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); AverageAnnual inflation (2017) - 3.3%

Interest Rates Bank rate 5.0%: Prime LendingRate 6.5%

Key Export Products 2017 ( US$8.7 billion)

Diamonds, copper, nickel, Ignition wiring sets and other wiringsets for vehicles, boneless beef, soda ash, and copper ores andconcentrates

Key Import Products 2017 (US$7.1 billion)

Non-industrial diamonds, petroleum products, Industrialdiamonds, fuel, machinery, Food Products

Botswana

GATEWAY TO SADC MARKET

Headquarters of SADC

SADC 293 million people

SACU 61 million people

Airport Infrastructure

•Able to handle B747 and 950 passengers at peak hour.

•Runway length is 4 000 metres, width is 60 metres

•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 observation system

Sir Seretse Khama International

Airport

•Peak hour passenger of 230 (departing and arriving) at an IATA (Level of Service C)

•Peak hour passenger corresponds to 150-seater aircraft corresponding to a Boeing 737 or Airbus A319

•3 000 metres runway, width is 45 metres

•Airfield ground lighting system to facilitate night operations and automated weather observation system.

•The Passenger Terminal Building is able to handle 387 000 passengers annually

Kasane International

Airport

•Runway designed to take an equivalent of B737 aircraft

•Runway length – 3 000 metres, width 45 metres,.

•International Arrivals 169 per peak hour, International Departures 169 per peak hour

•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

Maun International Airport

•Runway of 3000m long, 45 meters wide, taxiway and new apron, security fence, drainage

•Able to handle B737 and 477 passengers at peak hour

•Airfield Ground Lighting, Power supply etc.

Francistown International

Airport

• 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,

BOTSWANA ECONOMIC STRUCTURE

Exchange Rates

Inflation

Real GDP Growth Rate by Sector %

Annual GDP

Rates

WHY BOTSWANA

INVESTMENT CLIMATE

2nd Freest Economy in Africa, strong

regional collaboration, and

host of SADC Secretariat

Voted Most profitable African

destination for Doing Business

Least Corrupt in Mainland

Africa (TI)

Africa’s oldest and most stable

Democracy with safe living

environment

No forex controls or

restrictions on foreign business

ownership

Inflation target of 3 – 6 %

(3.8% by 2018)

Economic stimulus initiatives for

investors, and full repatriation of

profits and dividends

Educated and stable

workforce (83% literacy)

Respect for Rule of Law, Judicial

Independence and Human Rights

Highest Credit Rating in Africa: ’A’ Standard Sovereign

Credit ranking (Moody’s, S&P)

Historically high growth rates (4.7%-2017, 5.3%-

2018

Botswana’s Export Products with Potential to Poland

POLAND EXPORTS WITH POTENTIAL TO SOUTHERN AFRICAN CUSTOMS UNION

Priority Sectors for Botswana

Transport & Logistics

ICTAgriculture

MiningManufacturing

Tourism

Financial & Business Services

Investment Opportunities

BILATERAL & MULTILATERAL TRADE AGREEMENTS

DOUBLE TAXATION AVOIDANCE AGREEMENTS (DTAA)

Active

Barbados Mozambique Sweden

France Namibia UK

India Seychelles Zimbabwe

Mauritius South Africa Zambia

Swaziland Russia Ireland

Not yet in force

Belgium Zambia Luxembourg

Malawi Tanzania Serbia and Montenegro

Lesotho China Singapore

Portugal Czech Republic Malta

Germany

Investment 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% - 1st

5years10%

thereafterSACU Industrial

Rebate Provisions

50 year Land Lease

30% Gov’t Offtake

Agreement

INVESTMENT INCENTIVES

Taxation

15% for Manufacturing, IFSC, Innovation hub

5 -10% for SPEDU Region

Maximum 22% for Other Sectors

Value Added Tax at 12%

Maximum 25% Personal Income Tax

Possible tax holidays of up to 10 years under

Development Approval Order

Customs Duty

Duty Free importation of

manufacturing and agricultural

machinery & equipment

Training Costs

200% Tax rebates

IFSC

No Exchange Controls

Up to 15% Tax Credit for non DTA jurisdictions

Zero rated for VAT

Exemption WHT when distributing to non

residents

Exemption from CGT where shareholding is more than or equal to

25%

Investment Opportunities – Special Economic Zones

Commercial agriculture & Agro processing

Mining supplies logistics

Horticulture value chain

International Finance & Tech City

SSKIA – diamond, logistics, Innovation, Auto

Components

Meat & Leather City

Coal Energy, Logistics

BOSSC

Service Providers-Under Roof

- Ministry of Nationality, Immigration and Gender Affairs (MNIGA)

- Ministry of Employment, Labour Productivity and Skills Development (MELPSD)

- Department of Lands (DoL)

Service Providers - from own Ministries/Institutions

- Companies and Intellectual Property Authority (CIPA)

- Botswana Power Corporation (BPC)

- Water Utilities Corporation (WUC)

- Botswana Telecommunications Corporation (BTC)

- Directorate on Intelligence Services (DIS)

- Municipal Authorities/Councils/ Department of Trade and Consumer Affairs

- Department of Industrial Affairs (DIA) - Botswana Unified Revenue Service (BURS)- Department of Environmental Affairs (DEA)

BOTSWANA ONE STOP SERVICES CENTRE

SOME OF THE AFFILLIATED PARTNERS IN PROMOTION

SOME OF THE ACCREDITED COMPANIES

ABOUT BITC

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

UNITED KINGDOM OFFICE6 Stratford Place W1C 1AYLondon

INDIA OFFICENo. 43 Market Chamber VINariman Point Mumbai

SOUTH AFRICA OFFICE88 Stella Street3rd Floor West WingSandtonJohannesburg

HEAD OFFICEPlot 54351Central Business DistrictGaboroneBotswana

PULA