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BITC shares Botswana’s investment prospects

Publishing Date : 19 March, 2018


In an endeavour to diversify the economy, Botswana Investment and Trade Centre (BITC) is bringing in foreign investors and exploring existing business opportunities for investment.

When addressing Ambassadors and Commissioners attached to Botswana on ideal investment options in Botswana this week, the Executive Director of Business Facilitation Manager at BITC Reginald Selelo indicated that Botswana is an ideal place for investment with a handful of business opportunities in sectors such as manufacturing, mining, tourism and transport and logistics among others. He called on the commissioners to invite as many investors from their respective countries to take up the advantage of setting up a business in Botswana. He said adding that this will be beneficial to local people as employment will be created.

“Investors who want to expand their business in the region should consider Botswana as their destination because the country has a very flexible competitive frame work with 15% tax charge for businesses or companies who operates in the manufacturing sector, and also value added tax (VAT) standing at 12% which is the lowest in the region by far,” stated Selelo. He further pointed out that Botswana remains to have a competitive corporate tax being 22 % as compared to 27.85% average corporate tax in the African region and 23.5% for Global average.

Giving an insight on importation and foreign exchange legal framework he said the country has duty free importation of plant and machinery adding that no restriction is exercised in foreign exchange.  He further added “There is no restriction in structure and ownership of companies, investors can set their own structure being sole owner or form joint venture with locals. However, we do encourage foreign investors to   consider partnering with locals because they know the land layout and can help to open doors wherever the business is going.” Moreover, he said that the government avails land for investors to set up businesses.

He highlighted that the priority sectors for investment range from mining, tourism, agriculture, financial services and transport and logistics respectively. On commercialisation of Agriculture, he  said, to develop Botswana into an agricultural hub key opportunities range from production of beef bye products and production of cereal as the country is now importing quite significantly from across the world and this is an endeavour to improve food security by developing own base.

He pointed out that in the mining sector the aim is to take forward mining resources by beneficiating them into the next level of products, citing that the country has 212 billion  tonnes of coal reserves and therefore looking at opportunities to attract investors within the value chain of producing coal to gas and coal to liquids.

He also said manufacturing remains key to the economy and said currently the import bill in the sector is over 70 billion pula and initiatives are in place on what can be manufactured locally to reduce the import bill. “To support local manufacturing industries the government has set Economic Diversification Drive (EDD) which encourages government institutions to procure from local manufactures to consider their products before importing outside,” he said. Selelo highlighted that the country is making significant strides in infrastructure development and investors are encouraged to consider partnering with government in the development of infrastructure.



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