DOING BUSINESS IN BOTSWANA Outline Economic Demographic Overview
DOING BUSINESS IN BOTSWANA
Outline • • Economic & Demographic Overview Bilateral & Multilateral Trade Agreements Priority Sectors Botswana Investment Opportunities Why Invest in Botswana Investor Facilitation & Aftercare About BITC
ECONOMIC & DEMOGRAPHIC OVERVIEW
Botswana Import statistics From Poland Description Total Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof Electrical Machinery And Equipment And Parts Thereof; Sound Recorders And Reproducers, Television Recorders And Reproducers, Parts And Accessories Furniture; Bedding, Cushions Etc. ; Lamps And Lighting Fittings Nesoi; Illuminated Signs, Nameplates And The Like; Prefabricated Buildings Meat And Edible Meat Offal Made-Up Textile Articles Nesoi; Needlecraft Sets; Worn Clothing And Worn Textile Articles; Rags Miscellaneous Manufactured Articles Plastics And Articles Thereof Milling Industry Products; Malt; Starches; Inulin; Wheat Gluten Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Parts And Accessories Thereof Beverages, Spirits And Vinegar Global Trade atlas, 2019 United States Dollars 2015 2016 569 772 2 242 833 371 782 463 046 2017 1 168 733 331 940 2018 2 567 239 975 401 125 071 463 629 369 015 896 356 1 235 725 86 345 878 148 128 979 57 896 342 359 383 484 43 374 50 922 7 745 29 623 18 505 16 792 14 978 13 095 13 658
Botswana Export Statistics to Poland Description Total Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical Or Surgical Instruments And Apparatus; Parts And Accessories Thereof Furniture; Bedding, Cushions Etc. ; Lamps And Lighting Fittings Nesoi; Illuminated Signs, Nameplates And The Like; Prefabricated Buildings Electrical Machinery And Equipment And Parts Thereof; Sound Recorders And Reproducers, Television Recorders And Reproducers, Parts And Accessories Natural Or Cultured Pearls, Precious Or Semiprecious Stones, Precious Metals; Precious Metal Clad Metals, Articles Thereof; Imitation Jewelry; Coin Printed Books, Newspapers, Pictures And Other Printed Products; Manuscripts, Typescripts And Plans Plastics And Articles Thereof Source: Global Trade Atlas, 2019 2015 80 972 56 397 United States Dollars 2016 2017 1 684 590 1 650 590 11 803 275 240 12 470 30 4 63 2018 1 250 975
Gateway to SADC Market Headquarters of SADC 293 million people SACU 61 million people
BILATERAL & MULTILATERAL TRADE AGREEMENTS
Investment Climate ’A’ Standard Sovereign Credit ranking (Moodys, S&P) 2 nd Freest Economy in Africa, Heritage Foundation & WSJ Historically high growth rates (4. 7%-2017, 5. 3%-2018 Rule of Law & Judicial Independence Educated workforce (82%) literacy 81/190 on Ease of doing business, 5 th in Africa Least Corrupt in Africa (TI) INVESTMENT CLIMATE No restrictions on foreign business ownership Inflation target of 3 – 6 % (3. 2% by Dec 2017) Stable Democracy No forex controls
Investment Incentives Taxation 15% for Manufacturing, IFSC, Innovation hub 5 -10% for SPEDU Region Customs Duty Free importation of manufacturing and agricultural machinery & equipment Training Costs 200% Tax rebates IFSC No Exchange Controls Maximum 22% for Other Sectors Up to 15% Tax Credit for non DTA jurisdictions Value Added Tax at 12% Zero rated for VAT Maximum 25% Personal Income Tax Exemption WHT when distributing to non residents Possible tax holidays of up to 10 years under Development Approval Order Exemption from CGT where shareholding is more than or equal to 25%
INVESTMENT INCENTIVES Botswana’s Corporate Tax Rate is Highly Competitive Mauritius 15 22 Botswana 23. 57 Global Lesotho 25 Zimbabwe Botswana general: African Average: 27. 85% Global Average: 22% 25. 75 IFSC: 15% 27. 5 Manufacturing: 15% Botswana Innovation Hub: Swaziland Africa 27. 85 South Africa 28 Tanzania 30 Malawi 30 Mozambique 32 Namibia 33 Zambia 35 DRC 35 Angola 35 0 5 10 15 20 25 30 35 40
PRIORITY SECTORS FOR BOTSWANA
INVESTMENT OPPORTUNITIES > Leather Park > Beef > Primary production > Animal feeds > Ostrich farming > Solar > Coalbed methane (CBM) > Biogas & biodiesel > Coal to liquids > Soda Ash > Coal > Diamonds > Base Metals > Rail projects - Trans Kalahari - Mosetse - Kazungula > Aviation > Import substitution > Automotive components > General manufacturing
