BOTSWANA
1
NDP 10
POLICY, PLANS AND PRIORITIES
The Tenth National Development Plan 2010-16 (NDP 10) is the last six year plan
that brings Botswana up to the end date of the long term plan set out in
Presidential Task Group for a Long Term Vision for Botswana (1997) Vision 2016:
Towards Prosperity for All. The theme of NDP 10 is “Accelerating Achievement of
Vision 2016 Through NDP 10”.
The economic strategy for NDP 10 includes:
 Restrain Government spending to limit the impact of the global recession on the
budget;
 Direct Government spending to enhance the productivity of both the public and
private sectors;
 Direct spending on infrastructure, education and training towards the needs of
the private sector;
 Give priority to clearing the backlog in the maintenance of public sector assets;
 Reduce the disadvantages of being land-locked by taking every opportunity to
export to neighbouring markets, and to export services with negligible transport
costs;
 Act urgently to reduce the regulatory constraints on the private sector and in
particular for foreign investment, to encourage private sector investment, and to
improve Botswana's rating in international comparisons of the investment
climate.
NDP 10 states that Botswana will pursue a strategy aimed at supporting efforts by
Government and the private sector to:
 Create a private sector enabling and supportive policy environment;
 Stimulate increased investment flows; and
 Enhance the competitiveness of the private sector.
Budget 2010
Botswana (2010) Budget Speech 2010 “Transforming Our Economy After the
Crisis: 2010 and Beyond” the Minister of Finance and Development Planning
stated that “The National Export Strategy, the National Trade Policy and the
Investment Strategy which are aimed at facilitating trade and private sector
development are also at advanced stages of completion and their implementation
is expected to start during the 2010/11 financial year. The review of the Industrial
Development Policy of 1998 and the Industrial Development Act of 2006 is
expected to be complete by June 2010, to further provide a simplified and efficient
business licensing process and the registration of micro businesses. In addition,
implementation of the Directive on the use of Locally Manufactured Goods and
Services will be reviewed with a view to evaluate previous performance and
suggest appropriate measures that will assist both local manufacturers and service
providers to increase their output for the domestic and export markets. The review
is expected to be concluded in October 2010.” (In April 2010 Parliament adopted
the National Trade Policy).
The mining sector, in particular diamonds, contributes about a third of Botswana’s
GDP, 75% of export earnings and 55% of Government revenue. The Government
strategy is to diversify the economy away from the mineral sector through an
industrial policy geared towards manufacturing for export markets. Potential
investment opportunities include textiles, garments and accessories to take
advantage of duty free and quota free access to EU under the Cotonou
Agreement, and to US under the African Growth and Opportunity Act (AGOA).
Other potential sectors with investment potential are leather products, glass
manufacturing, jewellery (cutting, polishing and setting diamonds and semiprecious stones to move from a diamond producer to a World Diamond Centre),
tourism, data processing, business process out-sourcing and off-shore activities,
software development, ICT activities and financial services.
2
INVESTMENT PROMOTION
2.1
Institutions
The Ministry of Trade and Industry is responsible for industrial, investment and
trade policies. Private sector and public enterprises are represented by the
Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) and the
Botswana Exporters and Manufacturing Association (BEMA).
Government
Statements on
Institutions
NDP 10 states that “The inflow of FDI has been low. Direct investment to Botswana
increased by only 12.5% in nominal terms in the six years to the end of 2008. In
part, this may be because the role of attracting investment remains fragmented.
There are too many role players: Botswana Development Corporation (BDC), IFSC
and Botswana Export Development and Investment Authority (BEDIA).
Government aims to rationalise the functions of these institutions by assigning their
role in attracting investment to one entity as well as improve their coordination.”
Budget Speech 2010 states that “the Botswana Export Development & Investment
Authority (BEDIA) is to be merged with the International Financial Services Centre
(IFSC), under the Ministry of Trade and Industry.”
BEDIA
The BEDIA Act 1997 provides that BEDIA is to promote, attract, encourage and
facilitate the establishment of export-oriented enterprises and selected services.
The aim is to achieve economic diversification, rapid economic growth and creation
of sustained employment opportunities. BEDIA is to identify markets for local
manufactured products and identify or provide factory buildings for start up
manufacturing enterprises.
BEDIA Support and
Services
BEDIA provides support and services to potential and existing investors by:
 Identifying and promoting investment opportunities to new and existing
investors,
 Investment advice;
 Identifying joint venture partners for Botswana businesses,
 Organising visits and meetings between potential investors and Botswana
businesses,
 Acquiring, purchasing, selling, developing or otherwise dealing with property
including contracting for the construction of factory shells,
 Facilitating investors in obtaining of approvals, permits, grants, registration and
other regulatory authorisation licences,
 Provide an after-care service to investors,
 Providing economic and trade statistics and research to sustain and enhance
competitiveness,
 Organising inward and outward investment missions,
 Organising trade fairs, exhibitions and missions,
 Operating a resource centre with internet facilities, periodicals, journals and
other relevant information materials for the business community,
 Make recommendations to the Government on changes in the statutory and
administrative framework affecting the investment and export climate.
BIFSC
Botswana International Financial Service Centre (BIFSC) was established in 2000
to improve the macro-economic environment and introduce a liberalised foreign
exchange regime by stimulating cross-border financial services from Botswana in
currencies other than the Botswana pula (BWP). IFSC operations benefit from tax
incentives and are subject to a regulatory structure. There is legislation to prevent
money laundering and associated white-collar crimes, and to ensure the integrity of
international financial services operations. Provisions on the prevention of
concealment and disposition of the proceeds of crime have been strengthened.
BDC
Botswana Development Corporation Limited (BDC) was established in 1970 as the
main Government agency for commercial and industrial development. The
Government is the sole shareholder in BDC. BDC provides a wide range of
financial services. BDC may take an equity shareholding in projects of a significant
size and strategic importance. BDC provides loan finance at competitive interest
rates usually repayable over ten years. BDC offers investors a wide range of
business premises at competitive rentals. BDC states that as a development
financier it has been instrumental in the growth of the property market through its
100% owned properties and partnerships. BDC has undertaken major
infrastructure development on commercial land for a high-end business park. On
completion, commercial plots will be available for sale and development through
public tender.
Other Institutions
The Citizen Entrepreneurial Development Agency (CEDA), established in 2001,
provides training, mentoring, and concessional loans to citizen-owned businesses
to promote economic empowerment of citizens.
Botswana Technology Centre (BOTEC) fosters industrial and scientific
development through research and technology innovation in collaboration with the
private sector. The Rural Industries Promotion Company (RIPCO) promotes
industrial development and employment in rural areas by assisting in the
dissemination of technology. The Botswana National Productivity Centre (BNPC)
acts as facilitator of productivity/quality know-how and methods.
