INVESTMENT AND EXPORT OPPORTUNITIES
NÜRNBERG, GERMANY
30TH NOVEMBER 2016
1400 HRS
BOTSWANA OVERVIEW
Population
2 Million
Borders
S.A, Zimbabwe, Namibia,
Zambia
Land
582 000 km²
GDP
(4% 2017)
USD 14.8 Billion (2014)
GDP per Capita
USD 7 248 (2014)
Inflation
4% (3.1% July 2015)
Interest Rates
2
Bank rate 6%: Prime rate 8%
OVERVIEW CONT.
A Place to Visit
•
Botswana attained independence in 1966 and has maintained a Multi Party
Democracy with a strong tradition to the rule of law, adherence to good
governance.
•
Strong democratic tradition, Five yearly General elections.
•
Separation of power between the three arms of government, i.e. the Executive,
Judiciary and Legislature.
•
Over the past 50 years, Botswana’s Economic Growth has been driven by
minerals in particular diamonds which remain the primary source of
Government Revenue.
OVERVIEW CONT.
A Place to Visit
•
Botswana occupies a central location in Southern Africa. It has good
infrastructure, and is easily accessible within the region.
•
This makes Botswana an ideal location for investment to service the larger
SADC regional market of +200 million people.
•
High priority placed on Diversification of the economy away from mining.
•
Liberal investment incentives and favourable investment climate provides
an opportunity for German Investors to participate.
CHALLENGES FACING THE ECONOMY
• Lack of diversification of Botswana’s Economy.
• Currently Over dependence on one commodity (diamonds) makes
Botswana’s Economy vulnerable to external shocks.
• Mining is Capital Intensive and does not provide adequate opportunities
for employment.
• High literacy rate of 82%, Educated and trainable Youth but high
Unemployment of around 20%;
- Mismatch of skills with the needs of the economy
• Low levels of investment in Research and Innovation.
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TYPES OF INVESTMENT SOUGHT
• Strategic to economic diversification
• Export potential
• Creation of sustainable employment opportunities
• Sustainable utilization of natural resources
• Innovation and Technological transfer
• Skills transfer
• Research and Innovation
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INVESTMENT OPPORTUNITIES
• Mineral Resources and Energy
–
–
–
–
–
Diamond, coal and copper beneficiation
Diamond Trading
Diamond Beneficiation
International Diamond Trading Centre
Renewable Energy, solar and gas
• Agriculture
– Promotion of Investment in Agriculture, i.e. primary production of
dairy, grains, horticulture,
– Agri-business in terms of processing; meat, fruit, vegetables and
feeds.
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INVESTMENT OPPORTUNITIES
• Manufacturing
– Recycled material products; paper and plastic
– Garments, textiles, fertilizers etc.
• Innovation
- Accelerate technology transfer and acquisition (mining technologies,
energy, ICT), Green Technology
-
Science and Technology Park Development (30,000 m)
• Transport and Logistics,
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Rail, road, airport, dry port, bridge connecting our region.
• Financial and Professional Services
- Intermediary Holding Structures
• Tourism and Hospitality
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INVESTMENT INCENTIVES
A Place to Visit
•
No foreign exchange controls; remittance and full repatriation of profits
and dividends
•
100% Foreign ownership of Enterprises
•
Duty-free import of machinery and equipment for manufacturing purposes
•
Stable Industrial Relations
• Trainable workforce and high literacy rate (82%)
TAX REGIME
•
“A competitive corporate tax incentive framework
•
15% for manufacturing, financial services companies
•
22% tax for other sectors
•
12% Value Added Tax
•
Tax holidays for 5 years – 10 years
•
200% Tax Allowance for Training costs
•
Personal income tax, maximum 25%
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MARKET ACCESS
• Centre of the Southern African Development Community (SADC).
• Market access to over 200 million people in 15 countries with
combined GDP of more than US$700 billion.
• SADC’s Free Trade Area (FTA) launched in 2008 provides zero
tariffs for 85% of goods traded among member states.
• Member of the Southern African Customs Union (SACU).
•
Botswana’s products enjoy duty free access to a market of more
than 55 million people in 5 countries with combined GDP of more
than US$60 billion (Botswana, Namibia, Lesotho, Swaziland and
South Africa.
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MARKET ACCESS CONT.
• African Growth and Opportunity Act (AGOA) for Duty Free and quota
free market access to the USA.
• Economic Partnership Agreement (EPA) provides duty free and quota
free market access to the EU.
• The first phase of the on-going discussions of the COMESA-EAC-SADC
Tripartite Free Trade Area has been completed and when concluded will
offer Botswana a market of over 700 million people
• Botswana is a member of the World Trade Organisation and committed
to the implementation of WTO agreements.
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CONCLUSIONS
A Place to Visit
3rd most profitable country
globally & 1st in Sub
Saharan Africa (Baseline
Profitability Index 2015)
Highest investment grade
sovereign credit rating in Africa
long term “A-” & short term
“A-2”
Highest Gross Fixed
Capital Formation
Ration in SADC
At the Heart of the
SADC Consumer
Market
Within Close Proximity
of Fast-growing Markets
Least Corrupt Country
in Africa 2014
2nd Freest Economy in
Sub Saharan Africa
2015
Best Safety and Rule of
Law in Africa 2014
Competitive
Corporate Tax
Rates, Incentives
Africa’s Best Mining
Destination 2014
(Frazer Institute)
ABOUT BITC: THE BOTSWANA INVESTMENT AND TRADE
CENTRE
Investment and Trade Promotion Agency
Promotes Investment (FDI, DI, Expansions)
Provides investor facilitation services
Export Development & Promotion
Annual Global Expo Botswana
Brand Botswana Management
Interim SEZ Authority
Regional Offices in South Africa, United Kingdom and India
Jointly promote with Botswana Missions Abroad
INVESTOR VALUE ADDED SERVICES
A Place to Visit
Business Linkages / Facilitate engagements / Company
Visits
Investor facilitation services (One-Stop-Shop);• Partnerships and Joint Ventures
• Premises; Land,
• Work & Residence Permits, Visas
• Company registration, Licensing
• Incentives; IFSC, Manufacturing, Tax Holidays (DAO)
• Professional Advisory firms; registrations (company,
tax etc.)
Aftercare Services – renewals, expansions etc.
TESTMONIALS
“Botswana is a shining example for good governance and the prudent management
of mineral resources on the African continent. Botswana's greatest assets are
peace, law & order, disciplined fiscal and monetary policies, capable public
institutions and its wonderful people. This sets the country perfectly right for German
business wanting to explore opportunities on the African continent. We should
engage in partnerships to support Botswana in its ambitious efforts to diversify its
economy."
Prof. Juergen E. Schrempp, Former Chairman
Southern Africa Initiative of German Business –
SAFRI
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WHERE TO FIND US
Embassy of the Republic of Botswana
Lennéstrasse 5
10785, Berlin Germany
T: +49 30 887 195 010
F: +49 30 887 195 012
Website: www.embassyofbotswana.de
Email: [email protected]
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Thank You
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