Why invest in Botswana

Why invest in Botswana

Strategically located at the heart of Southern Africa, Botswana offers excellent opportunities for investment in the Southern African region.  Botswana has managed to maintain a stable and growing economy since independence in 1966. According to the United Nations, “Botswana’s greatest assets are peace, law & order, disciplined fiscal and monetary policies, capable public institutions.”

Botswana has over the years consistently ranked well on economic and development indicators compiled by internationally recognized rating agencies such as:

  • Botswana’s ranking on the annual World Bank/IFC Doing Business report was 54 out of 183 countries globally. Its score compared favorably to all other African countries except Mauritius (ranked 23 ), South Africa (ranked 35), Rwanda (ranked 45) and Tunisia (ranked 46);
  • The Global Competitiveness Report 2011-2012 ranked Botswana 3rd in Sub-Saharan Africa;
  • In 2011, Moody’s Investors Service changed the outlook on Botswana’s A2 government bond ratings to stable from negative in response to the continuous improvement in the government’s fiscal position. Botswana remains one of the best credit risks in Africa and is on par with many countries in central Europe, East Asia, and Latin America;
  • The World Economic Forum’s (WEF) Global Information Technology Report (GITR) ranked Botswana sixth in Africa;
  • Botswana is ranked the least corrupt country in Africa by Transparency International. Botswana was ranked 32 out of 183 countries included in the 2011 survey and is well within in the top 20% of all surveyed nations, as well as above over half of the nations of Europe. In Africa, Botswana (6.1) was one of only four countries to score above five, being trailed by Cape Verde (5.5), Mauritius (5.1) and Rwanda (5.0).

In her effort to attract Foreign Direct Investment, Botswana offers the following investment incentives:

  • Low tax regime in the region:
    • 15% for manufacturing, financial services companies and companies registered in the innovation hub;
    • 22% corporate tax for others;
    • Low personal income tax for up to 25%;
    • 12% Value Added Tax
    • Possible tax holidays for 5-10 years
  • Free repatriation of profits
  • Customs Duty Draw Back Facility, Free importation of raw materials, machinery and equipment;
  • Great market access opportunities:
    • Duty Free Quota Free Market Access to more than 50Million consumers in Botswana, South Africa, Namibia, Lesotho and Swaziland;
    • Preferential market access to more than 250 million consumers in the SADC region;
    • Duty Free Quota Free Market Access to the USA;
    • Duty Free Quota Free Market Access to the European Union;
  • Double taxation agreements in place with South Africa, United Kingdom, Sweden, Mauritius, India, Russia;
  • Botswana has a record of harmonious industrial relations, which aim to protect the interests of  both workers and employers;
  • Botswana offer a thriving domestic financial sector, which includes banks, insurance companies and a growing stock market. Botswana has acceded to international conventions and is strictly observing internationally accepted guidelines on combating money laundering and financial crime.