DOING BUSINESS WITH BOTSWANA Mr Keletsositse Olebile Chief Executive Officer 30 August 2018 Beijing, China.
PRESENTATION OUTLINE About Botswana Why Invest in Botswana Investment & Trade Opportunities Investor Facilitation Services Invitation to Botswana
ECONOMIC & DEMOGRAPHIC OVERVIEW Population 2.262 Million Borders South Africa, Zimbabwe, Namibia, Zambia Land Mass 582 000 km² GDP USD 17.30 Billion (2017) GDP per Capita USD 7,570 (2017) Inflation (3.3 % May 2018); 3.2% in 2017 Interest Rates Bank rate 5.0%: Prime Lending Rate 6.5% Key Export Products 2017 (US$8.7 billion) Diamonds, copper, nickel, Ignition wiring sets and other wiring sets for vehicles, boneless beef, soda ash, and copper ores and concentrates Key Import Products 2017 (US$7.1 billion) Non-industrial diamonds, petroleum products, Industrial diamonds, fuel machinery Botswana China
BOTSWANA FLAG Blue stands for water White & Black stands for racial diversity & tolerance. Black & White inspired by the stripes of a Zebra, the national animal of Botswana
Population Distribution 533 Settlements +-7741 Localities Source: DTRP
Gateway to SADC Market Headquarters of SADC 293 million people in SADC Source: DTRP
BILATERAL & MULTILATERAL TRADE AGREEMENTS
Tax Competitiveness Botswana s Corporate Tax Rate is Globally Competitive Mauritius Botswana Global 15 22 23.57 Botswana l: 22% African Average: 27.85% Global Average: 23.57% Lesotho 25 Zimbabwe 25.75 Swaziland 27.5 Africa 27.85 South Africa Tanzania 28 30 Malawi 30 Mozambique 32 Namibia 33 Zambia 35 DRC 35 Angola 35 0 5 10 15 20 25 30 35 40 Source: Transparency International, 2015
Investment Incentives Taxation Customs Duty Training Costs IFSC 15% for Manufacturing, IFSC, Innovation hub 5-10% for SPEDU Region Duty Free importation of manufacturing and agricultural machinery & equipment 200% Tax rebates No Exchange Controls Maximum 22% for Other Sectors Up to 15% Tax Credit for non DTA jurisdictions Value Added Tax at 12% Zero rated for VAT Maximum 25% Personal Income Tax Exemption WHT when distributing to non residents Possible tax holidays of up to 10 years under Development Approval Order Exemption from CGT where shareholding is more than or equal to 25%
WHY INVEST IN BOTSWANA - S & P
Chinese Companies in Botswana Number of Chinese Manufacturing Companies in Botswana Cumulative Capital Employed Turnover Total employment 23 US$5 149 383.64 US$3 997 400.40 937 China FDI Stock in 2016: US$ 61 814 208.37 Source ; FDI Markets
US DOLLARS BOTSWANA CHINA TRADE 1,000,000,000 Botswana China Total Trade 2010-2017 800,000,000 600,000,000 400,000,000 200,000,000 0-200,000,000 2010 2011 2012 2013 2014 2015 2016 2017-400,000,000-600,000,000-800,000,000-1,000,000,000 Exports to China Imports from China Trade Balance Our Pride, Your Destination
Botswana Exports to China Product Code Product Label Value of Exports in 2017, USD thousand TOTAL All products 33,262 '71 Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad... 33,255 '97 Works of art, collectors' pieces and antiques 3 '94 '25 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings;... 2 Salt; sulphur; earths and stone; plastering materials, lime and cement 1
Botswana Imports from China Product Code Product Label Value of Imports in 2017, USD thousand TOTAL All products 233,139 '85 '94 Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television... 64,956 Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings;... 20,091 '61 Articles of apparel and clothing accessories, knitted or crocheted 19,682 '64 Footwear, gaiters and; parts of such articles 16,927 '63 Other made-up textile articles; sets; worn clothing and worn textile articles; rags 15,451 '84 Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof 14,145
PRIORITY SECTORS FOR BOTSWANA Transport & Logistics ICT Agriculture Manufacturing Tourism Mining Financial & Business Services
INVESTMENT OPPORTUNITIES Agribusiness Sector > Leather Park > Beef > Primary production > Animal feeds > Ostrich farming Energy > Solar > Coalbed methane (CBM) > Biogas & biodiesel > Coal to liquids Mining & Mineral Beneficiation > Soda Ash > Coal > Diamonds > Base Metals Transport & Logistics > Rail projects - Trans Kalahari - Mosetse - Kazungula > Aviation Manufacturing > Import substitution > Automotive components > General manufacturing
INVESTMENT OPPORTUNITIES Tourism & Hospitality Service Sector > Hotels & lodges > Tented camps > Air charter services > Medical tourism > ICT > Financial and business services > BPO Infrastructure & Property Development > National Infrastructure: Roads, bridges, water pipelines > Residential and commercial property development
BOTSWANA FINANCIAL SECTOR
BOTSWANA STOCK EXCHANGE MARKET CAPITALIZATION R DOMESTIC MARKET CAP (BWP Mn) % OF TOTAL Banking 12,128.38 28.4 Fin. Services & Insurance 9,180.61 21.5 Retail & Wholesaling 8,414.47 19.7 Mining & Material 345.08 0.8 Property 6,816.95 16.0 Tourism 2,484.85 5.8 Energy 1,677.08 3.9 ICT 1,365.00 3.2 Security Services 296.00 0.7 TOTAL 42,708.42 100.0 SECTOR TOTAL MARKET CAPITALIZATION (BWP MILLION) % OF TOTAL Banking 12,128.38 2.9 Fin. Services & Insurance 28,462.48 6.9 Retail & Wholesaling 10,096.42 2.4 Mining & Material 352,426.07 84.8 Property 6,816.95 1.6 Tourism 2,484.85 0.6 Energy 1,677.08 0.4 ICT 1,365.00 0.3 Security Services 296.00 0.1 TOTAL 415,753.23 100.0
