Botswana is strategically positioned at the center of key regional transport corridors. The Trans-Kalahari Corridor connects Johannesburg through Botswana to Namibia’s port of Walvis Bay, while the North-South Corridor links the port of Durban through Botswana to Zambia and Tanzania. The North-South railway, connecting Botswana to Durban, remains the primary transport route for goods. However, due to congestion and delays at Durban, the GoB is working to develop Walvis Bay as an alternative port, though this route is not yet fully developed.
To enhance regional integration and improve trade efficiency, Botswana and Zambia jointly constructed the Kazungula Bridge across the Zambezi River. Opened in May 2021, this multi-million-dollar project includes a one-stop border post, reducing transit times from 36 hours to just 2 hours and serving as a gateway to other SADC countries. While most goods enter Botswana through Gaborone, other commercial hubs include Lobatse, Francistown, Maun, and Kasane/Kazungula.
In logistics and warehousing, companies like CA Sales Botswana provide warehousing and distribution services, with facilities in Gaborone and Francistown and a fleet of delivery vehicles. Roads are generally in good condition, but driving at night is discouraged due to the risk posed by livestock and wildlife on the roads.
Botswana’s retail sector is dominated by chain stores, primarily South African franchises, alongside small businesses. Most U.S. products sold in Botswana arrive as re-exports from South Africa, where many U.S. companies maintain regional distributorships that supply the broader SADC region.
Using an Agent or Distributor
U.S. companies seeking assistance in finding a Botswana agent or distributor are encouraged to contact Business Botswana and the American Business Council (ABC) in Botswana. Business Botswana is the country’s largest private sector association and a federation of workers, with over 3,000 member companies. The association also serves as the secretariat of the SADC Private Sector Forum. While its membership directory is not available online, the U.S. Embassy’s Economic and Commercial Unit can provide a hard copy upon request (email: CommercialGabs@state.gov).
The American Business Council (ABC) represents approximately 50 members, including private companies and individuals interested in fostering business ties with the United States. Additionally, the U.S. Commercial Service’s International Partner Search program offers partner search services for a fee. These services are available through the U.S. Embassy Botswana website at https://bw.usembassy.gov.
Establishing an Office
Companies interested in investing in Botswana should contact the Botswana Investment and Trade Centre (BITC), the GoB agency charged with assisting foreign investors in setting up operations:
Botswana Investment and Trade Centre:
Tel: +267 363 3300 / +267 71319250
Email: enquiries@bitc.co.bw
Company formation and registration in Botswana is relatively straightforward and can be completed online through the Companies and Intellectual Property Authority (CIPA)’s Online Business Registration System (OBRS) at https://www.cipa.co.bw/. All businesses must register with the Registrar of Companies, a process that typically takes 24 hours. However, it may take approximately 48 days to fully establish and operate a business. Many investors engage local attorneys to assist with the process. A list of attorneys specializing in this area is available through the U.S. Embassy’s Consular Section at https://bw.usembassy.gov.
For detailed information on Botswana’s investment and business environment, including guidance on establishing operations and hiring employees, consult the U.S. Department of State’s Investment Climate Statements website.
Franchising
While most franchises in Botswana originate from South Africa, several U.S. franchises operate in the country, including Federal Express, Coca-Cola, Kentucky Fried Chicken, Hilton, Marriott, Avis, REMAX Realtors, and Lovisa.
Registering a franchise in Botswana follows the same process as company registration and must be completed with the Registrar of Companies. Depending on the nature of the business, additional licensing may be required by either the city council or the Ministry of Trade and Entrepreneurship.
Direct Marketing
Direct marketing is widely used and highly effective in Botswana, with local companies employing various channels to reach their target audiences. Common methods include text messaging, pamphlets and brochures (delivered by hand or mail), internet-based marketing through email and social media, radio and television promotions, and in-person visits by sales representatives.
Businesses engaging in direct marketing must comply with Botswana’s Data Protection Act No. 18 of 2024, which regulates the handling of personal data and ensures individual privacy. Non-compliance with the Act can result in fines or imprisonment. Companies must handle customer information responsibly and adhere to data protection regulations. Additionally, businesses should consider cultural and language preferences. While English is widely spoken, many people in Botswana prefer communication in Setswana, making it important to tailor marketing materials accordingly to maximize reach and effectiveness.
Joint Ventures/Licensing
Joint ventures between local and foreign partners are common in Botswana and actively encouraged, particularly when the foreign partner contributes production expertise, design capabilities, or international marketing ties. Under Botswana’s Industrial Act of 2019, citizen partners must hold 51 percent shareholding in joint ventures. However, foreigners can hold a majority stake with written approval from the Minister of Trade and Entrepreneurship. Investors seeking local partners can contact the U.S. Embassy or the Botswana Investment and Trade Centre (BITC) for assistance. SOEs are increasingly localizing tenders, reserving most projects for 100 percent citizen-owned companies.
For example, Botswana Power Corporation has reserved small-scale solar projects for citizen-owned companies and requires non-citizen-owned companies to subcontract 40 percent of the value of large tenders to citizen-owned firms. Manufacturing businesses must apply for an industrial license through the Department of Industrial Affairs at the Ministry of Trade and Entrepreneurship. License fees range from $3.45 (50 pula) to $138 (2000 pula), depending on the type of license, and must be renewed annually. Consulting professionals to ensure compliance with Botswana’s laws and regulations is highly recommended, and BITC can provide guidance in this process.
Express Delivery
Express delivery services in Botswana are reliable and available nationwide, with most deliveries completed within 24 hours. Many express delivery companies operate internationally, facilitating seamless business interactions with global partners. Prominent providers include DHL, FedEx, TNT Express, Botswana Couriers & Logistics, Cargo Junxion, KTU Express, Express Mail Service (operated by Botswana Post), and Sprint Couriers. Most services offer tracking capabilities, allowing customers to monitor shipments effectively.
Due Diligence
Foreign companies are strongly advised to perform due diligence on potential business partners and agents, particularly regarding their operational and financial activities. In Botswana, accounting firms offer financial due diligence services, while law firms provide legal due diligence, including contract review and regulatory compliance. Consulting firms can assist with both operational and financial due diligence. Additionally, the U.S. Embassy offers partial International Company Profile (ICP) services to support businesses in evaluating potential partners.