainment of higher regional
implementing the SADC Protocol on Trade. integration in the form of Customs Union
Implementation of the SADC FTA began in 2000 and Common Market, in line with the regional
following the signing of the SADC Trade Protocol integration agenda. The ongoing negotiations
(in 1996). The liberalisation of tariffs has taken on the SADC Protocol on Trade in Services and
place at different rates. In general, the developed rationalization of multiple FTA memberships are
countries have reduced tariffs at a faster rate. also commitments which define parameters for
South Africa, Botswana and Namibia removed Botswana’s Trade Policy. Increasing intra-SADC
most tariffs in 2000. Middle-income countries trade through the creation of simple, transparent
such as Mauritius have gradually reduced their and easy-to-apply rules of origin coupled with
tariffs each year between 2000 and 2008. For member country implementation of tariff
least-developed countries such as Mozambique liberalization commitments also feature strongly
and Zambia, tariff reductions have generally been in Botswana’s regional trade agenda.
introduced during 2007-2008. From January
2008 onwards, when SADC attained the status Efforts to facilitate movement of goods within
of a free trade area, producers and consumers the SADC region resulted in the establishment
pay import tariffs on more than 85% of all trade of an on-line non-tariff barrier reporting and
in community goods in the initial countries monitoring mechanism. The mechanism can be
implementing the SADC Trade Protocol. The accessed by the private sector at [Link]
remaining 15% (sensitive list) was expected to be [Link] to report non-tariff barriers
liberalised between 2009 and 2012 in the SADC’s encountered within Member states. This has the
advance towards the status of a fully-fledged potential to facilitate movement of goods and
FTA with almost all tariff lines traded duty free. will lead to increased trade.
As a signatory to the SADC Protocol on Trade
and a member of the SADC FTA, Botswana is

Bilateral Agreements
A Trade Agreement with Zimbabwe was initially include animals born and bred, crops grown
signed in 1956, amended in 1988 and further or minerals extracted in a country. Those that
amended in 2010. The agreement provides for meet the local content requirement should have
duty-free access of goods from territories been processed from the materials and labour
of either country that qualify for preferential sourced from the exporting country. The cost of
treatment under the bilateral arrangement. For such raw materials and labour should constitute
goods to qualify for preferential treatment under 25 percent of the total cost of production of a
the agreement, they should either be wholly particular product. The process of manufacture
originated or meet local content requirement of excludes simple processes like mixing of
25 percent. Wholly originated goods are goods imported materials or packaging of imported
that have been grown, extracted or raised in the goods. Manufacturers are required to produce
territory of either party to the agreement. These for a period of three months before starting
to export. This procedure is meant to enable
82 exported. It would confer originated status to
customs authorities to monitor and confirm the goods whose production included inputs from
production process as well as the local content either Botswana or Zimbabwe. (ii) Recognition for
of the manufactured goods. use of waste and scrap in manufacturing, whereby
waste and scrap would become a recognised and
The newly amended agreement, signed on the acceptable raw material for production of goods
15th August 2010, brought in amendments in to be traded under the agreement. (iii) Exemption
three areas: (i) A cumulative principle whereby from the three months costing requirement,
raw materials from the territories of either which will facilitate trade of large products (e.g.,
contracting party would be allowed to count buses) which become costly to keep in store for
towards the local content of goods being three months

Botswana/Malawi Bilateral Agreement

Botswana also has a trade agreement with agreement, but much of this trade is now
Malawi, dating back to 1956. It has occasionally conducted under the SADC trade protocol.
imported sugar from Malawi under this

SACU and European Free Trade Association (EFTA) FTA

The negotiations with EFTA commenced prior also signed Bilateral Agricultural Agreements
to the 2002 SACU Agreement and the Free Trade with individual EFTA States. Bilateral Agricultural
Agreement was signed on 1st of July 2006 on Agreements are currently undergoing review
trade in goods. EFTA comprises Norway, Iceland, with a view to increase beef quota which will
Switzerland and Liechtenstein, which are part benefit Botswana and Namibia. Benefits of the
of Europe but outside the EU. Implementation agreement include duty-free and quota-free
of the agreement commenced on 1 May 2008. access for nearly all industrial products for SACU
Elements of this agreement include information Member States. SACU member states have signed
exchange, holding consultative forums within the Bilateral Agricultural Agreements with Norway,
Joint Committee on any matter concerning the Iceland and Switzerland. The agreement further
interpretation or application of the agreement, provides for special and preferential treatment
reviewing the possibility of further removing for BNLS, including the Beef Protocol with 500
obstacles of trade between the parties, and tonnes quota for the benefit of Botswana and
option to make recommendations to the parties Namibia.
on other matters. SACU Member States have

Generalised System of Preference (GSP)

Botswana is eligible for GSP treatment from these markets (at zero or reduced tariffs) for
Australia, Canada, the EC, Japan, New Zealand, eligible Botswana products, subject to rules of
Norway, Switzerland, and the United States. origin. Product coverage and rules of origin vary
This treatment provides preferential access to between countries.

African Growth and Opportunity Act (AGOA)

Botswana has been a beneficiary of the US to effectively capitalize on the preferential
African Growth and Opportunity Act (AGOA) from market access and to increase competitiveness
inception, but became eligible for enhanced of its products in the US market. There are a total
access afforded to “lesser developed beneficiary of 6,500 products that can be exported under
Sub-Saharan African countries” from 6 August the AGOA programme and products are eligible if
2002. Botswana’s exports under AGOA are they meet the Rules of Origin requirements. The
mainly textiles, apparel, and a small amount of exportation of these products will be subjected
furniture. The government of Botswana has to sanitary and phytosanitary requirements.
recognized the need to address current inability
Economic Partnership Agreement
83
Botswana is currently negotiating an Economic 2009, while other members did not sign, citing
Partnership Agreement (EPA) with the European some concerns on certain provisions of the
Communities under the SADC Group, which agreement. The second phase of the negotiations
comprises the SACU members plus Angola is ongoing on Trade in Services and Investment to
and Mozambique. This would be a reciprocal conclude a full EPA. Botswana enjoys duty-free
agreement that would allow duty-free and quota-free access to the EU market for all its
quota-free access for Botswana products into products. This arrangement has benefited beef in
the EU market. Botswana, Lesotho, Mozambique particular.
and Swaziland signed the Interim EPA in June

Interim Economic Partnership Agreements

Botswana is currently negotiating an Economic 2009, while other members did not sign, citing
Partnership Agreement (EPA) with the European some concerns on certain provisions of the
Communities under the SADC Group, which Agreement. The second phase of the negotiations
comprises the SACU members plus Angola is ongoing on Trade in Services and Investment to
and Mozambique. This would be a reciprocal conclude a full EPA. Botswana enjoys duty-free
agreement that would allow duty-free and quota-free access to the EU market for all its
quota-free access for Botswana products into products. This arrangement has benefited beef
the EU market. Botswana, Lesotho, Mozambique in particular.
and Swaziland signed the Interim EPA in June

SACU/US Trade, Investment and Development Cooperation Agreement (TIDCA)

The TIDCA is a cooperative framework or final draft text was agreed upon. The text was
mechanism under which the two parties would submitted via Commission to Council, who
identify specific trade and investment issues adopted it for signing by member states at its
and seek to advance those issues through meeting on 4 April 2008 in Gaborone, Botswana.
appropriate agreements or understandings. For The agreement was signed at the AGOA Forum
the purposes of providing for further expansion held in July 2008 in Washington, USA. SACU has
of bilateral trade and investment flows, the finalised the Matrix on Areas of Cooperation,
parties will cooperate on and consider whether subsequently approved by the SACU Council.
further agreements such as those on sanitary Parties are working towards implementation
and phytosanitary (SPS) measures, standards, of the Agreement. TIDCA is expected to assist
technical barriers to trade (TBT), customs Botswana and her SACU partners to achieve
cooperation and trade facilitation would be economic development and growth, enhance
desirable, as well as cooperate in undertaking integration of developing countries into global
specific trade and investment promotion economy, strengthen the bonds of friendship
activities. Following several exchanges of and spirit of cooperation, enhance expansion of
draft texts between South Africa (on behalf of trade, boost economic relations between the
SACU) and the Office of the United States Trade two parties, promote an attractive investment
Representative (USTR) on the SACU proposals a climate and enhance trade facilitation.
SACU/MERCOSUR PTA
84
The Preferential Trade Agreement between SACU ratification instruments, with implementation
countries and MERCOSUR (Argentina, Brazil, of the agreement commencing immediately
Paraguay and Uruguay) was signed by MERCOSUR after ratification. Botswana has now ratified the
and SACU States in December 2008 and April agreement. The benefits include market access
2009 respectively. The PTA establishes fixed to the South American countries, special and
preference margins as a first step towards the differential treatment, and strengthening of
creation of a free trade area between SACU and economic co-operations
MERCOSUR. Member states continue to work on

