Why invest in Botswana
Strategically located at the heart of Southern Africa, Botswana offers excellent opportunities for investment. Botswana has managed to maintain a stable and growing economy since independence in 1966. According to the United Nations, “Botswana’s greatest assets are peace, law & order, disciplined fiscal and monetary policies, capable public institutions.”
Botswana has over the years consistently ranked highly on economic and development indicators compiled by internationally recognized rating agencies such as:
-
- Business report
- Transparency International
- Ease of Doing Business Report (World Bank)
- Heritage Foundation
- Moody’s
- Standard & Poors
- The Global Competitiveness Report (World Economic Forum)
- Global Rating Agencies
- The World Economic Forum’s (WEF) Global Information Technology Report (GITR)
- Corruption Perception Index
In her effort to attract Foreign Direct Investment, Botswana offers the following investment incentives:
- The low tax regime in the region:
-
- 15% for manufacturing, financial services companies and companies registered in the innovation hub;
- 22% corporate tax for others;
- Low personal income tax of up to 25%;
- 12% Value Added Tax
- Possible tax holidays for 5-10 years
- Free repatriation of profits
- Customs Duty Draw Back Facility, Free importation of raw materials, machinery and equipment;
- Great market access opportunities:
-
-
- Duty-Free Quota Free Market Access to more than 50Million consumers in Botswana, South Africa, Namibia, Lesotho and Eswatini;
- Preferential market access to more than 345 million consumers in the SADC region;
-
- Duty-Free Quota Free Market Access to the USA;
- Duty-Free Quota Free Market Access to the European Union;
- Double taxation agreements in place with South Africa, United Kingdom, Sweden, Mauritius, India, Russia;
- Botswana has a record of harmonious industrial relations, which aim to protect the interests of both workers and employers;
- Botswana offers a thriving domestic financial sector, which includes banks, insurance companies and a growing stock market. Botswana has acceded to international conventions and is strictly observing internationally accepted guidelines on combating money laundering and financial crime.