Post on 01-Feb-2020
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INTRODUCTION
Botswana Export Development and Investment Authority (BEDIA) is the focal point for investment and export promotion
activities in Botswana. BEDIA plays an important role in the diversification and industrialization of the economy. The
Authority provides dedicated support to potential investors and existing companies. As part of our mandate, we
provide this medium for exchange and sharing of statistics and information on Botswana.
BotswanaBotswana is a land locked country, bordered by South Africa, Namibia, Zambia, and Zimbabwe. Botswana is 84%
covered by Kgalagadi Desert. Gaborone, situated in the South Eastern part of Botswana, is the capital city. The
country’s surface area is 581 730 sq km.
VisionWe will be globally recognized as a leading trade and investment agency in Southern Africa.
MissionTo promote investment in export oriented activities which will result in economic diversification, rapid economic
growth and sustained employment opportunities in accordance with Botswana’s social and economic policies and
objectives.
ValuesAccountability: We work to clear purposes and defined outcomes within identified parameters using transparent,
quality and consistent processes and reporting as necessary to stakeholders.
Ethical behaviour: We are open, honest and consistent in all business dealings. We conduct business in a professional
and ethical way.
Responsiveness: We work with stakeholders in a way that is consultative, timely and innovative to best meet their
changing needs.
Statistics Botswana 2010
TABLE OF CONTENTS
PAGE
INTRODUCTION 1
GOOD REASONS TO INVEST IN BOTSWANA 3
POPULATION 4
ECONOMY 7
BOTSWANA INTERNATIONAL TRADE 17
QUALITY OF LIFE 22
TOURISM 23
MINERAL SECTOR 25
EDUCATION 27
TRANSPORT 29
WORKING HOURS AND HOLIDAYS 30
TAX SYSTEM 31 Corporate Tax 31 Personal Tax 32 Global Corporate Tax 33
UTILITY TARIFFS IN BOTSWANA 34 Electricity 34 Water 35 Wages and Salaries 37 Factory and Office Space Prices 38 Telecommunications 39
FOREIGN INVESTMENT IN BOTSWANA 41 Botswana FDI Stock and Inflows (US$ Million) BEDIA Assisted Investment 42
Statistics Botswana 2010
GOOD REASONS TO INVESTIN BOTSWANA 3
Political stability and good governanceStable macro-economic environment and economic growthStandard and Poor’s and Moody’s Investor Service credibility and creditworthiness rating of Botswana is among
the best in AfricaAs at November 2009, foreign exchange reserves stood at P60.9 billion. This figure translates to US$9.2 billion
reserves, representing about 20.7 months import cover for goods and services
Corporate tax is only 15% for manufacturing enterprises, the highest rate for personal income tax is only 25%No Foreign exchange controlExcellent infrastructure and state of the art telecommunication systemsFull government support to trade and investment issues
Botswana’s exports are admitted quota and duty free to the European Union countries through the Cotonou Agreement.
Duty and quota free access to a market of more than 50 million consumers in South Africa, Lesotho, Swaziland and Namibia through the Southern African Customs Union, SACU.
Preferential access to more than 170 million consumers in the Southern African Development Community, SADC, market.
Duty and quota free access to the US market through the African Growth and Opportunity Act, AGOA.
Botswana offers an educated, English speaking labour force which is readily trainable.A young, abundant, predominantly English speaking, literate and well motivated labour force with a
tradition of manual dexterity at competitive wage rates.Excellent industrial relations with non-aggressive trade unionism.
Botswana is a cosmopolitan place where people of all races and colour live together in harmonyExcellent educational facilities both public and privateGood recreational facilities and tourism resortsModern health facilities
Statistics Botswana 2010
4
The 2005/06 Labour Force Survey estimated the population of Botswana at 1, 702,829 people and is growing
at the rate of 3.5% per annum. According to the survey, the population is 46.9% male and 53.1% female. The
number of households are estimated at 515 294.
Male 798, 460 46.9%
Female 904, 369 53.1%Total 1,702,829 100%
Central Statistic Office, STATS BRIEF: Preliminary 2005/06 Labour Force Survey Results, 2007
Botswana has a small population size compared to most Southern African Development Community (SADC)
countries. The population is heavily skewed towards the urban areas namely, Gaborone, Francistown, Lobatse
and Selebi-Phikwe. The population of Gaborone is approximately 250 000 people.
