1. POLITICAL STABILITY
Botswana has successfully held eleven general elections since its independence in 1966. Each multi party
election has maintained constitutional provisions for a free and fair process. As Africa’s longest standing
democracy, political stability is a key stimulus for investment in Botswana.
2. SAFETY AND SECURITY
Botswana is one of the most secure and safe countries in Africa and compares well worldwide for low
crime rates and the rule of law. Well-trained law enforcement deploys the latest crime prevention
strategies and equipment, and as such the country has little or no exposure to large scale security concerns,
such as terrorism, cybercrime, and money laundering. Capital and corporal punishment is still in force.
3. CORRUPTION
International studies have consistently ranked Botswana among the world’s least corrupt countries, a
reputation fortified both by public, private and civic anti-corruption institutions and by a deeply ingrained
anti-corruption culture in the country’s economic sectors. Botswana has the least corrupt government in
Africa, which increases the security of the investment environment.
4. TOP SOVEREIGN CREDIT RATING
Botswana has long been among the top-level credit ratings for both economic outlook and political
stability worldwide. In Standard & Poor’s 2018 ratings Botswana was rated ‘A-’ and ‘A 2’ for the long
and short term respectively, based on a strong government balance sheet, a well-managed economy and a
long record of political stability.
5. STABLE INFLATION
A major component of the country’s macro-economic policy has been to attain a low, stable and
predictable level of inflation to maintain the economy’s global competitiveness while preserving value
for foreign investors and domestic businesses. Botswana’s inflation rate has been maintained mostly
within set parameters in the long term and is currently experiencing a downward trend since the global
recession.
6. TAXATION
The World Bank’s Doing Business report and the World Economic Forum’s Global Competitiveness
report both highlight the comparatively low levels of taxation in Botswana as an incentive to investment.
In recent years, this position has been further consolidated by fiscal changes to simplify the taxation
regime and methods of payment. Botswana has the lowest taxation rate in Africa. See our brochure:
Tax in Botswana
7. INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
Botswana has experienced rapid growth in its ICT sector, driven by public and private sector investments
amounting to billions of Pula. Botswana continues to experience a positive upward development of the
ICT sector, driven by strong research and
development initiatives that position Botswana towards becoming a knowledge driven economy by 2036.
Botswana ranks 104 out of 143 countries in the global Network Readiness index of 2017. This index looks
at various sub indicators ranging from the ICT Environment, ICT Readiness (Infrastructure and digital
content), Affordability, Skills, Usage and Socio-economic impact. In her effort to create sustainable
economic diversification initiatives in the ICT sector, the Government of Botswana has invested in
building a state of the art Science and Technology Park developed and managed by the Botswana
Innovation Hub (BIH) whose sole mandate is to contribute to the country’s economic development and
competitiveness by creating new scientific, technological, and indigenous knowledge-based business
opportunities. BIH also has the responsibility of adding value to existing companies, foster
entrepreneurship and technology transfer, generate knowledge-based jobs, and attract innovative
companies and institutions to the Hub.
8. INFRASTRUCTURE
Since Independence, Botswana has invested heavily in the nationwide development of primary and
secondary infrastructure, constructing and implementing world class roads, dams, electricity and ICT
installations to urban, rural and tourist areas. Since 2009, Botswana has targeted investment in
infrastructure, aiding recovery of the economy from the global recession. Presently, the government
continues to advance projects outlined in its ongoing National Development Plan, including maintenance
and scheduled upgrades. Botswana has 971 kilometres (603 miles) of rail lines, 18,482 kilometres (11,484
miles) of roads (of which only 23 percent are paved), and 92 airports, of which 12 have paved runways.
The national airline is Air Botswana, which flies domestically and to other countries in Africa. Direct air
service from Gaborone to London and Paris is provided by British and French airlines. Botswana has
invested in attaining good roads and services infrastructure through revenue generated from the mining
industry. The proximity of Botswana to South Africa has allowed Botswana to access the robust
telecommunications infrastructure of South Africa via gateways to the South Africa’s deep-sea optic fibre
network that connects South Africa to the rest of the world. Botswana's desire to become an international
financial services centre seeks to attract FDI through competitive incentives offered to IFSC and BPO
investment companies that wish to relocate their operations to Botswana which has a versatile pool of
educated and skilled labour.
