Botswana – The No.1 Investment Destination in Africa

Presentation by:Oratile KhamaFirst Secretary

Botswana High Commission

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BOTSWANA OVERVIEW

Population

2 Million

Land Area

582 000 km²

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ECONOMIC OVERVIEW

• Maintained one of the world’s highest economic growth

• Political & economic stability• A middle income country with high Per Capita

Income• Ranked by major investment services as the best

credit risk in Africa• Economic growth mainly fueled by the mining sector,

particularly diamond mining; coal next potential

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•Diamonds (and other mineral resources) are the largest revenue earner•Largest producer of diamonds, by value, worldwide•Tourism is the 2nd largest earner - (high-cost low-impact). •Beef is exported primarily to the European Union (EU)

•The mining, manufacturing and tourism sectors suffered adverse consequences as a result of the 2009 global financial crisis

•As a result, Botswana is now aggressively pursuing various diversification strategies

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BOTSWANA’S TRADE PROFILE

• Exports; diamonds, copper, nickel, textiles, handicrafts

• Imports; fuel, food, beverages, electrical goods, machinery &

equipment

• Resources based with growing strength; active exploration of

coal, uranium, nickel, copper

Government focus

• Increased efforts on economic diversification

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BOTSWANA’S INVESTMENT FOCUS

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• Strategic economic diversification• Export oriented industries (manufacturing and

services)• Technology and skills transfer• Sustainable employment creation• Exploitation of natural resources• Economic value add• Meaningful citizen participation

KEY SECTORS FOR INVESTMENT: HUBS

• To spearhead the diversification of the economy and facilitate the necessary investment activity both within and beyond the mining sector, Botswana has developed six hubs whose mandate is to ensure trade & investment flourish between Botswana and global economies i.e. Australia

• Agriculture • Innovation • Diamond • Education • Health• Transport

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AGRICULTURE

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Agriculture Hub Strategic Focus and Objectives• More than half of Batswana live in rural areas and are

dependent on subsistence crop and livestock farming.• Agriculture meets only a small portion of food needs and

contributes just 2.8% to GDP—primarily through beef exports—but it remains a social and cultural touchstone.

• One area with great potential to diversify the economy & create employment

• Catalyst for the commercialization and diversification of the agriculture sector, as well as to improveo Cattle farming & piggery, beef and poultry by products, food

production, agro processing & packaging, dairy farming • Promote modern technology

INNOVATION HUB

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• The Botswana Innovation Hub focus and mandate is delivery on the national strategic goal of economic diversification, and job creation, and moving the country towards a knowledge-based economy.

• BIH – which is also aligned to the National Vision 2016’s pillar of achieving a prosperous, productive and innovative nation – was incorporated as a company to develop and operate Botswana’s first Science and Technology Park in Botswana.

• The company is mandated to support new ventures and existing companies as well as attract companies, universities, research and advanced training institutes to establish in the Science and Technology Park.

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• This is intended to help transform Botswana into a technology-driven and knowledge-based economy, by promoting a culture of innovation and competitiveness among its associated companies and knowledge-based institutions.

DIAMOND HUB

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• Diamonds account for about 30% of Botswana’s GDP. Debswana – a 50-50 joint venture between De Beers and the Botswana Government is the world’s largest diamond producer by value.

• In realising the Botswana Government's vision for the establishment of a downstream diamond industry, De Beers signed an agreement with the Botswana government that saw the relocation of the Diamond Trading Company headquarters, its London-based sales activities to Botswana by the end of 2013.

• Diamonds from all De Beers’ mines in Botswana, Namibia, South Africa and Canada will now be brought to Botswana.

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• The discovery of coal deposits in excess of 200 billion tons has opened up further potential investment opportunities within the mining and energy sector

• These include:- Transport and logistics in mining- Electricity: About 80% is imported, there exists an urgent need for self-sufficiency in power generation

• New mineral discoveries• Minerals beneficiation

TRANSPORT HUB

Africa’s Investment Hub13

Transport Hub Strategic Focus and Objectives• Identify and coordinate key projects & policy

interventions required to develop Botswana as a transport hub in SADC

• Transform the transport and logistics industry into a major growth sector to stimulate economic diversification of the country

• Encourage private and public sector engagement and development in transport and logistics

EDUCATION HUB

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• Established to position Botswana as the Regional Centre of excellence in education

• Main objective – attract best institutions to establish in Botswana in partnership with local institutions of higher learning

• Botswana to become exporter of knowledge-based products and services

HEALTH HUB

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• Established to identify strategic initiatives and innovations to drive sustainable transformation and service delivery improvement throughout the health sector

• The Government of Botswana’s focus is primary health care with emphasis on disease prevention and healthy living

• The core functions of the Health Hub include:-The establishment of clinical and research

centres of excellence that can serve both the region and international clients

-Promote medical tourism to cater for local, regional and international health care needs

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• To identify ways in which the delivery of high quality health services can contribute to economic diversification and employment creation

• To stimulate focused initiatives that have a direct impact on the efficiency and quality of public healthcare

Institutional Support

17Africa’s Investment Hub

The Botswana Investment and Trade Centreo Newly established in April 2012; merger

between Botswana Export Development and Investment Authority (BEDIA) and Botswana International Financial Services (IFSC)

• Lead Investment and Trade promotion agency o Provides focused services to investors and

businesses; handholding through the process of setting up

• Regional Offices in South Africa, United Kingdom and India

Thank You

BITC 2012 18Re a leboga