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Contents
1 About Botswana 2
2 Why Botswana 3
3 Botswana Sovereign Ratings 6 4 Botswana Unique Selling Ratings 6 5 International Rankings 6
6 Investment Climate 7 RobustInvestmentIncentives
IncentivesforInternationalFinancialServicesCentre(IFSC)AccreditedCompanies SelebiPhikweEconomicDiversificationUnit(SPEDU)BilateralInvestmentTreaties
7 Investment Opportunities 8 8 Market Access 9 9 Connectivity 910 Botswana Investment and Trade Centre 1011 Botswana the true sparkle of Africa 1113 Contact Details 14
About BotswanaLOCATION:
At582,000km2,Botswanaisaland-lockedcountryattheheartofSouthernAfrica,borderedbyNamibia,Zambia,ZimbabweandSouthAfrica.ItscentrallocationinthisregionmakesBotswanatheperfectgatewayforreachingthewholeoftheSouthernAfricanDevelopmentCommunity(SADC),makingittheidealinvestmentandtradehub.
BOTSWANA “FAST FACTS”
Area :582,000km²
Population :2million
Capital :Gaborone
FormofGovernment :Parliamentary
RepublicHeadofState
:HisExcellency,President
Lt.GeneralDr.Seretse
KhamaIanKhama
AdultLiteracyRate :83%,WorldBank
OfficialLanguage :English
NationalLanguage :Setswana
GrossDomesticProduct2016 :USD15.6billion
PercapitaGDP :US$7,018
GDPRealGrowthRatefor2016 :4.3%
InflationAverageRate :2.8%
Currency :ISOcodeisBWP,One
Pula=100Thebe
(Currentexchangerate :1BWP≈0.0986USD)
Weights&Measures :MetricSystem
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Why Botswana?−BotswanaprovidesapeacefulandstableenvironmenttoitscitizensandinvestorsandhasmaintainedpeacesinceIndependencein1966;−Wehavezerotoleranceforcorruption,andweboastasoundlegalsystemandadheretotheruleoflaw;−WehavebeenconsistentlyratedastheleastcorruptcountryinAfricabyTransparencyInternational
−Wearerankedastheworld’ssecondmostattractiveinvestmentlocationbyNewYorkUniversity’sAltman’sBaselineProfitabilityIndex(BPI);−Wehavethehighestsovereigncreditrating,andwerenamedthe2ndFreestEconomyinAfrica;−Wehaveoneofthefastestgrowthratesinpercapitaincomeintheworld.
Botswana is Stable, Peacefuland Transparent
Botswana is committed to Sound Fiscal Policy, Economic Freedom and has a Steady and Dramatic Growth Rate
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−WeprovideinvestorswithpreferentialaccesstotheSouthernAfricanDevelopmentCommunity’s(SADC)entiremarketplace–over292millionpeople;−Botswanaprovidesduty-freeaccesstoSouthAfrica,Namibia,LesothoandSwaziland;−Botswanaprovidesduty-freeandquota-freeaccesstotheEuropeanUnion(EU)market.
Botswana Opens the Door to a Massive Market
−Theworkforceiswelleducated—82%areliterateandmostspeakEnglish;−Therearenolabourtensions;−Ourpeoplearepeacefulandhumble.Thedifferentcommunitiesmaintainharmoniousrelations.
The Quality of Botswana’s Workforce is Second to None in Africa
−Weareconsistentlyinvestinginnewandimprovedcoreinfrastructuresuchaspowerplants,fibre-opticnetworks,roads,railwaysandinternational bankinginstitutions;−WeareestablishingourselvesasacentreforinnovationandResearchandDevelopment(R&D)viatheBotswanaInnovationHub.