In 2006, DTC (Debswana Trading Centre) Botswana, was established as a 50:50
joint venture between De Beers and the Government of Botswana. The objective is
to make diamonds available for sale in Botswana for local manufacturing. This is
part of the local beneficiation strategy of De Beers to generate greater benefits in
diamond-producing countries through the development of downstream activities in
the diamond industry, ranging from sorting and valuing diamonds, cutting and
polishing, to the manufacture of jewellery. It is hoped that DTC Botswana will
stimulate ancillary activities, such as banking, security and IT. In November 2007
16 diamond manufacturing companies (sight-holders of DTC Botswana) were
licensed in Botswana. DTC Botswana expects to sell diamonds worth at least
US$500 million to local sight-holders.
2.2
Investment and Export Incentives
Botswana relies mainly on a favourable investment climate as the major attraction
to investors. Botswana has stable political and economic systems and policies, a
respected legal system, available land and labour resources, access to
international markets, liberalised foreign capital and income transfers and relatively
low tax rates.
Export Credit
Insurance and
Guarantee
Botswana Export Credit Insurance and Guarantee Company (BECI) provides
export credit insurance for Botswana and foreign exporters. The company was
established in 1996 as a wholly owned subsidiary of BDC. BECI offers insurance
against non-payment by foreign buyers resulting from commercial risk (default and
insolvency) and political risk (transfer delays, strikes, war or import restrictions that
prevent entry in the buying country). The insurance cover is for up to 85% of
commercial risks and up to 90% of political risks on exports of goods and services..
The Government reinsures political risks under the Political Risk Reinsurance Act
1997, and commercial risks are reinsured by the private reinsurance market .
The CEDA Credit Guarantee Scheme was established to address the difficulties of
small, micro, and medium enterprises (SMMEs) with limited security in obtaining
bank loans. Participating loans institutions are guaranteed 75% of the net loss on
loans provided to SMMEs and the loan threshold is Pula (P) 4m (US$564,000).
CEDA provides concessional loans at 5% interest rate for loans up to P500,000
and at 7.5% for loans up to P 4 million (with repayment periods up to 15 years). In
2003, CEDA established a Venture Capital Fund to provide equity to citizen-owned
enterprises and joint ventures between citizens and foreign investors. In 2007,
CEDA started operating the Young Farmers Fund to provide subsidised loans and
training to young agricultural producers.
2.3
EPZs, Freeports and other Special
Economic Zones
Botswana does not have EPZs, free trade zones or free ports. IFSC special
treatment for financial services.
2.4
Tax Incentives
IFSC Tax Incentives
 A corporate tax rate of 15 per cent until 2020
 Exemption from withholding taxes on interest, dividends, management fees and
royalties paid to a non-resident
 Exemption from VAT and Capital Gains Tax
 Access to 200% tax training rebate
 Income from disposal of shares in IFSC company is tax exempt
 Credits for withholding taxes in other jurisdictions
 Access to double taxation treaties
 Tax exemptions for collective investment undertakings (for unit trusts and
collective investment structures).
Customs Incentives
Industrial Rebate Concession: This exempts from payment of customs duties of
some raw materials used for products sold either for local or external market. The
customs duty liability will cease once the goods are manufactured or exported. This
concession applies to industries such as textiles, foodstuff and beverages.
General rebates: This is available for companies that are exclusively exportoriented. It applies to raw materials that are not exempted above, but are imported
for manufacturing and re-exported and the raw materials are not available locally.
Customs Duty Drawback Facility: This facility is limited to manufacturing
companies that export outside the Common Customs Area (CCA), where they
claim refund on customs duties they paid for imported raw materials. The
application for the drawback must be lodged with proper documentary evidence
within one month after export of the final goods.
Schedule 470.03: Manufacturing companies registered under this schedule are
allowed to import raw materials duty-free, provided that 100% of output is exported
outside the CCA. The company that sells some of its produce within the CCA will
pay duty only on raw materials used to manufacture goods sold in the CCA.
Machinery and equipment: All machinery and equipment for purposes of
manufacturing is imported duty-free.
Registration and bonded store: For a company to import raw materials under any
of the above duty rebate concessions, it must first apply to the Director of Customs
and Excise to be licensed to operate a rebate store. All materials imported under
the concessions will be taken direct from port of entry to the rebate store and no
other material will be allowed. Machinery and equipment imported temporarily for a
specific project does not require bonded storage.
Duty Credit Certificate Facility: This is a product-specific duty rebate facility and it
applies to clothing and clothing accessories, household textiles, yarns, fabrics and
other textiles. The companies should have been exporting products from these
materials to markets outside the SACU area for at least a year. The amount of duty
rebated is a given percentage of the value of the exported goods, not the actual
rate of customs duty. These percentages are 25% for clothing and accessories, 8%
for yarn, 17.5% for household textiles and 12.5% for fabrics and other textiles.
2.5
International Trade & Export
Promotion
See BEDIA above.
The Botswana Meat Commission has a statutory monopoly on beef exports. A
study on the long-term viability of the beef sector, commissioned by the
Government, has identified areas for reform, including the incentive structure, land
tenure system, liberalisation of markets, and the export monopoly of BMC.
See above customs incentives under Tax Incentives.
2.6
Citizen Economic
Empowerment
Other Issues
In the 2010 Budget Speech the Minister of Finance and Development Planning
stated that “Government continues to promote citizen economic empowerment by
implementing programmes that enhance citizen participation in economic activities
and business ventures. This can be evidenced by a large share of Government
expenditure that goes towards education and training as well as health. Provision
of education is critical for human resource development, thus enabling Batswana to
participate in economic activities. Furthermore, to realise Government’s goals of
economic diversification, private sector development and competitiveness, the
nation’s human resource must be healthy. It is for this reason that Government
continues to provide health services at subsidised rates to ensure health for all,
and enhance productivity at the work place for both the public and the private
sectors.
While the policy on citizen economic empowerment is still being prepared, there
are ongoing efforts such as provision of student loan / grants for those qualifying
for tertiary level education; reserving certain categories of business to citizens and
the local preference scheme. Citizen economic empowerment is also promoted
through the implementation of mega projects in the country. The process, which
enables citizen contractors to participate in mega projects, entails unbundling of
large projects into smaller components that are more manageable by citizen
contractors. Examples of these include Dikgatlhong and Lotsane Dams, expansion
of Morupule Power Station, Botswana International University of Science and
Technology, and the four Senior Secondary Schools in Nata, Shakawe,
Mogoditshane and Mmadinare. Where projects are awarded to non-citizen
contractors, such contractors are encouraged to outsource or sub-contract some
activities to smaller citizen companies. Capacity building of the citizen artisans is
also ongoing. This is expected to enable them to find employment as well as assist
them to meaningfully participate in the projects once employment is secured.”
