Investment in Botswana

Letsebe Sejoe Chief Executive Officer (A) August, 2013

Contents 1.  BITC mandate

2.  Investment, Trade & Export Promotion

3.  Investment Opportunities

4.  Incentives for Investment Attraction

5.  Market Access

6.   How Can Honorary Consuls Contribute?

BITC Mandate

BITC Mandate

Established in April 2012; through a merger between Botswana Export Development and Investment Authority (BEDIA) and Botswana International Financial Services (IFSC).   Investment and Trade promotion agency

•  Promotes Investment (FDI, DI, Expansions) •  Provides investment facilitation services •  Export Development & Promotion

  Competitive & Attractive Business Environment   Brand Botswana Management   Interim SEZ Authority

* Regional Offices in South Africa, United Kingdom and India

Investment, Trade & Export Promotion

Investment, Trade & Export Promotion •  Aligned to National Priorities   Economic Diversification

•  Growth Sectors; Diamonds, Mining, Tourism, Agriculture, Services (Education, Financial, Health, Transport & Logistics)

  Economic value add   Export Potential   Sustainable employment creation   Technology and skills transfer   Exploitation of natural resources   Meaningful citizen participation

Investment, Trade & Export Promotion cont’d

  Targeted Campaigns & Missions   Trade Exhibitions, Creation of Buyer – Seller Platforms

  Investment facilitation services;

•  Partnerships and Joint Ventures •  Premises; Land, •  Work & Residence Permits •  Licensing •  Incentives; IFSC, Manufacturing, Tax Holidays (DAO) •  Professional Advisory firms; registrations (company, tax etc.)

  Aftercare Services – renewals, expansions etc

Investment Opportunities

Manufacturing •  Import Bill: P38.6 Bln (Machinery & Electric 17.5%, Fuel 14.8%, Food, Beverages &

Tobacco 12.5%, Chemicals & Rubber Products 10.9%) SB, 2010 •  Economic diversification potential •  Special Economic Zones (Incentives) •  Production of goods and services for export. •  Raw materials in abundance (What are they?) •  Beneficiation (beef, leather, minerals, glass manufacturing)

Agriculture   Production; Currently Below Capacity. Opportunity exists in; Cereals 45%, Pork

65%, Honey 45%, Small Stock 70%, Vegetables & Fruits 65% , Dairy 11%,

  Processing (Value Addition; Beef, Cattle & Small stock Hides (currently exported without processing 300K cattle hides)

  Agriculture Finance & Insurance; 1 company currently providing insurance services but there is opportunity for more financial products.

  Ostrich Sector; Under utilised Multi Species abattoir.

  Grey Water Recycling; For irrigation purposes

Education •  Photographic Safari Tourism Training Lodge •  Technical School of Mining and Energy •  Botswana Academy of Medical and Health Sciences •  Business School •  Post Harvest Technology and Food Quality Research Institute •  Democracy, Governance and Economic Management Institute •  Centre for Sustainable Socio-Economic Development •  Veterinary Science – specialist training courses for veterinarians

Health •  Pharmaceutical and biomedical equipment industries, clinics and diagnostic centres. •  Centre of excellence for cancer treatment •  High quality facility for orthopaedic services •  Treatment facilities including surgery for cardio-vascular diseases •  Organ transplant services •  Neurological treatment facilities •  High quality diagnostic facilities (imaging and laboratory)

Transport & Logistics

•  Large scale infrastructure e.g. Kazungula Bridge •  Trans Kalahari Railway, Mosetse-Kazungula and Mmamabula-Ellisras links so as to

Provide connectivity to facilitate trade in SADC countries •  Heavy Haul Railway Line between Botswana and Mozambique at Techobanine •  Logistics, information systems and services; •  Railways industries – wagon leasing, locomotive provision and maintenance, spare

parts and distribution;

Mining & Energy

ENERGY OPPORTUNITIES   Electricity: About 80% is imported

  Coal Reserves: are estimated at about 200 billion tonnes

  Solar: Botswana has high levels of irradiation (Sunshine) (2300kWh/m2); potential for solar projects

  Transmission infrastructure

  Renewable energy technologies

MINING OPPORTUNITIES

  Minerals Exploration and Prospecting,

e.g. Uranium & Silver

  The recent lifting of the moratorium on

coal

  Mineral Beneficiation

  Diamond, copper, nickel, coal

  Transport and logistics in mining

Financial & Business Services

  The aim is to develop Botswana as a World Class Financial and Business Services Hub

  Foster greater investment and economic activity in the region   Incentivised Service Export;

  International Banking   International Business Companies   International Insurance   Investment Funds   BPO & Call Centres

  Certified companies eligible for preferential tax incentives

Investment Incentives

Investment Incentives •  Tax regime

  15 % for manufacturing, financial services companies & companies registered in the Innovation Hub

  22% corporate tax for other sectors   Low personal income tax, maximum 25%   12% Value Added Tax   Possible tax holidays for 5 – 10 years (DAO)   200% Tax Allowance for Training costs

•  No foreign exchange controls •  Free repatriation of profits •  Double taxation agreements in place with various countries – List is

available

Market Access

Market Access

  The Southern African Customs Union (SACU) •  Duty free and quota free market access to more than 56.9 million consumers in

Botswana, South Africa, Namibia, Lesotho and Swaziland

  The Southern African Development Community (SADC) Trade Protocol •  Preferential market access to more than 277 million consumers in the SADC

region

  The African Growth and Opportunity Act (AGOA) •  Duty free and quota free market access to the USA

How Can Honorary Consuls contribute

How can Honorary Consuls contribute?

  Close working relationship with BITC   Direct investors with appetite to invest in Botswana to BITC   Disseminating Information on Investment Opportunities in Botswana   Demand for Botswana’s Exports (Align Market opportunities in FCCY Markets with

local exporters)   Major Buyers   Procurement Agencies   Increase Market Share of Botswana Products already in that market

  Global Expo Botswana

THANK YOU