Botswana is committed to Continued Growth
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−Wehavenoforeignexchangecontrolsorrestrictionsonbusinessownership;−Taxesareverylow-15%formanufacturingandInternationalFinance ServiceCentre(IFSC)companies,22%forotherbusinessesand25%forindividuals;−Weallowremittanceandfullrepatriationofprofitsanddividends;−Weofferduty-freeimportofmachineryandequipmentformanufacturingpurposes.
The Government of Botswana Wants to Make Your Investment Work for You
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Botswana’s Unique Selling PointsThird most Profitable Globally & Most
Profitable in Sub Saharan Africa (Baseline Profitability Index 2015)
Second Freest Economy in Sub Saharan Africa (2017)
Africa’s Best Investment Destination (2017)
Least Corrupt Country in Africa (2016)
Over 230 million people
Highest Investment grade sovereign credit rating in Africa long term “A-” & short
term “A-2” (2017)
Competitive Corporate Tax Rates & Robust Incentives
Africa’s Best Mining Destination (2016)
Africa’s Third Democratic Country(2016)
BOTSWANA SOVEREIGN RATINGS
(A) Standard & Poor’s (S&P) 2016:“A-“and“A-2”SovereignCreditRatingforlongtermandshortterm,respectively.Theratingsapplytobothlocalandforeigncurrencyborrowing.S&Phavenotedthatthe2016ratingsaresupportedbythestrongGovernmentbalancesheet,well managed economy and long record of political stability (source: Bank of Botswanawebsite,2016).
(B) Moody’s Investors Service:Has renewedandreaffirmed, for2016Botswana’screditratingofA2forforeignanddomesticbonds.Thestableoutlookisalsoupheld.Thisfollowsthe reviewthat tookaccountof thecommoditypriceshockand impacton thecountry’seconomicandfiscalstrength.Moody’snotedthatthecurrenteconomicandfiscalchallengesemanating from the external environment, are appropriately captured by the A2 rating.
(Source; (http://www.bankofbotswana.bw/2016)
Botswana’scompetitivenessrisesforthe2ndconsecutiveyearto64th(138),4thmostcompetitiveeconomyinAfrica.Withstrongmacroeconomicenvironmentin2016/17,WEF-GCR
Botswanaisthe3rdmostprofitablecountryintheworld(BPI2015),USForeignPolicyMagazine
Africa’ssecondmostfreeeconomy;ranks28outof180intheworldin2017withregulatoryframeworksthatencouragesgrowth,HeritageFoundationinPartnershipwithWallStreet
BotswanaisAfrica’ssecondpeacefulcountry;ranks28outof163in2016,InstituteforEconomics&Peace
BotswanaistheleastcorruptcountryinAfrica;ranks35outof176intheworldin2017,TransparencyInternational
International Rankings
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INVESTMENT CLIMATE
Botswanaisapeacefuldemocracywithanexcellentinvestmentclimate.Itenjoyspoliticalstabilityandgoodgovernanceaswellasastablemacro-economicenvironment.BotswanaisthemosttransparentcountryinAfricaaccordingtoTransparencyInternational.
Robust Investment Incentives
Botswanaoffersmanyincentivesforinvestors,including:
•Noforeignexchangecontrols;remittanceandfullrepatriationofprofitsanddividends.
•Norestrictionsonbusinessownership.
•Duty-freeimportofmachineryandequipmentformanufacturingpurposes.
•CustomsdutyexemptiononrawmaterialsforgoodsgoingoutsideofSouthernAfricanCustomsUnion(SACU).
•Liberaltaxregime:22%corporateand25%personaltax,with15%corporatetaxformanufacturingandIFSC-registeredcompanies(lowesttaxesintheSADCregion).
•Negotiabletaxholidayupto10yearsmaximum.
•Deductibletrainingrebateof200%.
Incentives for International Financial Service Centre (IFSC) Accredited Companies
IncentivesforIFSCcompaniesareasfollows:•Acompetitivecorporatetaxincentiveframework;15%CorporateTax.•ExemptionfromCapitalGainsTax(CGT)andWithholdingTax(WHT).•AccesstoagrowingnetworkofDoubleTaxationAvoidance(DTA)Treaties.•Noforeignexchangecontrols.