Importing and Exporting

Tariff and Tax Exemptions
Botswana provides tariff exemptions and must be taken directly from the port of entry
concessions on imported inputs used for to a customs bonded warehouse. Commercial
manufacturing (or exporting) goods. All schemes importers (and exporters) may apply to BURS for
applied by Botswana are harmonized within a licence to operate a bonded warehouse.
SACU. Goods imported under such schemes

Importing
Businesses that hold industrial or trading licences of some vegetables and dairy products are
and desire to import may freely obtain foreign seasonally banned when it is determined that
currency for payment to a foreign supplier. domestic supplies are adequate. Milk imports,
Import permits, where required, are obtained including from SACU, are subject to import
from the Department of International Trade, quotas established on a quarterly basis by a Milk
Ministry of Investment Trade and Industry. Importation Committee comprising producers
Import permits are not normally required for and processors.
goods from other members of the Common
Customs Area (Lesotho, South Africa, Swaziland Imports of firearms and ammunition require a
and Namibia) or from Malawi or Zimbabwe. permit for security reasons. Import licences are
also required for boats (issued by the Department
Payments may be made in any foreign currency of Water Affairs), and for imports of second-hand
or in local currency for the credit of a non- goods, such as motor vehicles and clothing. The
resident account. It is permissible to open foreign Ministry of Environment, Wildlife and Tourism
currency accounts in one of the designated licenses imports of endangered species covered
currencies for the payment of imports. Balances by the Convention on International Trade in
in these accounts may not at any time exceed the Endangered Species of Wild Fauna and Flora
customer’s six-month import requirements. This (CITES).
foreign currency account must be kept separate
from those for foreign capital and current Import prohibitions apply to goods such
account transactions. as narcotic drugs, obscene material, and
Prior to obtaining an import permit, imports environmentally hazardous products, such as
of agricultural products, plants, livestock, and toxic or radioactive waste, mainly to protect
soil from all sources require approval from health, safety, and morality.
the Ministry of Agriculture for sanitary and
phytosanitary reasons. Imports of vegetables, Botswana’s Customs is using UNCTAD’s
dairy products, meat and meat products, and Automated System for Customs Data (ASYCUDA)
poultry require an import permit on food with a risk-based inspection system. It has also
security grounds. Poultry imports are permitted introduced a post-clearance audit system as
only when there is a shortfall of poultry products a trade facilitation measure. Internal taxes on
in the domestic market. Import restrictions imports and domestic goods and services consist
have also been imposed on grains from time mainly of value-added tax, fuel and alcohol levies,
to time to protect local producers. Imports and a copyright levy introduced in 2009.
Under the SACU Agreement, Botswana, Lesotho,
85 2006/07. Botswana and Namibia are planning to
Namibia, and Swaziland apply import duties establish a one-stop border post at the Mamuno-
and related measures set by South Africa in Trans Kalahari border post to reduce transit
consultation with BLNS countries. In practice, times.
ordinary customs duties, excise duties, tariff
exemptions and concessions, valuation methods, The customs legislation (the Customs and Excise
non-preferential rules of origin, and contingency Duty Act (CAP 50:01) of 1970) was last amended
trade remedies are, so far, the only trade policy in 2003, to update and align it with the South
measures harmonized throughout SACU. African Customs and Excise Act. Goods infringing
Botswana does not apply pre-shipment intellectual property rights may be placed under
inspection. To facilitate trade, BURS has embargo, destroyed or otherwise disposed of.
implemented a post-clearance audit system to Administrative decisions by Customs can be
verify import and export declarations: 9% of total appealed in Court within three months of the
processed declarations (656,478) were audited in decision.

Other Duties and Taxes

Botswana exercises its right under the SACU unfair competition; Botswana does not have
Agreement to levy additional duties in specific an institutional framework to address unfair
cases to protect infant industries; temporary competition. The flour levy is not shared in the
protection may be provided for a maximum of SACU Common Revenue Pool.
eight years. Since 2007, the dairy industry has
received protection through additional duties Road-user charges and road-safety levies are
imposed on imports of ultra-heat-treated (UHT) imposed at the border on foreign-registered
milk; Botswana imports over half of its fresh milk vehicles for the purpose of providing revenue
requirements. Since April 2008, the additional for the maintenance of roads, and for road safety
duty has been levied at a rate of 40%; the campaigns. Receipts from road-user charges
revenues are deposited in the Common Revenue amounted to P48.8 million in 2006/07.
Pool. Botswana has notified the WTO Committee
on Agriculture that it did not apply the special
A 15% flour levy is collected on imports of bread agricultural safeguard in the period 1997/98 to
flour from all sources with the objective of 2007/08.
protecting the domestic milling industry from

Exporting

To export, a declaration form (BW 500 and BW to his/her bank. Payment for exports must be
501 continuation sheet) must be completed in received in Botswana within six months from the
triplicate in respect of all goods. The three copies, date of exportation. Any extension requires Bank
together with other relevant documentation, of Botswana approval. Payment may be made
must be presented to Customs at the time of in any foreign currency or in Pula from a non-
export. One copy is returned to the exporter who, resident account.
upon receipt of the export proceeds, submits it
Licenses and Quotas
86
Botswana has applied seasonal or temporary South Africa. Exports of cattle are taxed, and
quantitative restrictions on imports of dairy the Botswana Meat Commission has a statutory
products, poultry products, grains and some monopoly on beef exports. The textiles and
vegetables, to protect domestic producers. automotive industries have access to import
Technical regulations and standards are based duty credit schemes that are linked to export
on international norms, including those of performance; the schemes are designed to
Botswana’s major trading partners, especially promote exports to non-SACU markets.

Duty-Free Zones

Although no duty free zones or Special Economic does not have any foreign exchange controls
Zones (SEZs) have been developed in Botswana, and is already attracting high-end services and
SEZs programme elements do operate in the activities such as Business Process Outsourcing
country with their respective investor incentive (BPO), international finance services, and
packages. These include the Botswana Innovation innovation activities.
Hub, the Diamond Hub and the International
Financial Services Centre (IFSC), which can be Botswana already has the basic requirements for
referred to as service-oriented sectoral SEZs. heightening value-added export activity through
There are also plans to establish SEZs in other the SEZ programme: political stability, good
parts of the country to take advantage of the governance, abundance of natural raw materials,
various opportunities. international airports, and overall good basic
infrastructure. At present, a SEZ Policy is in
The scenario above clearly demonstrates that place and some work is under-going to establish
the country has done well in terms of liberalizing Botswana Investment and Trade Centre (BITC) as
fiscal incentives. For example, the country an interim SEZ Authority.
 eight

Business
Facilitation
87

Business
Facilitation
08
 88
Company and
Business
Part
Name Registration
Companies are registered by the Companies and Intellectual Property Authority (CIPA), at Plot 181, Kgale
Mews, Gaborone, P.O. Box 102, Gaborone, Botswana. CIPA also has offices in Francistown, Serowe and
Maun. There are two key stages for both company incorporation and business name registration: reservation
of company name or business name, and submission of documents for the company incorporation or business
name registration. The requirements are as described below:

1.1 Reservation of Company or Business Name

The first step in the process is reservation days. An online database of company
of the company name with CIPA. A name names in use is available at [Link]
reservation fee of P20.00 is payable upon [Link]/search/ but a
submission of Form 1 for company name definitive search and finding must still be
and Form RBN 1A for business name. The done by CIPA.
turnaround time for the process is five

1.2 Requirements for Company Registration

Upon confirmation of availability of name, by a qualified Company Secretary

the next step is to lodge the following recognized by the Act or a Director/
forms, which can be downloaded from the member of a company;
Ministry of Trade and Industry’s website e) The person presenting the application
([Link]). The forms should be should provide his/her address,
completed in block letters and in black ink. telephone or mobile numbers in
The writing should be legible without any spaces provided;
cancellation or correction by ink. Names f) The person presenting the application
should be in full; no abbreviations are should attach certified copies of his/
allowed. Information on each new page her identity card or passport;
should start with the company name and g) Certified copies of identity documents
reservation number. for the proposed directors and
shareholders and a practicing
The Information Required Includes: certificate for the Company Secretary;
• Directors’ details: h) For all the documents above, two
• Residential address – plot number, original bound sets are required;
location, ward, village or town; and i) A registration fee of P360.00 is
• Full postal address. payable upon submission and
• If subscribers are not applying acceptance of the documents above;
for registration in person, a letter and
authorizing an agent to present should j) In case of a business, name registration
be submitted. form RBN 2 should be completed and
lodged with a copy of the applicant’s
The Following Documents Should Be identity document and a registration
Submitted: fee of P150.00.
a) Form 2 and Form 3 for a company
limited by shares; At the time of submitting, the applicant
b) Form 2A and Form 3 for a close must ensure that 30 days have not
company; lapsed from the date of confirmation of
c) Form 2B and Form 3 for a company availability of business or company name.
limited by guarantee; If 30 days have elapsed, the name must be
d) Form 3 (declaration) to be filled reserved afresh.
1.3 Company Registration Process Maps
89
STEP
Form 1 or RBN 1A
1 STEP
Investor makes
2
completed and
submitted with three payment of
alternative names by the P20.00
investor

