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DOING BUSINESS IN BOTSWANA

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Presentation on theme: "DOING BUSINESS IN BOTSWANA"— Presentation transcript:

1 DOING BUSINESS IN BOTSWANA

2 Outline Economic & Demographic Overview
Bilateral & Multilateral Trade Agreements Priority Sectors Botswana Investment Opportunities Why Invest in Botswana Investor Facilitation & Aftercare About BITC

3 ECONOMIC & DEMOGRAPHIC OVERVIEW

4 Botswana Import statistics From Poland
Description United States Dollars 2015 2016 2017 2018 Total Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof Electrical Machinery And Equipment And Parts Thereof; Sound Recorders And Reproducers, Television Recorders And Reproducers, Parts And Accessories Furniture; Bedding, Cushions Etc.; Lamps And Lighting Fittings Nesoi; Illuminated Signs, Nameplates And The Like; Prefabricated Buildings 1 235 725 Meat And Edible Meat Offal Made-Up Textile Articles Nesoi; Needlecraft Sets; Worn Clothing And Worn Textile Articles; Rags 86 148 57 896 Miscellaneous Manufactured Articles 342 29 623 Plastics And Articles Thereof 359 383 484 18 505 Milling Industry Products; Malt; Starches; Inulin; Wheat Gluten 16 792 Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Parts And Accessories Thereof 43 374 50 922 7 745 14 978 Beverages, Spirits And Vinegar 13 095 13 658 Global Trade atlas, 2019

5 Botswana Export Statistics to Poland
Description United States Dollars 2015 2016 2017 2018 Total 80 972 1 684 590 1 250 Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof 56 397 1 650 975 Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Parts And Accessories Thereof 11 803 275 Furniture; Bedding, Cushions Etc.; Lamps And Lighting Fittings Nesoi; Illuminated Signs, Nameplates And The Like; Prefabricated Buildings 240 Electrical Machinery And Equipment And Parts Thereof; Sound Recorders And Reproducers, Television Recorders And Reproducers, Parts And Accessories 12 470 Natural Or Cultured Pearls, Precious Or Semiprecious Stones, Precious Metals; Precious Metal Clad Metals, Articles Thereof; Imitation Jewelry; Coin 30 Printed Books, Newspapers, Pictures And Other Printed Products; Manuscripts, Typescripts And Plans 4 Plastics And Articles Thereof 63 Source: Global Trade Atlas, 2019

6 Gateway to SADC Market Headquarters of SADC SADC 293 million people
SACU 61 million people

7 BILATERAL & MULTILATERAL TRADE AGREEMENTS

8 INVESTMENT CLIMATE Investment Climate
2nd Freest Economy in Africa, Heritage Foundation & WSJ 81/190 on Ease of doing business, 5th in Africa Least Corrupt in Africa (TI) Stable Democracy No forex controls Inflation target of 3 – 6 % (3.2% by Dec 2017) No restrictions on foreign business ownership Educated workforce (82%) literacy Rule of Law & Judicial Independence ’A’ Standard Sovereign Credit ranking (Moodys, S&P) Historically high growth rates (4.7%-2017, 5.3%-2018

9 Taxation Customs Duty Training Costs IFSC
Investment Incentives Taxation 15% for Manufacturing, IFSC, Innovation hub 5 -10% for SPEDU Region Maximum 22% for Other Sectors Value Added Tax at 12% Maximum 25% Personal Income Tax Possible tax holidays of up to 10 years under Development Approval Order Customs Duty Duty Free importation of manufacturing and agricultural machinery & equipment Training Costs 200% Tax rebates IFSC No Exchange Controls Up to 15% Tax Credit for non DTA jurisdictions Zero rated for VAT Exemption WHT when distributing to non residents Exemption from CGT where shareholding is more than or equal to 25%

