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INTRODUCTION

Botswana Export Development and Investment Authority (BEDIA) is the focal point for investment and export promotion

activities in Botswana. BEDIA plays an important role in the diversification and industrialization of the economy. The

Authority provides dedicated support to potential investors and existing companies. As part of our mandate, we

provide this medium for exchange and sharing of statistics and information on Botswana.

BotswanaBotswana is a land locked country, bordered by South Africa, Namibia, Zambia, and Zimbabwe. Botswana is 84%

covered by Kgalagadi Desert. Gaborone, situated in the South Eastern part of Botswana, is the capital city. The

country’s surface area is 581 730 sq km.

VisionWe will be globally recognized as a leading trade and investment agency in Southern Africa.

MissionTo promote investment in export oriented activities which will result in economic diversification, rapid economic

growth and sustained employment opportunities in accordance with Botswana’s social and economic policies and

objectives.

ValuesAccountability: We work to clear purposes and defined outcomes within identified parameters using transparent,

quality and consistent processes and reporting as necessary to stakeholders.

Ethical behaviour: We are open, honest and consistent in all business dealings. We conduct business in a professional

and ethical way.

Responsiveness: We work with stakeholders in a way that is consultative, timely and innovative to best meet their

changing needs.

Statistics Botswana 2010

TABLE OF CONTENTS

PAGE

INTRODUCTION 1

GOOD REASONS TO INVEST IN BOTSWANA 3

POPULATION 4

ECONOMY 7

BOTSWANA INTERNATIONAL TRADE 17

QUALITY OF LIFE 22

TOURISM 23

MINERAL SECTOR 25

EDUCATION 27

TRANSPORT 29

WORKING HOURS AND HOLIDAYS 30

TAX SYSTEM 31 Corporate Tax 31 Personal Tax 32 Global Corporate Tax 33

UTILITY TARIFFS IN BOTSWANA 34 Electricity 34 Water 35 Wages and Salaries 37 Factory and Office Space Prices 38 Telecommunications 39

FOREIGN INVESTMENT IN BOTSWANA 41 Botswana FDI Stock and Inflows (US$ Million) BEDIA Assisted Investment 42


GOOD REASONS TO INVESTIN BOTSWANA 3

Political stability and good governanceStable macro-economic environment and economic growthStandard and Poor’s and Moody’s Investor Service credibility and creditworthiness rating of Botswana is among

the best in AfricaAs at November 2009, foreign exchange reserves stood at P60.9 billion. This figure translates to US$9.2 billion

reserves, representing about 20.7 months import cover for goods and services

Corporate tax is only 15% for manufacturing enterprises, the highest rate for personal income tax is only 25%No Foreign exchange controlExcellent infrastructure and state of the art telecommunication systemsFull government support to trade and investment issues

Botswana’s exports are admitted quota and duty free to the European Union countries through the Cotonou Agreement.

Duty and quota free access to a market of more than 50 million consumers in South Africa, Lesotho, Swaziland and Namibia through the Southern African Customs Union, SACU.

Preferential access to more than 170 million consumers in the Southern African Development Community, SADC, market.

Duty and quota free access to the US market through the African Growth and Opportunity Act, AGOA.

Botswana offers an educated, English speaking labour force which is readily trainable.A young, abundant, predominantly English speaking, literate and well motivated labour force with a

tradition of manual dexterity at competitive wage rates.Excellent industrial relations with non-aggressive trade unionism.

Botswana is a cosmopolitan place where people of all races and colour live together in harmonyExcellent educational facilities both public and privateGood recreational facilities and tourism resortsModern health facilities


4

The 2005/06 Labour Force Survey estimated the population of Botswana at 1, 702,829 people and is growing

at the rate of 3.5% per annum. According to the survey, the population is 46.9% male and 53.1% female. The

number of households are estimated at 515 294.

Male 798, 460 46.9%

Female 904, 369 53.1%Total 1,702,829 100%

Central Statistic Office, STATS BRIEF: Preliminary 2005/06 Labour Force Survey Results, 2007

Botswana has a small population size compared to most Southern African Development Community (SADC)

countries. The population is heavily skewed towards the urban areas namely, Gaborone, Francistown, Lobatse

and Selebi-Phikwe. The population of Gaborone is approximately 250 000 people.

