DOING BUSINESS IN BOTSWANA Mr Moemedi Mokgosi Executive Director, BITC
OUTLINE • Economic & Demographic Overview • Why Invest in Botswana • Investor Facilitation & Aftercare • Bilateral & Multilateral Trade Agreements • About BITC
ECONOMIC & DEMOGRAPHIC OVERVIEW Population 2.262 Million Borders South Africa, Zimbabwe, Namibia, Zambia Land 582 000 km² GDP USD 17.30 Billion (2017) GDP per Capita USD 7,570 (2017) Inflation (3.3% for March 2019); Average Annual inflation (2017) - 3.3% Interest Rates Bank rate 5.0%: Prime Lending Rate 6.5% Key Export Products 2017 ( US$8.7 billion) Diamonds, copper, nickel, Ignition wiring sets and other wiring sets for vehicles, boneless beef, soda ash, and copper ores and concentrates Botswana Key Import Products 2017 (US$7.1 billion) Non-industrial diamonds, petroleum products, Industrial diamonds, fuel, machinery, Food Products
GATEWAY TO SADC MARKET Headquarters of SADC SADC 293 million people SACU 61 million people
Air irport In Infrastructure • Botswana has a total of 74 airports, only 10 have paved runways • Botswana is serviced by 4 international carriers being Air Botswana, Air Namibia, Ethiopian Airlines, South African Express Airways, • Able to handle B747 and 950 passengers at peak hour. Sir Seretse Khama • Runway length is 4 000 metres, width is 60 metres International • Airport has a full parallel taxiway and link taxiways • Airport has Airfield Ground Lighting System for night flights, an Instrument Landing System and automated weather Airport observation system • Peak hour passenger of 230 (departing and arriving) at an IATA (Level of Service C) Kasane • Peak hour passenger corresponds to 150-seater aircraft corresponding to a Boeing 737 or Airbus A319 International • 3 000 metres runway, width is 45 metres • Airfield ground lighting system to facilitate night operations and automated weather observation system. Airport • The Passenger Terminal Building is able to handle 387 000 passengers annually • Runway designed to take an equivalent of B737 aircraft • Runway length – 3 000 metres, width 45 metres,. Maun International • International Arrivals 169 per peak hour, International Departures 169 per peak hour Airport • Domestic Arrivals 66 per peak hour, Domestic Departures 66 peak an hour • Non Scheduled flights 147 peak an hour • Airfield Ground Lighting System for night flights and automated weather observation system Francistown • Runway of 3000m long, 45 meters wide, taxiway and new apron, security fence, drainage International • Able to handle B737 and 477 passengers at peak hour Airport • Airfield Ground Lighting, Power supply etc.
BOTSWANA ECONOMIC STRUCTURE Real GDP Exchange Growth Rate Rates by Sector % Inflation Annual GDP Rates
WHY BOTSWANA 2 nd Freest Economy in Africa, strong regional Historically Voted Most collaboration, and high growth profitable African host of SADC rates (4.7%- destination for Secretariat 2017, 5.3%- Doing Business Highest Credit 2018 Least Corrupt Rating in Africa: ’A’ in Mainland Standard Sovereign Africa (TI) Credit ranking (Moody’s, S&P) INVESTMENT CLIMATE Respect for Rule of Africa’s oldest and Law, Judicial most stable Independence and Democracy with Human Rights safe living environment Edu ducated and nd No forex stab able controls or Economic stimulus Inflation target workforce (83 83% restrictions on initiatives for of 3 – 6 % literacy) foreign business investors, and full (3.8% by 2018) ownership repatriation of profits and dividends
Botswana’s Export Products with Potential to Poland
POLAND EXP XPORTS WITH POTENTIAL TO SO SOUTHERN AFRICAN CUSTOMS UNION
Pri riority Sectors for Botswana Financial & Business Services Tourism Manufacturing Mining Agriculture ICT Transport & Logistics
In Investment Opportunit ities
BIL BILATERAL & MULTILATERAL TR TRADE AGREEMENTS
DOUBLE TAXATION AVOIDANCE AGREEMENTS (DTAA) Active Barbados Mozambique Sweden France Namibia UK India Seychelles Zimbabwe Zambia Mauritius South Africa Ireland Swaziland Russia Not yet in force Belgium Zambia Luxembourg Malawi Tanzania Serbia and Montenegro Lesotho China Singapore Portugal Czech Republic Malta Germany
In Investment In Incentives – SPEDU Region • SPEDU Region has a population of 203 000 • SPEDU hub, Selebi Phikwe Town est. in the 70s following discovery and mining and smelting of copper • Government adopted initiatives to spur econ activity in commercial irrigation and Manufacturing 5% - 1 st 5years 10% SACU thereafter Industrial Rebate Provisions 50 year Land Lease 30% Gov’t Offtake Agreement
INVESTMENT INCENTIVES Taxation Customs Duty Training Costs IFSC Duty Free 15% for Manufacturing, IFSC, Innovation hub importation of 200% Tax rebates No Exchange Controls manufacturing and 5 -10% for SPEDU Region agricultural machinery & Up to 15% Tax Credit for equipment Maximum 22% for Other non DTA jurisdictions Sectors Zero rated for VAT Value Added Tax at 12% Exemption WHT when Maximum 25% Personal distributing to non Income Tax residents Exemption from CGT Possible tax holidays of where shareholding is up to 10 years under more than or equal to Development Approval 25% Order
In Investment Opportunit ities – Specia ial Economic Zones Commercial agriculture & Agro processing Mining supplies logistics Horticulture value chain Coal Energy, Logistics International Finance & Tech City SSKIA – diamond, logistics, Innovation, Auto Components Meat & Leather City
BOTSWANA ONE STOP SERVICES CENTRE BOSSC Service Providers - from own Service Providers-Under Roof Ministries/Institutions - Ministry of Nationality, Immigration and - Companies and Intellectual Property Authority (CIPA) Gender Affairs (MNIGA) - Botswana Power Corporation (BPC) - Ministry of Employment, Labour - Water Utilities Corporation (WUC) Productivity and Skills Development - Botswana Telecommunications Corporation (BTC) (MELPSD) - Directorate on Intelligence Services (DIS) - Department of Lands (DoL) - Municipal Authorities/Councils/ Department of Trade and Consumer Affairs - Department of Industrial Affairs (DIA) - Botswana Unified Revenue Service (BURS) - Department of Environmental Affairs (DEA)
SOME OF THE AFFILLIATED PARTNERS IN PROMOTION
SO SOME OF OF THE ACC CCREDITED COMPANIES
ABOUT BIT ITC Facebook: Botswana Investment and Trade Centre Twitter: Go_Botswana LinkedIn: Botswana Investment and Trade Centre YouTube: Botswana Investment and Trade Centre Instagram: gobotswana1 Email: enquiries@bitc.co.bw Website: www.gobotswana.com HEAD OFFICE UNITED KINGDOM OFFICE SOUTH AFRICA OFFICE INDIA OFFICE Plot 54351 6 Stratford Place 88 Stella Street No. 43 Market Chamber VI 3 rd Floor West Wing Central Business District W1C 1AY Nariman Point Gaborone London Sandton Mumbai Botswana Johannesburg
PULA
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