Language and Business Culture: English is the official business language in Botswana, but Setswana remains the predominant language in social and business interactions. Depending on the target audience, marketing materials may need to be translated into Setswana. Building relationships and trust is essential in Botswana’s business culture, along with strong negotiation skills and reliable after-sales support. Both consumers and government entities tend to prefer working with companies that have a local presence, even if they are foreign owned.
Trade Promotion and Advertising:
The Botswana Trade and Investment Centre (BITC) plays a key role in promoting local manufacturers and expanding their market reach regionally and internationally. BITC organizes trade missions, invites businesses to regional and international trade shows, and hosts the Global Expo Botswana, a premier B2B multisectoral event that attracts international participants.
Businesses can advertise through various media outlets, including state-owned and private channels. Botswana Television (BTV), a popular state-owned channel, is accessible for promotions and advertising. Word-of-mouth referrals are highly effective in Botswana, making excellent service delivery a critical component of business success.
Resources:
- Global Expo Botswana
- Botswana Consumer Fair
- Botswana Television (BTV)
- Botswana Guardian
Pricing
In Botswana, pricing is largely governed by free market principles, allowing suppliers to set their own prices, inclusive of a 14 percent VAT. Most goods are not subject to price controls, except for specific products such as maize meal, petroleum, diesel, and illuminating paraffin. Suppliers are legally required to display prices clearly in Botswana Pula (BWP) for consumers.
Sales Service and Customer Support: Face-to-face sales remain the dominant sales channel in Botswana, and after-care service is highly valued. Government procuring entities often prefer working with companies that provide backup support through a local agent, office, or regional support center. Closing deals in Botswana can take time, requiring patience and persistence. Businesses must conduct thorough market research and adopt flexible sales strategies to navigate the complexities of the market effectively.
Local Professional Services
The Botswana Institute of Chartered Accountants (BICA) provides a list of accredited accounting firms and professionals who offer services such as company registration and operational setup. More information is available at https://www.bica.org.bw.
The Botswana Accountancy Oversight Authority (BAOA) is an independent regulatory body overseeing the accounting and auditing profession. It ensures compliance with financial reporting for Public Interest Entities (PIEs) and the corporate sector. BAOA provides a list of certified audit firms and PIEs on its website.
The Law Society of Botswana offers a directory of registered lawyers with valid practicing certificates. For more details, visit their Facebook page at Law Society of Botswana – Home | Facebook.
Principal Business Associations
Business Botswana: As the leading business association in the country, Business Botswana is open to all companies, associations, and organizations. It plays a significant advocacy role, influencing numerous policy changes to improve the business environment in Botswana.
American Business Council (ABC) in Botswana: ABC represents the interests of U.S. companies and businesses seeking to engage with the United States. It has signed a Memorandum of Understanding (MOU) with Business Botswana and the Solar Industry Association of Botswana to foster collaboration and promote trade.
Botswana Exporters and Manufacturers Association (BEMA): BEMA is a member-driven organization dedicated to supporting exporters and manufacturers in Botswana. It has developed an online selling platform, BEMA Stores (https://bemastores.co.bw/en/) to help its members market and sell their products.
Limitations on Selling U.S. Products and Services
Botswana law restricts 35 service sectors to Botswana citizens, including butcheries, general trading establishments, gas stations, liquor stores, supermarkets (excluding chain stores), bars (except those linked to hotels), certain types of restaurants, boutiques, auctioneers, car washes, domestic cleaning services, curio shops, fresh produce vendors, funeral homes, hairdressers, laundromats, various rental and for-hire services, specific government construction projects below a certain dollar threshold, certain road and railway construction and maintenance activities, and specific manufacturing activities such as school furniture production, welding, and bricklaying.
Foreigners may participate in these sectors as minority joint venture partners in medium-sized businesses. Majority ownership by foreigners is permitted only with written approval from the trade minister. For prohibited or restricted imports, exemptions may be granted if a shortage of local supply is demonstrated or if the importer commits to a specified percentage of local purchases. Additionally, the government mandates a 40 percent localization requirement for solar power projects.
Seasonal bans on certain agricultural goods, such as specific fruits and vegetables, are occasionally implemented to support local producers. Import permits are required for other food products and agricultural items, which must be obtained from the relevant ministry or department.