Why Invest in Botswana

Botswana's International Financial Services Centre (IFSC) regime grants registered companies exemption from withholding tax when distributing to non-residents and exemptions from capital gains tax where shareholding is greater than 25%. There are no exchange controls and there is up to 15% tax credit for non DTA jurisdictions whilst also enjoying a zero rating for Value Added Tax (VAT).

All equipment, machinery and raw material brought into the country for agriculture or for the operation of a manufacturing facility attract a zero import duty upon entry. The same applies to mining equipment and spares. This is further demonstration of the government's resolute intent to support industrialization and food security in Botswana.

200% tax rebates are available against training costs incurred by companies in developing and upskilling its employees. 

Special economic zones (SEZs)in Botswana have been established to provide developed industry specific infrastructure, state of the art technology, enhancements of economies of scale, beneficial inter-sectoral linkages and specially trained skilled labour. The goal is to enable a hassle free, one stop, full service business environment nurturing the needs of companies within the SEZ.

SPEDU (formerly Selebi Phikwe Economic Diversification Unit) is a company limited by guarantee in the mining town of Selebi Phikwe, which was host to a copper & nickel mine and smelting facility that ceased operations in 2016 leaving around 6,000 mine workers unemployed. SPEDU was established by the Ministry of Investment, Trade and Industry to revive economic activity in the town by providing specific incentives for investment. 

The region has ample surface and underground water resources, vast land availability for agriculture and industrialization. It is blessed with abundant natural attractions, flora & fauna and natural resources such as granite, sandstone, marble and silica sands. The SPEDU location provides a 'plug and play' opportunity as there are existing industrial workshop facilities, factory shells, commercial and residential properties and social sporting clubs, including a scenic 18 hole golf course. There are also plans to revive the mine operations since an investor recently acquired the Nickel, Copper and Cobalt producing assets in 2021.

Botswana is an upper middle-income country with one of the fastest-growing economies in Africa during the last decade. Botswana has emerged from being the second poorest country in the world at Independence to being one of the richest economies in Africa by GDP per capita, with that of US$7,519 (2022). This is largely attributable to the political stability through governance by a multi-party democracy that has prevailed through out Botswana's sovereignty. 

The country has a vibrant mining industry and diamond extraction is the main factor behind high growth rates as it accounts for more than one-third of GDP. Other minerals are nickel, copper, coal, soda ash, gold, silver, semi-precious stones and granite. Tourism and Beef are the country's next biggest export earnings.

It is easy to do business in Botswana. English is the official language and it is widely spoken by the population that has a literacy rate of 88%, one of the highest in Africa. The government has spent billions of dollars in availing education to all Batswana, educating them in vocational trades and all levels of academic education from Certificate to PhD and Professor levels in some of the best academic institutions in the world mainly in the USA, UK, Europe and Australia, in most cases entirely free of charge to the individuals.

Company tax is capped at a globally competitive 22% and 15% for manufacturing and agricultural based businesses and there is no restriction on repatriation of profits abroad. Also, manufacturing and most agricultural equipment and raw material attract a zero import duty into the country. 

Various government initiatives and support mechanisms exist that encourage consumption of locally produced goods and services. Currently Botswana imports around 90% of its goods and services, lending opportunity for the establishment of "import substitution" investments that can be subjected to these aforementioned government support mechanisms towards national self sustenance and export of surplus into the region.

Transport infrastructure in Botswana is far advanced compared to most African countries. It includes, but not limited to:

1. eight (8) international airports of which 4 offer scheduled commercial flight services while the other four are privately owned and operated by some of the large mining houses
2. over 30 domestic airports and airstrips mainly servicing the tourism industry
3. a national network of sealed highways accessing all major cities, towns and villages
4. a North-South goods and passenger services rail line extending cross border from South Africa in the South through to Zimbabwe in the North. 

Power is provided by the national utility that has 600MW grid capacity and regulated by the national energy authority that is currently actively facilitating renewable and alternative energy development nationally through Independent Power Producers. Water and Sanitation infrastructure is highly advanced with 8 engineered dams of varying capacities providing water to the population and industry. Both electricity and water tariffs are structured competitively low to encourage the development of businesses.

The tales of those who have lived in or visited Botswana have often become enthused by the beauty of the nation, the endearing culture and the infectious mannerism of its people. It is a country bountiful in fetchingly picturesque sights with undisturbed natural treasures and is a welcoming territory where social harmony and cultural diversity thrive. 

Botswana is well known for offering the best African safari travel experiences on the continent spanning the semi-arid dune lined landscapes of the Kalahari Desert, through the Salt Pans, ancient rock art painted hills and beautiful reserves to the pristine waterways of the iconic Okavango Delta, the 1000th World Heritage site where members of the British Royal family often choose as a holiday destination. It is home to the Big 5 (Lion, Leopard, Buffalo, Rhino & Elephant) and plenty more and is home to an abundance of birdlife that attracts world renowned wildlife photographic publication houses.

In Gaborone, the capital city, and other urban areas, expect to find all the amenities of a modern city; An abundance of shopping malls offering the highest levels of comforts, conveniences and luxury brands, a plethora of indoor and outdoor sports clubs & golf courses, a nightlife of clubs, cigar lounges, fine dining restaurants and local & franchise pubs, a diversity of worship places catering for most religious denominations and a variety of visual and performing arts theatres and craft centers and more.

Botswana also hosts a few international annual events that attract participants and spectators from around the globe. Some of these are the Rasesa International airshow, the Toyota 1000km desert motor race, the Kalahari Challenge 3 day mountain bike race through some of the most treacherous mountain bike routes in Africa, the 30km Desert Bush walk, the Makgadikgadi Epic which includes skydiving, quad biking, horse riding, hot air ballooning and camping in the backdrop of the scenic salt pans and a multiplicity of endurance hikes in various terrains across different parts of the country.

In terms of health care, Botswana has state of the art medical facilities distributed across the country operated by both government and the private sector offering universal healthcare for all. There are in total 624 health facilities consisting of primary hospitals, district hospitals and major referral hospitals serving the 2.3 million population. This is complemented by several evacuation and paramedic services fully equipped with fleets of ambulances and aircraft that ensure access to timely medical support country wide. Specialist health services are available, the costs of which by default are covered by all the different Medical Aid (Health Insurance) providers, (i.e. they are not considered "extras"). 

The school system consists of day care for infants as young as 12 months and Pre-School for children up to 6 years old. The primary school program is 7 years followed by a 5 year Secondary school program based on the British University of Cambridge school examinations system culminating in several tertiary education options including university, technical colleges, vocational training or apprenticeships. The curricula is all in English deployed through both public and private schools and qualifications are recognized in almost all first world countries.

Comparatively speaking, Botswana is indeed a top destination for investment in Africa. There is:

1. Political stability - Botswana is the longest standing democracy in Africa and has successfully held 11 peaceful general elections since gaining independence in 1966.
2. Stable inflation - Botswana has maintained a predictable, low and stable level of inflation to maintain global competitiveness and value preservation for investors
3. Safety and security - Botswana has a low crime rate by global standards and is the most safe and secure African country with no real threats or large security concerns around terrorism, cybercrime or money laundering. There was never a war for independence nor has there been any major civil strife
4. Investor protection - Botswana is a signatory to the World Bank's Multilateral Investment Guarantee Agency (MIGA) and other global agreements that assures companies of maximum investment security in their host countries. It has provisions in its legal code to guarantee investor protection