DOING BUSINESS WITH BOTSWANA...Botswana Exports to China Product Code Product Label Value of Exports...
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DOING BUSINESS WITH BOTSWANA Mr Keletsositse Olebile Chief Executive Officer 30 August 2018 Beijing, China.
Transcript of DOING BUSINESS WITH BOTSWANA...Botswana Exports to China Product Code Product Label Value of Exports...
DOING BUSINESS WITH BOTSWANA
Mr Keletsositse Olebile
Chief Executive Officer
30 August 2018
Beijing, China.
PRESENTATION OUTLINE
About Botswana
Why Invest in
BotswanaInvestment &
Trade Opportunities
Investor Facilitation
Services Invitation to
Botswana
Population 2.262 Million
Borders South Africa, Zimbabwe, Namibia, Zambia
Land Mass 582 000 km²
GDP USD 17.30 Billion (2017)
GDP per Capita USD 7,570 (2017)
Inflation (3.3 % May 2018); 3.2% in 2017
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
ECONOMIC & DEMOGRAPHIC OVERVIEW
China
Botswana
• Blue stands for water
• White & Black stands for racial diversity & tolerance.
• Black & White inspired by the stripes of a Zebra, the national animal of Botswana
BOTSWANA FLAG
Population Distribution
533 Settlements+-7741 Localities
Source: DTRP
293 million people in SADC
Gateway to SADC Market
Headquarters of SADC
Source: DTRP
BILATERAL & MULTILATERAL TRADE AGREEMENTS
Botswana’s Corporate Tax Rate is Globally Competitive
35
35
35
33
32
30
30
28
27.85
27.5
25.75
25
23.57
22
15
0 5 10 15 20 25 30 35 40
Angola
DRC
Zambia
Namibia
Mozambique
Malawi
Tanzania
South Africa
Africa
Swaziland
Zimbabwe
Lesotho
Global
Botswana
MauritiusBotswana l: 22%African Average: 27.85%Global Average: 23.57%
Source: Transparency International, 2015
Tax Competitiveness
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%
WHY INVEST IN BOTSWANA
- S & P
Chinese Companies in
Botswana
Source ; FDI Markets
Number of Chinese
Manufacturing Companies
in Botswana
Cumulative Capital
Employed
Turnover Total employment
23 US$5 149 383.64 US$3 997 400.40 937
US$ 61 814 208.37China FDI Stock in 2016:
Our Pride, Your Destination
BOTSWANA CHINA TRADE
-1,000,000,000
-800,000,000
-600,000,000
-400,000,000
-200,000,000
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
2010 2011 2012 2013 2014 2015 2016 2017
US
DO
LLA
RS
Botswana China Total Trade 2010-2017
Exports to China Imports from China Trade Balance
Botswana Exports to China
Product Code
Product LabelValue of Exports in
2017, USD thousand
TOTAL All products 33,262
'71Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad ... 33,255
'97 Works of art, collectors' pieces and antiques 3
'94Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; ... 2
'25Salt; sulphur; earths and stone; plastering materials, lime and cement 1
Botswana Imports from China
Product Code Product LabelValue of Imports in 2017, USD
thousand
TOTAL All products 233,139
'85Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ... 64,956
'94Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; ... 20,091
'61 Articles of apparel and clothing accessories, knitted or crocheted 19,682
'64 Footwear, gaiters and; parts of such articles 16,927
'63Other made-up textile articles; sets; worn clothing and worn textile articles; rags 15,451
'84Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof 14,145
PRIORITY SECTORS FOR BOTSWANA
Financial & Business Services
ICTAgriculture
MiningManufacturing
Tourism
Transport & Logistics
INVESTMENT OPPORTUNITIES
> Import substitution
> Automotive components
> General manufacturing
Agribusiness Sector
Mining & Mineral Beneficiation
Manufacturing
> Leather Park> Beef> Primary production> Animal feeds> Ostrich farming
> Solar > Coalbed methane (CBM)> Biogas & biodiesel> Coal to liquidsEnergy
> Soda Ash> Coal> Diamonds> Base Metals Transport & Logistics
> Rail projects- Trans Kalahari- Mosetse - Kazungula> Aviation
INVESTMENT OPPORTUNITIES
> Hotels & lodges
> Tented camps
> Air charter services
> Medical tourism
> ICT
> Financial and business services
> BPO
> National Infrastructure: Roads, bridges, water pipelines
> Residential and commercial property development
Tourism & Hospitality
Service Sector
Infrastructure & Property Development
BOTSWANA FINANCIAL SECTOR