POPULATION


5POPULATION

Total 941,027 1,326,796 1,680,863

Urban 159,614 606,328 910,480

Rural 781,413 720,468 770,383

Gaborone 59,657 133,468 186,007

Francistown 31,065 65,244 83,023

Selebi-Phikwe 29,469 39,772 49,849

Lobatse 19,034 26,052 29,689

Molepolole 20,565 36,930 54,561Kanye 20,215 31,354 40,628Serowe 23,661 30,264 42,444

Mahalapye 20,712 28,078 39,719

Maun 14,925 26,768 43,776

Mochudi 18,386 25,542 36,962

Note:-1981, 1991 and 2001 are Population and Housing Census figures

Central Statistics Office, population census section website, 2007


6 POPULATION

Angola 7,835 9,276 10,532 12,280 13,841 15,941 18,327 20,947 23,777

Botswana 1,049 1,236 1,429 1,616 1,754 1,765 1,729 1,690 1,671

DRC 27,996 32,346 37,764 44,999 50,052 57,549 67,129 78,016 90,022

Lesotho 1,292 1,469 1,593 1,692 1,788 1,795 1,768 1,744 1,718

Malawi 6,183 7,250 9,459 10,111 11,512 12,884 14,348 15,998 17,816

Mauritius 966 1,016 1,057 1,125 1,186 1,245 1,298 1,344 1,384

Mozambique 12,048 13,219 13,429 15,854 17,911 19,792 21,620 23,513 25,508

Namibia 987 1,119 1,398 1,652 1,894 2,031 2,132 2,248 2,384

South Africa 29,239 33,178 36,877 41,894 45,610 47,432 47,819 47,902 48,100

Swaziland 616 717 865 953 1,023 1,032 1,010 992 983

Tanzania 18,858 22,268 26,231 30,930 34,763 38,329 41,838 45,598 49,265

Zambia 6,059 7,150 8,377 9,559 10,702 11,668 12,673 13,841 15,128

Zimbabwe 7,310 8,888 10,565 11,820 12,595 13,010 13,402 13,804 14,144

UN World Population Prospects Website


7ECONOMY

The overall size of the economy of Botswana both at current and constant prices increased in 2007/08 although

at a slower rate compared to 2006/07. The central Statistics Office (CSO) estimates GDP at current prices to have

increased by 12.5% from P71.2b in 2006/07 to P80.1b in 2007/08. At constant prices the expansion was much

slower at a rate of 3.3% in 2007/08 compared to 5.3% in 2006/07 which was revised from the initial estimate of

6.2% in the year 2006/07. The slow growth in 2007/08 is mainly as a result of the poor performance by mining

sectors, which registered a decline of 3.5% in real value added compared to 4.7% recorded for 2006/07. The

non-mining sector on the contrary experienced some encouraging real growth from an annual increase of 5.7% in

2006/07 to 8% in 2007/08. This indicates some success towards economic diversification.


8 ECONOMY

866.3 951.8 899.9 1 027.9 1325.0 1488.8

14 704.5 15 078.9 19 300.8 22 749.0 30 061.9 31 227.2

1 549.7 1 647.5 1 772.5 1 911.6 2 442.8 2 917.2

926.8 1 058.9 1 216.2 1 398.0 1 966.6 2 132.2

1 976.2 2 103.4 2 241.7 2 426.9 2 855.9 3 413.3

4 417.9 4 894.4 5 071.8 6 116.0 7 402.7 9 036.1

1 519.1 1 398.6 1 519.1 2 040.5 2 572.5 3 062.8

4 096.5 4 517.4 5 169.7 5 919.3 6 805.1 8 345.6

7 231.8 7 231.8 8 104.1 9 509.6 10 636.8 12 322.5

1 594.7 1 594.7 1 884.7 2 259.2 2 471.9 2 871.2

Central Statistics Office, STATS BRIEF National Accounts Statistics

Bank of Botswana Annual Report 2008


9ECONOMY

441.2 453.7 403.7 389.1 435.0 415.8

8,285.1 8,307.9 9,821.0 9,445.0 9891.8 9,545.2

703.3 708.8 763.1 804.0 900.5 969.9

444.2 472.4 489.1 506.8 536.6 584.2

1,005.5 1,026.7 1,036.0 1,001.8 1089.1 1,214.9

1,990.1 2,201.2 2,044.6 2,172.4 2348.0 2,562.1

631.2 609.8 605.7 716.2 838.7 944.9

1,972.5 2,015.5 2,114.8 2,350.6 2489.5 2,766.5

3,267.3 3,434.2 3,590.7 3,735.9 3800.4 3,937.5

724.5 774.9 855.5 9 19.7 934.3 1,005.9




10

Source: Central Statistics Office, STATS BRIEF National Accounts Statistics


ECONOMY

Social andPersonal Service

4%

Agriculture, 2%

Mining, 40%

General Government

16%

Banks, Insurance& Business

Services, 11%

Transport 4%

Trade, Hotels andRestaurants, 12%

Construction, 4% Water & Electricity, 3%

Manufacturing,4%


11ECONOMY

9.8 8.6 17.1 16.1 23.1 12.5

9.1 3.5 9.4 0.6 5.3 3.3

*Represents the annual growth in the economy.