POPULATION
Statistics Botswana 2010
5POPULATION
Total 941,027 1,326,796 1,680,863
Urban 159,614 606,328 910,480
Rural 781,413 720,468 770,383
Gaborone 59,657 133,468 186,007
Francistown 31,065 65,244 83,023
Selebi-Phikwe 29,469 39,772 49,849
Lobatse 19,034 26,052 29,689
Molepolole 20,565 36,930 54,561Kanye 20,215 31,354 40,628Serowe 23,661 30,264 42,444
Mahalapye 20,712 28,078 39,719
Maun 14,925 26,768 43,776
Mochudi 18,386 25,542 36,962
Note:-1981, 1991 and 2001 are Population and Housing Census figures
Central Statistics Office, population census section website, 2007
Statistics Botswana 2010
6 POPULATION
Angola 7,835 9,276 10,532 12,280 13,841 15,941 18,327 20,947 23,777
Botswana 1,049 1,236 1,429 1,616 1,754 1,765 1,729 1,690 1,671
DRC 27,996 32,346 37,764 44,999 50,052 57,549 67,129 78,016 90,022
Lesotho 1,292 1,469 1,593 1,692 1,788 1,795 1,768 1,744 1,718
Malawi 6,183 7,250 9,459 10,111 11,512 12,884 14,348 15,998 17,816
Mauritius 966 1,016 1,057 1,125 1,186 1,245 1,298 1,344 1,384
Mozambique 12,048 13,219 13,429 15,854 17,911 19,792 21,620 23,513 25,508
Namibia 987 1,119 1,398 1,652 1,894 2,031 2,132 2,248 2,384
South Africa 29,239 33,178 36,877 41,894 45,610 47,432 47,819 47,902 48,100
Swaziland 616 717 865 953 1,023 1,032 1,010 992 983
Tanzania 18,858 22,268 26,231 30,930 34,763 38,329 41,838 45,598 49,265
Zambia 6,059 7,150 8,377 9,559 10,702 11,668 12,673 13,841 15,128
Zimbabwe 7,310 8,888 10,565 11,820 12,595 13,010 13,402 13,804 14,144
UN World Population Prospects Website
Statistics Botswana 2010
7ECONOMY
The overall size of the economy of Botswana both at current and constant prices increased in 2007/08 although
at a slower rate compared to 2006/07. The central Statistics Office (CSO) estimates GDP at current prices to have
increased by 12.5% from P71.2b in 2006/07 to P80.1b in 2007/08. At constant prices the expansion was much
slower at a rate of 3.3% in 2007/08 compared to 5.3% in 2006/07 which was revised from the initial estimate of
6.2% in the year 2006/07. The slow growth in 2007/08 is mainly as a result of the poor performance by mining
sectors, which registered a decline of 3.5% in real value added compared to 4.7% recorded for 2006/07. The
non-mining sector on the contrary experienced some encouraging real growth from an annual increase of 5.7% in
2006/07 to 8% in 2007/08. This indicates some success towards economic diversification.
Statistics Botswana 2010
8 ECONOMY
866.3 951.8 899.9 1 027.9 1325.0 1488.8
14 704.5 15 078.9 19 300.8 22 749.0 30 061.9 31 227.2
1 549.7 1 647.5 1 772.5 1 911.6 2 442.8 2 917.2
926.8 1 058.9 1 216.2 1 398.0 1 966.6 2 132.2
1 976.2 2 103.4 2 241.7 2 426.9 2 855.9 3 413.3
4 417.9 4 894.4 5 071.8 6 116.0 7 402.7 9 036.1
1 519.1 1 398.6 1 519.1 2 040.5 2 572.5 3 062.8
4 096.5 4 517.4 5 169.7 5 919.3 6 805.1 8 345.6
7 231.8 7 231.8 8 104.1 9 509.6 10 636.8 12 322.5
1 594.7 1 594.7 1 884.7 2 259.2 2 471.9 2 871.2
Central Statistics Office, STATS BRIEF National Accounts Statistics
Bank of Botswana Annual Report 2008
Statistics Botswana 2010
9ECONOMY
441.2 453.7 403.7 389.1 435.0 415.8
8,285.1 8,307.9 9,821.0 9,445.0 9891.8 9,545.2
703.3 708.8 763.1 804.0 900.5 969.9
444.2 472.4 489.1 506.8 536.6 584.2
1,005.5 1,026.7 1,036.0 1,001.8 1089.1 1,214.9
1,990.1 2,201.2 2,044.6 2,172.4 2348.0 2,562.1
631.2 609.8 605.7 716.2 838.7 944.9
1,972.5 2,015.5 2,114.8 2,350.6 2489.5 2,766.5
3,267.3 3,434.2 3,590.7 3,735.9 3800.4 3,937.5
724.5 774.9 855.5 9 19.7 934.3 1,005.9
Central Statistics Office, STATS BRIEF National Accounts Statistics
Bank of Botswana Annual Report 2008
Statistics Botswana 2010
10
Source: Central Statistics Office, STATS BRIEF National Accounts Statistics
Bank of Botswana Annual Report 2008
ECONOMY
Social andPersonal Service
4%
Agriculture, 2%
Mining, 40%
General Government
16%
Banks, Insurance& Business
Services, 11%
Transport 4%
Trade, Hotels andRestaurants, 12%
Construction, 4% Water & Electricity, 3%
Manufacturing,4%
Statistics Botswana 2010
11ECONOMY
9.8 8.6 17.1 16.1 23.1 12.5
9.1 3.5 9.4 0.6 5.3 3.3
*Represents the annual growth in the economy.