BOTSWANA STOCK EXCHANGE – MARKET CAPITALIZATION
R• DOMESTIC MARKET CAP • (BWP Mn)• % OF TOTAL• Banking• 12,128.38• 28.4• Fin. Services & Insurance• 9,180.61 • 21.5• Retail & Wholesaling• 8,414.47 • 19.7• Mining & Material• 345.08 • 0.8• Property • 6,816.95 • 16.0• Tourism• 2,484.85 • 5.8• Energy• 1,677.08 • 3.9• ICT• 1,365.00 • 3.2• Security Services• 296.00 • 0.7• TOTAL• 42,708.42 • 100.0
SECTOR TOTAL MARKET CAPITALIZATION (BWP MILLION) % OF TOTAL
Banking 12,128.38 2.9
Fin. Services & Insurance 28,462.48 6.9
Retail & Wholesaling 10,096.42 2.4
Mining & Material 352,426.07 84.8
Property 6,816.95 1.6
Tourism 2,484.85 0.6
Energy 1,677.08 0.4
ICT 1,365.00 0.3
Security Services 296.00 0.1
TOTAL 415,753.23 100.0
Type of Facility Number Graded
Market Share
(Graded) %
Bed & Breakfast 112 19
Guesthouses 140 24
Game Lodges & Tented Camps
156 26
Selected Service Hotels
106 18
Fully Serviced Hotels 48 8
Self Catering Establishments
32 5
Total 594 100
INVESTMENT OPPORTUNITIES – TOURISM
Airport 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 observation system
Sir Seretse KhamaInternational
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, widening of the runway from 30 to 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 3000 m 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 5 international carriers being Air Botswana, Air Namibia, Ethiopian Airlines, South African Airways, and Kenyan Airlines
• Total imports were valued at USD7.1 billionin 2017.
• Six (6) principal commodities account for84% of import bill.
• Six (6) top imports are;
- Diamonds (25%)
- Fuel (15%)
- Food-Beverages & Tobacco (13%)
- Machinery & Electrical Equipment(13%)
- Chemical & Rubber products (10%)
- Vehicles & Transport Equipment (8%)
INVESTMENT OPPORTUNITIES
Chemicals & Rubber
Products10%
Diamonds25%
Food-Beverages & Tobacco
13%
Fuel 15%
Furniture1%
Machinery & Electrical
Equipment13%
Metal & Metal Products
4%
Salt Ores & Related
Products1%
Textiles & Footwear
3%
Vehicles & Transport
Equipment8%
Wood & Paper Products
3%
Other Goods4%
INVESTMENT OPPORTUNITIES – PRIVATE HOSPITALS
Name of Hospital Number of Beds Location
GPH 132 Gaborone
Bokamoso 235 Gaborone
Sidilega 110 Gaborone
Riverside 29 Francistown
TOTAL 506
Special Economic Zones
• Meat & Leather City• International Finance & Tech City
• Mixed Use Airport City: (Diamond, Logistics,
Innovation, Auto Components, Aircraft RMO, Medical Industries and Electronics)
• Coal, Energy, & Logistics
• Horticulture Value Chain
• Metals, Mining & Logistics
• Mining supplies & Logistics
• Agropolis (Cereals Value Chain)
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
economic activity in commercial
irrigation, Tourism, and Manufacturing.
• Special incentives for doing Business in
the SPEDU region.
ABOUT BITC
Investment Promotion, Export Development & Nation Branding Agency of Botswana
Collaborates with network of Botswana Embassies around the world, Professional advisory firms, National and Regional Chambers of Commerce (e.g CCPIT) , Other IPAs & TPOs around the world
UNITED KINGDOM OFFICE6 Stratford Place W1C 1AYLondon
INDIA OFFICENo. 43 Market Chamber VINariman Point Mumbai
SOUTH AFRICA OFFICE88 Stella Street3rd Floor West-wingSandtonJohannesburg
HEAD OFFICEPlot 54351Central Business DistrictGaboroneBotswana
INVESTOR FACILITATION & AFTERCARE
▪ Business Linkages / Facilitate Engagements / Company Visits
▪ Investor facilitation services (Botswana One-Stop-Shop);-• Partnerships and Joint Ventures• Premises; Land,• Work & Residence Permits, Visas• Company registration, Licensing• Incentives; IFSC, Manufacturing, Tax Holidays (DAO)• Professional Advisory firms; registrations (company, tax etc.)
▪ Aftercare Services – renewals, expansions etc.
Botswana One Stop Service Centre (BOSSC)
BITC EXPORT DEVELOPMENT & PROMOTION SERVICES
INVITATION TO GLOBAL EXPO BOTSWANA
30th October – 2nd November 2018 Gaborone International Convention Centre
(GICC), Botswana Theme | ‘Seizing opportunities through
networking with global business leaders’
INVITATION TO GLOBAL EXPO BOTSWANA
Our Pride, Your Destination
Thank You
Twitter: @Go_BotswanaFacebook & Linkedin: Botswana Investment and Trade Center