3
ACCESS AND ADMISSION OF
FOREIGN INVESTORS
3.1
Foreign Investment & Capital
Mobility
Botswana does not have a stand-alone foreign direct investment law and there are
no restrictions on portfolio investment. Botswana has no restrictions on investment
ownership, the sources of financing for investments, the marketing of products, the
sources of technology used by companies, or the methods of training used by
companies. Foreign and domestic private entities may freely establish, acquire,
and dispose of interests in business enterprises. There are activities reserved for
ownership by citizens and a minimum value for foreign investment in a number of
industries, but these restrictions are not a meaningful impediment to foreign
investment.
Activities Reserved
for Botswana
Citizens
Under the Industrial Development (Amendment) Regulations, 2008 small-scale
manufacturing is reserved for Botswana citizens or companies wholly owned by
Botswana citizens. Activities included in this reservation are:
Manufacture of school uniforms, manufacture of school furniture, manufacture
of burglar bars, manufacture of protective clothing, milling of sorghum,
manufacture of cement bricks and baked earth (mud) bricks, baking of bread
and confectionery, manufacture of peanut butter, bottling of water, production of
traditional sour milk, packaging, manufacture of floor polish, manufacture of
traditional leather products, manufacture of traditional crafts, signage, including
electronic signage, fencing materials, excluding gum poles, manufacture of
candles, ice making, and meat processing.
The Trade Act, 2003 provides that certain activities are reserved for Botswana
citizens or companies wholly owned by Botswana citizens. Joint ventures in the
reserved activities are permitted with up to 49% foreign participation (or otherwise
subject to approval by the Minister of Industry and Trade) in medium business
enterprises with less than 100 employees and annual sales between P 1.5 million
and P 5 million. Activities included in this reservation are:
Auctioneers, bookshops, boutiques, car wash, cleaning services, curio shops,
department stores, distributors, dry cleaning, fresh produce, funeral parlours,
furniture shops, general clothing, general dealers, hair dressers, hardware, hire
services, laundromats, motor dealers, petrol filling stations, restaurants,
supermarkets / chain stores, take-away restaurants, wholesale, and workshops.
Under the Liquor Act 2003 a reservation similar to that under the Trade Act applies
to:
Liquor bars / clubs (other than bars linked to hotel establishments), bottle
stores, liquor depots, discotheques / night clubs and liquor distribution and
wholesaling.
Under the Mines and Minerals Act, 1999 there is a small scale mining reservation
for Botswana citizens or companies wholly owned by Botswana citizens. Smallscale mining is the intentional mining of minerals other than diamonds in
operations involving the mining and processing of less than 50,000 tonnes of raw
ore per annum and in which the overall investment in fixed assets does not exceed
P 1 million.
Botswana has made full GATS commitments on market access to hotels and
restaurants, including catering, and travel agencies and tour operators. The
commitments cover camping and caravan site services. The Tourism (Reservation
of Tourism Enterprises for Citizens) Revocation Regulation No. 86 of 2007
rescinded the reservation of certain tourist enterprises for citizens of Botswana or
companies wholly owned by citizens of Botswana, as the reservation may not have
been consistent with GATS commitments.
IFSC
An entity seeking to be an IFSC company should be a Botswana registered
company or undertake to register a company upon approval of their business plan
by the Certification Committee. There are no requirements to have resident
shareholders in an IFSC accredited company but the Companies Act 2004 requires
that at least one Director should be resident in Botswana.
3.2
Industrial
Development Act
Foreign Investment Establishment,
Registering and Licensing
Processes
The Industrial Development Act 2007 came into force in 2008 provides for service
delivery improvement, by reducing the time taken to issue manufacturing licences
from one month to one week, and for the issue of manufacturing licenses for an
indefinite period, subject to payment of an annual fee. It provides for decentralising
the issue of licences for manufacturing Small, Medium and Micro Enterprises
(SMME) to licensing committees in Local Authorities appointed by the Minister. The
Industrial Licensing Authority at the Ministry of Trade and Industry is responsible
for licensing of large scale and complex manufacturing enterprises. The Act
provides for joint venture arrangements between wholly citizen-owned small and
medium scale enterprises (SMEs) and non-citizens, where citizens retain a
minimum of 51% shareholding.
The Industrial Development Act applies to any manufacturing enterprise which
 is wholly or partly owned by citizens of Botswana and employs, in the aggregate
at any given moment anywhere in Botswana, 10 or more persons, including
managers, directors, or sales or clerical or other staff;
 any person not being a citizen of Botswana carries on by himself or herself or
with others; or
 irrespective of the number of persons employed therein, uses any engine, motor
or other appliances providing energy derived from steam, water, sun, wind,
electricity, the combustion of fuel or any other source of not less than 20
kilowatts or equivalent power in aggregate.
The Act provides that no person shall manufacture, for sale, any product at any
place in Botswana unless he or she is in possession of a licence to manufacture
such product at such place, issued by a licensing committee or the Industrial
Licensing Authority. An application is also required if a licensee wishes to
manufacture a new product or to change the location of the enterprise. A licence is
valid for an indefinite period.
An applicant must submit a company registration certificate under the Registration
of Business Names Act or a certificate of incorporation under the Companies Act,
proof of land ownership or availability of premises, identification documents and
specify the kind of business activities to be undertaken. A licensee must also apply
to a licensing committee for a licence to be transferred to another person.
The Minister may make regulations providing that licences to carry on such
enterprises as may be prescribed shall be issued only to citizens of Botswana, or
to companies wholly owned by citizens of Botswana. Regulations may provide that
only citizens of Botswana shall be entitled to carry on a particular enterprise in
such areas in the country as may be prescribed. The Minister may make
regulations providing that licences to carry on enterprises reserved for citizens and
which enterprises fall within the medium or large scale category shall be issued to
joint ventures between citizens and foreign partners, provided that the citizen
partner holds a minimum of 51 per cent share holding in the joint venture.
Budget Speech 2010
and Industrial
Development Act
The Minister of Finance and Development Planning stated that “The review of the
Industrial Development Policy of 1998 and the Industrial Development Act of 2006
is expected to be complete by June 2010, to further provide a simplified and
efficient business licensing process and the registration of micro businesses. In
addition, implementation of the Directive on the use of Locally Manufactured
Goods and Services will be reviewed with a view to evaluate previous performance
and suggest appropriate measures that will assist both local manufacturers and
service providers to increase their output for the domestic and export markets. The
review is expected to be concluded in October 2010.”
Banking
Commercial, merchant banks, as well as banks accredited by the IFSC, are
regulated by the Bank of Botswana (Banking Act 1995).