Central Statistics Office, STATS BRIEF National Accounts Statistics
Bank of Botswana Annual Report 2008
Statistics Botswana 2010
12 ECONOMY
23,335.3 25,054.0 29,019.4 33,417.5 40,796.2 45,589.5
14,061.2 15,599.0 17,182.6 19,613.0 22,837.6 26,952.4
Central Statistics Office, STATS BRIEF National Accounts Statistics
Bank of Botswana Annual Report 2008
Statistics Botswana 2010
13ECONOMY
One major pillar of Botswana’s macroeconomic policy is to maintain a stable and manageable inflation and
exchange rate in order to improve Botswana’s competitiveness in international markets and contribute to the
broader national objective of achieving diversified and sustainable economic growth. Inflation rose to a fourteen-
year high of 15.1% in August 2008, in line with the hike in the international prices of petroleum and food products.
Since Botswana is a net importer of its food and petroleum products, the impact of these commodities’ price
changes on the domestic general prices was significant throughout 2008. There has however, been a deceleration
in the domestic inflation trend following recovery in the global commodity markets. Inflation stood at 5% and 5.8%
in November and December 2009; falling within the Bank of Botswana’s medium term target range of 3 – 6%. It is
expected that inflation will rise in the short-term and stabilize around the Bank’s medium-term objective range of
3 – 6 percent in 2011. The table below presents domestic inflation figures for the period 2002 to 2009.
5.7 10.8 6.2 8.0 12.7 7.4 8.4 12.8
5.7 11.6 6.3 7.3 13.1 7.3 9.0 11.7
6.1 10.6 6.9 6.5 13.8 6.5 9.8 11.7
6.9 10.8 6.6 6.2 14.2 6.3 11.1 10.2
5.8 11.2 7.4 6.3 13.5 6.4 12.1 8.4
5.9 12.2 6.7 7.1 12.5 6.4 14.5 7.0
8.8 8.6 6.8 8.2 11.9 7.5 15.0 6.0
9.9 7.8 6.7 9.6 10.7 7.2 15.1 6.1
10.1 7.3 7.0 10.0 10.5 6.8 14.0 7.0
10.0 7.0 7.7 11.2 9.2 7.3 13.1 6.9
10.4 6.6 7.6 11.3 8.8 7.7 15.0 5
10.6 6.4 7.8 11.4 8.5 8.1 13.7 5.8
Central Statistics Office website, 2010.
Statistics Botswana 2010
14
Central Statistics Office, Bank of Botswana, Botswana Financial Statistics, 2010.
ECONOMY
Statistics Botswana 2010
15ECONOMY
Botswana’s exchange rate policy focuses on maintaining the country’s competitiveness as measured by the Real
Effective Exchange Rate (REER). The objective is to maintain a competitive exchange rate against a basket of
currencies of major trading partners. This is to afford local producers some competitive ground in trading on both
domestic and international markets. For a continued stable exchange rate the crawling band system is used for
Botswana’s exchange rate.
0.2134 0.1976 0.1722 0.1630 0.1477 0.1405
0.1716 0.1583 0.1374 0.1190 0.1004 0.1007
0.1164 0.1083 0.0937 0.0814 0.0798 0.0897
23.06 21.68 20.01 19.18 15.3158 13.1225
1.3746 1.227 1.1585 1.1481 1.2062 1.1763
Bank of Botswana, Botswana Financial Statistics, 2009
Statistics Botswana 2010
16 ECONOMY
In order to maintain price stability, interest rates have been used as a tool for mopping up excess liquidity in the
economy. The rate at which Bank of Botswana lend money to commercial banks (bank rate) was reduced to 10%
in 2009 from the 15% maintained in 2008. The drop in the bank rate was followed accordingly by the drop of the
prime lending rate to 11.5%. These rates are constantly monitored by the Central Bank.
14.25 14.25 14.50 15.00 14.50 15 10
15.75 15.75 16.00 16.50 16.00 16.5 11.5
Bank of Botswana, Botswana Financial Statistics
Statistics Botswana 2010
17BOTSWANA INTERNATIONAL TRADE
The value of imports in 2008 was P35 billion; an increase from the P25 billion recorded in 2007. Domestic imports
revolve mainly around five major commodity groups, chemicals & rubber product; foods, beverage & tobacco;
fuel; machinery & electrical equipment and vehicles & transport. The Southern African Customs Union (SACU)
especially South Africa provides most of the imports into Botswana.