•Denominationofsharecapitalinanymajorconvertiblecurrency.
Selebi Phikwe Economic Diversification Unit (SPEDU) Region Incentives
TheSPEDURegionhasthefollowingincentives:
•5%VATforthefirst5years,10%VATthereafter.
•Zerocustomsdutyonimportedrawmaterial.ProvidesrebateofCustomsdutiesandvalue.
•Addedtaxunderschedule4–Rebateitem470.03,andVATActThirdSchedule–Item470.03formanufacturingdoneexclusivelyforexportoutsideCommonCustomsArea(CCA).
•ProvidesrebateforcustomsdutiesandValueAddedTaxforimportationofrawmaterialsunderschedule3oftheCustomsTariffandVATAct. Bilateral Investment Treaties
Botswana’smodelBilateralInvestmentTreaty(BIT)providesfornon-discriminatorytreatmentofforeigninvestors.
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INVESTMENT OPPORTUNITIES
Key Priority Sectors: SomeoftheinvestmentopportunitiesthatareactivelypromotedbytheBotswanaInvestmentandTradeCentre(BITC)includebutarenotlimitedto:
Mining Sector: Mining and base metals, such as gold, uranium, copper, nickel, coal,manganese and mining services. Also includes prospecting, expansion of existing miningprojects,newminingprojects,beneficiationofmineralsandbusinessopportunitiesrelatingtolinkswithothersectors.
Cargo, freight and logistics: Consolidation, deconsolidation, distribution, transportservices,handling,warehousemanagementandintegratedsystems.
Leather and leather goods: Highpremiumleatherproduction,highpremiumleathergoodsproduction,preferentialmarketaccessthroughtradeagreementstokeygrowthmarketsforleatherandleatherproductsandexportingleatherandleathergoodstohighgrowthmarkets.
Automotive sector: SupplyofpartsandcomponentstoSouthAfrica’sautomotivesector,supply of replacement parts for vehicles of large scale projects, expansion of existingcomponent manufacturing industries, R&D services, diversification of after-sales servicesforprivateandcommercialvehiclesandtheestablishmentofskillsdevelopment/trainingfacilitiesforautomechanicsandtechnicians.
Information Communication Technology (ICT) sector: Innovativemoneyoperations,e-Waste,TVWhiteSpace,TVBroadcasting,e-Health,BPOandCallCentresande-Commerce,softwareandappdevelopmentandICTinagriculture.
Health sector:Diagnosticfacilities(imagingandlaboratory),pharmaceuticalmanufacturing,manufacturingofbiomedicalequipment,medicaltourism
Education Sector:Photographicsafaritourismtraining,miningandenergytechnicalschools,medicalandhealthsciencesschool,businessschool,lifelongtraininginstitutionsandeducationservicesforspecialneedsstudents.
Energy Sector:Powergeneration,extractionofcoalbedmethaneand renewableenergyprojectssuchassolarPVplantsandsolarpowergeneratorsaswellasbio-fuelprojects.
Agriculture: Grain,fruitandvegetables,irrigation,dairyfarming,leather(rawhidesandskins),porkandbeefproducts.
Diamonds Beneficiation: Diamondtrading,cuttingandpolishing,jewellerymanufacturingand diamond related services such as security, banking, insurance, and certification andbrokerageservices.
• Infrastructure:Transportationandlogistics
• Financial and Business Services sector: Banking,insuranceandinvestmentfunds.
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MARKET ACCESS
BotswanaisatthecentreoftheSouthernAfricanDevelopmentCommunity(SADC),withmarketaccesstoover292millionpeoplein15countrieswithacombinedGDPofmorethanUS$700billion.SADC’sFreeTradeArea(FTA)launchedin2008provideszerotariffsfor85%ofgoodstradedamongmemberstates.