3 Submission of CIPA stamped application form

1
step

PROCESS
Business/company
name reservation

4
turnaround time:
CIPA checks for registered names nationwide
in their database
5 DAYS
step

5 Approval or rejection of a company/business

step

name

6 CIPA issues a letter certifying that the name

for use has been approved or rejected
step

7 Collecting or posting of official response

step

1.3.1 Business/Company Name Reservation: Process Map 1

STEP
Form 1 or RBN 1A
1 STEP
Investor makes
2
completed and
submitted with three payment of
alternative names by the P20.00
investor

3 Submission of CIPA stamped application form

1
step

PROCESS
Business/company
name registration

4 CIPA checks for registered names nationwide turnaround time:

in their database 5 DAYS

step

5 Approval or rejection of a company/business

step

name

6 CIPA issues a letter certifying that the name

for use has been approved or rejected
step

7 Collecting or posting of official response

step

1.3.2 Company or Business Name Registration: Process Map 2

 90
Opening a Business
Bank Account
Part

Botswana has eight functional commercial banks. These are BancABC, Bank Gaborone, Bank of
Baroda, Barclays Bank, Capital Bank, First National Bank, Stanbic Bank and Standard Chartered
Bank.

2.1 General Information Required by all First National Bank

Banks • Latest financial statements / cash flow
projection for the next 12 months.
All the banks require the following • Minimum deposit of P1,000.00.
information to be provided in addition to
completing their application forms. The Barclays
application forms should be counter- • Copies of latest audited financial
signed by the Company Secretary. accounts, business plans, or brochures
and company literature.
a) Company forms: certificate of • Bank statements for the last 3 months
incorporation; allotment of shares; if the company has an account with
registered office; list of directors another bank.
and memorandum and articles of
association for companies registered BancABC
before July 2007. • Blank letterhead with physical address.
b) Certified copies of identity documents • Sources of funds: financial statements
for directors; identity cards (i.e., Omang for existing companies, or 6 months
for citizens, and passports, work and bank statements and cash flow
residence permits for non-citizens). projections; confirmation of expected
c) Certified copies of share certificates. turnover from business activities by
d) A resolution, bearing the company’s way of letter on company letterhead
stamp, which stating signing for start-up companies.
arrangements and is signed by all the
directors and the Company Secretary. 2.3 Account Opening for Regulated Credit
e) A utility bill to verify the physical and Financial Institutions
address, or in its absence a letter from
the Company Secretary confirming the If the applicant is a regulated credit and
location of a registered office. financial institution, the following are
required:
2.2 Additional Requirements by Particular
Banks • Banking licence.
• Banker’s association details.
Some of the banks have additional • Identification and address documents.
requirements as follows: • Appointment of bankers/mandate.
 91
Licensing
Part

To operate a business in Botswana, the law requires companies to have a sectoral licence that permits the
company to operate such a business. There are currently more than 100 types of sectoral licences, which must
be adhered to. For purposes of this Handbook, emphasis will be placed on the following licences:

• Trading Licence d) Provisional clearance certificate for

• Manufacturing Licence agrochemicals’ licences’ applications.
• Liquor Licence The certificate is issued by the Plant
• Financial Services Licences Protection Division in the Ministry
• Tourism Licence of Agriculture. The applicant has to
• Mining Licences provide proof of relevant background
of agrochemicals (e.g. qualification
3.1 Trading Licence certificates or testimonials for
applicant of prospective employees).
Trading licences are issued by local and e) A clearance certificate from Botswana
town councils through their commercial Bureau of Standards (BOBS) for storage
departments. Application forms are free and handling of liquefied petroleum
and are available from these offices. gas in case of fuel filling station, general
Applicants are required to submit dealer, and hardware licences.
completed licence application forms f) Certified copies of latest form of
with an accompanying covering letter annual returns from CIPA. Where
explaining how the business will operate annual returns are not due, as in the
and describing in detail an itemised list of case of a newly registered company,
proposed activities, goods, and services forms showing directors allotment of
to be supplied. Trading licences vary in shares and share certificates should be
categorisation and licence fees charged. provided.
The trading licences are issued for an g) A copy of certificate of incorporation
indefinite period subject to payment of for a company or registration certificate
annual fees set at 25 percent of the licence for individuals or partnership.
fees. Payment of the annual fee must h) Proof of availability of business
be accompanied by proof of compliance premises (written undertaking lease in
with health regulations and filing of the lieu of agreement or title deed.
company’s annual returns. The table at the i) Resolution of the company/ letter
end of this sub-section shows the various stating the name of the person who will
categories and their respective fees. be representing the application during
the licensing committee meeting
The application must be accompanied by (including, for that representative,
the following documents/reports: certified copy of identity card for
citizens and or work and residence
a) Physical planner’s report confirming permits for non-citizens).
that the location is appropriately zoned j) Certified copies of valid passport for
for the intended use. An occupation non-citizen, work and resident permits
permit or a copy of the title deed for shareholders residing in Botswana
showing the land use or change of use or certified copies of valid identity card
would suffice. for citizens.
b) Health inspector’s report certifying k) Copy of original licence in case of
that the premises and surroundings transfer of a licence.
satisfactorily comply with issues of l) For liquor licence applications,
public and environmental health. proof of advertisement in Botswana
c) Drug and regulatory inspection Government Gazette is required:
report from the Ministry of Health if usually a stamped receipt showing
the application is for pharmaceutical both first and second notice of the
products or pharmacy licences. application published at least 21 days
 before the licensing
92
committee reports can vary from one day to 1–3
meeting. weeks.
Licences and Licence Fees Under the Trade
The licensing committees meet weekly. Act
The time required for the physical planner
and health inspectors to inspect and issue

No. Type of Licence Licence Fee

1 Agent P1,000.00

2 Amusement arcade P500.00

3 Auctioneer P1,200.00

4 Bookshop P750.00

5 Car wash P150.00

6 Cleaning services P200.00

7 Commercial hardware P1,000.00

8 Curio shop P500.00

9 Department store P2,000.00

10 Distributor P1,500.00

11 Driller P1,000.00

12 Dry cleaner P1,500.00

13 Dry cleaning depot P500.00

14 Florist P250.00

15 Fresh produce dealer P250.00

16 Funeral parlour P1,500.00

17 Furniture shop P1,500.00

18 General clothing P750.00

19 General dealer P250.00

20 General hire service P500.00

21 Gymnasium P1,000.00

22 Haberdashery P750.00

23 Hair and beauty parlour P750.00

24 Industrial hardware P1,000.00

25 Internet cafe or copy shop P500.00

26 Laundromat P100.00

27 Motor dealer P1,500.00

28 Petrol filling station P500.00

29 Pharmacy or chemist P750.00

30 Plant hire service P500.00

31 Restaurant P1,000.00

23 Supermarket P1,500.00

24 Takeaway P150.00

25 Wholesale P1,500.00

26 Workshop P1,500.00
3.1.1 Reserved Activities under
93
e) Fresh produce
the Trade Act f) Funeral parlour
g) General clothing
The Act reserves the following businesses for h) General dealer
citizens of Botswana: i) Hairdresser
j) Hire services
a) Auctioneer k) Laundromat
c) Cleaning services l) Petrol filling station
d) Curio shop m) Takeaway