12 ECONOMY

23,335.3 25,054.0 29,019.4 33,417.5 40,796.2 45,589.5

14,061.2 15,599.0 17,182.6 19,613.0 22,837.6 26,952.4




13ECONOMY

One major pillar of Botswana’s macroeconomic policy is to maintain a stable and manageable inflation and

exchange rate in order to improve Botswana’s competitiveness in international markets and contribute to the

broader national objective of achieving diversified and sustainable economic growth. Inflation rose to a fourteen-

year high of 15.1% in August 2008, in line with the hike in the international prices of petroleum and food products.

Since Botswana is a net importer of its food and petroleum products, the impact of these commodities’ price

changes on the domestic general prices was significant throughout 2008. There has however, been a deceleration

in the domestic inflation trend following recovery in the global commodity markets. Inflation stood at 5% and 5.8%

in November and December 2009; falling within the Bank of Botswana’s medium term target range of 3 – 6%. It is

expected that inflation will rise in the short-term and stabilize around the Bank’s medium-term objective range of

3 – 6 percent in 2011. The table below presents domestic inflation figures for the period 2002 to 2009.

5.7 10.8 6.2 8.0 12.7 7.4 8.4 12.8

5.7 11.6 6.3 7.3 13.1 7.3 9.0 11.7

6.1 10.6 6.9 6.5 13.8 6.5 9.8 11.7

6.9 10.8 6.6 6.2 14.2 6.3 11.1 10.2

5.8 11.2 7.4 6.3 13.5 6.4 12.1 8.4

5.9 12.2 6.7 7.1 12.5 6.4 14.5 7.0

8.8 8.6 6.8 8.2 11.9 7.5 15.0 6.0

9.9 7.8 6.7 9.6 10.7 7.2 15.1 6.1

10.1 7.3 7.0 10.0 10.5 6.8 14.0 7.0

10.0 7.0 7.7 11.2 9.2 7.3 13.1 6.9

10.4 6.6 7.6 11.3 8.8 7.7 15.0 5

10.6 6.4 7.8 11.4 8.5 8.1 13.7 5.8

Central Statistics Office website, 2010.


14

Central Statistics Office, Bank of Botswana, Botswana Financial Statistics, 2010.

ECONOMY


15ECONOMY

Botswana’s exchange rate policy focuses on maintaining the country’s competitiveness as measured by the Real

Effective Exchange Rate (REER). The objective is to maintain a competitive exchange rate against a basket of

currencies of major trading partners. This is to afford local producers some competitive ground in trading on both

domestic and international markets. For a continued stable exchange rate the crawling band system is used for

Botswana’s exchange rate.

0.2134 0.1976 0.1722 0.1630 0.1477 0.1405

0.1716 0.1583 0.1374 0.1190 0.1004 0.1007

0.1164 0.1083 0.0937 0.0814 0.0798 0.0897

23.06 21.68 20.01 19.18 15.3158 13.1225

1.3746 1.227 1.1585 1.1481 1.2062 1.1763

Bank of Botswana, Botswana Financial Statistics, 2009


16 ECONOMY

In order to maintain price stability, interest rates have been used as a tool for mopping up excess liquidity in the

economy. The rate at which Bank of Botswana lend money to commercial banks (bank rate) was reduced to 10%

in 2009 from the 15% maintained in 2008. The drop in the bank rate was followed accordingly by the drop of the

prime lending rate to 11.5%. These rates are constantly monitored by the Central Bank.

14.25 14.25 14.50 15.00 14.50 15 10

15.75 15.75 16.00 16.50 16.00 16.5 11.5

Bank of Botswana, Botswana Financial Statistics


17BOTSWANA INTERNATIONAL TRADE

The value of imports in 2008 was P35 billion; an increase from the P25 billion recorded in 2007. Domestic imports

revolve mainly around five major commodity groups, chemicals & rubber product; foods, beverage & tobacco;

fuel; machinery & electrical equipment and vehicles & transport. The Southern African Customs Union (SACU)

especially South Africa provides most of the imports into Botswana.