Statistics Botswana 2010
18 BOTSWANA INTERNATIONAL TRADE
366 276 286 241 376 477 695 609
61 31 32 31 28 37 56 40
12 435 13 223 10 681 12 435 16 864 19 452 20 043 20 793
598 710 1337 1578 2 314 3 619 5 655 4 561
193 286 247 561 1 119 917 2 187 1 819
128 79 84 107 195 181 193 221
299 531 492 556 591 273 219 413
571 970 750 982 996 1593 2744 4080
14 658 16 109 13 910 16 490 22 510 26 549 31 792 32 536
Central Statistics Office, Trade Section Website 2009
In 2008, total exports were valued at P33 billion compared to P32 billion in 2007. The major export commodities
were mainly diamonds, copper/nickel matte and textiles exports.
Statistics Botswana 2010
19BOTSWANA INTERNATIONAL TRADE
2 204 2 031 2 049 2 249 2 492 3 334 4 272
626 824 1 705 2 214 3 088 3 880 6 005
1 712 1 428 1 695 2 007 2 365 3 155 3 739
1 055 1 050 1 377 687 740 938 1 206
748 580 706 794 902 1 172 1 413
1 734 921 1 181 1 238 1 457 2 024 2 797
2 780 2 212 2 476 3 015 3 088 4 646 6 269
2 469 1 476 1 884 2 116 1 753 2 907 3 820
1 980 1 599 1 624 2 141 2 183 2 848 5 912
15 309 12 120 14 695 16 461 18 068 24 904 35 433
Central Statistics Office, Trade Section Website 2009
Botswana External Trade Monthly Digest July 2009
Statistics Botswana 2010
20 BOTSWANA INTERNATIONAL TRADE
26 12 21 8 240 82 2 39155 20 15 22 138 81 1 33253 46 16 54 240 56 4 46958 51 13 31 490 52 3 69876 32 2 18 649 70 11 85878 41 14 53 1,120 73 6 1,38591 85 12 60 1,360 3 8 1,619
111 103 25 31 2,383 4 8 2,665145 185 30 31 2,272 7 9 2,679184 254 50 35 3,199 10 11 3,743157 226 53 41 2,832 4 5 3,318187 256 56 54 3,174 10 2 3,739255 167 55 57 3,129 9 3 3,675379 135 57 597 3,083 14 4 4,269691 134 49 1,245 2,801 35 10 4,965
1,277 182 49 2,223 2,147 52 11 5,9411,488 250 50 4,419 1,827 78 22 8,1341,485 383 114 5,840 2,444 102 23 10,3911,495 250 111 4,830 1,874 90 48 8,6981,271 291 137 8,130 2,221 86 91 12,227
984 556 131 9,913 2,488 86 102 14,260948 382 111 12,584 463 37 134 14,658
1,249 398 88 12,835 382 107 1,050 16,1091,221 407 45 10,791 244 61 1,139 13,9101,587 614 40 12,267 301 264 1,416 16,4892,046 935 39 17,012 292 498 1,697 22,5101,832 1,492 36 19,101 522 489 3,077 26,5493,581 2,311 46 20,445 823 313 4,273 31,7926,987 1,457 79 18,267 1,135 329 4,282 32,536
Central Statistics Office, Trade Section Website 2009
Botswana External Trade Monthly Digest July 2009
Statistics Botswana 2010
21BOTSWANA INTERNATIONAL TRADE
581 40 2 8 11 - 15 7 664
609 43 2 16 12 - 12 10 704670 56 3 10 42 - 9 16 806698 77 1 28 59 - 17 16 896814 78 3 53 82 - 31 33 1,094
1,022 98 3 33 82 - 38 56 1,3321,251 118 4 36 106 - 30 28 1,5731,689 139 7 125 110 - 46 56 2,1722,445 172 22 94 187 - 36 63 3,0192,980 184 23 90 223 - 41 79 3,6203,292 208 11 143 152 - 49 73 3,9283,374 193 16 104 178 - 39 67 3,9713,541 196 17 112 192 - 141 85 4,2843,437 259 23 110 260 92 83 144 4,4083,925 293 18 135 319 377 107 132 5,3064,462 328 23 148 240 249 74 196 5,7205,982 368 38 163 580 785 89 251 8,2567,111 375 54 321 644 456 135 418 9,5147,784 397 27 272 664 264 188 569 10,1657,846 367 35 442 900 22 174 421 10,2308,201 335 35 468 833 22 190 480 10,564
12,454 218 148 477 1,124 12 191 686 15,30910,494 177 47 303 627 12 84 376 12,12013,173 241 43 483 890 21 201 735 15,78813,619 249 36 203 1,175 34 206 939 16,46115,512 279 15 193 593 30 153 1,293 18,06820,932 313 16 331 1,139 26 302 1,845 24,90427,606 314 15 2,004 1,849 20 459 3,166 35,433
Central Statistics Office, Trade Section Website 2009
Botswana External Trade Monthly Digest July 2009
Statistics Botswana 2010
22
Human Development Report 2007/2008 ranks Botswana 124th in the world in terms of the Human Development
Index (HDI). The HDI is a composite index measuring average achievement in three basic dimensions of human
development –a long and healthy life, knowledge and a decent standard of living. Botswana continues to rank
above most SADC countries in terms of this measure however she ranks lower than South Africa, Seychelles and
Mauritius. South Africa, Seychelles and Mauritius dominate Botswana, thus indicating that the quality of life is
better in these countries than in Botswana.