As a member of the SouthernAfrican Customs Union (SACU), Botswana’s products enjoydutyfreeaccesstoamarketofmorethan61millionpeoplein5countrieswithacombinedGDPofmorethanUS$60billion(Botswana,Namibia,Lesotho,SwazilandandSouthAfrica.
Furthermore,throughSACU,BotswanaispartoftheTrade,InvestmentandDevelopmentCooperationAgreement (TIDCA)with theUnitedStates (US); theFTAagreementwith theEFTA States and Preferential Trade Agreement (PTA) with MERCOSUR. Negotiations for aPTAwithIndiaarestillintheoffing.
BotswanaiseligiblefortradebenefitswiththeUSundertheAfricanGrowthand OpportunityAct(AGOA).
TheInterimEconomicPartnershipAgreement(IEPA)ensuresunhinderedmarketaccessforexistingexportproducts totheEU.Asamemberof theWorldTradeOrganisation (WTO),BotswanaiscommittedtotheimplementationofWTOagreements.
CONNECTIVITY Road: Botswana isconnectedtoSouthAfricatothesouth,ZambiaandZimbabwetothenorth,andNamibiatothewestbyanetworkoftarredroads.TheTrans-KalahariCorridorlinksSouthAfricaandWalvisBayinNamibiaandtranscendsthroughBotswana,whiletheNorth-SouthCorridorofkeySub-Saharan transport routesalsopasses throughBotswana.The ongoing Kazungula Bridge project will connect Botswana and Zambia, replacing theexistingferryovertheZambeziRiver,andimprovinglinkagetothenorth.
Rail: BotswanaRailways togetherwithSouthAfrica’sSpoornet to thesouthandNationalRailways of Zimbabwe to the north provides a connection to the north and south of anunbrokenraillinktoZambia,TheDemocraticRepublicofCongo(DRC),Angola,Mozambique,TanzaniaandMalawi.ItoperatescontainerisedDryPortfacilitiesinthecapitalGaborone,inthenorthatFrancistownandSelebi-Phikwe.TheTrans-KalahariRailwayprojectwhichisyettocommence,willconnectBotswanatoaseaportontheNamibiancoast.ADryPortfacilitytobeestablishedinWalvisBaywillofferashorterrouteforexportstoEuropeandtheAmericas,atlowercost.Air: Botswanahas four internationalairportsand19well-maintainedairfieldsthroughoutthecountry.Gaborone is linkeddirectlybyairwithSouthAfrica,Zimbabwe,ZambiaandKenya.
High Capacity: HighSpeedDataTransmission-TheEastAfricanSubmarineCableSystemconnectsBotswanathroughDurban,SouthAfrica,toEurope,theAmericas,theMiddleEastandAsia.TheWestAfricaCableSystemwillwhencompletedconnectBotswanathroughNamibiatothewest,totheUnitedKingdom.
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BOTSWANA INVESTMENT AND TRADE CENTRE
BotswanaInvestmentandTradeCentre(BITC)isanintegratedInvestmentandTradePromotionAuthoritywithanencompassingmandateof investmentpromotionandattraction;exportpromotionanddevelopmentincludingmanagementoftheNationBrand.
The organization plays a critical role of driving Botswana’s economic growth throughattractionofForeignDirectInvestment(FDI),domesticinvestment,facilitationofexpansionsandfurtherspearheadsthegrowthofexportsbypromotinglocallymanufacturedgoodstoregional and international markets. BITC drives wealth creation for Batswana by creatingplatforms that will ensure increased citizen participation in the economy and createsustainablejobopportunities.
