Botswana a place to live, work & invest 7 th October, 2015 Tshephang Kelatile Executive Director, International Business EU (A)
Discussion Outline 1. About Botswana 2. About BITC 3. The BITC Investor Facilitation Services 4. Investment Opportunities 5. The Special Economic Zones 6. The Global Expo 2015
About Botswana
Botswana : at a glance Population 2 Million Borders S.A, Zimbabwe, Namibia, Zambia Land 582 000 km² GDP (4% 2017) USD 14.8 Billion (2014) GDP per Capita USD 7 248 (2014) Inflation 4% (3.1% July 2015) Interest Rates Bank rate 6%: Prime rate 8% 4
Botswana s Unique Selling Points 3 rd most profitable country globally & 1 st in Sub Saharan Africa (Baseline Profitability Index 2015) Highest Gross Fixed Capital Formation Ration in SADC Highest investment grade sovereign credit rating in Africa long term A- & short term A-2 Within Close Proximity of Fast-growing Markets At the Heart of the SADC Consumer Market Least Corrupt Country in Africa 2014 Best Safety and Rule of Law in Africa 2014 2 nd Freest Economy in Sub Saharan Africa 2015 Competitive Corporate Tax Rates, Incentives Africa s Best Mining Destination 2014 (Frazer Institute)
Life in Botswana Political system: Multiparty democracy Business language: English, neutral accent Economy: Transitioning More than 10 international schools six universities and a variety of colleges A number of private hospitals Adult literacy rate: 85% People: Warm and friendly Crime: Low UNESCO World heritage site: Okavango Delta Work Live Invest
About BITC
Who We Are Investment and Trade Promotion Agency Promotes Investment (FDI, DI, Expansions) Provides investor facilitation services Export Development & Promotion Annual Global Expo Botswana Brand Botswana Management Interim SEZ Authority Regional Offices in South Africa, United Kingdom and India Jointly promote with Botswana Missions Abroad
Investor Value Added Services Business Linkages / Facilitate engagements / Company Visits Investor facilitation services (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.
Investment Opportunities Agriculture & Agribusiness Cargo & Logistics Manufacturing; import substitution Financial & Business Services Mining & Beneficiation Energy & Renewable Energy ICT Tourism Education Health
Cargo & logistics Education Manufacturing SECTOR. OPPORTUNITY High import Bill: P68 Bn Top 4; Diamonds, Machinery, Food & Beverages, Fuel Preference Margins for locally produced goods - Economic Diversification Drive Beneficiation of Raw materials (Beef, Leather, Minerals, Glass manufacturing) Specialised products e.g. Vehicle Harnesses Photographic Safari Tourism Training / Hospitality Institute Technical School of Mining & Energy Medical and Health Sciences Academy Post Harvest Technology and Food Quality Research Institute Veterinary Science specialist training courses for veterinarians Maun Airport Project: Development of eco friendly airport: + $ 6 700 Mn Trans Kalahari Railway Development Project: + $ 15 Bn (Infrastructure & Above rail) Mosetse Kazungula Rail Link Project Mmamabula - Lephalale (RSA) Botswana Mozambique (Ponto Techobanine) Rolling stock: investment & maintenance services } + $ 1.8 Bn
Railway Route Alignment
HEALTH ICT MINING SECTOR. OPPORTUNITY Investment in existing Mines Partnerships with concession holders Diamonds Coal: + 212 Billion Tonnes (2 million mined annually currently), Base Metals (Copper, Nickel Silver, Platinum Group Elements, Zinc) Rail and rolling stock E - Governance E services; Health, Online Administration e-commerce Business Process Outsourcing & Call Centers Diagnostic facilities (imaging and laboratory) Pharmaceutical Manufacturing industries Manufacturing of biomedical equipment: all biomedical equipment is currently imported. Cancer, Orthopedic treatment Centers
Base Metals Potential Proterozoic Mineraisation Stratabound Copper-silver at Ngwako Pan Pb-Zinc-silver in Aha Hills Zimbabwe craton gold and Nickel Copper Nickel Mineralisation Kaapvaal craton Molopo Farms Complex Platinum Group Elements 15
Coal Potential
