V.  Marketing U.S. Products and Services

  Many U.S. goods marketed in Botswana are through South
African agents and distributors.  As Botswana's domestic
private sector grows, there are increasing opportunities
for U.S. firms to find locally-based companies willing and
able to represent U.S. manufacturers.  There are several
sources of assistance in finding a Botswana
agent/distributor:  the Chamber of Commerce, or BOCCIM
(Botswana Confederation of Commerce, Industry and
Manpower) represents most local businesses and is able to
provide assistance in suggesting potential partners.  The
Commercial Section at the U.S. Embassy can also be of
assistance.  (For contact information, see Para 9, "Useful
Addresses.")

   There are a number of successful South African
franchises in Botswana, mostly in fast-foods and
automobile repair.  Kentucky Fried Chicken is the
only U.S. franchise represented in the country.  There is
potential for increased involvement by "second tier"
American franchises (first-tier franchises such as
MacDonald's and Burger King may be too expensive for local
business partners), particularly fast-food restaurants
which use Botswana's excellent beef and South
African-sourced chicken.

    Forming a company and establishing an office in
Botswana is relatively straightforward.  The Companies Act
of 1959 governs company formation, and distinguishes
between private, public, and external companies.  The most
common form is the private company.  The Act is now being
amended to require that accounts be maintained in
Botswana, that there is a resident auditor, and that
reporting requirements are strengthened.  There are
several international accounting firms which can provide
assistance to U.S. firms establishing offices in the
country.

   The Industrial Development Act of 1988 requires all
foreign-owned manufacturing enterprises to obtain a
license from the Ministry of Commerce and Industry.  U.S.
companies are advised to consult with the Ministry's
Department of Trade and Investment Promotion ( see
Appendix C), prior to submitting the license application
to ensure their proposal does not include one of a small
number of commercial enterprises reserved for citizens of
Botswana.

   The Government of Botswana remains a major customer for
U.S. goods and services, particularly in major
infrastructure projects.  A Central Tender Board (located
in, and controlled by the Ministry of Finance and
Development Planning) consists of senior officials from
such Ministries as Commerce and Industry; Finance; Works,
Transport and Communications; and Mineral Resources and
Water Affairs.  Tenders are evaluated by the concerned
Ministry, which then makes a recommendation to the Board.
Final adjudication is by the Board, which often seeks
expert outside advice before making the award.  The U.S.
Embassy has found the tendering process in Botswana
to be generally fair and transparent.

   Manufacturers resident in Botswana are given a
local price preference when tendering for government
contracts.  The current preference is forty percent of
the local content ratio.  Design/engineering
consultancy firms in Botswana may apply for
registration with the Board; foreign-based firms are
generally not required to register.