INVESTMENT OPPORTUNITIES Ø Ø Hotels & Lodges Tented Camps Air Charter Services Medical Tourism ØICT Ø Financial and Business Services Ø BPO Ø National Infrastructure: Roads, Bridges, Water Pipes Ø > Residential and Commercial Property Development
Incentives – SPEDU Region • • 5% corporate tax for first 5 years; 10% thereafter, Zero customs duty on imported raw material Provide rebate of Customs duties and Value Added Tax under Schedule 4 - Rebate Item 470. 03, and VAT Act Third Schedule - Item 470. 03 for manufacturing done exclusively • SPEDU Region has a for export outside Common Customs Area population of 203 000 (CCA) • SPEDU hub, Selebi Phikwe Town est. in the 70 s Provide rebate of Customs duties and Value following discovery and Added Tax for importation of raw materials mining and smelting of copper under Schedule 3 of the customs tariff and • Government adopted VAT Act. initiatives to stimulate economic activity in Agriculture, Tourism and Manufacturing
Incentives - SPEDU Region Provision of Land Input Costs • Minimum 50 year Lease • SPEDU Region will provide internet connectivity with bandwidth that promotes business competitiveness; Preferential ICT rates (telecommunications, data and voice rates) as already provided for IFSC companies • • Government off-take SPEDU Region Labour Laws Direct Government off-take on procurement of at least 30% (First preference in Government procurement provided the quantity, quality and price requirements are met), in line with Economic Diversification Drive (EDD) • SPEDU Region Employer - Employee Relations (To provide work environment which promotes productivity and harmonious employer/ employee relations)
INVESTMENT OPPORTUNITIES – SPECIAL ECONOMIC ZONES
GLOBAL EXPO (GEB) BOTSWANA • GEB conceptualized in 2006 by Botswana Government • GEB 2019 (14 th edition) will be held from 6 -9 August 2019 at Botswana Conference & Exhibition Centre in Fairgrounds, Gaborone • To offer exhibitors & visitors an opportunity to actively promote their businesses and products/services; multi-sectorial • To help the country to meet its objectives of attracting foreign direct investment (FDI) • To promote exports of locally produced goods and services • To stimulate intra-regional business and trade exchange
EXIBITION BOOTH TARRIFFS/RATES • Complete stand = USD 110 per m 2 – minimum space to book is 9 m 2 • Stand Space only = USD 85 per m 2 (subject to minimum booking of 18 m 2) • Outdoor = USD 30 per m 2 (subject to minimum booking of 20 m 2)
BENEFITS OF PARTICIPATING AT GEB Meet global buyers/sellers of your product Take part in the business match-making Strike partnerships and joint ventures Take part in investment & trade conference Attend all business seminars for free Meet private & public procurement practitioners Engage agents/distributors of your product Explore new markets
INVESTOR FACILITATION & AFTERCARE Botswana One Stop Service Centre (BOSSC) § Business Linkages / Facilitate Engagements / Company Visits § Investor facilitation services (Botswana One-Stop-Shop); • Partnerships and Joint Ventures • Premises; Land, • Work & Residence Permits, Visas • Company registration, Licensing • Incentives; IFSC, Manufacturing, Tax Holidays (DAO) • Professional Advisory firms; registrations (company, tax etc. ) § Aftercare Services – renewals, expansions etc.
ABOUT BITC q Investment Promotion, Export Development & Nation Branding Agency of Botswana q. Collaborates with network of Botswana Embassies around the world, Professional advisory firms, National and Regional Chambers of Commerce, Other IPAs & TPOs around the world HEAD OFFICE Plot 54351 Central Business District Gaborone Botswana SOUTH AFRICA OFFICE 88 Stella Street 3 rd Floor Westwing Sandton Johannesburg UNITED KINGDOM OFFICE 6 Stratford Place W 1 C 1 AY London INDIA OFFICE No. 43 Market Chamber VI Nariman Point Mumbai Facebook: Botswana Investment and Trade Centre Twitter: Go_Botswana Linked. In: Botswana Investment and Trade Centre You. Tube: Botswana Investment and Trade Centre Instagram: gobotswana 1 Email: enquiries@bitc. co. bw Website: www. gobotswana. com
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