Human Development Report, 2007 - 2008
QUALITY OF LIFE
200
150
100
50
0
Moz
ambi
que
DRC
Ango
la
Mad
agas
car
Nam
ibia
Bots
wana
Sout
h Af
rica
Mau
ritiu
s
Seyc
helle
s
5065
121 124 125143
162 168 172
Statistics Botswana 2010
23TOURISM
Botswana operates a vibrant tourism industry. About 17% of territory in Botswana is designated as protected
areas while an additional 20% is conserved as a wildlife management area. The country offers a wide variety of
striking landscapes (e.g. Okavango Delta, Kalahari Desert, Chobe River and Makgadikgadi Pans) and National
Parks.
Wildlife and wilderness experience are by far Botswana’s biggest holiday attractions. There were close to
1.5 million tourist arrivals in Botswana in 2008 and an additional 314,436 day visitors. The rate of growth of tourist
arrivals over the period since 1994 has been significant, increasing by an average of 8.4% per annum.
Statistics Botswana 2010
24 TOURISM
International Tourism Arrivals 1,499,794
Average Annual Growth Rate: Tourism Arrivals 2006-2008 2.6%
Average length of stay (nights) 7.7
International Tourist Expenditure (Pula) 2.9 billion
Average spend per person per day (Pula) 341
Room Occupancy Rates 40.3%
Bed Occupancy Rate 36.1%
Average length of Stay in Accommodation (nights) 2.7
Visits to National Parks (2007) 284,501
Department of Tourism, Tourism Statistics 2006 - 2009
Statistics Botswana 2010
25MINERAL SECTOR
The mining sector remains the main engine of growth for the Botswana economy. The sector contributes over a
third of GDP, 75% of export earnings and over 55% of total government revenue. The main driving force for the
sector has been the diamond sub-sector. The Orapa pipe which measures 112 hectares is the largest known
diamond bearing kimberlite pipe in the world. The peak capacity for this mine is estimated at 250, 050 carats
per annum.
Botswana produces salt and soda ash in Sua Pan which covers roughly 3 500 square kilometers and contains an
estimated brine resource of 16 billion cubic metres. Botswana has large coal resources estimated at 212 billion
tonnes of which 3.3 billion tonnes are measured reserves. At least 17 billion tonnes of coal is estimated to be
suitable for power plant use.
Of late the main focus for the country is to transform itself from a leading diamond producer to a World Diamond
Centre by;
downstream diamond in Botswana. Already there are 16 diamond cutting and polishing factories in
Botswana a majority of which started operating in 2007.
and security.
factories tours, diamond museums and diamond jewellery shopping.
entrepreneurs.
Statistics Botswana 2010
26 MINERAL SECTOR
Diamonds (‘000carats) 31,834 31,011 33,639 32,595 3,915*
Copper and Nickel (tonnes) 58,998 47,543 49,121 52,086 22,341
Coal (tonnes) 984,876 816,920 828,164 909,511 407,231
Electricity generation
(‘000kwh)2,879,442 2,257,584 3,269,264 3,375,000 2,425,965
Water Sales (‘000 kilolitres) 43,508 39,795 466,667 502,442 404,993
Soda Ash (tonnes) 281,976 214,120 279,625 263,566 87,788
*Figures for diamonds in 2009 are from Jan-June
Central Statistics Office, Stats UPDATE SEPTEMBER 2009
Statistics Botswana 2010
27EDUCATION
The Government of Botswana has invested a lot of resources in the development and growth of the education
system in line with the country’s Vision 2016 pillar of “An Educated and Informed Nation”. The standard of public
education in Botswana is considered to be comparable to international standards. Botswana’s total investment in
knowledge (including investment in public and private spending on higher education) has been increasing at an
annual rate of about 4% over the past decade. The education and Skills Development’s total ministerial recurrent
budget for 2009/10 was P7.57 billion (which is 29.4% of recurrent budget). This shows the level of importance
given to the sector and continued efforts of realizing the vision. Botswana has an adult literacy rate of 81%.
Developments such as the development of the Botswana International University of Science and Technology
(BIUST) represents and show the relentless commitment by the government in transforming Botswana’s
economy from a resource to a knowledge based economy. Such developments as well as other initiatives under
the government plan represent the continued strive towards a competitive, diversified economy of Botswana.
