Botswana: Double Tax Treaties
Other International Agreements
Botswana is signatory to the following international conventions that combat money laundering:
- United Nations Geneva Convention, 1988;
- Basle Statement of Principles;
- Financial Action Task Force (FATF) 40 recommendations;
- United Nations Convention on the Suppression of Financing of Terrorist Activities - Resolution 1373
In March, 2005, Barbados and Botswana signed a Memorandum of Understanding that was expected will lead to agreements on Technical Co-operation and Double Taxation Avoidance.
Following President Festus Mogae's visit to the Caribbean island, the two countries also signed a Memorandum of Understanding on Co-operation to allow the two governments and their peoples to exchange ideas and expertise in a wide range of other areas.
The signature of the agreements was interpreted by both parties as a successful conclusion to the negotiations begun between the two nations when then Barbadian Prime Minister, Owen Arthur, visited the African state in 2004.
According to Mr Arthur, the signing of a Double Taxation Agreement will open up many new opportunities for business, entrepreneurs and investors from both countries and other developing nations.
"I am convinced that, with foundations such as these, our relations will go from strength to strength,” Mr Arthur remarked.
In May, 2005, Mr. Abdulrahman Saif Al Ghurair, the first Vice President of the Dubai Chamber of Commerce and Industry (DCCI), received a delegation from Botswana headed by Mr. B. Gaolathe, Minister of Finance and Development Planning.
The delegation, which included Mr. N. Moroka, Minister of Trade and Industry, Mr. D. N. Sertse and officials from the Botswana Export Development and Investment Authority (BEDIA), visited a number of government departments in a bid to gain an insight into the successful workings of the Dubai government.
The meetings also focused on ways of enhancing bilateral trade between the two countries and how Botswana could become involved in a number of unique projects at regional and International levels.
Mr Al Ghurair placed a strong emphasis on the transparent and visionary policies of the Dubai government which have been responsible for Dubai's phenomenal economic growth in recent years.
He was also keen to point out the role of the DCCI in promoting investment in Dubai, which, like the government, has streamlined its bureaucratic processes.
In August, 2005, Mauritius and Botswana signed a Promotion and Reciprocal Protection of Investment Agreement (IPPA) which the countries hope will act as a spur to bilateral economic activity.
The Mauritian Minister of Foreign Affairs, International Commerce and Co-operation, Madan Dulloo, and his Botswanian equivalent Neo Moroka, signed the Agreement in Gaborone, the capital of Botswana, on the margins of a Southern African Development Community (SADC) summit.
"The signature of this accord adds an important dimension to our bilateral economic relations", said Mr Dulloo. "This IPPA will give a new impetus to investors in our two countries who wish to do business." The Minister recalled that Mauritius had signed such agreements with many countries, including 14 African ones, and that a double tax avoidance treaty had been signed with Botswana in 1995.
"Our two countries have a long democratic history, and our economies are among the most stable in Africa, as well as being relatively free of corruption and supportive of human rights," added the Minister.
For his part, Neo Moroka noted that the first thing investors look for in another country is protection of their capital. "This treaty gives a guarantee against government actions which would be to the disbenefit of investors," he said. "The signature of this treaty with Mauritius amount to a promise on our part to maintain a business-friendly environment."