18 BOTSWANA INTERNATIONAL TRADE

366 276 286 241 376 477 695 609

61 31 32 31 28 37 56 40

12 435 13 223 10 681 12 435 16 864 19 452 20 043 20 793

598 710 1337 1578 2 314 3 619 5 655 4 561

193 286 247 561 1 119 917 2 187 1 819

128 79 84 107 195 181 193 221

299 531 492 556 591 273 219 413

571 970 750 982 996 1593 2744 4080

14 658 16 109 13 910 16 490 22 510 26 549 31 792 32 536

Central Statistics Office, Trade Section Website 2009

In 2008, total exports were valued at P33 billion compared to P32 billion in 2007. The major export commodities

were mainly diamonds, copper/nickel matte and textiles exports.



2 204 2 031 2 049 2 249 2 492 3 334 4 272

626 824 1 705 2 214 3 088 3 880 6 005

1 712 1 428 1 695 2 007 2 365 3 155 3 739

1 055 1 050 1 377 687 740 938 1 206

748 580 706 794 902 1 172 1 413

1 734 921 1 181 1 238 1 457 2 024 2 797

2 780 2 212 2 476 3 015 3 088 4 646 6 269

2 469 1 476 1 884 2 116 1 753 2 907 3 820

1 980 1 599 1 624 2 141 2 183 2 848 5 912

15 309 12 120 14 695 16 461 18 068 24 904 35 433


Botswana External Trade Monthly Digest July 2009


20 BOTSWANA INTERNATIONAL TRADE

26 12 21 8 240 82 2 39155 20 15 22 138 81 1 33253 46 16 54 240 56 4 46958 51 13 31 490 52 3 69876 32 2 18 649 70 11 85878 41 14 53 1,120 73 6 1,38591 85 12 60 1,360 3 8 1,619

111 103 25 31 2,383 4 8 2,665145 185 30 31 2,272 7 9 2,679184 254 50 35 3,199 10 11 3,743157 226 53 41 2,832 4 5 3,318187 256 56 54 3,174 10 2 3,739255 167 55 57 3,129 9 3 3,675379 135 57 597 3,083 14 4 4,269691 134 49 1,245 2,801 35 10 4,965

1,277 182 49 2,223 2,147 52 11 5,9411,488 250 50 4,419 1,827 78 22 8,1341,485 383 114 5,840 2,444 102 23 10,3911,495 250 111 4,830 1,874 90 48 8,6981,271 291 137 8,130 2,221 86 91 12,227

984 556 131 9,913 2,488 86 102 14,260948 382 111 12,584 463 37 134 14,658

1,249 398 88 12,835 382 107 1,050 16,1091,221 407 45 10,791 244 61 1,139 13,9101,587 614 40 12,267 301 264 1,416 16,4892,046 935 39 17,012 292 498 1,697 22,5101,832 1,492 36 19,101 522 489 3,077 26,5493,581 2,311 46 20,445 823 313 4,273 31,7926,987 1,457 79 18,267 1,135 329 4,282 32,536





581 40 2 8 11 - 15 7 664

609 43 2 16 12 - 12 10 704670 56 3 10 42 - 9 16 806698 77 1 28 59 - 17 16 896814 78 3 53 82 - 31 33 1,094

1,022 98 3 33 82 - 38 56 1,3321,251 118 4 36 106 - 30 28 1,5731,689 139 7 125 110 - 46 56 2,1722,445 172 22 94 187 - 36 63 3,0192,980 184 23 90 223 - 41 79 3,6203,292 208 11 143 152 - 49 73 3,9283,374 193 16 104 178 - 39 67 3,9713,541 196 17 112 192 - 141 85 4,2843,437 259 23 110 260 92 83 144 4,4083,925 293 18 135 319 377 107 132 5,3064,462 328 23 148 240 249 74 196 5,7205,982 368 38 163 580 785 89 251 8,2567,111 375 54 321 644 456 135 418 9,5147,784 397 27 272 664 264 188 569 10,1657,846 367 35 442 900 22 174 421 10,2308,201 335 35 468 833 22 190 480 10,564

12,454 218 148 477 1,124 12 191 686 15,30910,494 177 47 303 627 12 84 376 12,12013,173 241 43 483 890 21 201 735 15,78813,619 249 36 203 1,175 34 206 939 16,46115,512 279 15 193 593 30 153 1,293 18,06820,932 313 16 331 1,139 26 302 1,845 24,90427,606 314 15 2,004 1,849 20 459 3,166 35,433




22

Human Development Report 2007/2008 ranks Botswana 124th in the world in terms of the Human Development

Index (HDI). The HDI is a composite index measuring average achievement in three basic dimensions of human

development –a long and healthy life, knowledge and a decent standard of living. Botswana continues to rank

above most SADC countries in terms of this measure however she ranks lower than South Africa, Seychelles and

Mauritius. South Africa, Seychelles and Mauritius dominate Botswana, thus indicating that the quality of life is

better in these countries than in Botswana.