3.2 Manufacturing Licence

Manufacturing licences are governed by the 1, in duplicate for each company.
Industrial Development Act of 2006 (as amended) Application forms can be obtained
and the Industrial Development Regulations of 2008. country from the respective
According to the Act, all manufacturing enterprises are municipalities/councils
required to have an industrial/manufacturing licence, c) Copy of the certificate of incorporation
issued by the Industrial Licensing Authority (ILA) and for the company, to indicate that the
the Regional Licensing Committee. These licences are company is registered in Botswana and
valid for an indefinite period subject to compliance share certificates
with the conditions upon which they are issued. d) Detailed description of the production
Application forms for manufacturing licences can be process to indicate how each product
downloaded from the Ministry of Trade and Industry will be produced, as requested on the
website: [Link] “additional information” sheet, with
answers to all the listed questions
3.2.1 Steps in Obtaining a Manufacturing/ concerning environmental issues
Industrial Licence e) EIA
f) Satisfactory Environmental Health
A number of different steps are involved Inspection and Food Control clearance
in an application for a manufacturing/ reports from the municipality/council
industrial licence, some of which can be g) Report from the Physical Planning
carried out simultaneously. The major Officer confirming the zoning of the
steps that need to be undertaken are as place of operation
follows: h) Lease agreement between the lessor
and the lessee/letter from the landlord
Step 1: Preparation of an executive showing his/her intention to lease out
summary of the business the plot
Step 2: Confirmation of zoning i) Certified true copies of valid work
Step 3: Undertaking an Environmental and residence permits for foreign
Impact Assessment (EIA) investors/shareholders
Step 4: Payment of application fee and j) Certified copies of Omang for citizen
submission of application to the shareholders and of passports for
Department of Industrial Affairs or foreigners
Municipality/Council k) Commitment letter from the
Step 5: Consideration of the application approved waste collector (approved
by the ILA or Regional Licensing by Department of Waste Management
Committee and Pollution Control), and in case
Step 6: Communication of the decision of sale of off-cuts/by-products,
Step 7: If decision is positive, payment of commitment letter from the buyer
licence fee l) Payment of P50.00 with the application
Step 8: Issuance of provisional licence or forms, for administrative purposes
indefinite industrial licence m) Once approved and collection,
payment of P200.00 licence fee
3.2.2 Requirements for Obtaining a
Manufacturing/Industrial Licence
All licensing committee meetings are held
The following are requirements in applying on a weekly basis and applicants should
for an industrial licence: file their applications well in advance for
a) Business background or executive appraisal by the secretariat and inclusion
summary on the agenda.
b) Completed application Form AIL
3.2.3 Payment of Annual Fees for
94 i) Payment of P200.00
Manufacturing/Industrial Licence
3.2.6 Application to Manufacture on New
Manufacturing Licences attract an annual Premises
fee. The following requirements apply
when paying the annual fee: Requirements:
a) Completion of form AIL 1 in duplicate
a) Form AIL 1 and form AIL 4
b) Proof of health inspection b) Proof of last payment
c) Proof of last payment c) Certified true copy of indefinite
d) Copy of indefinite industrial licence industrial licence
e) Copy of annual returns for the company d) Environmental health report
f) Payment of P200.00 annual fee e) Physical Planning report confirming
zoning
3.2.4 Application for Licence to f) Environmental Impact Assessment
Manufacture New Products or Additional Report
Products g) Commitment letter for waste
collection as approved by the
Requirements: Department of Waste Management
a) Completion of form AIL 2 in duplicate and Pollution Control, and in the case of
b) Proof of last payment off-cuts/by-products, a commitment
c) Certified copy of indefinite industrial letter from the buyer
licence h) Payment of P50.00 with the application
d) Environmental health report forms, for administrative purposes
e) Payment of P50.00 with your i) Payment of P200.00
application forms, for administrative
purposes 3.2.7 Application to Transfer an Indefinite
f) Payment of P200.00 application fee Industrial Licence

3.2.5 Application to Manufacture On Requirements:

Additional Premises a) Completion of form AIL 1 in duplicate
and AIL 5
Requirements: b) Proof of last payment
a) Completion of form AIL 1 in duplicate c) Certified true copy of indefinite
and form AIL 3 industrial licence
b) Proof of last payment d) Environmental health report
c) Certified true copy of indefinite e) Physical Planning report confirming
industrial licence zoning
d) Environmental health report f) Environmental Impact Assessment
e) Physical Planning report confirming Report
zoning g) Commitment letter for waste
f) EIA collection as approved by the
g) Commitment letter for waste Department of Waste Management
collection as approved by Waste and Pollution Control, and in the case
Manager (Department of Waste of metal off-cuts, a commitment
Management and Pollution Control) letter from the buyer
and in case of metal off-cuts, h) Payment of P50.00 with the application
commitment letter from the buyer forms, for administrative purposes
h) Remit the sum of P50.00 with your i) Payment of P200.00
application forms, for administrative
purposes

3.3 Liquor Licence

3.3.1 Steps Involved In Obtaining a Liquor Step 3: Applying for environmental health
Licence inspection and certificate.
Step 4: Payment of liquor licence
Step 1: Issuance of area zoning forms and application
confirmation of zoning Step 5: Public notice in Botswana
Step 2: Zoning site visit/inspection. Government Gazette for 21 days.
Step 6:Consideration of the application by
95 Control Authority will not consider an
the Liquor Licensing Authority. application for a licence where the first
Step 7: Decision by the Liquor Licensing and second notices of the application
Authority. were not both published for at least 21
Step 8: Payment of liquor licence fee. days in accordance with Section 13 of
Step 9: Issuance of a liquor licence. the Liquor Act, 2003.
f) Certified copies of valid Omang for
Processing time for completing all of citizens, and of passports for non-
these steps is currently 70 days. citizen directors and shareholders.
g) Satisfactory Physical Planner’s Report
3.3.2 Requirements for a Liquor Licence for zoning of the plot.
Application h) Satisfactory Environmental Health
Report for the business premises from
The following documents must be District Council Health Inspectors.
submitted:
Liquor regulation 7 (1) requires any liquor
a) Completed application form and establishment to be located at least 500
application fee of P100.00. metres from a school, church, highway or
b) Copy of Certificate of Incorporation for major road. Application forms should be
a company, or registration certificate submitted at the commercial office of the
in case of individual or partnership municipality/council in the district where
applicants. you wish to undertake the business.
c) Certified copies of forms 8, 13, 14 and 15, Applicants should also familiarise
and copies of share certificates of the themselves with the provisions of the
company directors and shareholders. Liquor Act and its subsidiary legislation. All
d) Proof of availability of business applications are considered by the Liquor
premises (written lease undertaking in Control Authority.
lieu of agreement or title deed).
e) Proof of advertisement in Botswana 3.3.3 Renewal of Liquor Licence
Government Gazette, with a stamped Liquor licences must be renewed annually.
copy of receipt, according to regulation
3(2) of the Liquor Act, 2003. The

3.4 Financial Services Licensing

The licensing and regulatory framework of 2006 overseen by the Non-bank
of the financial services sector has Financial Institutions Regulatory Authority
two distinct categories, governed, (NBFIRA). The Banking Act regulates bank
respectively, in accordance with the and bank related businesses while non-
Banking Act administered by Bank of bank financial services are governed by the
Botswana, and the Non-Bank Financial NBFIRA Act.
Institutions Regulatory Authority Act

3.5 Banking Licence

Licensing of banks is governed by section 6 of the a Banking Licence”. This is available from
Banking Act and section 3 of the Banking Regulations, the bank on request. Basic requirements
1995. for a banking licence application to be
considered complete and acceptable for
3.5.1 Requirements for Obtaining a Banking processing include the following:
Licence
a) The applicant must be a company
The Bank of Botswana has prepared a limited by share capital and
set of requirements contained in what incorporated in Botswana.
is referred to as “Application Package for
b) The statutory minimum start-up
96 f) The applicant must submit a business
capital is P5 million. The prudential plan that includes the strategic
capital adequacy ratio is 15 per cent. objectives of the bank, a set of five-
The promoters of the applicant bank year financial projections; a plan for the
must demonstrate willingness and establishment of branches, products
ability to provide additional financial to be provided, and a demonstration
support as and when required. of the ability to enhance effective
c) The applicant must demonstrate competition.
adequate managerial capacity; this g) Payment of a non-refundable
includes the appointment of “fit and application fee of P16,500.00.
proper” persons.
d) In the case of the promoters of an 3.5.2 Renewal of Banking Licence
applicant being a foreign bank, the
parent bank must be subject to Banking licences are issued for an indefinite
adequate home supervision, and period subject to payment of annual fees.
the consent of the parent’s home
supervisor for the subsidiary to operate 3.5.3 Time Needed to Acquire a Banking
in Botswana must be provided. Licence
e) The proposed ownership and
organisational structure must be The investor needs a minimum of 6 months
acceptable to the Bank of Botswana, to complete all the steps and procedures
and the structure must be such that in acquiring a banking licence.
it allows for effective consolidated
supervision.

3.6 Bureau de Change Licence

A Bureau de Change is a business licensed if not a Director
under the Bank of Botswana Act to carry g) Written consent from the principal/
out the business of buying and selling foreign applicant for the Bank of Botswana
currency. These businesses are licensed to to carry out a check on the
give members of the public assurance that the financial propriety of the Directors,
businesses are operating prudentially and in shareholders and the Principal Officer
accordance with sound business practices. h) Certified copies of official identity
Performance of Bureau de Change is monitored documents of the beneficial owners
by BOB and they are required to operate i) Two passport-size photos of each
according to the Bureau de Change regulations beneficial owner
of 2004. It is therefore illegal for anybody to j) Financial reference from the current
trade in foreign exchange without a licence. bankers of the applicant
Bureaux de Change may only operate from k) Police clearance report
the premises approved by the BOB, and are l) Minimum balance of P5,000.00
required to observe a daily cash transaction maintained in a deposit account
limit per individual of P10,000.00. 3.6.2 Requirements for obtaining a Bureau
de Change Licence (Individuals)
3.6.1 Requirements for obtaining a Bureau a) Application forms (completed in
de Change Licence (Companies) duplicate)
b) Application fee (P2,240.00)
a) Application forms (completed in c) Certificate of Registration (should
duplicate) include the words “bureau de change”)
b) Application fee (P2,240.00) d) Personal questionnaire
c) Certificate of Incorporation e) Curriculum vitae of Principal Officer(s)
d) Certificate of Registration (should if not a Director
include the words “bureau de change”) f) Two passport-size photos of the
e) Personal questionnaire (to be applicant
completed by all shareholders) g) Certified copies of official identity
f) Curriculum vitae of Principal Officer(s) documents of the applicant
h) Financial reference from the current
97
k) Minimum balance of P5,000.00
bank of the applicant maintained in a deposit account
i) Police clearance report for the 3.6.3 Renewal of Bureau de change Licence
applicant
j) Letter of consent giving the Bank Bureau de change licences
permission to carry out independent are renewed annually. The annual licence
check on financial propriety of the fee is P4,480.00 (inclusive of VAT).
applicant

