DOING BUSINESS IN BOTSWANA Mr Moemedi Mokgosi Executive Director, - - PowerPoint PPT Presentation

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); Average Annual inflation (2017) - 3.3% Interest Rates Bank rate 5.0%: Prime Lending Rate 6.5% Key Export Products 2017 ( US$8.7 billion) Diamonds, copper, nickel, Ignition wiring sets and other wiring sets for vehicles, boneless beef, soda ash, and copper ores and concentrates Key Import Products 2017 (US$7.1 billion) Non-industrial diamonds, petroleum products, Industrial diamonds, fuel, machinery, Food Products

Botswana

GATEWAY TO SADC MARKET

Headquarters of SADC SADC 293 million people SACU 61 million people

Air irport In 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
• bservation 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

• wnership

Inflation target

• f 3 – 6 %

(3.8% by 2018) Economic stimulus initiatives for investors, and full repatriation of profits and dividends Edu ducated and nd stab able workforce (83 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 EXP XPORTS WITH POTENTIAL TO SO SOUTHERN AFRICAN CUSTOMS UNION

Pri riority Sectors for Botswana

Transport & Logistics

ICT Agriculture

Mining Manufacturing Tourism Financial & Business Services

In Investment Opportunit ities

BIL BILATERAL & MULTILATERAL TR 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

In Investment In 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 5years 10% thereafter SACU 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%

In Investment Opportunit ities – Specia ial 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

SO SOME OF OF THE ACC CCREDITED COMPANIES

ABOUT BIT ITC

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 OFFICE 6 Stratford Place W1C 1AY London INDIA OFFICE

• No. 43 Market Chamber VI

Nariman Point Mumbai SOUTH AFRICA OFFICE 88 Stella Street 3rd Floor West Wing Sandton Johannesburg HEAD OFFICE Plot 54351 Central Business District Gaborone Botswana

PULA