Human Development Report, 2007 - 2008

QUALITY OF LIFE

200

150

100

50

0

Moz

ambi

que

DRC

Ango

la

Mad

agas

car

Nam

ibia

Bots

wana

Sout

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rica

Mau

ritiu

s

Seyc

helle

s

5065

121 124 125143

162 168 172


23TOURISM

Botswana operates a vibrant tourism industry. About 17% of territory in Botswana is designated as protected

areas while an additional 20% is conserved as a wildlife management area. The country offers a wide variety of

striking landscapes (e.g. Okavango Delta, Kalahari Desert, Chobe River and Makgadikgadi Pans) and National

Parks.

Wildlife and wilderness experience are by far Botswana’s biggest holiday attractions. There were close to

1.5 million tourist arrivals in Botswana in 2008 and an additional 314,436 day visitors. The rate of growth of tourist

arrivals over the period since 1994 has been significant, increasing by an average of 8.4% per annum.


24 TOURISM

International Tourism Arrivals 1,499,794

Average Annual Growth Rate: Tourism Arrivals 2006-2008 2.6%

Average length of stay (nights) 7.7

International Tourist Expenditure (Pula) 2.9 billion

Average spend per person per day (Pula) 341

Room Occupancy Rates 40.3%

Bed Occupancy Rate 36.1%

Average length of Stay in Accommodation (nights) 2.7

Visits to National Parks (2007) 284,501

Department of Tourism, Tourism Statistics 2006 - 2009


25MINERAL SECTOR

The mining sector remains the main engine of growth for the Botswana economy. The sector contributes over a

third of GDP, 75% of export earnings and over 55% of total government revenue. The main driving force for the

sector has been the diamond sub-sector. The Orapa pipe which measures 112 hectares is the largest known

diamond bearing kimberlite pipe in the world. The peak capacity for this mine is estimated at 250, 050 carats

per annum.

Botswana produces salt and soda ash in Sua Pan which covers roughly 3 500 square kilometers and contains an

estimated brine resource of 16 billion cubic metres. Botswana has large coal resources estimated at 212 billion

tonnes of which 3.3 billion tonnes are measured reserves. At least 17 billion tonnes of coal is estimated to be

suitable for power plant use.

Of late the main focus for the country is to transform itself from a leading diamond producer to a World Diamond

Centre by;

downstream diamond in Botswana. Already there are 16 diamond cutting and polishing factories in

Botswana a majority of which started operating in 2007.

and security.

factories tours, diamond museums and diamond jewellery shopping.

entrepreneurs.


26 MINERAL SECTOR

Diamonds (‘000carats) 31,834 31,011 33,639 32,595 3,915*

Copper and Nickel (tonnes) 58,998 47,543 49,121 52,086 22,341

Coal (tonnes) 984,876 816,920 828,164 909,511 407,231

Electricity generation

(‘000kwh)2,879,442 2,257,584 3,269,264 3,375,000 2,425,965

Water Sales (‘000 kilolitres) 43,508 39,795 466,667 502,442 404,993

Soda Ash (tonnes) 281,976 214,120 279,625 263,566 87,788

*Figures for diamonds in 2009 are from Jan-June

Central Statistics Office, Stats UPDATE SEPTEMBER 2009


27EDUCATION

The Government of Botswana has invested a lot of resources in the development and growth of the education

system in line with the country’s Vision 2016 pillar of “An Educated and Informed Nation”. The standard of public

education in Botswana is considered to be comparable to international standards. Botswana’s total investment in

knowledge (including investment in public and private spending on higher education) has been increasing at an

annual rate of about 4% over the past decade. The education and Skills Development’s total ministerial recurrent

budget for 2009/10 was P7.57 billion (which is 29.4% of recurrent budget). This shows the level of importance

given to the sector and continued efforts of realizing the vision. Botswana has an adult literacy rate of 81%.

Developments such as the development of the Botswana International University of Science and Technology

(BIUST) represents and show the relentless commitment by the government in transforming Botswana’s

economy from a resource to a knowledge based economy. Such developments as well as other initiatives under

the government plan represent the continued strive towards a competitive, diversified economy of Botswana.