10 INVESTMENT INCENTIVES
Botswana’s Corporate Tax Rate is Highly Competitive

11 PRIORITY SECTORS FOR BOTSWANA

12 INVESTMENT OPPORTUNITIES
> Import substitution > Automotive components > General manufacturing > Leather Park > Beef > Primary production > Animal feeds > Ostrich farming > Solar > Coalbed methane (CBM) > Biogas & biodiesel > Coal to liquids > Soda Ash > Coal > Diamonds > Base Metals > Rail projects - Trans Kalahari - Mosetse - Kazungula > Aviation

13 INVESTMENT OPPORTUNITIES
Hotels & Lodges Tented Camps Air Charter Services Medical Tourism ICT Financial and Business Services BPO National Infrastructure: Roads, Bridges, Water Pipes > Residential and Commercial Property Development

14 Incentives – SPEDU Region
5% corporate tax 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 , and VAT Act Third Schedule - Item 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. SPEDU Region has a population of SPEDU hub, Selebi Phikwe Town est. in the 70s following discovery and mining and smelting of copper Government adopted initiatives to stimulate economic activity in Agriculture, Tourism and Manufacturing

15 SPEDU Region Labour Laws
Incentives - SPEDU Region Input Costs SPEDU Region will provide internet connectivity with bandwidth that promotes business competitiveness; Preferential ICT rates (telecommunications, data and voice rates) as already provided for IFSC companies Provision of Land Minimum 50 year Lease SPEDU Region Labour Laws SPEDU Region Employer - Employee Relations (To provide work environment which promotes productivity and harmonious employer/ employee relations) Government off-take Direct Government off-take on procurement of at least 30% (First preference in Government procurement provided the quantity, quality and price requirements are met), in line with Economic Diversification Drive (EDD)

16 INVESTMENT OPPORTUNITIES – SPECIAL ECONOMIC ZONES

17 GLOBAL EXPO (GEB) BOTSWANA
GEB conceptualized in 2006 by Botswana Government GEB 2019 (14th edition) will be held from 6-9 August 2019 at Botswana Conference & Exhibition Centre in Fairgrounds, Gaborone To offer exhibitors & visitors an opportunity to actively promote their businesses and products/services; multi-sectorial To help the country to meet its objectives of attracting foreign direct investment (FDI) To promote exports of locally produced goods and services To stimulate intra-regional business and trade exchange

18 EXIBITION BOOTH TARRIFFS/RATES
Complete stand = USD110 per m2 – minimum space to book is 9m2 Stand Space only = USD85 per m2 (subject to minimum booking of 18m2) Outdoor = USD30 per m2 (subject to minimum booking of 20m2)

19 BENEFITS OF PARTICIPATING AT GEB
Meet global buyers/sellers of your product Take part in the business match-making Strike partnerships and joint ventures Take part in investment & trade conference Attend all business seminars for free Meet private & public procurement practitioners Engage agents/distributors of your product Explore new markets

20 INVESTOR FACILITATION & AFTERCARE
Botswana One Stop Service Centre (BOSSC) Business Linkages / Facilitate Engagements / Company Visits Investor facilitation services (Botswana One-Stop-Shop);- Partnerships and Joint Ventures Premises; Land, Work & Residence Permits, Visas Company registration, Licensing Incentives; IFSC, Manufacturing, Tax Holidays (DAO) Professional Advisory firms; registrations (company, tax etc.) Aftercare Services – renewals, expansions etc.

21 ABOUT BITC Investment Promotion, Export Development & Nation Branding Agency of Botswana Collaborates with network of Botswana Embassies around the world, Professional advisory firms, National and Regional Chambers of Commerce, Other IPAs & TPOs around the world HEAD OFFICE Plot 54351 Central Business District Gaborone Botswana SOUTH AFRICA OFFICE 88 Stella Street 3rd Floor Westwing Sandton Johannesburg UNITED KINGDOM OFFICE 6 Stratford Place W1C 1AY London INDIA OFFICE No. 43 Market Chamber VI Nariman Point Mumbai Facebook: Botswana Investment and Trade Centre Twitter: Go_Botswana LinkedIn: Botswana Investment and Trade Centre YouTube: Botswana Investment and Trade Centre Botswana Investment and Trade Centre Instagram: gobotswana1 Website:

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