3.7 Micro-Lending Licence

According to section 2 of the NBFIRA Act, any person d) Proof of financial liquidity – certified
who engages in a micro-lending business or who by the Accountants to be in bank
advances loans to persons where the loans do not e) Proof of payment of licence fees
exceed a specified amount is required to have a micro- f) Statutory documentation – proof of
lending licence. However this requirement does not company incorporation
apply to a person licensed in terms of the Banking Act g) Detailed 3–5 year business plan
or the Building Societies Act. Businesses that require h) Latest financial statements, (for
micro-lending licences include cash loan businesses existing businesses)
and pawn shops. i) Resume for Manager and/or Principal
Officer
3.7.1 Requirements for obtaining a Micro- j) Resolution of board, if a company
Lending Licence k) Proof of established office or letter of
intent for that purpose
a) Covering letter on business letterhead l) Standard proposed loan application
b) Duly completed application form, form for customers
Form 1 m) Proposed dispute resolution and
c) Vetting documentation (biographical/ complaints guidance
personal questionnaire affidavit, DIS n) Proposed organisational structure
form, ID and police clearance for all o) Proof of registration with BURS
controllers)

3.8 Requirements for Registration of Insurance Company

An insurer seeking registration shall satisfy creditors which has not been rescinded
the regulatory authority that: or set aside;
c) has been convicted by any court in
a) it is a company registered under the any country of an offence involving
Companies Act of Botswana; dishonesty; and
b) it has a principal office in Botswana; d) is in the opinion of the Registrar an
c) its controller, manager, principal officer unfit person to hold the office.
and directors who handle the day to
day management of the company are The application is to be made using Form
all resident in Botswana; and 1, which requires specific information to
d) its controller, manager and principal be supplied. The current non-refundable
officer are persons with sufficient application fee is P9,000.00.
business and insurance knowledge and
experience. At present, the requirement for paid-up
capital is P2 million. This figure shall not
No insurer may employ as its manager, include debentures, preference shares,
controller or principal officer any person non-voting shares or such paid-up capital
who: subscribed, directly or indirectly in itself,
by the insurer.
a) has been adjudged as bankrupt in any
country; The business plan must show that the
b) has made an assignment to or company will be able to meet the required
arrangement or composition with solvency margin. In the case of a non-life
 98
insurer, the solvency margin is P1 million non-citizens) and two passport-sized
or 20% of the net premium income, photos
whichever is greater. For a life assurer,
assets must equal liabilities. c) Previous licences, together with a
release letter from previous employers
Where the insurer owns in excess of 20% of (for agents who were previously
the equity stock in any other company the licensed elsewhere)
company name, country of incorporation d) Application form for individual agent to
or registration, principal business activity be obtained from NBFIRA offices
and percentage stock holding of each such e) Application letter from the prospective
company shall be stated. agency which the individual wishes to
represent
There is a limit of 5% ownership between f) Application fee of P100.00 (for direct
an insurer and a broker, whether directly or agents), and P20.00 (for sub-agents)
indirectly held. No person is allowed to be
employed by both an insurer and a broker 3.8.2 Requirements for Individual Agent
in the capacity of manager, controller, Renewals
director or principal officer.
The licence is renewable annually, using a) Application letter for renewal of
Form 11. licence
b) Certified copies of valid national
3.8.1 Requirements for New Applications identity (Omang) for citizens; or
by Individual Agents residence and work permits plus
passports for non-citizens
a) Certificate of Proficiency (CoP) (or its c) Copies of previous (expired) licences
equivalent) in the relevant class of d) Confirmation of validity of agency
insurance (certified copy required) agreement from the principal insurer
b) Certified copy of an identification e) Renewal fee of P50.00 (for direct
document (Omang for citizens; work agents) and P20.00 (for sub-agents)
and resident permits, and passports for

3.9 Tourism Licences

3.9.1 Tourism Licence Categories and other outdoor activities within
wildlife management areas and
Tourism operations are divided into ten protected areas, including operations
different categories, for each of which that offer such accommodation
separate licences apply: facilities on a timeshare basis.

A Licence: C Licence:
Operations that offer accommodation Operations that offer off-site facilities,
facilities on a fixed site, such as hotels, such as mobile safari operators that
moWtels, guesthouses (including receive and transport travellers and
corporate guesthouses), bed and guests within protected areas.
breakfast, self-catering apartments,
backpacker tourist accommodation, D Licence:
campsites outside protected areas, and Operations that make, plan or reserve
cultural villages, including operations travel arrangements for clients but do
that offer such accommodation not offer accommodation (whether
facilities on a timeshare basis. fixed or not) or other tourist services.

B Licence: E Licence:
Operations that offer accommodation Operations that receive guests and
facilities on a fixed site, such as transport them to tourist attractions,
photographic/hunting camps and including road transfer activities other
lodges, and public camping sites or than within protected areas.
caravan sites that offer game drives
F Licence:
99
3.9.2 Documents Required for Tourism
Operations that offer motor-boating Licence Applications
activities other than within their
leased land which is in protected Application should be completed three
areas, private reserves or wildlife weeks before scheduled committee
management areas. meetings. The following documents need
to be submitted:
G Licence:
Other enterprises (excluding air a) Application forms completed in detail,
charter companies and car rentals) together with a detailed business plan
that conduct tourism-related (guidelines provided).
activities (e.g., hot-air ballooning, b) Certified copy of the Certificate of
cycling, bungee jumping, etc.) Incorporation and/or a copy of the
Certificate of Registration of the
H Licence: business trading name, together with
Operations that offer mekoro certified copies of share certificates.
activities. c) Companies Proclamation Form 2
should be submitted. If the land was
I Licence: acquired for a purpose other than for
Foreign-based companies that offer the project you wish to undertake
tourism-related activities in Botswana. you should apply for change of use
They may transfer tourists along the or planning permission from local
main roads and utilise public facilities. authorities or land board.
Licence holders are not allowed to d) Title deed or lease agreement/rental
conduct their own safaris into the agreement.
game reserves or national parks, but e) Certified copies of identity cards or
may hand over to a Botswana licensed passports of the shareholders, and
operator if they wish to utilise these for expatriate employees, copies of
facilities. resident/work permits.
f) Submission of Environmental
J Licence: Management Plan/Environmental
Houseboat operations: mobile self- Impact Analysis approved by
contained accommodation facilities Department of Environmental Affairs.
that operate in bodies of water. g) Occupation permit.
h) Consent from land board authorities for
Tourism licences are issued by the Ministry sub-leases and/or rental agreements
of Environment, Wildlife and Tourism. or transfer of leases/title deeds.
Application forms can be obtained from i) Satisfactory inspection reports for the
their offices or downloaded from their premises.
website at [Link]. The j) Proof of zoning for offices and
following tourist enterprises are reserved approved technical/architectural
for citizens of Botswana or companies plans, in the case of a building project
which are wholly owned by citizens of such as a hotel, guesthouse, lodge,
Botswana: camp etc.
k) Valid tax clearance certificates,
a) guest houses (except corporate guest inspection reports, and public and
houses) passenger liability insurance will be
b) mobile safaris required when paying annual fees.
c) motorboats
d) tourist transfers
e) camp and caravan sites
f) mekoro
3.10 Mining Licences
100
3.10.1 Documents Required for Mining probable and proven) and mining
Licence Applications conditions.
ii) Technical report on mining and
The application forms can be downloaded treatment possibilities and the
online on Ministry of Minerals, Energy and applicant’s intention in relation
Water Resources’ website [Link]. thereto.
[Link]. The following documents need to iii) Proposed programme of mining
be submitted. operations, which should include
estimated date by which applicant
a) Completed Application Form V. If intends to work for profit, initial
the application is submitted on your position(s) of quarry(ies), with
behalf by consultant, the applicant coordinates of the surface rights,
should write a letter appointing the estimated recovery rates, nature of
consultant. The applicant should product, and envisaged marketing
include his/ her postal address, arrangements for sale of mineral
telephone and fax numbers. product(s).
b) A certified copy of company iv) Environmental impact assessment
registration certificate or certificate of study and environmental management
incorporation. programme.
c) Prospecting report approved by v) Forecast of capital investment and
Department of Geological Surveys or cash flow and details of anticipated
a copy of prospecting waiver together financial plan.
with retention or mining licence of the vi) Outline of proposed employment level
holder. and training programme.
d) Surveyed coordinates with sketch plan vii) Outline of proposed sources of goods
and total area being applied for, plus and services.
archaeological clearance certificate viii)
Details of expected infrastructure
from Department of National Museum, (e.g., access road, electricity and water
Monuments and Art Gallery. supply).
e) Detailed feasibility report containing: ix) Clearance from Department of Wildlife
i) Details of mineral deposits, including and National Parks, if the area is within
all mineral resources and reserves a game reserve or national park.
(measured, indicated, inferred,
 101
Tax
Registration
Part