28 EDUCATION

Local Government & Grant

Aided Schools314,049 313,900 311,840 312,115 312,808

Private Enrolment 17,407 16,471 16,852 17,076 17,609

Total Std 1 enrolment 52,607 52,589 50,868 53,427 53,483

pupil: teacher ratio 25 26.0 25.8 25.6 25.4

Community Junior and

Secondary Schools156,687 118,503 114,457 115,171 119,163

Senior Secondary

(Excluding Form 6)40,415 35,719 36,157 36,583 43,245

Private Secondary Schools 7,991 8,302 8,225 8,246 7,109

Teacher Training Colleges --- 1,526 1,390 1,486 1,379

College of Education --- 1,802 1,659 1,505 1,386

University of Botswana --- 15,628 15,724 15,710 16,239

--- Not available

Central Statistics Office, Stats UPDATE SEPTEMBER 2009


29TRANSPORT

Botswana has very good infrastructure by road, rail and air to the region. Air Botswana and South Africa

Express Airways provides international flights from Botswana to South Africa as well as Zimbabwe. In the latest

development Kenya Airways joined hands with Air Botswana to provide flights between Botswana and Kenya.

There are a number of flights between Gaborone and Johannesburg everyday and a number of flights per week

between Gaborone and Nairobi. There is a railway line which passes through Botswana and links South Africa to

Zimbabwe. The trans-kgalagadi road links Botswana, South African and Namibia.

To improve the country’s competitiveness, the government of Botswana initiated a number of infrastructural

developments within the transport sector during the 9th National Development Plan. These include major airport

development and expansion projects at several airports as well as improved navigational aids.


30 WORKING HOURS AND HOLIDAYS

0730 hrs-1245 hrs 1345 hrs-1630 hrs

0800 hrs-1300 hrs 1400 hrs-1700 hrs

New Year's Day 1st January

Public Holiday 2nd January

Good Friday 2nd April

Public Holiday 3rd April

Easter Monday 5th April

Labour Day 1st May

Ascension Day 13th May

Sir Seretse Khama Day 1st July

President's Day 19th July

Public Holiday 20th July

Botswana Day 30th September

Public Holiday 1st October

Christmas Day 25th December

Boxing Day 26th December

Public Holiday 27 December


31TAX SYSTEM

Botswana has one of the simplest and comprehensive tax regimes in the world. Corporate tax rates in Botswana

are one of the lowest in the SADC region at 15 % for all manufacturing companies as well as International Financial

Service Centre (IFSC) companies and 25 % for other non-manufacturing companies. The 15% manufacturing tax

comprises 10% additional tax and 5% basic company tax. VAT is imposed comprehensively on an end user basis

at the rate of 12% on standard rated supplies and 0% on zero-rated supplies.


32 TAX SYSTEM

The personal tax regime is based on taxable income brackets.

More than 0 but less than 25 000 Nil

More than 25 000 but less than 43 750 0 + 5% of the excess over P25 000

More than 43 750 but less than 62 500 P937.50 + 10% of the excess over P43 750

More than 62 500 but less than 81 250 P2 812.50 + 15% of the excess over P62 500


over 100 000 P9 375+25% of the excess over P100 000

Table I applies to resident individuals

More than 0 but less than 43 750 5 % of every Pula




Over 100 000 P 10 625 + 25% of the excess over P100 000

Table II applies to non-resident individuals

BURS, Incentives to Investment in Botswana: An Income Tax Perspective


33TAX SYSTEM

35

15 Manufacturing & IFSC25 other 4015 Manufacturing & 35 Other3015 Manufacturing & 25 Other32353030303530

12.53033.3334.5026.38253335

1. World Bank, World Development Indicators, 2005

2. SADC Tax database, Trade Industry, Finance and Investment (TIFI), Website 2007


34 UTILITY TARIFFS IN BOTSWANA

Fixed charge (Pula per month) P29.74 P29.74 P29.74

Energy charge (Pula per kWh) P0.4579 P0.2348 P0.2117

Demand charge (Pula per kW per month) Nil P56.21 P52.91

Botswana Power Corporation, tariffs section Website, 01st April 2008


35UTILITY TARIFFS IN BOTSWANA

Water Utilities Corporation (WUC) supplies water to urban centres as well as to peri-urban areas and villages

through bulk supplies to the Department of Water Affairs.