9. INSTITUTIONS
Institutional support in Botswana guarantees investors protection and incentive due to streamlined
regulation practices. The country’s institutions have been developed through global benchmarking and
extensive consultation and as a result, the country reaps the benefit of an investment and trade centre, a
financial services centre, a financial intelligence agency, a competition authority, a local enterprise
authority, and an accountancy oversight authority. Botswana banks are highly sophisticated and well
regulated.
10. INVESTOR PROTECTION
Botswana has implemented practices in its legal code for over 40 years to guarantee investor protection,
allowing for a competitive and accessible investor market. The country is a signatory to the World Bank’s
Multilateral Investment Guarantee Agency (MIGA) and other agreements that ensure maximum security
for investors.
11. ACCESSING CREDIT
Botswana's financial and capital markets are among the most sophisticated in Africa, boasting numerous
domestic companies and regional offices of multi nationals. A recent Rand Merchant Bank survey placed
Botswana among the top five African countries in accessibility to bank loans, while the World Enterprises
Survey showed that Botswana boasts the highest percentage in Africa of firms with lines of credit.
12. TRADING ACROSS BORDERS
Botswana's geographical proximity to regional giant South Africa positions the country favourably for
investors in Sub-Saharan Africa. As a land linked country, Botswana has experienced trading challenges
due to the high cost of cross border trade and transportation. To remedy these challenges, considerable
investment in infrastructure and regional trade policies has improved Botswana’s competitive trading
position and elevated the country to be the hub of Southern African trade. Trans-regional highways,
railways, airports and efficient border control mechanisms all contribute to Botswana's competitive
trading position.
13. HIGH NET WORTH MARKET
Despite a relatively small population of 2.4 million, Botswana's consumers constitute a High Net Worth
Market. The country’s per capita GDP has risen from an estimated US$70 at Independence in 1966, to
reach US$7,877 in 2017. The country’s government, private sector and households have the ability to pay
for high value goods, reflected in recent rapid development of the retail sector.
14. LITERATE POPULATION
Botswana's literacy rate is 88.2% for citizens aged 15 and above, a figure that reflects consistent
investment in education. This makes Botswana Africa’s 12th most literate nation, a significant
achievement given the relatively low access to primary and secondary education at Independence. Adult
literacy rate is the percentage of people ages 15 and above who can, with understanding, read and write a
short, simple statement on their everyday life. Youth literacy rates are 96.15% and 99.58% for males and
females accordingly. The overall youth literacy rate is 97.85%. Youth literacy rate definition covers the
population between the ages of 15 to 24 years.
15. SKILLED POPULATION
The country has developed significant human resource skills in the mining, construction, financial
services, tourism and travel sectors. Botswana continues to diversify its economy and benefits from
talented and skilled individuals in key economic sectors. A network of local and international universities
and colleges, as well as accreditation and certification bodies ensure that skills quality meets world
standards, while government policy ensures that the skills being produced match industry requirements.
16. LABOUR RELATIONS
Relations between employers and employees in Botswana have been well established and relative to the
rest of Africa, are civil and stable. In both the public and private sectors, a number of legislative
enactments and tripartite agreements guide dispute resolution, resulting in a low level of labour related
disputes and open negotiations with unions.
17. NO EXCHANGE CONTROL
Botswana abolished control in 1999 and money can thus move freely in and out of Botswana. If certain
criteria are met, foreigners are allowed to open bank accounts in Botswana (in Pula, Rand, USD, Pound
or Euro).
18. SPECIAL ECONOMIC ZONES AUTHORITY (SEZA)
Specific areas in Botswana have been demarcated by the Special Economic Zones Authority (“SEZA”)
where businesses qualify for real incentives and tax breaks.
19. THE BOTSWANA INTERNATIONAL TRUST
The Botswana International Trust is an excellent vehicle in which your wealth can be protected. See our
Brochure: The Botswana International Trust.
20. OWNERSHIP OF LAND + RULE OF LAW
Botswana uses the same Common Law and legal principles as South Africa and as stated, the rule of law
is upheld by the government and a judiciary that has evolved with the times. For a synopsis of
ownership of land, see our brochure: Owning land in Botswana.
Source: Gobotswana