4.1 Company Tax and VAT

Registration for tax payments is done by Botswana Unified Revenue Services (BURS) which is a
semi-autonomous body. BURS have offices countrywide. There are five types of taxes that persons
may need to register for: company tax, pay-as-you-earn (PAYE), capital transfer tax, VAT, and
withholding taxes (in relation to dividends, management fees, etc).
a) Copy of certificate of incorporation f) The application forms have provision
registration. for bank details. Tax registration will
b) Memorandum and articles of therefore only be done once a bank
association / Partnership deed / account has been opened.
Constitution (for companies formed
before July 2007). If the projected annual turnover is less
c) Copies of forms 2, 2A, 2B, 2C, 2D, 8, 13, than P500,000 then a company applying
14, and 15 (for companies formed on for VAT is required to write a letter seeking
or after 1 July 2007). The application to be registered voluntarily. No supporting
forms have all the details of company explanation is required for this.
management. The requirements for
constitution in b) and forms in c) are Registration usually takes five days,
unnecessary. following which the company will be
d) Copies of identity cards /passports for issued with a Tax Identification Number
the public officer and directors. (TIN).
e) List of assets owned by the company.

4.2 Individual Tax Registration

The following documents and/or details b) Residence and work permits for non-
are required for registration as a taxpayer. citizens
Once registered, the individual will be c) Postal address for service notice
provided with a TIN. The threshold for d) Residential or physical address
personal income tax is P2,499.00 per e) Registered office address
month: f) Contact numbers
g) Source of income
a) Certified copy of identity card for
citizens, or certified copy of passport
for non-citizens
 102
Work and
Residence Permits
Part

These permits are issued by the Ministry of Labour and Home Affairs. Labour and Immigration departments
have offices in all major urban centres, where application forms can be obtained and submitted for consideration.
The requirements vary depending on whether one is applying as a director or an employee, or if it is an application
for renewal. These requirements are listed below. It usually takes 30 working days from submission for the
application to be processed and the applicant notified of the decision. The determination of an application is
objectively done using a point-based system. The various points awarded and required for each category of
application are shown at the end of this section. In addition to the listed requirements, applicants must also obtain
clearance from the relevant professional bodies if employment is to be in a known and regulated profession. All
applications are subject to security vetting.

5.1 Checklists for Work and Residence Permit Applications

(Checklists provided by the Ministry of inclusive of physical address and

Labour and Home Affairs) contact numbers of an employer (for
farm workers, herd boys/girls: proof
5.1.1 Employees Applications of ownership of livestock, branding
certificate and copy of Omang of
a) Form 15 employer)
b) Form 3 k) Letter of application for work
c) Certified copy of a data page of a valid l) Physical address/location of the
passport company
d) Copy of birth certificate certified by m) P1,500.00 (residence permit);
issuing office P1,500.00 (work permit)
e) Copies of relevant educational
certificates certified by issuing office Note that applicable fees are amended
(all certificates should be translated from time to time. An incomplete
into English and authorised by the application that does not meet the above
issuing authority) requirements will not be accepted.
f) Copies of supporting documents Photographs should have a white
from relevant professional and/or background. Renewals should be made
regulatory bodies certified by issuing three months before the expiry of permits.
office
g) CV/Résumé There will be a penalty charge of P500.00
h) Three recent passport-size (30 x + (P20.00 per day) for each expired permit.
40mm) photographs clearly and
correctly depicting an applicant’s 5.1.2 Requirements for Renewal of
features (photographs to be taken at Employee Permits
the time the application is made);
i) Proof of advertisement (qualifications, a) Form 15
experience, employer’s address b) Form 3
and telephone number and closing c) Certified copy of a data page of a valid
date must be clearly indicated; the passport
advertisement should have circulated d) Copy of birth certificate certified by
for 14 days) issuing office
j) Appointment letter/contract letter e) Copies of relevant educational
 certificates certified by issuing office
103
c) Certified copy of a data page of a valid
(all certificates should be translated passport;
into English and authorised by the d) Copy of birth certificate certified by
issuing authority) issuing office;
f) Copies of supporting documents e) Three recent passport-size (30 x
from relevant professional and/or 40mm) photographs clearly and
regulatory bodies certified by issuing correctly depicting an applicant’s
office features (photographs to be taken at
g) CV/Résumé (detailed) the time the application is made)
h) Three recent passport-size (30 x f) List of employees and their contact
40mm) photographs clearly and details. Attach certified copies of
correctly depicting an applicant’s national identity documents (Omang)
features (photographs to be taken at for citizens and certified copies of
the time the application is made) work and residence permits for non-
i) Proof of advertisement (qualifications, citizens
experience, employer’s address g) Copies of supporting documents
and telephone number and closing from professional/regulatory bodies
date must be clearly indicated; the certified by issuing office
advertisement should have circulated h) Copy of certificate of incorporation
for 14 days) certified by the issuing authority
j) Appointment letter/contract letter i) Copy of share certificate for all
inclusive of physical address and directors certified by issuing office
contact numbers of an employer (for j) Form II/Form 8, 13 and 14 for all
farm workers, herd boys/girls: proof directors
of ownership of livestock, branding k) Copies of current bank statements
certificate and copy of Omang of (last three months) certified by issuing
employer) office
k) Letter of application for work l) Copy of proof of investment certified
l) Letter of renewal of contract by issuing office
m) For variation of employment, state m) Company profile
reasons and explain what will happen n) Copy of trading licence of an existing
to the position which is being vacated company in case of variation certified
by the permit holder (e.g., rendered by issuing office
redundant or localised, etc.) o) List of company assets valued by
n) Physical address/location of the authorised valuers (attach certified
company copies of registration books for
o) Copy of valid residence permit certified vehicles)
by issuing office p) Certified copy of lease agreement/
p) P1,500.00 (residence permit); proof of place of operation
P1,500.00 (work permit); P150.00 (if q) P1,500.00 (residence permit);
variation) P1,500.00 (work permit).

Note that applicable fees are amended Note that applicable fees are amended
from time to time. An incomplete from time to time. An incomplete
application that does not meet the above application that does not meet the above
requirements will not be accepted. requirements will not be accepted.
Photographs should have a white Photographs should have a white
background. Renewals should be made background. Renewals should be made
three months before the expiry of permits. three months before the expiry of permits.

There will be a penalty charge of P500.00 There will be a penalty charge of P500.00
+ (P20.00 per day) for each expired permit. + (P20.00 per day) for each expired permit.

5.1.3 Requirements for Director Permits

a) Form 15;
b) Form 3;
5.1.4 Requirements for Renewal
104 of n) Proof of Corporate Social Investment;
Directors’ Permits o) Form II/Form 8, 13 and 14 for all
directors;
a) Form 15; p) Copies of current bank statements
b) Form 3; (last three months) certified by issuing
c) Certified copy of a data page of a valid office;
passport; q) Copy of proof of investment certified
d) Copy of birth certificate certified by by issuing office;
issuing office; r) Company profile;
e) Three recent passport-size (30 x s) Valid trading licence certified by issuing
40mm) photographs clearly and office;
correctly depicting an applicant’s t) List of company assets valued by
features (photographs to be taken at authorised valuers (attach certified
the time the application is made); copies of registration books for
f) List of employees and their contract vehicles);
details. Attach certified copies of u) Certified copy of lease agreement/
national identity documents (Omang) proof of place of operation;
for citizens and certified copies of work v) P1,500.00 (residence permit);
and residence permits for non-citizens; P1,500.00 (work permit);
g) Copies of supporting documents
from professional/regulatory bodies Note that fees are applicable as amended
certified by issuing office; from time to time. Any application that
h) Copy of certificate of incorporation does not meet above requirements is
certified by the issuing authority; incomplete and will not be accepted.
i) Copy of share certificate for all Photographs should have a white
directors certified by issuing office; background. Renewals should be made
j) Copy of tax clearance certified by the three months before the expiry of permits.
issuing authority;
k) Labour clearance letter; There will be a penalty charge of P500.00
l) Annual returns (for non-exempted + (P20.00 per day) for each expired permit.
companies);
m) Localisation progress update;