Non-Bank Financial
Institutions
The Non-Bank Financial Institutions Regulatory Authority Act of 2006 brings the
supervision of all non-bank financial institutions and services, including those
registered under the International Financial Services Centre (IFSC), under one
regulatory authority. NBIFRA was established in April 2008 and is the regulator of
all non-banking financial entities registered in Botswana including Pension Funds,
Asset Management, Consumer / Micro lending, insurance and Collective
Investment Undertakings. NBFIRA safeguards the stability, fairness and efficiency
of the non-banking financial sector, and ensures that regulation in the Botswana
IFSC is in line with international best practice. NBFIRA is further aimed at
developing a cohesive marketing and management of the country’s image to
ensure that domestic and international perceptions are consistent with the current
socio-economic reality and national ambitions.
Companies Act
A foreign investor is required to register a company under the Companies Act. The
Registrar of Companies is an autonomous agency and the office of the Registrar
deals with complex technical issues relating to company law and intellectual
property rights, which require highly skilled personnel that can administer
legislation covering company incorporation, business names registration, industrial
property rights and copyright administration.
The Companies Act No. 32 of 2004, came into force in July 2007 introduced
simplified company registration procedures and aims to reduce registration time
from twelve weeks to five working days.
Company registration process in Botswana:
 Select and reserve three possible names for consideration by the Registrar of
Companies.
 Sign the declaration of compliance of statutory requirements for incorporation
before a commissioner for oaths.
 Return the complete statutory return to the Registrar of Companies about reallotment, directors, auditors, company secretary, and registered officers.
 Register the company with the Registrar of Companies at the Ministry of
Commerce and Industry.
 Advertise the intention of applying for a license in the official gazette.
 Obtain an approval of the working condition after an inspection of company
premises.
 Obtain an industrial license from the Industrial Affairs Department, Ministry of
Commerce and Industry; or obtain a trading license from the local authority.
 Register for Corporate Income Tax number with the Commissioner of Taxes
and obtain the approval from the Commissioner of Taxes for the appointment of
a public officer who is in charge of tax return.
 Register for VAT with Director of Customs & Excise
 Register employees for the work injury insurance
Mining
The legal framework for mining operations is based on the Mines and Minerals Act
1999. The Ministry of Mineral Resources and Water Resources promotes,
regulates and assists in the mining sector and collects, synthesises and
disseminates mining and mineral related information. The Act provides for
prospecting licences, retention licences, mining licences, and mineral permits for
small-scale mining operations. Retention licences allow prospectors to defer
mining of uneconomic deposits for up to six years. Except for diamonds, the
legislation provides for automatic progression from exploration to mining. Mining
licences are issued only to Botswana-registered companies. Licence applicants
must show proof of technical competence and access to adequate financial
resources. The tax regime and level of state participation in diamond mining are
subject to negotiation between the Government and the investor.
The mining legislation provides for
 Secure title to mining rights: an explorer has firm right to progress through the
entire cycle from prospecting through exploration, pre-feasibility, feasibility,
development to production and the conditions to be fulfilled are clearly
specified. These rights are protected for up to 6 years if the project is not
profitable by way of providing a retention licence.
 Satisfactory Fiscal Regime: Variable Income tax rate which is based on project
profitability and 100% capital redemption.
 Stability of Fiscal Regime
 Foreign Exchange Retention
 Right to Assign
 Right to Market Mine Product(s)
 Stability in Environmental Management legislation which is in line with
international standards to assist investors in raising funds through international
financial institutions.
 Free repatriation of profits
 International Arbitration of disputes
 Freedom of Commercial Operation
Budget Speech 2010
and Mining
Legislation
Telecommunications
and ICT
The Minister of Finance and Development Planning stated that “In April 2009,
Government initiated amendment of the Mines and Minerals Act, 1999 and the
Mines, Quarries, Works and Machinery Act with a view to improve the regulatory
framework. Areas that will be covered by the legislation include mine site
rehabilitation and closure plan, regulations governing uranium operations, as well
as regulations governing exploration and exploitation of Coal Bed Methane.
Legislation on mine site rehabilitation and closure plan is at drafting stage while the
part on Coal Bed Methane is at consideration stage. Drafting of the legislation on
mine site rehabilitation and closure plan is expected to be complete by March
2010.”
Liberalisation of the telecommunications market began in 1996 following the
adoption of the Telecommunications Policy of 1995 and enactment of the
Telecommunications Act (Act No. 15 of 1996), which abolished the de jure
monopoly of Botswana Telecommunications Corporation (BTC) in some segments
of the market and established the independent regulator, the Botswana
Telecommunications Authority (BTA). The Government plans to consolidate the
legal framework for telecommunications, broadcasting, postal services, computer
technologies, and all other ICT subsectors (Communications Authority Bill). It is
intended that BTA would be merged into a new regulatory body, the Botswana
Communications Regulatory Authority.
Tourism
The Ministry of Environment, Wildlife, and Tourism (the Department of Tourism) is
responsible for policy formulation and oversees development of the tourism
industry. Botswana's tourism policy seeks to address issues of sustainable use of
natural resources for tourism, and of increasing benefits for the local population.
The Botswana Tourism Board (BTB), established in 2006, is responsible for
investment promotion, product development, and grading of tourism facilities
(Botswana Tourism Board Act, 2004).
Licensing of tourist enterprises is governed by the Tourism Act of 1992, and the
Tourism Regulations of 1996. Licences are granted by the Tourism Industry
Licensing Board, a five-member board appointed by the Minister of the
Environment, Wildlife and Tourism.
3.3
Permits and
Exemptions
Foreign Employment & Residence
Work permits for foreign personnel are subject to a local labour availability market
test (i.e. that there are no suitable national candidates) and submission of a
satisfactory training programme for localising each position. Investors that are
approved by BEDIA or the Ministry of Trade and Industry are exempt from the
requirements of applying for work permits and investors are issued with exemption
certificates within a period of five days.
The Employment of Non-Citizens Act regulates the employment of non-citizens in
Botswana. All non-citizens employed or engaged in any occupation for reward or
profit must be in possession of a work permit, irrespective of the duration of stay in
the country.
In addition to the above, investors should submit;




Exemption from Commissioner of Labour
Business profile
Business Plan
Certified copies of marriage (if accompanied by spouse) and birth certificates (if
accompanied by children)
 Return air ticket
Employees should submit;
 Exemption from commissioner of labour
 Copy of receipt for the fee for residence permit application, or
acknowledgement receipt, or letter from immigration authorising entry while the
application is still under process (permission to enter).
IFSC Companies
Staff
Senior executives of IFSC companies are exempt from the normal requirements of
work and residence permits. IFSC companies are required to make a commitment
to provide employment opportunities for suitably qualified citizens but IFSC
recognises that expert skills from outside Botswana are required to set up
operation. Executives of approved companies can obtain 1 - 3 year permits which
can be extended if necessary.
