BOTSWANA - AN INTRODUCTION

Botswana is a republic about the size of France in the heart of Southern Africa. It is open for business and welcomes foreign investment, especially joint ventures and new enterprises which will help diversify the Botswana economy.

WHAT DOES BOTSWANA OFFER THE INVESTOR?

STABILITY. The national principles of democracy, development , self-reliance and unity are apparent in every day life. Since independence in 1966, General Elections have been held once every five years. Although only two parties (the ruling Botswana Democratic Party led by Sir Ketumile Masire and the opposition Botswana National Front) presently hold seats in the National Assembly, up to seven parties have contested elections and currently there are eight political parties. The constitution of Botswana is supreme but is subject to interpretation by the independent courts.

PROSPERITY & GROWTH. In 28 years Botswana has developed from one of the poorest nations in the world to one of the richest in Africa and one of the fastest growing economies in the world.

SECURITY OF INVESTMENT. Botswana welcomes all investors who wish to participate in its national development and support their activities by offering them a most attractive investment climate which includes:

Multi-party and multi-racial democracy;

High foreign exchange reserves;

Liberal exchange control regulations, providing for repatriation of investment capital brought into Botswana, personal remittances and transfer of profits. The Multilateral Investment Guarantee Agency (an affiliate of the World Bank) provides guarantees in this regard;

Free market economy;

Minimal legislative procedures;

State-of-the-art national telecommunication network; and

Abundant and low-cost unskilled labour.

WHAT INVESTMENT OPPORTUNITIES ARE THERE?

Botswana welcomes foreign investment and technology for viable projects which provide substitutes for imports or have export potential and which also generate employment opportunities. Important areas of opportunity are:

AGRIBUSINESS - There is a growing demand for farm machinery; irrigation, water pumps and well-drilling equipment, and water transportation equipment, other opportunities include chicken hatchery; meat processing; crop production and storage; tanning, taxidermy and leatherwork.

REGIONAL SERVICES - Services are required in the administrative; consulting; distribution and marketing; engineering; financial; insurance/pension and publishing fields.

MANUFACTURING - Botswana's light industrial sector has enormous potential for growth. Textiles, footwear, diamond processing, construction materials, furniture, soda ash products, modular housing and electronic assembly are open for investigation.

TOURISM - One of the fastest growing segments of Botswana's economy, the tourism industry includes tour operators, accommodation, transportation, food services and products. With nearly 120,000 people visiting Botswana annually, the tourism industry is one of the country's most dynamic growth sectors with unique areas such as the Kalahari Desert, the Okavango Delta and the Chobe National Parks.

WHAT INVESTMENT INCENTIVES ARE THERE?

THE FINANCIAL ASSISTANCE POLICY (FAP) offers incentives to viable projects in the agricultural, industrial and mining sectors. FAP can provide the investor with tax holidays, unskilled labour grants, training grants, capital and sales augmentation grants over a five year period.

THE LOCAL PREFERENCE SCHEME provides incentives, in the form of a price advantage over goods of foreign manufacturers, to Botswana manufacturers who sell to the Government, local authorities and parastatals.

THE SPECIAL INCENTIVE PACKAGE for projects located in Selebi-Phikwe (the copper-nickel mining town in the North East). The incentives, for projects which meet the established criteria, include a capital grant, reimbursement of a portion of labour costs, a training grant, sales augmentation and tax advantages.

SOUTHERN AFRICAN CUSTOMS UNION. Botswana, Lesotho, South Africa, Swaziland and Namibia are members of the Common Customs Area. Botswana has free access to these markets for its exports.

ACCESS TO EC MARKET UNDER LOME. Botswana has duty-free access to the EC markets under the LOME IV agreement.

ACCESS TO US MARKET. Botswana has quota free and preferential access to American markets.

DEPARTMENT OF TRADE AND INVESTMENT PROMOTION

MINISTRY OF COMMERCE AND INDUSTRY

Private Bag 00367, Gaborone, Botswana

Tel: 351790 Fax: 305375 Telex: 2674 Trade BD

OUR OFFICES ABROAD

EUROPEAN COMMUNITY

Botswana Embassy and Missions to the European Communities

169 Avenue de Tervuren

1150 Brussels, Belgium

Tel: 7356110, 7352070 Fax: 7356318 Tlx: 22849

SWEDEN

Embassy of the Republic of Botswana

Drottningatan 56 III, PO Box 697, 10129, Stockholm

Tel:: (08) 72300035 Fax: (08) 7230087 Tlx: 16848 BOTSTOKS

UNITED KINGDOM

High Commission of the Republic of Botswana

6 Stratford Place, London W1N 9AE

Tel: (01)4990031 Fax: (01)4958595 Tlx: BOHICO 262897

UNITED NATIONS

Permanent Mission of the Republic of Botswana to United Nations

2 Dag Hammerskjold Plaza

866 Second Avenue, New York 10017

Tel: (212)7596587 Tlx: BOTSREP 620512

UNITED STATES OF AMERICA

Embassy of the Republic of Botswana

3400 International Drive NW, N.W. Suite 7M

Washington DC 20008

Tel: (202)2444990/1 Fax:(202)2444164 Tlx: BOTWASH 64221

ZAMBIA

High Commission of the Republic of Botswana

PO Box 31910, Lusaka

Tel: 250804 Tlx: BOTCOM 41710

ZIMBABWE

Botswana High Commission

5th Floor Southern Life Building, Stanley Avenue, Harare

Tel: 303511/2/3 Fax: 303534 Tlx: 2663 BOTZIM ZW

CHINA

Embassy of the Republic of Botswana

1-8-1/2, Ta Yuan Office Building, Beijing

Tel: 5325751/6 Fax: 5325713

HONG KONG

Botswana Consulate General (HK)

Suite 607-608, 6th Floor, CitiBank Tower, Citibank Plaza

No. 3, Garden Road, Central, Hong Kong

Tel: 5328320/5328362 Fax: 8100235 Tlx: 65779 HKBL HK

ECONOMIC INDICATORS

POPULATION: 1326796 August '91 (54,3% rural 45,7% urban)

MAJOR TOWNS: Gaborone 133468, Francistown 65244, Selibe-Phikwe 39772, Lobatse 26052

POPULATION GROWTH RATE: 3,5% (1981-91)

GDP: (P million) 8328,7 at current prices (1992/93)

REAL ANNUAL GDP GROWTH: 6,6% at current prices (1992/93)

GDP PER CAPITA: P6065 in 1992/93

INFLATION: 11,2 % (June 1994)

CURRENCY: Pula (divided into 100 Thebe)

EXCHANGE RATES: P1,00 = GBP 0,2458; P1,00 = US$0,3707 (May 1994)

EXPORTS: 9 (fob in P million) 3885 (1993)

IMPORTS: (CIF in P million) 4148 (1993)

BALANCE OF PAYMENTS: (P million) 980,5 (1993)

TRADE BALANCE: (visible adjusted in P million) 406 (1993)

FOREIGN RESERVES: (P million) 11152,9 (January 1994)

BUDGET: (P million) Revenue 5040,8

Expenditure 5041,4 (1994/1995)

PRINCIPAL EXPORTS: Diamonds 78,9% copper/nickel 7,2%, beef 3,5% and textiles 2,1% (1992)

PRINCIPAL IMPORTS: Food, beverages and tobacco 18,7%; machinery and electrical equipment 18,8%; vehicles and transport equipment 10% and metal products 14% (1992).

SOURCE: Central Statistics Office and Bank of Botswana.