Ofgreatimportancewithintheroleofthisorganizationisbuildingandmaintainingapositiveandimpressiveimageofourcountrylocallyandinternationally.Throughthisencompassingmandate,BITChascommittedtodeliveronthefollowingservices, throughtheBotswanaOneStopServiceCentrehousedatit’sheadofficeinGaboronetoensuretheeaseofdoingbusinessforallinvestors:
• CompanyandBusinessRegistration• TradeandBusinesslicenseapplications• Entryvisas,workandresidencepermits• WorkPermitExemptions• Connectionofutilitiese.g.Power,telecommunicationsandwater• IncometaxandVATregistration• AccesstoIndustrialandcommercialland• Facilitationofconstructionpermits• AllocationofBITCfactoryspace(subjecttoavailability)• EnvironmentalImpactAssessment(EIA)Compliance• ProvisionofinformationontheBotswanabusinessclimate,regulatoryregimeand investmentopportunities• OpeningaBankAccount
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Botswana…the true sparkle of Africa
Botswanaisalandofunmatchedbeauty,plentifulinwildlifeandrichinculture,givingitamagicalanddreamlikequality,fromitsprominentsaltpanstodiamondrichdesertsandlushfloodplains.Sincepeacefullygainingitsindependence1966,Botswanahasmanagedtoexploititswealthofundergroundresources,especiallydiamonds,todevelopnotonlyitsdiverseeconomybutalsoitspeople.Botswanaisthebiggestproducerofdiamondsintheworldbyvalue.Itishailedasashiningbeaconofdemocracy,stabilityandpeaceinacontinentrenownedforturmoilandinstability.Itspeople have a rich diverse culture and embrace all who come to Botswana with a welcomingwarmth.
Withallthatithastooffer,BotswanabecameAfrica’sbestkeptsecret.Thisdidnotbodewellforthegrowthofitseconomy.Theneedcamefortheworldtoknowaboutthislandofopportunity,splendourandpromise.ThetimehadcomeforBatswanatoshowtheworldthepridetheyhavefor their countryandwhat ithas tooffer. Toaddress this, anational identityprogrammewasdevelopedandfromitwegotthenationbrandsymbolisedthePridemark.
Branding a country
ThebrandingofBotswanawasbornfromaconceptappliedtheworldoverofnationbranding.Nationbrandingiswhenacountryconsolidatesitskeyuniqueelementsorfeatures,andpackagingthem for different target audiences. A country will put together the business offerings forprospectiveandpotentialinvestors.Itwillshowcasewhatithasfortouristsinordertodrivetotourismtothecountryandincreasespend.Thishappensforallotheraspectsofwhatthecountryhastooffer.
Nationbrandingallowsforthepackagingandholisticpositioningofacountryintheglobalmarketstrategicallysuchthatitstandsoutwhileprovidinganidentitythatitspeoplecanrallybehind.
Brand Botswana
ThepurposeofournationbrandistobringBatswanatogetheraroundasingleidentityandagreedsetofvalues,inordertostimulatestrongercommunities,cultureandheritageandmostimportantlyinstilagreatersenseofprideandcommunityengagementinourcountry.
ThebrandalsopositionsBotswanatointernationalaudiencesasanattractiveplacetovisit,workandinvest.Thenationalbrandhighlights:• Ournationalassets• LookstodifferentiateBotswanafromitsAfricanneighbours• Growourtradeperformance• Stimulateinternationalinvestment• Accelerateinnovationandnewindustrydevelopment• Enhancethetourismvisitationandspend
Administratively, Brand Botswana is responsible for the:
• Developmentandmanagementoftheoverallbranding,marketingandpromotion
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ofthecountry• Coordinationofbranding,marketingandpromotionsbykeynationalstakeholders suchastourism,export,investment,governmententities• AuthorisationtoappraiseBrandBotswanastakeholderactivities,behavioursand communicationsforcompliancewithnationalbrandstrategyandcallstakeholders intoaccount• ManagementandlicensingoftheBotswanabrandlogo(PrideMark)
THE IMPORTANCE OF BUILDING A STRONG NATION BRAND:
Building and strengthening Botswana’s brand image would require intensive efforts, actions,support,cooperationandcollaborationbyall itscitizens,companiesand institutions toensurethefollowing:
Exports: Producehighqualityproductsandservicestotheextentthatconsumersfromallovertheworldproactivelyseek,procureandconsumeBotswanagoods.