1 0-10 235 185 265 185 185

2 11-15 705 365 635 415 295

3 16-25 900 475 925 595 365

4 Above 25 1245 545 1035 660 475

Raw water (untreated) 365 - 220 - 260

Raw water Botash/BCL - - - 210 100

Water Utilities Corporation, Tariffs section Website 2007

1 0-5 P1.90

2 6-20 P4.75

3 21-40 P9.80

4 41 and above P12.15

Minimum charge applied =



1 0-5 P1.90

2 6-20 P4.75

3 21-40 P9.80

4 41 and above P12.15

Minimum charge applied =



Manufacturing, Service (Including Security Guards Companies

employing Security Guards) and Repair TradesP3.80

Building Construction, Exploration and Quarrying industries P3.80

Hotel Catering and Entertainment Trades P3.80

Garage, Motor Trade and Road Transport P3.80

Wholesale Distributive Trades P3.80

Retail Distributive Trades P3.30

Night watchmen in the above trades P3.20

Security guards employed by security Guard Companies P3.80

The Statutory Minimum Salary authorization by the Government is P600 (US$ 100) per month

Commissioner of Labour, Minimum Wages Adjustment 2007/08, March 31st, 2008



Botswana Export Development and Investment Authority (BEDIA) and Botswana Development Corporation

(BDC) provide serviced industrial sites and factory shells for rental at concessionary and competitive rates. The

private sector also offers office space and factory shells at market rates.

Telecommunications in Botswana is highly advanced and ranks among the best in the world. This is consistent

with the National ICT Policy which envisages that Botswana will be a globally competitive, knowledge and

information based society where lasting improvements in social, economic and cultural development is achieved

through effective use of ICT.

In order to make telecommunications in Botswana competitive and cheaper to Batswana, the government

further liberalized the market necessitating a New Licensing Framework in the year 2006/7. A service neutral

license, namely the Public Telecommunications Operators (PTO) license was introduced. The new framework

provided for a merger of the Data and Internet Service Provider’s licenses to form the Value Added Network

Services (VANS) license. The VANS license allows VANS providers to offer multiple services including Voice

over Internet Protocol (VoIP). There are several VoIP providers who are offering international calling services

and these alternative calling services are expected to put a downward pressure on international calling rates.

Further to this, the Botswana Telecommunications Authority continues to seek ways to promote growth of the

sector. This is confirmed by a comprehensive study the authority undertook in the financial year ending March

2009, that sought to establish the development of the sector as well as to map a way for further growth.



823 070 1151 761 1 485 791 1 874 101

132 034 136 946 142 282 144 195

ISP- Internet Service Provider

Botswana Telecommunications Authority Facts & Figures (2005/06), Annual Report 2008 and 2009

Residential Telephone Line 75.00 230.00

Business and Government Telephone Service 100.00 337.50

Business Additional Line 125.00 187.20

ISDN Basic Rate Interface 227.00 700.00

Toll Free Service 125.00 600.00

Residential Extension [Internal & External] 6.30 100.00

Business Extension [Internal & External] 125.00 150.00

Standard Telephone Instrument 5.33 -

Botswana Telecommunications Corporation, tariffs section Website 2007



Full

Rate

Cheap

Rate

Full

Rate

Cheap

Rate

Full

Rate

Cheap

Rate

0.20 0.15 30 30 0.40 0.30

0.33 0.21 30 30 0.65 0.42

0.66 0.51 30 30 1.32 1.02

Botswana Telecommunications Corporation, tariffs section Website 2007

256 kbps 64 kbps 3 Gb P 187.00

512 kbps 128 kbps 4 Gb P 297.00

768 kbps 256 kbps 5 Gb P 385.00

Botswana Telecommunications Corporation, ADSL Broadband Website 2008


41

--- 854 1,080 1,382 1,084 958 1300

31 405 418 391 281 274 495

World Investment Reports, 2008

FOREIGN DIRECT INVESTMENT

The Bank of Botswana’s annual report shows that Luxembourg is the main investor in Botswana covering 83%

of the foreign direct investment from Europe. A major part of the European investment is into mining and South

Africa - also a significant contributor to foreign direct investment - is accounted for mainly in terms of the country’s

involvement on financial institutions. In 2008, Botswana’s overall net international investment position showed a

13.4% increase from P74.5 billion to P84.5 billion.