NDP 10 and Foreign
Employment
NDP 10 states that “one of the most important constraints on the private sector is a
combination of the shortage of skilled labour and the difficulty of getting work and
residence permits for non-citizen employees. Skilled labour shortages are being
made worse by the impact of HIV/AIDS, although the effects are mitigated by the
provision of Anti-Retroviral (ARVs).
Shortages of skilled labour add to the importance of making the recruitment of
foreign skills as straightforward as possible. International research finds a strong
correlation between the ease of importing skills and skilled labour, on the one
hand, and rapid economic growth, on the other hand. Private sector employers in
Botswana reported that it was difficult to obtain residence and work permits for
skilled foreign workers, but delays have been greatly reduced.
Requirements for work permits, permanent residence, and citizenship will continue
to be, therefore, be reviewed to make it easier to acquire skilled human resources.
The ongoing drafting of Bills to amend the Immigration and Citizenship Act, and the
Employment of Non-Citizens Act, will be an opportunity to improve Botswana's
skills base.”
3.4
Foreign Investor Access to Land
and Property Rights
Land Purchase or
Lease
Freehold land can be purchased by citizens and non-citizens. A transfer duty
applies to property sales but the first P200,000 (US$28,000) value of freehold land
purchased by a citizen is not subject to duty with a 5% duty on any amount in
excess of this threshold. Non-citizens, including companies with minority Botswana
ownership, pay 5% duty on the total value of freehold land. State-owned land can
be leased, for 50 years for business purposes and 99 years for residential use,
subject to renewable options. Tribal (communal) land can be leased for 50 years
for commercial, agricultural, and industrial use.
Land Availability
A shortage of serviced industrial land has been identified as a major investment
constraint in Botswana. To facilitate speedy allocation of land to investors, about
270,000 hectares of land as well as eight concession areas were reserved for
Ministries of Trade and Industry, Environment, Wildlife and Tourism as well as
Agriculture. Acquisition of land will continue through negotiations with owners of
land around towns. Government is in the process of acquiring 5,570 hectares of
tribal land for incorporation into Gaborone.
Tourism activities are largely private-sector driven. Access to appropriate sites is
critical to the establishment of new private-sector tourism enterprises. State lands
are leased to tourism organisations and individuals for 15 years, subject to reviews
of the land's use every five years, with the option to renewing the lease at the end
of the 15-year period. Tribal lands are allocated typically on 50-year leases. Some
freehold allocations also exist.
Freehold Land
Freehold land amounts to about 5% of the land area of Botswana. It is designated
in blocks, mostly along the eastern and southern parts of the country, and is made
up of privately-owned agricultural, commercial, residential and industrial land. The
transfer duty rate for sale of freehold land is approximately 5%, except for
agricultural land which is 30%. Freehold entitles owners to perpetual and exclusive
rights to the land, and land under freehold may be sold or transferred in a private
transaction without Land Board approval.
State Land
State Land constitutes all urban areas (towns and cities), national parks, game
reserves, forest reserves and some wildlife management areas. This makes up
about 25% of the land area of Botswana. State land is administered by the
Department of Lands on behalf of Government through a fixed period state grant.
Plots are leased for 50 years for commercial and industrial use and 99 years for
residential use. The allocation of state land is governed by the State Land
Allocation Policy that operates on a first-come-first-served basis from waiting lists
of eligible applicants that were created when the policy was announced in October
1991.
Foreign-owned companies registered in Botswana can lease land for industrial and
residential use.
Tribal Land
Tribal (Communal) Land makes up about 70% of the country and is administered
on behalf of the citizens of Botswana by the Land Boards. Tribal land in some
areas is leased for a 50-year period for commercial and industrial use.
Industrial Land
Allocation
A committee of officers from the Ministry of Local Government, Lands and Housing
and the Ministry of Trade, Industry, Wildlife and Tourism consider all applications
from both local and foreign investors having regard to the following;













Type of industrial project
Manufacturing content
Availability of funds
Job creativity
Plot Size
Savings in foreign reserves
Import-Substitution
Export earning potential
Site Suitability
Manufacturing license
Capital Investment
Impact on the Area
Overall benefit to the country
Each application must be accompanied by details of the project, preferably in the
form of a project document and show proof of the commitment and financial
capabilities of the applicant to carry out the development within a maximum period
of two years.
Advance Sites and
Factories
BEDIA and BDC provide serviced industrial sites and factory shells for rental at
concessionary and competitive rates. The private sector also offers office space
and factory shells at market rates.
Enterprise Surveys and Doing Business comparisons show that obtaining
construction permits in Botswana takes considerably longer than in competitors.
4
FOREIGN INVESTMENT
OPERATIONS
4.1
Employment
The Employment Act regulates terms of employment and minimum conditions of
service for employees and it applies to citizens, expatriates, private and parastatal
sectors. Employment of Non-Citizens Act regulates employment of non-citizens.
4.2
NDP 10 and Tax
Business Taxation
NDP 10 states that “The tax review, announced in the 2008 Budget Speech, will be
benchmarked against the best foreign tax systems, such as those of Sweden, the
United Arab Emirates and Vanuatu. There is an urgent need to simplify the tax
structure in order to improve the compliance rate, to reduce the costs of
compliance and administration, and to reduce the demand for scarce accountants
and tax administrators.”
Budget 2010 and
Business Tax
In 2010 Budget Speech the Minister of Finance stated that “The current system of
a company tax rate of 15% plus a 10% additional company tax rate is
unnecessarily complicated as it requires companies to keep track of two types of
taxes as well as the amount of the additional company tax that has not been off-set
against the 15% withholding tax on dividends. I propose to abolish the two tier
corporate tax system, effective 1st July 2010, to be replaced by a final company
tax rate of 25%. Companies designated as manufacturing and IFSC registered
companies will continue to be taxed at a company rate of 15%. I also propose that
the final withholding tax on dividends paid to residents and non-residents be
reduced from 15% to 7.5%. The combined effect of these proposals will be an
increase in non-mineral income tax revenue of about 5%.”
Case by Case Tax
Relief
The Minister of Finance and Development Planning may grant tax relief for certain
businesses under Development Approval Orders. Relief may include tax holidays
for 5-10 years or education training grants for specific projects. The projects must
benefit the economy or contribute to the economic advancement of citizens.
Applications are assessed on a case-by-case basis according to the applicants'
job-creation prospects, training plans for citizens, plans to localise non-citizen
positions, citizen participation in management, citizens equity, investment location,
effects on other economic activities, and effects on reducing consumer prices.
Development Approval Orders are rarely used.