Statistics Botswana 2010
28 EDUCATION
Local Government & Grant
Aided Schools314,049 313,900 311,840 312,115 312,808
Private Enrolment 17,407 16,471 16,852 17,076 17,609
Total Std 1 enrolment 52,607 52,589 50,868 53,427 53,483
pupil: teacher ratio 25 26.0 25.8 25.6 25.4
Community Junior and
Secondary Schools156,687 118,503 114,457 115,171 119,163
Senior Secondary
(Excluding Form 6)40,415 35,719 36,157 36,583 43,245
Private Secondary Schools 7,991 8,302 8,225 8,246 7,109
Teacher Training Colleges --- 1,526 1,390 1,486 1,379
College of Education --- 1,802 1,659 1,505 1,386
University of Botswana --- 15,628 15,724 15,710 16,239
--- Not available
Central Statistics Office, Stats UPDATE SEPTEMBER 2009
Statistics Botswana 2010
29TRANSPORT
Botswana has very good infrastructure by road, rail and air to the region. Air Botswana and South Africa
Express Airways provides international flights from Botswana to South Africa as well as Zimbabwe. In the latest
development Kenya Airways joined hands with Air Botswana to provide flights between Botswana and Kenya.
There are a number of flights between Gaborone and Johannesburg everyday and a number of flights per week
between Gaborone and Nairobi. There is a railway line which passes through Botswana and links South Africa to
Zimbabwe. The trans-kgalagadi road links Botswana, South African and Namibia.
To improve the country’s competitiveness, the government of Botswana initiated a number of infrastructural
developments within the transport sector during the 9th National Development Plan. These include major airport
development and expansion projects at several airports as well as improved navigational aids.
Statistics Botswana 2010
30 WORKING HOURS AND HOLIDAYS
0730 hrs-1245 hrs 1345 hrs-1630 hrs
0800 hrs-1300 hrs 1400 hrs-1700 hrs
New Year's Day 1st January
Public Holiday 2nd January
Good Friday 2nd April
Public Holiday 3rd April
Easter Monday 5th April
Labour Day 1st May
Ascension Day 13th May
Sir Seretse Khama Day 1st July
President's Day 19th July
Public Holiday 20th July
Botswana Day 30th September
Public Holiday 1st October
Christmas Day 25th December
Boxing Day 26th December
Public Holiday 27 December
Statistics Botswana 2010
31TAX SYSTEM
Botswana has one of the simplest and comprehensive tax regimes in the world. Corporate tax rates in Botswana
are one of the lowest in the SADC region at 15 % for all manufacturing companies as well as International Financial
Service Centre (IFSC) companies and 25 % for other non-manufacturing companies. The 15% manufacturing tax
comprises 10% additional tax and 5% basic company tax. VAT is imposed comprehensively on an end user basis
at the rate of 12% on standard rated supplies and 0% on zero-rated supplies.
Statistics Botswana 2010
32 TAX SYSTEM
The personal tax regime is based on taxable income brackets.
More than 0 but less than 25 000 Nil
More than 25 000 but less than 43 750 0 + 5% of the excess over P25 000
More than 43 750 but less than 62 500 P937.50 + 10% of the excess over P43 750
More than 62 500 but less than 81 250 P2 812.50 + 15% of the excess over P62 500
More than 81 250 but less than 100 000 P5 625.00 + 20% of the excess over P81 250
over 100 000 P9 375+25% of the excess over P100 000
Table I applies to resident individuals
More than 0 but less than 43 750 5 % of every Pula
More than 43 750 but less than 62 500 P2 187.50 + 10% of the excess over P43 750
More than 62 500 but less than 81 250 P4 062.50 + 15% of the excess over P62 500
More than 81 250 but less than 100 000 P6 875.00 + 20% of the excess over P81 250
Over 100 000 P 10 625 + 25% of the excess over P100 000
Table II applies to non-resident individuals
BURS, Incentives to Investment in Botswana: An Income Tax Perspective
Statistics Botswana 2010
33TAX SYSTEM
35
15 Manufacturing & IFSC25 other 4015 Manufacturing & 35 Other3015 Manufacturing & 25 Other32353030303530
12.53033.3334.5026.38253335
1. World Bank, World Development Indicators, 2005
2. SADC Tax database, Trade Industry, Finance and Investment (TIFI), Website 2007
Statistics Botswana 2010
34 UTILITY TARIFFS IN BOTSWANA
Fixed charge (Pula per month) P29.74 P29.74 P29.74
Energy charge (Pula per kWh) P0.4579 P0.2348 P0.2117
Demand charge (Pula per kW per month) Nil P56.21 P52.91
Botswana Power Corporation, tariffs section Website, 01st April 2008
Statistics Botswana 2010
35UTILITY TARIFFS IN BOTSWANA
Water Utilities Corporation (WUC) supplies water to urban centres as well as to peri-urban areas and villages
through bulk supplies to the Department of Water Affairs.
