Investing in Botswana

Compelling Reasons to Invest in Botswana

  • Stable Economy
    • Since independence in 1966 Botswana Democratic Party has won in all elections has led the country to date.
  • No foreign exchange controls.
    • Foreign exchange controls were abolished in 1999.
  • Access to huge SADC (Southern African Development Community) market of 200 million people, Europe and the USA.
    • SADC headquarters is located in Botswana. Southern African Customs Union (SACU) allows movement of goods amongst South Africa, Swaziland, Lesotho, Namibia and Botswana free of customs duty
    • Botswana has duty free and quota free access tEurope
    • African Growth Opportunities Act enables Botswana texport tthe USA on a liberal basis.
    • Botswana has trade agreement with Zimbabwe.
  • Low tax regime
    • Company tax 22%
    • Dividend tax 7.5%
    • Personal income tax maximum marginal rate 25%
    • Manufacturing companies tax 15%
    • International Financial Services Companies tax 15% with 0% dividend tax
    • Ever-expanding network of Tax treaties include countries like the UK, Zimbabwe, Mauritius, South Africa, France, India, Barbados, Lesotho, Swaziland, etc.
  • Industrial relations are good and trade unions are not militant.
  • Zero tolerance to corruption.
  • Moderate levels of inflation (7.4% in November 2012)
  • Protection of foreign investment
    • Constitution prohibits nationalisation of private companies
    • Signatory to the World Bank's Multilateral Investment Guarantee Agency (MIGA).
    • Signatory to bilateral investment treaty in 1997 with the Overseas Private Investment Corporation (OPIC), which provides guarantees for US private investors.

Main Motivation to Invest in Botswana

  • Botswana is one of the best performing economies of Africa. It does not have foreign exchange controls and it is a low tax regime. These are strong general reasons motivating investors to invest in Botswana.
  • It is borders South Africa, a channel or conduit to do business with rest of Southern Africa. Botswana is a regional hub. Botswana is a regional financial services centre. Botswana Government lays emphasis on export promotion. These are strong marketing reasons to invest in Botswana.
  • Botswana has a tradition to welcome foreigners and foreign investment. Besides Botswana is politically a very stable country. Botswana's investor friendliness and political stability attract investors to live peacefully in Botswana.
  • Botswana Innovation Hub, power generation, transnational transport corridor network, tourism sector and consulting / professional services sector offer good opportunities to invest in Botswana.
  • Bio-technology, Energy and Environment, Information and Communication Technology and Mining Technologies are four sectors currently receiving greatest focus from Botswana Innovation Hub.
  • Food processing, Leather products manufacturing, Container glass and otehr silica related industries, Pharmaceuticals, Vegetable production using green houses and hydroponics, Dairy farming, Hatchery, Livestock production and feedlots, infrastructure development, development of commercial, industrial and hotel property - these sectors provide great investment opportunities.

How to Invest in Botswana

First step is to form a company in Botswana, open bank accounts and apply for residence and work permits for employees and investors.  Second step is to obtain necessary approvals or permissions or licences to commence operations.  Joint ventures are encouraged and it is advisable for investors to consider establishing joint venture partnerships with citizens.
Any business consulting firm such as RSM Gurugroup will be able to advise and guide foreign investors to invest in Botswana.  Botswana Export Development and Investment Authority offers 1-stop service to investors to process all the necessary permissions, approvals, residence and work permits.

Point based system

Investors sponsoring projects under Hubs such as regional financial services centre, Botswana innovation hub, etc. are given automatic approvals for their residence and work permits. For others following Point Based System of appraisal is in use effective from February 2013:-

INVESTOR FRESH APPLICATION TIER 2 - PRODUCTION SECTOR TIER 3 - SERVICES SECTOR
Business Activity 25 25
Equity Investment 20 20
Total Investment 20 20
Number of Batswana Employees 20 20
Proportion of Batswana partners 20 20
Effective Communication mechanism 10 10
Qualifications / Experience   15
General Business Experience 10 10
Residence in Botswana 10 10
Total Marks 135 150
Pass Mark (60%) 81 90

 

In respect of employees, point based system is as under:-

EMPLOYEES Fresh
English / Setswana 10
Educational Qualifications 15
Employer Justification 25
Scarce Skill 30
Relevant Work Experience 40
Total Marks 120
Pass Mark %age 60%
Pass Mark 72

RSM Botswana Trust

2 July 2021
RSM Botswana Trust We are pleased to announce that we have obtained RSM Botswana Trust Letter of Authority under Botswana Trust Property Control Act from the Office of Registrar of Trusts of the High Court of Botswana. 

Botswana Budget February 2020

4 February 2020
Download printer friendly Budget Summary here botsbudget_20_rsm.pdf.

Transfer Duty Changes

17 September 2019
Big Changes in Botswana Transfer Duty.   On the 28th August 2019, the Transfer Duty Act was amended.  Commencement Date will be announced by the Minister.

RSM Botswana Has a Big Role To Play in Investment, Trade and Commerce!

28 February 2017
RSM Botswana Works with IBCCI and BITC Botswana Investment and Trade Centre (BITC) signed a memorandum of agreement with India-Botswana Chamber of Commerce and Industry (IBCCI) at the Investors Forum Conference organized by BITC on Tuesday the 28th February 2017 at Gaborone International Conference Centre. 

How can we help you?

Contact us by phone 267 3912805 or submit your questions, comments, or proposal requests.

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