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A transparent nation
Consistent rating by Transparency International Organisation as one of the least corrupt countries in the world (ranked 36 out of 179 in 2008) , and the least corrupt country in Africa.
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Business opportunities from economic growth
Botswana has a reputation as the best-performing economy in Africa . From the ‘60s to the ‘90s Botswana made an impressive leap from being one of the poorest nations in the world to becoming a middle income country and therefore has been compared to the South East Asian “tiger” economies. In 2008 per capita income for Botswana was around US$14,000, the highest in mainland sub-Saharan Africa . The largest contributor to economic development is the mining industry. Botswana is among the world's biggest producers of diamonds. To maintain the economic growth rates, the Botswana government is now implementing a well planned policy of economic diversification. Thus, initiatives such as Botswana Innovation Hub are geared towards diversifying the country's economy from heavy dependence on mining.
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Access to educated and English speaking workforce
Education has been and continues to be a high priority in Botswana and has always been allocated the highest portion of the national budget. The country has produced a workforce with a literacy rate of nearly 80%, a high rate among African nations. The medium of instruction at schools and universities is English, thus giving a language advantage to local people. Botswana continues to invest heavily in education, with all secondary schools equipped with computer equipment. The government is now finalising internet connections and personal e-mails for all students. Currently the University of Botswana is being expanded. A new university for Science and Technology is also being established. Government is also investing in attracting educational institutions of repute from all over the world.
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Developed infrastructure ensures effective business operations
Botswana continually develops business infrastructure to facilitate smooth business operations. Botswana has invested a lot into fibre networks and high capacity telecommunications systems. In recent years the penetration of telecommunications has been extremely rapid. Botswana has one of the highest mobile phone usage rates in Africa , with network coverage for almost the entire population, notwithstanding its large, sparsely populated territory.
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A liberal Financial Environment and free flow of capital
The country has a thriving domestic financial sector, which includes banks, insurance companies and a growing stock market. The country has one of the highest foreign exchange reserves among the developing world and a well regulated commercial banking system.
Capital can be moved without restriction in Botswana . There are no foreign exchange controls and profit, dividends and capital can be readily repatriated. Investors will also have access to Botswana's expanding Double Taxation Treaty network, at present comprising South Africa, United Kingdom, Mauritius, Sweden, France, Zimbabwe, Namibia, India, and Russia, Barbados and Seychelles
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Low Corporate Tax
Corporate tax rates in Botswana are the lowest in the sub-region at 15% for specific sectors, such as manufacturing (for approved companies), as well as financial services and BPO's for export, and at 25% for other companies. In special cases companies can negotiate for a tax holiday under a Special Tax Agreement.
The personal income tax system is progressive and the top marginal rate is 25%.
VAT is at a low rate of 10% on standard rated supplies while some supplies are zero-rated and others are exempted.
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A well-developed Legal Environment
There is a well–developed legal system based on Roman Dutch Common Law, which facilitates business and commercial activities. Botswana is ranked 26th for Judicial Independence in the world and 2nd in Africa by World Economic Forum, Executive Opinion Survey 2007/2008.
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A Hub for international trade
Botswana enjoys good market access not only in the sub-region but also to US and EU:
- Duty and Quota free access to a market of more than 50 million consumers through the Southern African Customs Union (SACU), comprising Botswana, South Africa, Lesotho, Swaziland and Namibia .
- Preferential access to more than 200 million consumers in the Southern African Development Community (SADC) market under the SADC Free Trade Area.
- Duty and Quota free access to the US market through the African Growth and Opportunity Act, AGOA.
- Duty and Quota Free market Access under the Interim Economic Partnership Agreement (IEPA) between SADC and the European Union (EU).
Botswana also enjoys good labour relations, including a good relationship with the trade unions, and can offer an educated English speaking labour force which is readily trainable and at competitive wage rates.
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Botswana and the SADC market
Botswana should be seen as the SADC focal point. The SADC Headquarters is strategically located in Botswana with easy reach to all neighbouring countries and those beyond. The size of the SADC market is some 200 million people. The national state-of-the-art high capacity fibre optic network directly connects to South Africa in the south, Namibia in the west, and Zambia and Zimbabwe in the north. The same countries are also connected by tarred roads. The air service industry in Botswana is undergoing a liberalisation phase, which will result in improved frequency and quality of service and reduced cost of travel within the sub-region in the next two years.
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Botswana and the Global Market
Botswana has not only invested heavily in the national fibre network, but has also invested in international connectivity. Thus, Botswana has invested in the East African Sub-Marine System (EASSy) cable and is currently working on the backhaul to the coast. When this project is completed by the end of 2010, it will provide an alternative route to the current one through Cape Town South Africa . The Botswana Government is also pursuing access to a West African submarine cable. All these initiatives should increase competition and reduce the cost of telecommunications in the sub-region over the next 2-3 years. At the same time an open skies policy is expected to result in direct flights from Europe and elsewhere to Gaborone .
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Intellectual Property situation in Botswana
Botswana has had a robust intellectual property protection system since 1996. The Intellectual Property Legislation is administered by the Office of Registrar of Companies, Copyright, and Industrial Property in the Ministry of Trade and Industry. Intellectual Property is protected under two legislations being; the Industrial Property Act (CAP 68:03) and the Copyright and Neighbouring rights Act (CAP 68:02).
The Industrial Property Act offer protection of trademarks, Patents, Utility Models and Industrial designs. This Act is being amended to include traditional knowledge, protection of layout designs of integrated circuits, and geographical indications. The Copyright and Neighbouring rights Act protects authors, artists and other creators for their literary and artistic creations, including novels, poems, plays, films, musical works, drawings, paintings, photographs and sculptures.