1 0-10 235 185 265 185 185
2 11-15 705 365 635 415 295
3 16-25 900 475 925 595 365
4 Above 25 1245 545 1035 660 475
Raw water (untreated) 365 - 220 - 260
Raw water Botash/BCL - - - 210 100
Water Utilities Corporation, Tariffs section Website 2007
1 0-5 P1.90
2 6-20 P4.75
3 21-40 P9.80
4 41 and above P12.15
Minimum charge applied =
Statistics Botswana 2010
36 UTILITY TARIFFS IN BOTSWANA
1 0-5 P1.90
2 6-20 P4.75
3 21-40 P9.80
4 41 and above P12.15
Minimum charge applied =
Statistics Botswana 2010
37UTILITY TARIFFS IN BOTSWANA
Manufacturing, Service (Including Security Guards Companies
employing Security Guards) and Repair TradesP3.80
Building Construction, Exploration and Quarrying industries P3.80
Hotel Catering and Entertainment Trades P3.80
Garage, Motor Trade and Road Transport P3.80
Wholesale Distributive Trades P3.80
Retail Distributive Trades P3.30
Night watchmen in the above trades P3.20
Security guards employed by security Guard Companies P3.80
The Statutory Minimum Salary authorization by the Government is P600 (US$ 100) per month
Commissioner of Labour, Minimum Wages Adjustment 2007/08, March 31st, 2008
Statistics Botswana 2010
38 UTILITY TARIFFS IN BOTSWANA
Botswana Export Development and Investment Authority (BEDIA) and Botswana Development Corporation
(BDC) provide serviced industrial sites and factory shells for rental at concessionary and competitive rates. The
private sector also offers office space and factory shells at market rates.
Telecommunications in Botswana is highly advanced and ranks among the best in the world. This is consistent
with the National ICT Policy which envisages that Botswana will be a globally competitive, knowledge and
information based society where lasting improvements in social, economic and cultural development is achieved
through effective use of ICT.
In order to make telecommunications in Botswana competitive and cheaper to Batswana, the government
further liberalized the market necessitating a New Licensing Framework in the year 2006/7. A service neutral
license, namely the Public Telecommunications Operators (PTO) license was introduced. The new framework
provided for a merger of the Data and Internet Service Provider’s licenses to form the Value Added Network
Services (VANS) license. The VANS license allows VANS providers to offer multiple services including Voice
over Internet Protocol (VoIP). There are several VoIP providers who are offering international calling services
and these alternative calling services are expected to put a downward pressure on international calling rates.
Further to this, the Botswana Telecommunications Authority continues to seek ways to promote growth of the
sector. This is confirmed by a comprehensive study the authority undertook in the financial year ending March
2009, that sought to establish the development of the sector as well as to map a way for further growth.
Statistics Botswana 2010
39UTILITY TARIFFS IN BOTSWANA
823 070 1151 761 1 485 791 1 874 101
132 034 136 946 142 282 144 195
ISP- Internet Service Provider
Botswana Telecommunications Authority Facts & Figures (2005/06), Annual Report 2008 and 2009
Residential Telephone Line 75.00 230.00
Business and Government Telephone Service 100.00 337.50
Business Additional Line 125.00 187.20
ISDN Basic Rate Interface 227.00 700.00
Toll Free Service 125.00 600.00
Residential Extension [Internal & External] 6.30 100.00
Business Extension [Internal & External] 125.00 150.00
Standard Telephone Instrument 5.33 -
Botswana Telecommunications Corporation, tariffs section Website 2007
Statistics Botswana 2010
40 UTILITY TARIFFS IN BOTSWANA
Full
Rate
Cheap
Rate
Full
Rate
Cheap
Rate
Full
Rate
Cheap
Rate
0.20 0.15 30 30 0.40 0.30
0.33 0.21 30 30 0.65 0.42
0.66 0.51 30 30 1.32 1.02
Botswana Telecommunications Corporation, tariffs section Website 2007
256 kbps 64 kbps 3 Gb P 187.00
512 kbps 128 kbps 4 Gb P 297.00
768 kbps 256 kbps 5 Gb P 385.00
Botswana Telecommunications Corporation, ADSL Broadband Website 2008
Statistics Botswana 2010
41
--- 854 1,080 1,382 1,084 958 1300
31 405 418 391 281 274 495
World Investment Reports, 2008
FOREIGN DIRECT INVESTMENT
The Bank of Botswana’s annual report shows that Luxembourg is the main investor in Botswana covering 83%
of the foreign direct investment from Europe. A major part of the European investment is into mining and South
Africa - also a significant contributor to foreign direct investment - is accounted for mainly in terms of the country’s
involvement on financial institutions. In 2008, Botswana’s overall net international investment position showed a
13.4% increase from P74.5 billion to P84.5 billion.