5.2 Categories and Criteria for Assessment of the Point-Based System

5.2.1 Investors Tier 1 - Sponsored 5.2.2 Investors Tier 2 - Production Sector

Investors whose projects are sponsored Applicable to the following sectors:

by a recognised government institution Agriculture, Mining, Manufacturing, Water
(e.g.: BITC, Government Economic & Electricity, Construction
Diversification Hubs, Botswana Tourism
Organisation) are considered under this
category. Approvals for these applicants
are automatic, conditional on security
vetting.
Eligibility Requirements
105 Scores
Business Attributes 105
Business activity 25
Priority sector 25
Non-priority sector 10
Financial investment 40
Equity investment 20
Over P5 million 20
P2 million – 5 million 15
Below P2 million 10
Total investment (including loans) 20
> P10 million 20
P5 million – 10 million 15
P2 million – 5 million 10
< P2 million 5
Number of Batswana employees 20
> 50 20
(11–50) 15
(1–10) 10
Proportion of Batswana partners/shareholders 20
>30% 20
>0% <30% 15
Nil 10
Investor/Entrepreneur Attributes 30
Effective communication mechanism 10
General business experience 10
Residence in Botswana 10
Maximum points 135
Pass Mark (60%) 81
 106
5.2.3 Investors Tier 3 - Services Sector

Applicable to the following sectors: Tourism, Trade, Transport, Communications, Finance

and Business Services, Social and Personal Services, Information Technology

EligibilityRequirements Scores
Business Attributes 105
Business activity 25
Priority sector 25
Non-priority sector 10
Financial investment 40
Equity investment 20
Over P2 million 20
P500,000 – 2 million 15
Below P500,000 10
Total investment (including loans) 20
> P5 million 20
P2 million – 5 million 15
P1 million – 2 million 10
< P1 million 5
Number of Batswana Employees 20
> 15 20
(6–15) 15
(1–5) 10
Proportion of Batswana partners (effective 20
participation)
>30% 20
>0% <30% 15
Nil 10
Investor/Entrepreneur Attributes 45
Effective communication mechanism 10
Educational / professional qualifications 15
Diploma or equivalent 5
Bachelors or equivalent 10
Masters, PhD or equivalent 15
General business experience 10
Residence in Botswana 10
Maximum points 150
Pass Mark (60%) 90
 107
5.3 Standard Criteria for Assessment of Work & Residence Permit Renewal Applications
The pass mark for renewals is 50% and will c) Labour clearance letter
be considered following submission of the d) Up-to-date annual returns for non-
following: exempted companies
a) Tax clearance e) Localisation progress update
b) Valid licence

Desirable Attribute Criteria Points/Weight

Economic Contribution Capital Investment 20
> initial proposal (expansion) 20
equivalent to initial proposal 18
75% of initial proposal 15
50% of initial proposal 10
Employment creation 20
> initial proposal (expansion) 20
equivalent to initial proposal 18
75% of initial proposal 15
50% of initial proposal 10
Compliance with Localisation 20
Plan
100% achievement 20
75% achievement 15
50% achievement 10
25% achievement 5
No compliance 0
Total for Economic Contribution 60
Social Contribution Corporate Social Investment 20
≥ P2 million 20
P500,000 – 2 million 15
P100,000 – 500,000 10
P50,000 – 100,000 5
Total for Social Contribution 20
Grand Total 80
Pass Mark (50%) 40
5.3.1 Employees: Fresh applications
108
Eligibility Requirements Scores
English/Setswana language 10
Competency 10
Educational qualifications 15
Degree, professional qualification or equivalent 15
Diploma, technical qualification or equivalent 10
Employer justification 25
Employer justification 25
Scarce skill 30
In scarce skills list 30
Relevant work experience (years) 40
≤5 years 10
6-10 years 15
11-20 years 30
≥21 years 40
Maximum points 120
Pass Mark (60%) 72

5.3.2 Employees: Renewal

Eligibility Requirements Scores

English/Setswana language 10
Competency 10
Educational qualifications 15
Degree, professional qualification or equivalent 15
Diploma, technical qualification or equivalent 10
Employer justification 25
Employer justification 25
Scarce skill 30
In scarce skills list 30
Relevant work experience (years) 40
≤5 years 10
6-10 years 15
11-20 years 30
≥21 years 40
Maximum points 120
Pass Mark (50%) 60

5.4 Cost of Applying For Permits

a) P1,500.00 (Application for Work Permit).
b) P1,500.00 (Renewal of Work Permit).
c) P1,500.00 (Exemption Certificate/Work).
d) P1,500.00 (Replacement of Work Permit).
 109
Utilities
Part

6.1 Water Connection

Water connections are done by the Water d) Connection fees. Residential: low-
Utilities Corporation (WUC), which has cost dwelling P50.00; medium-cost
offices in all major urban centres. There dwelling P150.00; high-cost dwelling
are different requirements for residential P250.00. Commercial: P1,800.00.
and commercial/industrial connections. e) Company registration certificate.
For residential connections the size of f) Completed application form and
the dwelling determines the connection official stamp.
fee, according to whether the dwelling g) For industrial plots applicant is
is classified as low-cost, medium-cost or required to purchase and have ready
high-cost. the water tap and pipes for the portion
that is fitted inside the plot. WUC only
The full list of requirements is as follows: provide parts for up to the boundary of
the applicant’s plot.
a) Copy of identity card for citizen or
passport for non-citizen applicants. Connection for residential property
b) Certificate of Rights for the land. This normally takes between 1 and 3 weeks;
could be a lease agreement, a title for industrial property it can take several
deed or a letter of allocation of land. months.
c) Document on matrimonial status
(where applicable) for residential and For more information visit: [Link]
if the property is in the name of a
woman.

6.2 Power Connection

Electricity is provided by the Botswana e) On receipt of your signed application,
Power Corporation (BPC). The procedure is BPC will send you an acknowledgement
as follows: letter with your Business Partner
number.
a) Complete an application form f) Within 21 days from date of receipt
obtainable from any BPC office. of your application, you will be sent a
b) Completed forms with a sketch plan Quotation/Pro-forma Invoice which
or layout showing the location of the details the fees to be paid and payment
premises to be electrified must be terms.
submitted to any BPC office, regardless g) The Quotation remains valid for 30
of the location of the premises where days or 1 month from the date of issue.
power is required. h) When making payment for new
c) Where an application is made by letter, connections the following need to be
the customer’s full details must be provided.
given, together with details of the • A valid quotation
installation being applied for and the • Identity card (Omang) or Passport for
size of supply required. non- citizens
d) If a tenant applies for power, the • Title Deeds /Land Board Certificate /
landlord’s written consent should be Lease Agreement
provided. • Occupational Letter (Institutional
 110
Houses) Title to the property to be Inspection Department for testing
electrified of the installation by the customer’s
i) A Security Deposit is payable upfront electrician. The first test will be carried
for conventional metered supply. out at no charge.
j) On receipt of payment, BPC undertakes n) The presence of the person who wired
to provide supply: within 21 days for a the premises is required during the
direct service connection and within test.
90 days where an element of capital o) When the installation passes the
work is involved. inspection test, a certificate will
k) Wiring of the customer’s installation be issued. If the customer has paid
is the customer’s responsibility; the security deposit, the power will
however, care should be taken to liaise be left on. When the installation
with BPC during the installation wiring fails the inspection, a re-inspection
process. appointment should be made.
l) For villages still using conventional p) Certificates issued by the Department
meters, provision should be made for of Building and Engineering Services,
an approved meter box. A roof entry for government projects, or by a BPC-
box and a shackle are necessary where approved consultant on behalf of the
an overhead service is required. Corporation are acceptable proof
m) When BPC has installed the service of the installation having passed an
and the customer is ready to take inspection.
supply, an appointment must be
made with the BPC’s Metering and For more information visit: [Link]

6.3 Telephone Connection

Both fixed and mobile lines are available documentation:
to businesses and business people. a) Copy of identity card /passport
Fixed lines are supplied by Botswana b) Payslip or proof of income
Telecommunications. The procedures for c) Three most recent months bank
both kinds of telephone connections are statements
given below. d) Utility bill or proof of residence
e) Work and residence permits valid for at
6.3.1 Landline Connection – Botswana least 2 years (for non-citizen)
Telecommunications Corporation f) List of directors
Applicants must submit completed g) Certificate of Incorporation
BTC forms together with the following h) Utility bill (BTC/ WUC/ BPC)
documents: i) Letter requesting a credit account and
stating payment responsibility
a) Certified copy of Certificate of
Incorporation 6.3.3 Mobile phone – Personal Connection
b) Certified copy of Form 2 or 13 and 14 The following information is required.
(List of Directors)
c) Certified copies of IDs (Identity card) a) Identification (identity card for citizens
for 2 directors and passports for non-citizens) for a
d) Certified copy of VAT registration pre-paid service
certificate b) Proof of physical address and bank
e) Three months bank statement or letter details for a contract service
of reference from the bank stating the
new account number 6.4 Internet Connection
f) BTC application form to accompany the Internet Service Providers (ISPs)
above are regulated by the Botswana
g) Sketch map for locations in rural areas Communications Regulatory Authority
(BOCRA). There are over thirty ISPs
6.3.2 Mobile Phone – Business Connection (Post- registered by BOCRA. Telephone services
Paid) providers (BTC, Mascom and Orange) are
Applicants must provide the service among the ISPs.
provider with the following
Applicants must provide the following information
111 stating the new account number
to the service provider: f) BTC application form to accompany the
a) Certified copy of incorporation above
b) Certified copy of Form 2 or 13 and 14 g) Sketch map for locations in rural areas
(List of directors) Non-citizen directors should provide in
c) Certified copies of IDs (Identity card) addition:
for 2 directors h) Work and residence permits
d) Certified copy of VAT registration i) Copy of passport
certificate For more information visit: [Link]
e) Three months bank statements or
letter of reference from the bank

