PRESENTATION OUTLINE
KEY FIGURES & FACTS
BOTSWANA’S COMPETITIVENESS
TRADE BETWEEN BOTSWANA & GERMANY
KEY SECTOR OPPORTUNITIES
INVESTMENT INCENTIVES
ABOUT BITC
BOTSWANA: KEY FACTS & FIGURES
BOTSWANA LOCATION IN AFRICAUSD 18.347 Bn (WB, 2019)
USD 7,961(WB, 2019)
2.333 MILLION
(0.9 % June 2020), BoB Target is 3% - 6%
Bank rate 4.25%: Prime Rate 5.75%
(Total merchandize exports = US$5.23 million) Diamonds, copper, nickel, Ignition wiring sets and other wiring sets for vehicles, boneless beef, soda ash, and copper ores and concentrates
(Total merchandize imports US$6.56 million)Non-industrial diamonds, petroleum products, Industrial diamonds
20192019
BOTSWANA’S INVESTMENT CLIMATE
Sustained periods of economic growth: (4.5%: 2018 | 4.2%: 20194.8% 2020)
Prudent macro-economic management(EIU, 2020)
Strong balance sheet,With net external creditor position
Sound legal system and adherence to the rule of law Political stability
Incident free elections every 5 years
Labour market stabilityEducated workforce - 87.7% literacy rate (34%:1981)(World Bank, 2018; EIU, 2020) Highest sovereign credit rating
in Africa: “A” investment grade rating from both Moody’s and Standard & Poor Moody's 2020; S&P 2020)
Ease of Doing Business: 86/190 | 7th in Africa (World Bank, 2019)
LOCATION ADVANTAGE
Botswana has devised national strategies to effectively link its priority sectors with regional value chains.
Preferential market access to SACU, SADC, EU, MERCUSOR and US markets.
Product label
Botswana's imports from Germany (USD’000)
Value in 2017
Value in 2018
Value in 2019
Total for All products 52356 64844 48051
Electrical apparatus for switching electrical circuits, or for making connections to or in ... 4432 6889 5961
Sacks and bags, for the packing of goods, of textile materials (excluding man-made, cotton, ... 0 1720 4238
Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. 1637 9238 3806
Parts suitable for use solely or principally with the apparatus of heading 8535, 8536 or 8537, ... 1632 2787 3057
Boxes, cases, crates and similar articles for the conveyance or packaging of goods, of plastics 43 321 2751
Pallets, box pallets and other load boards, of wood; pallet collars of wood (excluding containers ... 20 579 1756
Insulating fittings for electrical purposes, of plastics 1818 2539 1685
Electric conductors, for a voltage <= 1.000 V, insulated, not fitted with connectors, n.e.s. 1145 1537 1592
Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ... 4261 1767 1366
Centrifuges, incl. centrifugal dryers (excluding isotope separators, cream separators and clothes ... 19 719 1187
Product label
Botswana's exports to Germany (USD’000)
Value in 2017
Value in 2018
Value in 2019
Total for All products 3870 4651 1158
Transmission apparatus for radio-broadcasting or television, incorporating reception apparatus 0 0 478
Parts of machinery of heading 8426, 8429 and 8430, n.e.s. 131 0 239
Extracts of pyrethrum and of roots containing rotenone 0 0 99
Fully or partly automatic machines for resistance welding of metals 0 0 79
Ignition wiring sets and other wiring sets for vehicles, aircraft or ships 30 42 61
Printing ink, whether or not concentrated or solid (excluding black ink) 0 3 51
Commodities not elsewhere specified 20 30 33
Instruments, appliances and machines for measuring or checking, not elsewhere specified in ... 0 0 31
Ink, whether or not concentrated or solid (excluding printing ink) 0 0 17
Source: ITC Trademap, 2020
Trade Between Botswana and Germany
Ostrich Production: Population 77,000;Opportunity: Breeding & HatchingEU Compliant Abattoir capacity – 20 000 birds; Anchor tenant at DOMU
Zambezi Integrated Agro-commercial project: 25000ha (15000ha rainfed & irrigation of field ccrops; 10000 horticulture; Investment Cost: BWP3.8 bn US$ 380mn
Aquaculture Production:Consumption – 4, 000 t/yrProduction - 300 tonsImports – 3, 700 tons
Dairy ProductionMilk production: 8.08m Litres (2019)Imports: 38.9 m Litres (2019)National Milk Demand: 65 m LitresValue Chain analysis cost the Invt Opportunity at BWP 1.83 bn (PSDP, 2015)
Other Agribusiness Opportunities• Chemical Fertilizer production –
market valued at US$19.1m (imports) – limited or no local production
facilities• Animal Feed. In 2019 BW imported
US$ 41 m of HS23 from RSA, Zambia, Zimbabwe & as far Europe):
Opportunities for import substation.