Statistics Botswana 2010
42 FOREIGN DIRECT INVESTMENT
B&M Garments Mauritius Shashe
(Francistown)100% foreign
owned Garments 650 16,000,000
Rising Sun China Selibe-Phikwe 100% foreign owned Garments 850 6,000,000
Whinstone Enterprises India Selibe-Phikwe 100% foreign
owned Blankets 3 1,200,000
Benrose Limited
South Africa Lobatse 100% foreign
owned Garments 130 2,000,000
DCDM Mauritius Gaborone 100% foreign owned
Consultancy and IT Field 11
Dinesh Textiles Botswana Selibe-Phikwe Local Indian Men and
Ladies jeans 400 4,500,000
Vision International Taiwan Gaborone
Joint Venture (Taiwanese & Motswana)
Sportswear 722 14,000,000
Caratex 2 Taiwan GaboroneJoint venture (Taiwanese & Motswana)
Jeans 450 7,000,000
First Polymers/Sunita PTY
LTD
India Gaborone 100% foreign owned
Electrical cables 9 1,000,000
Bokomo South Africa Gaborone Joint venture
(RSA & BW) Milling 201 15,000,000
Double Twist South Africa Gaborone 100% foreign
ownedWires for
construction 24 5,000,000
Trubok South Africa Gaborone 100% foreign
owned Apparel 180 4,500,000
Statistics Botswana 2010
43FOREIGN DIRECT INVESTMENT
Carapparel Taiwan Gaborone100% foreign owned
Apparel 503 23,000,000
Carafashion Taiwan Gaborone100% foreign owned
Apparel 700
Microlith Botswana Selibe-Phikwe
100% foreign owned
Garments 500 6,000,000
Sealed Air South Africa Lobatse
100% foreign owned
Packaging material 3 1,000,000
Eurostar Belgium Gaborone100% foreign owned
Diamond cutting and polishing
463 6,000,000.00
Dithunya Zimbabwe Francistown 100% foreign
Treated timber 30 15,000,000
Pluczenik Diamond Co. Belgium Gaborone
100% foreign owned
Diamond Cutting and polishing
100 30,000,000
Table and Chairs RSA Gaborone 100%
foreignTable and chairs 220 2,500,000
Forest
KnittingRSA Gaborone
100%
foreignKnitwear 90 6,000,000
Tannery
Industries
Botswana
Bulgaria/
BotswanaGaborone JV
Finished
Leather42 30,000,000
Statistics Botswana 2010
44 FOREIGN DIRECT INVESTMENT
Brink PTY LTD RSA Gaborone 100% foreign Security
company 6 550,000
Phatshwane Enterprise
Botswana/Zimbabwe Mogoditshane JV
Leather and Plastic industries (Belt and
Bags)
6 100,000
Yerushalmi Israel Mogoditshane 100% foreign owned
Diamond Cutting and
Polishing230 21,400,000
UHT Milk Bots/RSA Gaborone JV UHT Milk 50 27,000,000
Nicliff Zimbabwe Gaborone 100% foreign owned
Linen Savers 6 200,000
Money matters Zimbabwe Gaborone 100% foreign
owned Hatchery 8 800,000
Safdico RSA Gaborone 100% foreign owned
Diamond park 50 11,400,000
Exelco Belgium Gaborone 100% foreign owned
Diamond cutting and polishing
84 30,000,000
Safdico UK/RSA 100% foreign owned Diamond park 25 2007 11,400,000
Statistics Botswana 2010
45FOREIGN DIRECT INVESTMENT
Exelco Belgium Gaborone 100% foreign ownedDiamond
cutting and polishing
84 30,000,000
Suashish India Gaborone 100% foreign ownedDiamond
cutting and poilishing
67 6,000,000
BI Industries RSA Gaborone 100% foreign owned Bio diesel fuel 83 1,320,000
SMS Bio fuel Holdings UK Gaborone 100% foreign owned 5 3,300,000
Cipher Red Botswana China/RSA Gaborone 100% foreign owned Denim
clothes 105 2,500,000
Tobacco Manufacturing
South Africa
Gaborone(Phakalane) 100% foreign owned Tobacco/
Cigarettes 5 28,800,000
PET Bottles South Africa Gaborone 100% foreign owned Pet Bottles 7 700,000
Nata Energy Uganda/ Botswana Nata JV Gas 25 10,000,000
CIS Ethopia/Botswana Gaborone JV Information
Security 16 4,000,000
Timber Kitchens India Gaborone 100% foreign owned
Wooden kitchen units
60 2,500,000
Statistics Botswana 2010
46 FOREIGN DIRECT INVESTMENT
Latex medical Botswana Gaborone 100% Botswana Condoms 92 6,000,000
Nyandlo
ArtifactsZimbabwe Mochudi 100% Foreign
Curio
products10 300,000
IGC Zebra
DiamondsBelgium Gaborone 100% foreign
Diamond
cutting and
polishing
70 17,000,000
Karong Clinic UK Gaborone JVHealth
clinic23 8,000,000
Limpopo
LipadiUK
Limpopo/
Tuli100% foreign Tourism 200 200,000,000