Tax and Diamonds
The taxation regimes for large diamond projects may be negotiated on a case-bycase basis and the tax agreements are subject to ratification by Parliament. Nondiamond mining companies are subject to the standard tax rate of 25%. The
legislated royalties are 10% of the gross market value for precious stones,
petroleum, and natural gas, 5% for precious metals and 3% for all other minerals.
Tax allowances
Capital allowances - the maximum allowance is 100% of the cost.
Plant and machinery - an annual allowance ranging from 10% to 25% of the cost
can be claimed.
Buildings - an initial allowance of 25% applies to new buildings and improvements
to existing buildings used in an industrial business.
Training - an employer is allowed a deduction of 200% of the cost of training
employees, for such training as is approved by the Commissioner.
VAT is imposed comprehensively on an end user basis at the rate of 12% on
standard rated supplies and 0% on zero-rated supplies.
4.3
Environment, Physical Planning,
Health & Safety, Consumer
Protection
Environmental
Impact Act
The EIA Act provides for EIA to be used to assess the potential effects of planned
developmental activities, to determine and to provide mitigation measures for
effects of such activities that may have a significant adverse impact on the
environment, to put in place a monitoring process and evaluation of the
environmental impact of implemented activities.
Waste Management
Act
An Act to provide for the establishment of the Department of Sanitation and Waste
Management, to make provision for the planning, facilitation and implementation of
advanced systems for regulating the management of controlled waste in order to
prevent harm to human, animal and plant life, to minimise pollution of the
environment, to conserve natural resources, to cause the provisions of the Basel
Convention to apply in regulating the trans-boundary movement of hazardous
wastes and disposal.
Factories Act
The Factories Act establishes the minimum working conditions required on work
premises. These conditions include cleanliness of the premises, adequate
ventilation, prevention of overcrowding, sufficient lighting, adequate sanitation and
safety precautions. The Chief Inspector of Factories receives a copy of the factory
plan from the local authority for comment prior to plan approval. If the premises are
rented, the Chief Inspector should be invited to visit the premises before the lease
agreement is signed.
Health Inspection
The Public Health Act provides regulations to protect the population from unhealthy
or medically dangerous situations. These include minimum standards for the food
industry and the approval of food factories by the Chief Health Inspector.
Metrology
Weights and Measures Act 2006.
Standards
The Botswana Bureau of Standards (BOBS) established in 1997, under the
Standards Act No. 16, 1995, is responsible for preparing and promoting technical
regulations and standards on goods, services, and processes.
4.4
Competition Policy & Law
Competition Act
In 2005, Parliament approved the Competition Policy, which aims at enhancing
competition in the market place by reducing or eliminating anti-competitive and
restrictive business practices. The Competition Act was enacted in 2009 and it sets
out the framework within which Government will respond to anti-competitive
challenges in the market place. The Act establishes a Competition Authority and
the members are being appointed.
Consumer Affairs
The Ministry of Trade and Industry (Department of Trade and Consumer Affairs)
protects consumers against unfair business practices on the basis of the
Consumer Protection Act of 1998. This role is confined to education, investigation,
mediation, and negotiation on behalf of consumers and related consumer matters.
The Consumer Protection Act is currently being reviewed and amendments will
include, among others, the issue of consumer groups. The Food Control Act,
Public Health Act, Hire Purchase Act, Standards Act, or Trade Act, are the
responsibility of specialised regulatory agencies.
Price Control
Price controls are applied by the Government at the retail level and on profit
margins for petroleum products (Control of Goods, Prices, and Other Charges Act).
All petroleum products are imported, mainly from South Africa, and price controls
are applied as there is a limited number of suppliers. Other goods and services
subject to administered prices include water, electricity, train, certain bus, and taxi
fares, mail and parcel delivery and telephone installation and some telephone
tariffs.
WTO, Diamonds and
Competition
WTO (2009) states that “the structure and some of the practices of the diamond
trade, such as exclusive sales, and pricing arrangements, may not be conducive to
a competitive market place.”
4.5
Monetary Policy, Foreign Exchange
and Foreign Investors
Profits, dividends, and capital can be readily repatriated. The Bank of Botswana
administers exchange control regulations through commercial banks that act as
authorised dealers.
4.6
Public Procurement
Aims
Public Procurement
Public procurement by central government entities is governed by the Public
Procurement and Asset Disposal Act of 2001, and the Public Procurement and
Asset Disposal Regulations of 2006. The law applies to the procurement of works,
services, and supplies. Since 2003, public procurement at central government level
has been managed by the Public Procurement and Asset Disposal Board
(PPADB), an independent seven-member body appointed by the Minister of
Finance and Development Planning.
The objective of Botswana's procurement policy is driven by the objective of
ensuring competition, fairness, value for money, efficiency, transparency, and
accountability in the management of tenders.
Reservation and
Preference
Public Procurement Policy also seeks to assist the economic empowerment of
Botswana citizens through reservation and preference schemes. These have the
effect of discriminating between domestic and foreign-owned goods, services or
suppliers. Botswana citizen-owned companies benefit from a price preference
margin over foreign companies in the range of 2-5%. Price preferences may also
be capped to meet the dual objectives of citizen empowerment and of value-formoney in government procurement (for example, for information technology and
consulting services, the maximum preference allowed is P 100,000). No
reservation or preference is permitted in open international bidding for contracts
over P 50m (US$700,000).
4.7
Intellectual Property
The Copyright and Neighbouring Rights Act protects the copyright of artists,
including musicians, poets, writers and architects, against piracy and
infringements. A copyright levy was introduced on 1 April 2009 on imported and
locally manufactured blank sound and audiovisual carriers, compact discs, and
equipment capable of being used to copy protected materials. The levy of 1-2% of
the sales price is designated to compensate right-holders for unauthorised copying
of their works, as well as for training and public awareness campaigns.
The Industrial Property (Amendment) Bill was submitted and approved by Cabinet.
The Bill is being reviewed to ensure that it fully complies with the intellectual
property international treaties and conventions, including the Trade Related
Intellectual Property Rights (TRIPS) agreement to which Botswana is party.
4.8
Constitution of
Botswana
Investment Protection and Dispute
Settlement
Section 8 Protection from deprivation of property:
(1) No property of any description shall be compulsorily taken possession of,
and no interest in or right over property of any description shall be
compulsorily acquired, except where the following conditions are satisfied,
that is to say—
a. the taking of possession or acquisition is necessary or expedient—
i. in the interests of defence, public safety, public order, public
morality, public health, town and country planning or land
settlement;
ii. in order to secure the development or utilisation of that, or
other, property for a purpose beneficial to the community; or
iii. in order to secure the development or utilisation of the
mineral resources of Botswana; and
b. provision is made by a law applicable to that taking of possession
or acquisition—
i. for the prompt payment of adequate compensation; and
ii. securing to any person having an interest in or right over the
property a right of access to the High Court, either direct or
on appeal from any other authority, for the determination of
(2)
(3)
(4)
(5)
his interest or right, the legality of the taking of possession or
acquisition of the property, interest or right, and the amount
of any compensation to which he is entitled, and for the
purpose of obtaining prompt payment of that compensation.
