Wednesday, July 15

Why invest in Botswana

Why invest in Botswana

Strategically located at the heart of Southern Africa, Botswana offers excellent opportunities for investment.  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 highly on economic and development indicators compiled by internationally recognized rating agencies such as:

  • Business report
  • The Global Competitiveness Report
  • Global Rating Agencies
  • The World Economic Forum’s (WEF) Global Information Technology Report (GITR)
  • Corruption Perception Index

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 of 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.