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 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 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/m 2 ); potential for solar projects Transmission infrastructure Renewable energy technologies
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
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