No person who is entitled to compensation under this section shall be
prevented from remitting, within a reasonable time after he has received
any amount of that compensation, the whole of that amount (free from any
deduction, charge or tax made or levied in respect of its remission) to any
country of his choice outside Botswana.
Subsection (1) (b) (i) of this section shall be deemed to be satisfied in
relation to any 30 of 1969 Law applicable to the taking of possession of
minerals or the acquisition of rights to minerals if that law makes provision
for the payment at reasonable intervals of adequate royalties.
Nothing contained in or done under the authority of any law shall be held to
be inconsistent with or in contravention of subsection (2) of this section to
the extent that the law in question authorises—
a. the attachment, by order of a court, of any amount of
compensation to which a person is entitled in satisfaction of the
judgment of a court or pending the determination of civil
proceedings to which he is a party; or (b) the imposition of
reasonable restrictions on the manner in which any amount of
compensation is to be remitted.
Nothing contained in or done under the authority of any law shall be held to
be inconsistent with or in contravention of subsection (1) of this section—
a. to the extent that the law in question makes provision for the taking
of possession or acquisition of any property—
i. in satisfaction of any tax, rate or due;
ii. by way of penalty for breach of the law whether under civil
process or after conviction of a criminal offence under the
law in force in Botswana;
iii. as an incident of a lease, tenancy, mortgage, charge, bill of
sale, pledge or contract;
iv. in the execution of judgments or orders of a court in
proceedings for the determination of civil rights or
obligations;
v. in circumstances where it is reasonably necessary to do so
because the property is in a dangerous state or injurious to
the health of human beings, animals or plants;
vi. in consequence of any law with respect to the limitation of
actions; or
vii. for so long only as may be necessary for the purposes of
any examination, investigation, trial or inquiry or, in the case
of land, for the purposes of the carrying out thereon of work
of soil conservation or the conservation of other natural
resources or work relating to agricultural development or
viii. improvement (being work relating to such development or
improvement that the owner or occupier of the land has
been required, and has without reasonable excuse refused
or failed, to carry out), and except so far as that provision or,
as the case may be, the thing done under the authority
thereof is shown not to be reasonably justifiable in a
democratic society; or
b. to the extent that the law in question makes provision for the taking
of possession or acquisition of—
i. enemy property;
ii. property of a deceased person, a person of unsound mind, a
person who has not attained the age of 21 years, a prodigal,
or a person who is absent from Botswana, for the purpose of
its administration for the benefit of the persons entitled to the
beneficial interest therein;
iii.
property of a person declared to be insolvent or a body
corporate in liquidation, for the purpose of its administration
for the benefit of the creditors of the insolvent or body
corporate and, subject thereto, for the benefit of other
persons entitled to the beneficial interest in the property; or
iv. property subject to a trust, for the purpose of vesting the
property in persons appointed as trustees under the
instrument creating the trust or by a court, or by order of a
court, for the purpose of giving effect to the trust.
(6) Nothing contained in or done under the authority of any law shall be held to
be inconsistent with or in contravention of subsection (1) of this section to
the extent that the law in question makes provision for the compulsory
taking of possession in the public interest of any property, or the
compulsory acquisition in the public interest in or right over property, where
that property, interest or right is held by a body corporate established by
law for public purposes in which no moneys have been invested other than
moneys provided by Parliament.
4.9
Trade Agreements
and Arrangements
International Agreements and
Obligations – Trade and other
Agreements, BITs, DTTs
Botswana is an original member of the WTO, and is committed to a fair trade
regime based on multilaterally agreed principles. Jointly with the other SACU
members, Botswana notified the 2002 SACU Agreement to the WTO in 2007.
Botswana has a bilateral trade agreement with Zimbabwe, signed in 1988, which
provides for reciprocal duty-free entry of goods and is currently under review with a
view to improving its rules of origin and facilitating more trade. Botswana has a
1956 trade agreement with Malawi and has occasionally imported sugar from
Malawi under this agreement, but much of this trade is now conducted under the
SADC trade protocol.
Botswana is eligible for GSP treatment from Australia, Canada, EC, Japan, New
Zealand, Norway, Switzerland, and the United States providing preferential access
at zero or reduced tariffs for eligible products, subject to rules of origin. Product
coverage and rules of origin vary between countries.
Botswana has




SACU
Duty free and quota free access to a market of more than 50 million
consumers in South Africa, Lesotho, Swaziland and Namibia through
SACU;
Preferential access to more than 170 million consumers in SADC although,
outside of SACU members, trade is inhibited by poor transport links;
Duty free and quota free access to the European Union countries through
the Cotonou Agreement;
Duty and quota free access to the US market through AGOA until 2015.
The 2002 Southern African Customs Union (SACU) Agreement came into force in
July 2004, following ratification by its five members (Botswana, Lesotho, Namibia,
South Africa and Swaziland). Implementation of this Agreement requires the
establishment of institutions to facilitate a more democratic decision making and
management process in SACU. These institutions include National Bodies, a Tariff
Board and Tribunal and establishment of a Common Negotiating Mechanism.
Botswana is in the process of establishing its National Body. There is a first Draft of
the Directorate of International Trade Administration Bill. The SACU Agreement
also provides for the harmonisation of polices including industrial, agricultural and
competition policies. The work on harmonisation of industrial policies, and
cooperation on competition policies, has commenced. SACU Member States have
been requested to submit position papers to the SACU Secretariat outlining the
objectives of these policies.
2010 Budget Speech
and SACU
The Minister of Finance and Development Planning stated “implementation of the
2002 Southern African Customs Union Agreement and the SADC Free Trade Area
will continue to be pursued, including the establishment of the necessary
institutions and harmonisation of industrial and trade policies. To this end, a draft
Bill for the establishment of the National Body for tariff administration within SACU
was approved by Cabinet in September 2008. The National Body is expected to be
in place by October 2010.”
SACU MERCOSUR
A preferential trade agreement between SACU and the Common Market of the
Southern Cone (MERCOSUR) was signed in 2005. Negotiations on outstanding
issues of Rules of Origin, Sanitary and Phyto-Sanitary Measures and Customs
Cooperation were concluded in April 2008, and the Agreement was signed in April
2009.
SACU EFTA
There is a Free Trade Agreement between SACU and the European Free Trade
Association (EFTA) and implementation commenced in 2008.
