- September 7, 2016
Botswana, a landlocked country with stunning beauty and mesmerizing panoramas gained independence from British rule in 1966 with a GDP of about $70 that time. Today, the country proudly boasts of the growth and development that has been brought by the people of Botswana. With a population of about 2.021 million and a GDP of $14.79 million in 2013, the country is blessed with diamond mines which has brought it into the ranks of upper-middle income countries and GDP growth of 5.9%.
Democratic society of Botswana has resulted in stable and growing economy supported by prudent macroeconomic and fiscal management. Botswana’s investment climate is well-off on comparing with other countries. Also, the nation is a member of the Southern African Customs Union (SACU), an economic grouping free of tariffs that also includes South Africa, Namibia, Lesotho and Swaziland along with member of the Southern African Development Community (SADC) providing a wide market of more than 200 million people.
The booming country is centrally located in Southern Africa and shares borders with Zambia in north, Zimbabwe in the north-east, Namibia in the North West and South Africa in the south and south-east. Spread across 581, 730 square kilometers in area and capital city being Gaborone, it is a place within the high pressure belt in the Southern African interior and experiences low rainfall and high temperatures.
The country has a robust financial sector inclusive of banks, insurance companies with an increasing stock market. The government of Botswana provides special incentives to foreign investors such as Corporate Tax @ 15% for manufacturing and financial service sector together with stable political environment and good governance, low corruption.
Also, the governments has provided low corporate tax @25% with no foreign exchange controls, tax holiday and industrial rebate concession. For increase in investments, customs duty draw back facility, free importation of raw materials, equipment and machinery is amended.
Furthermore, the country is up for issuing licenses, issuing indefinite manufacturing licenses on a weekly basis with an educated manpower.
No doubt, the African country has abundance of business opportunities in distinct sectors yet to be discovered fully and exploited. And, governments commitment to enhance and attract investment , promotion if new industries is showcased in the theme of National Development Plan 9 2003/2008 – Towards Realization of Vision 2016: Sustainable and Diversified Development through Competitiveness in global Markets with imperativeness of diversification progress.
Having the treasure of diamonds, Botswana is an apt destination for businesses and corporates dealing in ornaments and others. Worth noticing here is that Botswana is the world’s largest diamond producer by value.
It is the field attracting investors on a large scale from South Africa, India, china, Taiwan, United Kingdom, Belgium, Portugal, Mauritius and others with a vast variety of goods for domestic and exports.
The automobile industry in Botswana is spreading its wings aggressively for last few years, and if you are in automotive industry, be at Botswana. The government in Botswana ensures easy operations for investors through its Lome, Cotonou, AGOA and various other trade agreements enabling businesses to trade duty and quota free with some the most successful markets.
Africa is renowned for leather production and Botswana is among those African countries. It produces around 350,000 cattle hides per annum which are used for furniture manufacturing.
Other than these business options, the country is blessed with many more resources to attract foreign investment and corporates on the land of Botswana, such as Pharmaceuticals, high-end printing, textiles and fabrics, plastics, mining, processed meat and packaging, etc.
Being the world’s largest producer of diamonds by volume, in 2003 the country became fully Kimberley-compliant and began issuing its own certificates. The business of diamonds is protected under the Precious and Semi-Precious Stones (Protection) Act of 1969. The Botswana government also launched its very own ‘Diamonds for Development’ campaign in 2000. On the other hand, the country is a home to one of the world’s largest mines – the Orapa Kimberlite Diamond Pipe.
In the same vein, it can be said about on the most flourishing, successful African country, Botswana that it is the destination every other investor should look out for business opportunities offered.
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