Why Botswana?

1. Political Stability

Botswana has successfully held eleven general elections since its independence in 1966. Each multi-party election has maintained constitutional provisions for a free and fair process. As Africa’s longest-standing democracy, political stability is a key stimulus for investment in Botswana.


2. Safety & Security

Botswana is one of the most secure and safe countries in Africa and compares well worldwide for low crime rates and the rule of law. Well-trained law enforcement deploys the latest crime prevention strategies and equipment, and as such, the country has little or no exposure to large scale security concerns, such as terrorism, cybercrime, and money laundering. Capital and corporal punishment are still in force.


3. Lack of corruption

International studies have consistently ranked Botswana among the world’s least corrupt countries, a reputation fortified both by public, private and civic anti-corruption institutions and by a deeply ingrained anti-corruption culture in the country’s economic sectors. Botswana has the least corrupt government in Africa, which increases the security of the investment environment.


4. Top sovereign credit rating

Botswana has long been among the top-level credit ratings for both economic outlook and political stability worldwide. In Standard & Poor’s 2018 ratings Botswana was rated ‘A-’ and ‘A 2’ for the long and short term respectively, based on a strong government balance sheet, a well-managed economy and a long record of political stability.


5. Stable inflation

A major component of the country’s macro-economic policy has been to attain a low, stable and predictable level of inflation to maintain the economy’s global competitiveness while preserving value for foreign investors and domestic businesses. Botswana’s inflation rate has been maintained mostly within set parameters in the long term and is currently experiencing a downward trend since the global recession.


6. Taxation

The World Bank’s Doing Business report and the World Economic Forum’s Global Competitiveness report both highlight the comparatively low levels of taxation in Botswana as an incentive to investments. In recent years, this position has been further consolidated by fiscal changes to simplify the taxation regime and methods of payment. Botswana has the lowest taxation rate in Africa.


7. Information & Communication Technology (ICT)

Botswana has experienced rapid growth in its ICT sector, driven by public and private sector investments amounting to billions of Pula. Botswana continues to experience a positive upward development of the ICT sector, driven by strong research and development initiatives that position Botswana towards becoming a knowledge-driven economy by 2036.


8. Trading across borders

Botswana's geographical proximity to regional giant South Africa positions the country favourably for investors in Sub-Saharan Africa. As a land-linked country, Botswana has experienced trading challenges due to the high cost of cross border trade and transportation. To remedy these challenges, considerable investment in infrastructure and regional trade policies has improved Botswana’s competitive trading position and elevated the country to be the hub of Southern African trade. Trans-regional highways, railways, airports and efficient border control mechanisms all contribute to Botswana's competitive trading position.


9. Institutions

Institutional support in Botswana guarantees investors protection and incentive due to streamlined regulation practices. The country’s institutions have been developed through global benchmarking and extensive consultation and as a result, the country reaps the benefit of an investment and trade centre, a financial services centre, a financial intelligence agency, a competition authority, a local enterprise authority, and an accountancy oversight authority. Botswana banks are highly sophisticated and well regulated.


10. Investor protection

Botswana has implemented practices in its legal code for over 40 years to guarantee investor protection, allowing for a competitive and accessible investor market. The country is a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and other agreements that ensure maximum security for investors.

11. Infrastructure

Since Independence, Botswana has invested heavily in the nationwide development of primary and secondary infrastructure, constructing and implementing world-class roads, dams, electricity and ICT installations to urban, rural and tourist areas. Since 2009, Botswana has targeted investment in infrastructure, aiding the recovery of the economy from the global recession. Presently, the government continues to advance projects outlined in its ongoing National Development Plan, including maintenance and scheduled upgrades. Botswana has 971 kilometres (603 miles) of rail lines, 18,482 kilometres (11,484 miles) of roads (of which only 23 per cent are paved), and 92 airports, of which 12 have paved runways.

The national airline is Air Botswana, which flies domestically and to other countries in Africa. Direct air service from Gaborone to London and Paris is provided by British and French airlines. Botswana has invested in attaining good roads and services infrastructure through revenue generated from the mining industry. The proximity of Botswana to South Africa has allowed Botswana to access the robust telecommunications infrastructure of South Africa via gateways to South Africa’s deep-sea optic fibre network that connects South Africa to the rest of the world. Botswana's desire to become an international financial services centre seeks to attract FDI through competitive incentives offered to IFSC and BPO investment companies that wish to relocate their operations to Botswana which has a versatile pool of educated and skilled labour.

12. Accessing credit

Botswana's financial and capital markets are among the most sophisticated in Africa, boasting numerous domestic companies and regional offices of multinationals. A recent Rand Merchant Bank survey placed Botswana among the top five African countries with regards to accessibility to bank loans, while the World Enterprises Survey showed that Botswana boasts the highest percentage in Africa of firms with lines of credit.

13. High net worth market

Despite a relatively small population of 2.4 million, Botswana's consumers constitute a High Net Worth Market. The country’s per capita GDP has risen from an estimated US$70 at Independence in 1966, to reach US$7,877 in 2017. The country’s government, private sector and households can pay for high value goods, reflected in recent rapid development of the retail sector.

14. Literate population

Botswana's literacy rate is 88.2% for citizens aged 15 and above, a figure that reflects consistent investment in education. This makes Botswana Africa’s 12th most literate nation, a significant achievement given the relatively low access to primary and secondary education at Independence. Adult literacy rate is the percentage of people ages 15 and above who can, with understanding, read and write a short, simple statement on their everyday life. Youth literacy rates are 96.15% and 99.58% for males and females accordingly. The overall youth literacy rate is 97.85%. Youth literacy rate definition covers the population between the ages of 15 to 24 years.

15. Skilled population

The country has developed significant human resource skills in the mining, construction, financial services, tourism and travel sectors. Botswana continues to diversify its economy and benefits from talented and skilled individuals in key economic sectors. A network of local and international universities and colleges, as well as accreditation and certification bodies ensure that skills quality meets world standards, while government policy ensures that the skills being produced match industry requirements.

16. Labour relations

Relations between employers and employees in Botswana have been well established and relative to the rest of Africa, are civil and stable. In both the public and private sectors, several legislative enactments and tripartite agreements guide dispute resolution, resulting in a low level of labour-related disputes and open negotiations with unions.

17. No exchange control

Botswana abolished control in 1999 and money can thus move freely in and out of Botswana. If specific criteria are met, foreigners are allowed to open bank accounts in Botswana (in Pula, Rand, USD, Pound or Euro).

18. Special Economic Zones Authority (SEZA)

Specific areas in Botswana have been demarcated by the Special Economic Zones Authority (“SEZA”) where businesses qualify for real incentives and tax breaks.

19. The Botswana international trust

The Botswana International Trust is an excellent vehicle in which your wealth can be protected.

20. Ownership of land + Rule of law

Botswana uses the same Common Law and legal principles as South Africa and as stated, the rule of law is upheld by the government and a judiciary that has evolved with the times.


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