SACU USA TIDCA
In June 2003, SACU and the USA initiated negotiations for a Free Trade
Agreement. These stalled on a number of issues and a less comprehensive Trade,
Investment, Development and Cooperation Agreement (TIDCA), to enhance
cooperation between the USA and SACU was signed in 2008. Negotiations for a
free trade agreement will resume later.
SACU India
The negotiations for a Preferential Trade Agreement between SACU and India
were launched in 2007. To date, three rounds of negotiations have been
conducted, resulting in a Memorandum of Understanding which was signed in
November 2008 by the two parties. The Memorandum details the scope of the
ongoing Preferential Trade Agreement negotiations between the two parties.
Botswana is a member of the International Centre for the Settlement of Investment
Disputes and the World Bank's Multilateral Investment Guarantee Agency.
Botswana also signed a bilateral investment treaty in 1997 with the Overseas
Private Investment Corporation (OPIC), which provides guarantees for U.S. private
investors. See below for Botswana bilateral investment promotion and protection
treaties and double taxation agreements.
Proposed
Negotiations
Negotiations on trade are proposed between SACU and the East African
Community (EAC), and between SACU and China.
Economic
Partnership
Agreement
The Economic Partnership Agreements (EPAs) negotiations between the African,
Caribbean and Pacific (ACP) countries and the European Community (EC) were
launched in September 2003 to replace the trade chapter of the Cotonou
Agreement. Botswana participated in the EPA negotiations as a member of the
SADC EPA Group. The negotiations culminated in the initialling of an Interim EPA
(IEPA) late in 2007, marking the conclusion of a WTO compatible trade in goods
chapter. The IEPA was signed in mid 2009. This enabled trade between Botswana
and Europe to remain uninterrupted. The IEPA offers duty free and quota free
market access for all products, as well as more flexible rules of origin. Negotiations
toward a full EPA have been ongoing since 2008, covering investment and trade in
services and investment.
5
SADC RELATED ISSUES
The Southern African Development Community (SADC) Protocol on Trade was
launched in 2000 and has brought about progressive liberalisation of trade
throughout NDP 9. It led to the establishment in August 2008 of a Free Trade Area
(FTA) in the region. The FTA was expected to pave the way for the formation of the
SADC Customs Union in 2010, the SADC Common Market in 2015 and the SADC
Monetary Union in 2016, as set out in the Regional Indicative Strategic
Development Plan but this timetable has since been amended.
The process to liberalise trade in services within SADC started in 2000 when
SADC Ministers of Trade mandated the SADC Trade Negotiating Forum to work
towards liberalisation of trade in services. The mandate of the Ministers under the
SADC Protocol on Trade requires Member States to adopt policies and implement
measures in accordance with their obligations under the General Agreement on
Trade in Services. The process resumed in September 2005, with the Draft Annex
to the SADC Trade Protocol on services trade liberalisation upgraded to a standalone protocol, to reflect the growing importance of trade in services in the SADC
region. The Draft Protocol was approved by Ministers of Trade and submitted to
the Ministers of Justice for consideration and legal clearance at the end of July
2009.
Budget 2010
The Minister of Finance and Development Planning stated that “promoting regional
and international trade is critical in the diversification of our economic base and
enhancing our ability to transform the economy to high income status. Hence in a
drive to expand market access for our goods and services, implementation of trade
arrangements with partners such as the European Union, the Common Market of
the South or MERCOSUR, the European Free Trade Association and the United
States are being undertaken. The National Export Strategy, the National Trade
Policy and the Investment Strategy which are aimed at facilitating trade and private
sector development are also at advanced stages of completion and their
implementation is expected to start during the 2010/11 financial year.”
WTO and Need for
Coordinated
Negotiating
Positions
WTO SACU Trade Policy Review 2009 Annex 1 Botswana WT/TPR/S/222/BWA
states that “Botswana is involved in trade negotiations at a number of levels,
including with the EC in the context of the EPAs (as part of SADC), SADC, SACU,
and the Doha Development Agenda (DDA) negotiations. This multifaceted, and
sometimes overlapping, negotiating agenda entails an urgent need to develop and
coordinate negotiating positions on various fronts. Since negotiations can be used
as a means of strengthening and "locking-in" domestic reforms, capacity building
should focus on formulating negotiating positions and strategies that are based on
the domestic reform process.”
Bilateral Investment
Treaties
Bilateral Investment Treaties with Botswana
Botswana
Partner Country
Date of Signature
1.
2.
3.
4.
5.
6.
7.
8.
9.
Belgium
Luxembourg
China
Egypt
Germany
Ghana
Malaysia
Mauritius
Switzerland
Zimbabwe
&
Date of
into force
Entry
7 Jun 2006
12 June 2000
2 July 2003
23 May 2006
4 July 2003
31 July 1997
17 Aug 2005
26 June 1998
30 June 2003
26 May 2010
6 Aug 2007
13 April 2000
Double Taxation
Agreements
Double Tax Agreements concluded with Botswana as at 1 June 2010
Botswana
Partner
Type of Agreement
Date of Signing
1.
Barbados
Unspecified
23 Feb 2005
2.
Mauritius
Income & Capital
26 Sep 1995
3.
South Africa
Income & Capital
1 April 1977
4.
Sweden
Income & Capital
19 Oct 1992
5.
United Kingdom
Income
8 Sep 2005
6.
United Kingdom
Income
5 Oct 1977
Note: The BIT and DTT tables are largely derived from the UNCTAD website and may not
reflect all agreements that have been signed or are in force.
Sources included
AECOM International Development (2009) Analysis of Botswana’s Trade Related
Strategies and Policies Submitted to: USAID / Southern Africa & Botswana Ministry
of Trade and Industry May 2009 USAID Contract No. 690-M-00-04-00309-00 (GS
10F-0277P)
http://www.satradehub.org/assets/_files/Reports/Technical%20Report%20%20Botswana%20Trade%20Strategy%20Analysis.pdf
Botswana National Development Plan 10 (2009) (NDP 10) 2010-16
http://www.finance.gov.bw/index.php?option=com_content1&parent_id=334&id=33
8
Botswana (2010) Budget Speech 2010 “Transforming Our Economy After the
Crisis: 2010 and Beyond” By Honourable O.K. Matambo Minister of Finance and
Development Planning Delivered to the National Assembly on 8th February 2010
http://www.gov.bw/Global/MFDP%20ministry/Burget%20Speeches/2010%20Budg
et%20Speech.pdf
Presidential Task Group for a Long Term Vision for Botswana (1997) Vision 2016
WTO (2009) SACU Trade Policy Review 2009 Annex 1 Botswana
WT/TPR/S/222/BWA
http://www.wto.org/english/tratop_e/tpr_e/s222-01_e.doc