FINANCIAL SERVICES ENERGY SECTOR OPPORTUNITY Power stations Projects; Morupule A Refurb, Morupule B Units 5 & 6 (300 MW), Greenfield (300 MW), Solar (100MW) Orapa Diesel to LNG Conversion(90 MW) Electricity distribution infrastructure; 400 KV (North West) Coal-bed methane (CBM) Off Grid Solar energy e.g. Off grid mines Biogas and biodiesel Solar component manufacturing Coal to liquids Ideal location for Financial and Business Hub Central Location High Sovereign Credit Rating Repatriation of Profits IFSC: 15% Corporate Tax, Withholding, CGT Exemption
Proposed 400KV line to supply power North West Botswana Existing & Proposed Transmission grid
Tourism Agribusiness. SECTOR OPPORTUNITY Grain, Fruit & Vegetables Value Chain Investment Opportunities Botswana imports; 44353Mt of sorghum/millet, 199 440Mt of Maize, 95 203Mt fruits & vegs Zambezi Agro-commercial Development Project Livestock Value Chain Investment Opportunities Dairy Farming ( 42 million liters of milk are imported) Beef & Other meat Procession: ( + 2.5 mn cattle; 2.1 million small stock and more than 300K hides annually) Luxurious Camps, Lodges & Hotels Medical Tourism Tented Safari Camps International Brand Hotels 5 Star Air Charter Services Entertainment and Sporting facilities
Investment Incentives 22% Corporate Tax Non incentivised rate 15% Corporate Tax Manufacturing, IFSC, BIH 25% Max Income Tax Personal Income 12% VAT National Rate Tax Holiday 5 10 year tax break 200% Tax Rebate Training Costs No Foreign Exchange Controls Duty exemption: importation plant & machinery No Foreign Ownership Restrictions Expanding Double Taxation Treaty Network 20
Market Access The Southern African Customs Union (SACU) Duty free and quota free market access to more than 56.9 million consumers in Botswana, South Africa, Namibia, Lesotho and Swaziland The Southern African Development Community (SADC) Trade Protocol Preferential market access to more than 277 million consumers in the SADC region The African Growth and Opportunity Act (AGOA) Duty free and quota free market access to the USA The Interim Economic Partnership Agreement between SADC and the European Union (EU) Duty free and quota free market access to the European Union The on-going discussions of the COMESA-EAC-SADC Tripartite Free Trade Area When concluded it will offer Botswana a market of over 700 million people
Special Economic Zones SEZs are designated areas within a geographical area of a country that function with SPECIAL administrative, regulatory and fiscal regimes that are different from the domestic economy. Primary Aim of SEZs; overcome barriers to trade, investment & the attraction of FDI Address (i.e.) restrictive Policies, bureaucracy and limited access to serviced land Creating a more competitive or conducive business environment for the attraction investors Increase and diversify our export, increase foreign earnings Create substantial employment
Special Economic Zones SEZ Site Gaborone - Sir Seretse Khama International Airport Selibe Phikwe Gaborone at Fairgrounds Lobatse Greater Palapye Francistown Pandamatenga Selebi-Phikwe: Multi-Use SEZ. Partners : CAAB, BIH, BITC, and Diamond Hub. SPECIALIZATION Mixed Use SEZ. Partners: Selibe Phikwe Economic Diversification Unit (SPEDU),BCL and Council. Leveraging on Polaris II strategy. Main products and industries: Sulphuric acid, Iron steel, Copper and Nickel, Coal biciation, and positioning Selibe Phikwe as a logistics hub etc.. Financial services and corporate HQ village. Beef, leather and biogas park. Integrated coal value addition: coal power generation, export of excess power and, export of coal; Dry-port, logistics hub Mining & logistics Hub and Downstream value-addition hub. Agricultural SEZ. Integrated farming. Agro business and food Processing. Horticultural SEZ in the Tuli Block Area.
Overview of Global Expo 2015 2015 Exhibition runs from 25 th 28 th November 2015 Venue: Botswana Conference & Exhibition Centre, Fairgrounds, Gaborone Theme: Promoting economic diversification through export oriented Foreign Direct Investment and Domestic expansions. Investment & Trade Conference runs for 1 day on 25 th Nov, 2015 There will be a SADC-EU EPA Conference on 24 th Nov 2015 On 25 th Nov there will be topics ranging from, FDI/SEZ, Economic Clusters, BPO/Call Centres and Bilateral Trade Agreements
+44 207 647 1027 (BITC London Office) +46 8545 258 80 (Botswana Embassy) tshephang@bitcuk.co.uk www.bitc.co.bw