PRIORITY INVESTMENT SECTORS: COMMERCIAL AGRICULTURE & AGRO PROCESSING
HorticultureFresh Fruits Imports in 2019 –US$29.5 m (RSA – 99.7%) (apples –33%; bananas – 23% etc (ITC 2020)
THE AUTOMOTIVE SECTOR IN BOTSWANA – A GLIMPSE
> Kromberg & Schubert one of Botswana’s flagship companies with German origins
> Grown from strength to strength owing to its presence in Botswana and today employs 2 400
> Service tier 1 automotive plants in South Africa with Wiring Sets
> Chloride Exide Botswana – est. 1990, full capacity 500 000 automotive batteries per annum; 70% exported to 8 SADC countries
>Employs 130 people and sitting on a 15 000 sqm at its new facility in Phakalane, Gaborone
Website: www.chloride.co.bw
> Pasdec is one of the latest entries, relocated plant from Brits, RSA into Botswana in 2015, and the relocation completed in 2017
> Located in Lobatse and employs 573 people
> Services Nissan, VW and Renault
• BMW & Mercedes
EXPORTS OF AUTOMOTIVE PARTS
Product Description United States Dollars
2013 2014 2015 2016 2017 2018
Total Total 8,041,025,844 7,141,938,874 6,198,296,557 7,253,366,526 5,793,910,801 5,307,857,907
710231 Diamonds, Nonindustrial, Unworked Or Simply Sawn, Cleaved Or Bruted 5,908,759,371 5,132,649,373 4,687,664,574 5,961,959,113 4,616,311,314 4,003,729,946
710239 Diamonds, Nonindustrial, Worked, Including Polished Or Drilled 773,435,177 809,748,557 434,904,773 400,878,455 543,362,530 663,929,011
854430 Insulated Ignition Wiring Sets And Other Wiring Sets For Vehicles, Aircraft And Ships
34,605,299 31,073,368 100,495,986 110,901,700 83,340,720 102,110,457
20230 Meat Of Bovine Animals, Boneless, Frozen 73,607,009 62,917,056 51,807,094 51,163,400 46,580,152 47,425,337
283620 Disodium Carbonate 35,872,497 36,416,573 34,783,046 39,926,696 41,680,544 45,008,961
710812 Gold, Nonmonetary, Unwrought Nesoi (Other Than Powder) 55,098,268 41,178,302 26,055,726 38,238,008 35,590,818 43,510,40
PROXIMITY TO LARGEST AUTOMOTIVE MANUFACTURERS
Gaborone - Rosslyn 350 km
Gaborone – Durban 917 km
Gaborone – Eastern Cape 1000 km
• One of Botswana’s strongest value propositions is its location.
• It is both in close proximity of the largest automotive market in
Africa, as well as the largest automotive manufacturer and
exporter in Africa − both being South Africa.
• Botswana has a delivery time advantage over major
competitors in Asia, Europe and North America.
• In this regard, Botswana has a proven track record in supply
to the South African components market, increasing its
component exports tenfold in the past 20 years
THE FUTURE OF MOBILITY
• President’s commitment to produce an electric car in Botswana,
• Universities and Tech Developers took up the challenge.
• A number of concepts/prototypes under development,
• Opportunity for more players to come in and bolster Botswana’sDevelopment progress.
OTHER PRIORITY INVESTMENT SECTORS
Mining/Resource
BeneficationSoda Ash
Coal
Diamonds
Base Metals
ManufacturingAutomotive Components
General Manufacturing
Services
ICT
Financial & Business
BPO
Energy
Solar
Coal-bed methane (CBM)
Biogas and Biodiesel
Coal to Liquids
Transport & Logistics
Rail Projects:
Mamabula – Lephalale (57km)
Mosetse - Kazungula (356km)
Botswana - Mozambique
Aviation
Tourism & HospitalityHotels & Lodges
Tented CAmps
Air Charter Services
Medical Tourism
TAX COMPETITIVENESS
Botswana’s Corporate Tax Rate is Highly Competitive
Botswana General: 22%African Average: 27,5%Global Average: 23,57%
Source: Worldwide Corporate Tax Guide, EY 2019
0 5 10 15 20 25 30 35 40
Mauritius
Botswana
Global
Lesotho
Zimbabwe
Swaziland
Africa
South Africa
Tanzania
Malawi
Mozambique
Namibia
Zambia
DRC
Angola
INVESTMENT INCENTIVES
Botswana’s Corporate Tax Rate is Highly Competitive
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
IFSC No Exchange Controls
Up to 15% Tax Credit for non DTA
jurisdictionsZero rated for VAT
Exemption WHT when distributing to nonresidents
Exemption from CGT where
shareholding is > 25%
CUSTOMS DUTY
Duty Free import for manufacturing and agricultural
machinery & equipment
TRAINING COSTS
200% Tax rebates
INVESTOR VALUE ADDED SERVICES
Investment facilitation services through Botswana One Stop Service Centre offering:
Company & Business Registration
Opening of Bank Accounts
Entry Visas, Work & Residence Permits & Exemptions
Trade & Business License Applications
Utility Connections
Income Tax & VAT Registration
Industrial & Commercial Land / Factory Shells
Incentives; IFSC, Manufacturing, Tax Holidays (DAO)
Aftercare Services –renewals, expansions etc.
Environmental Impact Assessment Compliance
THANK YOU
www.gobotswana.com
Twitter: @Go_Botswana | Facebook & Linkedin: Botswana Investment and Trade Centre
Keletsositse OlebileChief Executive
BITC HQPlot 54351, Off PG Matante Road,
Central Business DistrictGaborone, Botswana
Top Related