Incentives for
Investors
Part

7.1 Incentives for Investors

These include: d) There are no foreign exchange controls

a) Low general tax rate: resident in Botswana – hence free repatriation
companies pay company tax at 22% of profits, dividends and capital.
of the taxable income and the general e) Operational double taxation avoidance
rate of withholding tax is 7.5% on all agreements with South Africa, United
dividends distributed. Kingdom, Sweden, France, Mauritius,
b) Manufacturing companies pay tax at Namibia and Zimbabwe and Russia.
15% of taxable income – subject to f) International Financial Services Centre
approval. (IFSC) accredited companies pay
c) Development Approval Order – tax tax at 15% on profits from approved
holiday (zero corporate tax) can be operations.
available to investors for a period of 5 g) Companies accredited by the
to 10 years. Innovation Hub pay tax at 15% of profit.

7.2 IFSC Company Certification

The Botswana IFSC offers a range of tax registered in Botswana must make a
incentives to approved companies. These formal application to the International
include, but are not limited to: Financial Services Centre Certification
Committee through the BITC. Once the
a) Flat 15% Corporate Tax rate. activities proposed to be carried out by the
b) No withholding tax on dividends, applicant are accepted as being suitable
interest, royalties, management fees. for certification, the Committee will
c) Unilateral credit for withholding make a recommendation to the Minister
tax suffered in other jurisdictions of Finance and Development Planning
whether or not a Double Tax Avoidance who will issue a certificate. The certificate
Agreement exists. will stipulate the approved activities
d) Specified Collective Investment and conditions of the company and shall
Undertakings (CIUs) managed by IFSC remain in force unless revoked.
companies are tax exempt.
7.2.2 Activities Eligible for Certification
7.2.1 Requirements to Become an IFSC Company
The following are approved financial
To become an IFSC company, a company operations as broadly defined in the
 112
Income Tax Act, provided they are h) Development and supply of computer
carried on with non-residents or IFSC software for use in provision of the
companies: aforementioned services
a) Banking and finance operations i) Accounting and financial administration
transacted in foreign currency j) Holding and administration of group
b) Broking and trading of securities companies
denominated in foreign currency k) Business process outsourcing and call
c) Investment advice centres
d) Management and custodial functions l) Shared financial services
related to CIUs m) Mutual funds
e) Insurance and related activities n) Other operations that the Minister
f) Registrars and transfer agency services may declare by order to be approved
g) Exploitation of intellectual property financial operations from time to time

7.3 Development Approval Order

The Minister of Finance and Development Applications are evaluated against the
Planning has the authority to issue a following criteria:
Development Approval Order (DAO) for
specific projects. The DAO provides special a) Job creation for Botswana citizens
tax relief and/or education and training b) The company’s training plans for
grants of different types and rates. Zero- Botswana citizens
rate tax holidays for between 5 and 10 c) The company’s plans to localise non-
years can be obtained through the DAO. citizen positions
d) Botswana citizen participation in
7.3.1 Requirements for Development Approval company management
Order e) Amount of equity held by Botswana
citizens in the company
The Minister must be satisfied that the f) The location of the proposed
proposed project will be beneficial to investment
Botswana’s economy. Any firm, local or g) The project’s effect on stimulation of
foreign, may apply to the Permanent other economic activities
Secretary for Finance and Development h) The project’s effect on reducing local
Planning for a DAO. consumer prices

Part 8: Process Road map for Investors

 nine

Trade
Center
113

Botswana
Investment
Botswana Business
Investment & Facilitation
09 Trade center 08
 114
Botswana Investment and Trade Centre (BITC) v. Financial & Business Services
vi. Tourism
is an integrated Investment and Trade Promotion
Authority with an encompassing mandate Effective Stakeholder
of investment promotion and attraction; Engagement, Involvement and Alignment
export promotion and development including
Proactive and continuous synergy with key
management of the Nation Brand. stakeholders (Economic Hubs, BTO, BDC and
SPEDU) is at the forefront of BITC’s strategy.
The organization plays a critical role of driving
This includes partnership with Botswana foreign
Botswana’s economic growth through attraction
missions that have a greater footprint within
of FDI, domestic investment, facilitation of
the international market and provide a platform
expansions and further spearheads the growth
through which foreign direct investment can
of exports by promoting locally manufactured
thrive by identifying business partnerships,
goods to regional and international markets.
beneficial industry associations, and providing
BITC drives wealth creation for Batswana by
a point of information exchange for both
creating platforms that will instigate and ensure
international and domestic investors.
increased citizen participation in the economy
and create sustainable job opportunities.
Effective Investor Facilitation & Aftercare
Of great importance within the role of this
The organisation provides an in-house Business
organization is building and maintaining a positive
facilitation Services Centre that provides the
and impressive image of our country locally and
following services to local and international
internationally.
investors:

Through this encompassing mandate BITC has

• Company and Business Registration
committed to deliver on the following:
• Trade and Business license Applications
• Entry visas, work and residence permits
Focused, Selective and Targeted Investment Promotion • Work Permit Exemptions
• Connection of utilities e.g. Power,
In our efforts to become a 3rd./next Generation telecommunications and water
Investment Promotion Agency our focus • Income tax and VAT registration
on investment promotion is leveraged on • Access to Industrial and commercial land
undertaking research to identify growth sectors,
packaging them and availing go to market value • Facilitation of construction permits
propositions that arestrategically used to lure • Allocation of BITC factory space (subject to
investors into the country. availability)
We have put forth greater impetus on pre- • Environmental Impact Assessment (EIA)
existing strategic national priorities that are Compliance
focused on delivering economic growth, • Provision of information on the Botswana
development and diversification. These include business climate, regulatory regime and
but are not limited to: investment opportunities
i. Mining & Energy - Beneficiation (Diamond • Opening a Bank Account
Hub)
ii. Agriculture (Agriculture Hub) BITC operates a resource and reference
iii. Education (Education Hub) centre that was established through the Joint
iv. Transport and Logistics (Transport Hub)
Integrated Technical Assistance Programme
115 is to intensify the BITC Export Development
(JITAPII), a jointly implemented programme by Programme that will assist, support and prepare
ITC, UNCTAD and WTO. The centre disseminates manufacturers in terms of improvement of
appropriate trade and investment promotion product quality, packaging and increased
related information and is open to government production, sufficient enough to meet the
officials, the business community, academia, requirements of potential buyers.
students and the general public. BITC further engages in intensive export
promotion to facilitate participation by local
Building a Competitive and Attractive Business manufacturers in regional and international
expos with the aim to exposing their products
Environment to export markets and thereby increasing their
export potential.
BITC contributes immensely to improvement of
the investment climate through policy advocacy
to ensure facilitation of a competitive business
National Image Building and Global Awareness
and investment climate to foster greater Creation
economic activity which also includes making
recommendations for competitive changes As BITC, we are privileged to have the Nation
to legislation and the national investment Brand at our disposal, one that seeks to position
framework. Botswana to international audiences as an
attractive place to visit, work and invest. It
highlights our national assets, including our
Sustainable Export Development & Promotion people, our culture, tourism attractions, business
potential and our reputation as a country with
Through local manufacturers, Botswana has the good governance.
potential to export more products to various
regions. To realize this potential, the focus now
 116

Brand Botswana is Charged With the (e.g., tourism, export, investment,

Responsibility for: government entities)
• authorised appraisal, and calling into
• development and management of the account, of Brand Botswana stakeholder
overall brand, marketing and promotion of activities,
the country behaviours and communications for
• coordination of branding, marketing compliance with the national brand strategy
and promotions by key national brand • management and licensing of the Brand
stakeholders Botswana mark/logo
 Contact
Information
BITC Head Office United Kingdom South Africa
Private Bag 00445, 6 Stratford Place 88 Sandown Mews -
Gaborone, Botswana W1C 1AY | London West Wing, Stella Street
Plot 54351, off PG Matante United Kingdom Sandton | Johannesburg
Road T +44 207 499 0031 T +27 11 884 8959
Exponential Building F +44 207 491 8528 F +27 11 883 7798
Central Business District (CBD)
Gaborone, Botswana
T +267 363 3300
India Website: [Link]
F +267 317 0452
No.43, Maker Chamber VI
Nariman Point
Mumbai-400 021 | India
T +91 22 4360 2100
F +91 22 4360 2111