Botswana Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in botswana, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Opportunities
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Botswana offers diverse market opportunities across multiple sectors, supported by government initiatives and incentives aimed at fostering investment and economic growth.

  • Energy Sector: The government is working to become a net exporter of electricity by diversifying its energy mix with solar, wind, coal, and coalbed methane assets.  The unbundling of the Botswana Power Corporation (BPC), initiated on July 15, 2025, will separate power generation from transmission and distribution, creating space for private sector participation.
     
  • Mining Sector: Botswana remains a global leader in diamond mining and processing, with additional opportunities in critical minerals, precious gems, and stones.
     
  • Tourism: The government is actively expanding tourism offerings, focusing on cultural tourism and mid-range options to complement its world-renowned high-end safari market.
     
  • Manufacturing and Export: Botswana’s central location and membership in SACU and SADC make it an ideal base for manufacturing and export-oriented businesses.  Opportunities exist in textiles, automotive parts, food processing, cargo, freight, and logistics.
     
  • Digital Economy: Investment opportunities include e-government services (health, education, and other sectors), innovative financial operations, e-waste management, and software development.


Investment Incentives

Botswana provides several incentives to attract foreign direct investment:
 

  • Tax Incentives: A 15 percent corporate tax rate applies to manufacturing, International Finance Service Centre (IFSC) companies, and businesses accredited by the Botswana Digital and Innovation Hub (BDIH).
     
  • Free Repatriation of Profits: Investors can freely repatriate profits and dividends, with no foreign exchange controls or restrictions on foreign ownership.
     
  • Duty-Free Imports: Specialist machinery and equipment used for manufacturing are exempt from import duties.
     
  • Special Economic Zones (SEZs): SEZs target specific sectors in geographic areas, offering tax breaks, streamlined customs procedures, and superior infrastructure.  Key SEZs include:
    o    Gaborone: Multi-use, diamond processing, and financial services.
    o    Selibe-Phikwe: Mineral processing and horticulture.
    o    Lobatse: Beef, leather, and biogas.
    o    Palapye: Energy.
    o    Pandamatenga: Agriculture.
    o    Francistown: Mining and logistics.
     
  • SPEDU Incentives: Selibe-Phikwe region benefits from reduced corporate tax rates (5 percent for the first five years, 10 percent thereafter), zero customs duty on imported raw materials, VAT and customs duty rebates for exports outside SACU, and extended land leases of up to 50 years.

Financial Support

Botswana offers robust financial support through commercial banks like ABSA, First National Bank, and Standard Chartered, as well as development-focused institutions such as the Botswana Development Corporation (BDC), Citizen Entrepreneurial Development Agency (CEDA), and National Development Bank (NDB).

Political Stability and Labor Harmony

Botswana is a multi-party democracy with a proven track record of peaceful transitions of power. The country’s governance framework is strong, with robust institutions and a commitment to the rule of law.  Industrial harmony is supported by fair labor practices and effective dispute resolution mechanisms, ensuring minimal labor strife.
Botswana’s combination of strategic location, favorable investment incentives, and political stability makes it an attractive destination for investors across energy, mining, tourism, manufacturing, and digital sectors.

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