Opportunity, profitability, and stability
Exploring Botswana’s investment environment
As investors look to the global market for new opportunities, sustainable growth, and economic security, Botswana is looking like an increasingly interesting prospect. Discover how this Southern African nation became one of the continent’s leading investment partners.
A free economy
Synonymous with intricate landscapes, wild safaris, and rich cultures, Botswana has long attracted visitors from all over the world. Between 2015 and 2020, this brought in an average of $516 million (USD) in tourism revenue.
Yet, beyond its cultural offering lies a world of business opportunity, to which Botswana owes its diverse and free economy. It is currently the third freest economy in Sub Saharan Africa, scoring above regional and world averages.
Boasting connections via land and air, Botswana is the perfect gateway to the Southern African Development Community (SADC) – an inter-governmental organization that aims to promote socio-economic growth. This translates to a marketplace of over 393 million people across sixteen countries, with a combined GDP of more than $725 billion (USD). Altogether, making Botswana an ideal investment and trade hub for those wanting to expand their horizons.
Botswana’s trade agreement with the SADC translates to a marketplace of over 393 million people across sixteen countries.
Investment motivations
Last year, Botswana’s economy was projected to rebound by 9.7% post-Covid – a growth trajectory set to continue throughout 2022 with the help of the Economic Recovery and Transformation Plan (ERTP), which works to address issues of economic diversification.
This national commitment led to a “stable” sovereign credit rating by both S&P Global and Moody’s Investors Service, which only reinforces Botswana as a profitable, secure, and sustainable investment environment.
For those looking to do business in the Southern African nation, it’s not just its economic stability that makes it a favorable destination; it boasts a selection of robust business incentives. These include no foreign exchange controls or restrictions on business ownership, and remittance and full repatriation of profits and dividends.
Botswana also offers investors a low, competitive tax regime. 15% for Manufacturing and International Finance Service Centre (IFSC) companies, 22% for other businesses, and 25% for individuals.
Business without borders
Investment opportunities in Botswana are industry-wide. Whether it’s sustainable diamond mining or pharmaceutical manufacturing, education services or logistics solutions, every investor, from any sector, can join a global market, contribute to a regional economy, and increase the job prospects of a local community.
And there has never been a better time to do so. As a self-established center for Innovation, Research and Development, Botswana is accelerating plans for an ultra-connected investment and trade infrastructure. The Trans-Kalahari Railway will provide a link to a seaport on the Namibian coast. The recently opened Kazungula Bridge Project has replaced the ferry route across the Chobe River into Zambia. And the West Africa Cable System will transmit data from Botswana, through Namibia, to the United Kingdom.
With such strong connections and numerous trade agreements (SADC, SACU-EFTA, SADC-EPA, SACU MERCOSOR, UK-SACU, AfCFTA), doing business in Botswana means the potential to do business with the world. By partnering with the Botswana Investment and Trade Center (BITC), investors can find their place in a nation that prides itself on democracy, stability, and peace.