42 FOREIGN DIRECT INVESTMENT

B&M Garments Mauritius Shashe

(Francistown)100% foreign

owned Garments 650 16,000,000

Rising Sun China Selibe-Phikwe 100% foreign owned Garments 850 6,000,000

Whinstone Enterprises India Selibe-Phikwe 100% foreign

owned Blankets 3 1,200,000

Benrose Limited

South Africa Lobatse 100% foreign

owned Garments 130 2,000,000

DCDM Mauritius Gaborone 100% foreign owned

Consultancy and IT Field 11

Dinesh Textiles Botswana Selibe-Phikwe Local Indian Men and

Ladies jeans 400 4,500,000

Vision International Taiwan Gaborone

Joint Venture (Taiwanese & Motswana)

Sportswear 722 14,000,000

Caratex 2 Taiwan GaboroneJoint venture (Taiwanese & Motswana)

Jeans 450 7,000,000

First Polymers/Sunita PTY

LTD

India Gaborone 100% foreign owned

Electrical cables 9 1,000,000

Bokomo South Africa Gaborone Joint venture

(RSA & BW) Milling 201 15,000,000

Double Twist South Africa Gaborone 100% foreign

ownedWires for

construction 24 5,000,000

Trubok South Africa Gaborone 100% foreign

owned Apparel 180 4,500,000


43FOREIGN DIRECT INVESTMENT

Carapparel Taiwan Gaborone100% foreign owned

Apparel 503 23,000,000

Carafashion Taiwan Gaborone100% foreign owned

Apparel 700

Microlith Botswana Selibe-Phikwe

100% foreign owned

Garments 500 6,000,000

Sealed Air South Africa Lobatse

100% foreign owned

Packaging material 3 1,000,000

Eurostar Belgium Gaborone100% foreign owned

Diamond cutting and polishing

463 6,000,000.00

Dithunya Zimbabwe Francistown 100% foreign

Treated timber 30 15,000,000

Pluczenik Diamond Co. Belgium Gaborone

100% foreign owned

Diamond Cutting and polishing

100 30,000,000

Table and Chairs RSA Gaborone 100%

foreignTable and chairs 220 2,500,000

Forest

KnittingRSA Gaborone

100%

foreignKnitwear 90 6,000,000

Tannery

Industries

Botswana

Bulgaria/

BotswanaGaborone JV

Finished

Leather42 30,000,000



Brink PTY LTD RSA Gaborone 100% foreign Security

company 6 550,000

Phatshwane Enterprise

Botswana/Zimbabwe Mogoditshane JV

Leather and Plastic industries (Belt and

Bags)

6 100,000

Yerushalmi Israel Mogoditshane 100% foreign owned

Diamond Cutting and

Polishing230 21,400,000

UHT Milk Bots/RSA Gaborone JV UHT Milk 50 27,000,000

Nicliff Zimbabwe Gaborone 100% foreign owned

Linen Savers 6 200,000

Money matters Zimbabwe Gaborone 100% foreign

owned Hatchery 8 800,000

Safdico RSA Gaborone 100% foreign owned

Diamond park 50 11,400,000

Exelco Belgium Gaborone 100% foreign owned

Diamond cutting and polishing

84 30,000,000

Safdico UK/RSA 100% foreign owned Diamond park 25 2007 11,400,000


45FOREIGN DIRECT INVESTMENT

Exelco Belgium Gaborone 100% foreign ownedDiamond

cutting and polishing

84 30,000,000

Suashish India Gaborone 100% foreign ownedDiamond

cutting and poilishing

67 6,000,000

BI Industries RSA Gaborone 100% foreign owned Bio diesel fuel 83 1,320,000

SMS Bio fuel Holdings UK Gaborone 100% foreign owned 5 3,300,000

Cipher Red Botswana China/RSA Gaborone 100% foreign owned Denim

clothes 105 2,500,000

Tobacco Manufacturing

South Africa

Gaborone(Phakalane) 100% foreign owned Tobacco/

Cigarettes 5 28,800,000

PET Bottles South Africa Gaborone 100% foreign owned Pet Bottles 7 700,000

Nata Energy Uganda/ Botswana Nata JV Gas 25 10,000,000

CIS Ethopia/Botswana Gaborone JV Information

Security 16 4,000,000

Timber Kitchens India Gaborone 100% foreign owned

Wooden kitchen units

60 2,500,000



Latex medical Botswana Gaborone 100% Botswana Condoms 92 6,000,000

Nyandlo

ArtifactsZimbabwe Mochudi 100% Foreign

Curio

products10 300,000

IGC Zebra

DiamondsBelgium Gaborone 100% foreign

Diamond

cutting and

polishing

70 17,000,000

Karong Clinic UK Gaborone JVHealth

clinic23 8,000,000

Limpopo

LipadiUK

Limpopo/

Tuli100% foreign Tourism 200 200,000,000

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