INVESTMENT OPPORTUNITIES TOURISM Type of Facility Number Graded Market Share (Graded) % Bed & Breakfast 112 19 Guesthouses 140 24 Game Lodges & 156 26 Tented Camps Selected Service 106 18 Hotels Fully Serviced Hotels 48 8 Self Catering 32 5 Establishments Total 594 100
Airport Infrastructure Botswana has a total of 74 airports, only 10 have paved runways Botswana is serviced by 5 international carriers being Air Botswana, Air Namibia, Ethiopian Airlines, South African Airways, and Kenyan Airlines Sir Seretse Khama International Airport Able to handle B747 and 950 passengers at peak hour. Runway length is 4 000 metres, width is 60 metres Airport has a full parallel taxiway and link taxiways Airport has Airfield Ground Lighting System for night flights, an Instrument Landing System and automated weather observation system Kasane International Airport Peak hour passenger of 230 (departing and arriving) at an IATA (Level of Service C) Peak hour passenger corresponds to 150-seater aircraft corresponding to a Boeing 737 or Airbus A319 3 000 metres runway, widening of the runway from 30 to 45 metres Airfield ground lighting system to facilitate night operations and automated weather observation system. The Passenger Terminal Building is able to handle 387 000 passengers annually Maun International Airport Runway designed to take an equivalent of B737 aircraft Runway length 3 000 metres, width 45 metres,. International Arrivals 169 per peak hour, International Departures 169 per peak hour Domestic Arrivals 66 per peak hour, Domestic Departures 66 peak an hour Non Scheduled flights 147 peak an hour Airfield Ground Lighting System for night flights and automated weather observation system Francistown International Airport Runway of 3000 m long, 45 meters wide, taxiway and new apron, security fence, drainage Able to handle B737 and 477 passengers at peak hour Airfield Ground Lighting, Power supply etc.
INVESTMENT OPPORTUNITIES Textiles & Footwear 3% Salt Ores & Related Products 1% Metal & Metal Products 4% Machinery & Electrical Equipment 13% Vehicles & Transport Equipment 8% Furniture 1% Wood & Paper Products 3% Fuel 15% Other Goods 4% Chemicals & Rubber Products 10% Diamonds 25% Food-Beverages & Tobacco 13% Total imports were valued at USD7.1 billion in 2017. Six (6) principal commodities account for 84% of import bill. Six (6) top imports are; - Diamonds (25%) - Fuel (15%) - Food-Beverages & Tobacco (13%) - Machinery & Electrical Equipment (13%) - Chemical & Rubber products (10%) - Vehicles & Transport Equipment (8%)
INVESTMENT OPPORTUNITIES PRIVATE HOSPITALS Name of Hospital Number of Beds Location GPH 132 Gaborone Bokamoso 235 Gaborone Sidilega 110 Gaborone Riverside 29 Francistown TOTAL 506
Special Economic Zones Agropolis (Cereals Value Chain) Mining supplies & Logistics Metals, Mining & Logistics Horticulture Value Chain Coal, Energy, & Logistics Mixed Use Airport City: (Diamond, Logistics, Innovation, Auto Components, Aircraft RMO, Medical Industries and Electronics) International Finance & Tech City Meat & Leather City
INCENTIVES SPEDU REGION SPEDU Region has a population of 203 000 SPEDU hub, Selebi Phikwe Town est. in the 70s following discovery and mining and smelting of copper Government adopted initiatives to spur economic activity in commercial irrigation, Tourism, and Manufacturing. Special incentives for doing Business in the SPEDU region.
ABOUT BITC Investment Promotion, Export Development & Nation Branding Agency of Botswana Collaborates with network of Botswana Embassies around the world, Professional advisory firms, National and Regional Chambers of Commerce (e.g CCPIT), Other IPAs & TPOs around the world SOUTH AFRICA OFFICE 88 Stella Street 3 rd Floor West-wing Sandton Johannesburg UNITED KINGDOM OFFICE 6 Stratford Place W1C 1AY London HEAD OFFICE Plot 54351 Central Business District Gaborone Botswana INDIA OFFICE No. 43 Market Chamber VI Nariman Point Mumbai
INVESTOR FACILITATION & AFTERCARE Botswana One Stop Service Centre (BOSSC) Business Linkages / Facilitate Engagements / Company Visits Investor facilitation services (Botswana One-Stop-Shop);- Partnerships and Joint Ventures Premises; Land, Work & Residence Permits, Visas Company registration, Licensing Incentives; IFSC, Manufacturing, Tax Holidays (DAO) Professional Advisory firms; registrations (company, tax etc.) Aftercare Services renewals, expansions etc.
BITC EXPORT DEVELOPMENT & PROMOTION SERVICES
INVITATION TO GLOBAL EXPO BOTSWANA 30 th October 2 nd November 2018 Gaborone International Convention Centre (GICC), Botswana Theme Seizing opportunities through networking with global business leaders
INVITATION TO GLOBAL EXPO BOTSWANA Thank You Twitter: @Go_Botswana Facebook & Linkedin: Botswana Investment and Trade Center Our Pride, Your Destination