Botswana: Country and Foreign Investment
Botswana has invested in a world-class multi-service telecommunications system that facilitates provision of services remotely. Botswana is readily accessible by road from Cape Town, Johannesburg and Durban, as well as from the other neighbouring countries like Namibia, Zimbabwe, Zambia and Mozambique. Electricity and water supplies for industrial use are readily available.
There is a wide range of incentives for business:
- 80% percent of the wage bill of shop-floor workers in the manufacturing sector is refunded by Government during the first two years, 60% in year three, 40% in year four and 20% in year five.
- 50% of training costs for citizen employees is refunded by Government.
- Payment of approximately US$215 is made per citizen job created in the manufacturing sector, varying between 40 to 85% of the investment involved depending on whether the factory is situated in urban or rural areas.
There is a corporate tax of only 15% for manufacturing enterprises and profits, dividends and capital can be readily repatriated. (Botswana has foreign exchange reserves to the tune of USD9 billion, representing 28 month's imports). (See Direct Corporate Taxation and Personal Taxation.) VAT was introduced in 2002, replacing an existing sales tax regime.
Botswana is an Associate Member of the European Union, whereby products manufactured in the country enter the EU markets free from duties and quotas. As regards the United States, Botswana suffers no restrictions on exports of textile products; at the same time, a large number of other manufactured products benefit from the GSP Scheme.
Major credit cards, including Visa, MasterCard, American Express and Diners Club, are accepted widely. Most hotels and lodges accept foreign currency or travellers' cheques. There are also Exchange bureaus at major border posts. Credit card cash advances are available in major cities through Barclays Bank or Standard Chartered Bank.
At the time of writing, there are 8 commercial banks in the country, with branches in major towns and many main villages: Barclays Bank of Botswana, Standard Chartered Bank, First National Bank, Stanbic Bank Botswana, Capital Bank Limited, Bank Gaborone Limited, African Banking Corporation of Botswana and Bank of Baroda.