Trade, Investment and Immigration: Herein laysvastopportunities for investors to seizeandactivate the potential we so proudly speak of. In other words, the national effort to makingBotswanaattractivetooutsidersshouldtranslateintomorepeoplecomingtolive,workorstudyinourcountrybecauseofthehighqualityoflifeandenablingbusinessenvironment.
Governance: When both locals and outsiders regard governance issues in Botswana, ourgovernmentmustenjoysupportandtrustbybeingconsistentlyviewedasbeingfair,transparentandcompetent.Also,ourcountry’sregardforhumanrights,nationalcommitmenttoglobalissuessuchaspeaceandsecurity,justice,povertyandtheenvironmentshouldbebeyondreproach.
Culture and Heritage: Like most progressive countries often held in high regard, Botswanawouldmostcertainlybenefitfrombeingconsideredasanationthatappreciatesitsheritageandcontemporaryculture.People:Beingthebiggestandmostvaluableassetofthecountry,Batswanathemselvesmustbeknownasafriendly,warmandwelcomingpeople.Effectively,BrandBotswanaisacatalystthatsetssocial,economicandculturalprocessesintomotiontomakeBotswanatheAfrica’sfavouriteplacetoliveandworkformutualbenefitandsuccess.Itisthevehiclethroughwhichournationbuildsandcommunicatesourcollectivecompetitiveadvantage,andwinningcharacteristicsbysynthesizingthemtoimproveournation’sprofileandreputation.
Brand Botswana symbol – The Pride Mark
• The‘Pride Mark’isasymbolofacommitmentbyanindividualorgroupin Botswanatoinstilprideinthecommunity.• ItlinkstotheoverallEssenceof‘PrideandProgress’andtheBrandBotswana Blueprint.• EachactivityorproductthatcarriestheMarkmustclearlysupporttheEssenceof BrandBotswana,deliverpositivesocialoutcomesanddemonstratethevaluesof peaceful,progressive,trustworthyandinclusive.
Additionally,consistentandwidespreaduseofthePrideMark,bybrandpartnerscanfosterthenecessaryrepeatedexposure. Theseactions,coupledwithan increased internationalpresencecangoalongwayinpromotingandimprovingBotswana’simageinternationally.
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Its role:
TheadministrativearmofBrandBotswanaisresponsiblefor:
• Thedevelopmentandmanagementoftheoverallbrand,marketingandpromotion ofthecountry
• Thecoordinationofbranding,marketingandpromotionsbykeynational stakeholderssuchastourism,export,investment,governmententities
• Theappraisalofkeystakeholderactivities,behavioursandcommunicationsfor compliancewithnationalbrandstrategyandifneedbe,callstakeholdersinto account
• ThemanagementandlicensingofthebrandBotswanalogo (Pride Mark)
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CONTACT INFORMATION:
BITC Head Office PrivateBag00445,Gaborone,BotswanaPlot54.351,PGMatanteRoadExponentialBuildingCentralBusinessDistrict(CDB)Gaborone,BotswanaT+2673633300F+2673170452
BITC United Kingdom Office6StratfordPlaceW1C1AYLondonUnitedKingdomT:+442074990031F:+442074918528
IndiaNo.43,MakerChamberVINarimanPointMumbai-400021IndiaT:+912243602100F:+912243602111
South Africa88StellaStreetSandtonMews-WestWingSandtonJohannesburgT:+27118848959F:+27118837798
:www.facebook.com/bitc
@Go_Botswana
https://www.linkedin.com/company/botswana-investment-and-trade-centre
www.gobotswana.com