Research and consulting in Botswana

Country overview:

IOA has been a long-time provider of in-depth research and data-based consulting services on Botswana. Our experts have concluded that Botswana’s reputation as one of Africa’s best developmental success stories and Africa’s longest and perhaps most stable democracy is well founded. In recent years, the large, arid, landlocked country’s economic and environmental problems have challenged its reputation as a bastion of clean governance. However, government asserts that Botswana is on its way to advance from the middle-income country it is today to becoming a high-income country in 2036.

Policies to achieve that goal include the promotion of value-added manufacturing for the backbone of Botswana’s economy, its mining output. Botswana is Africa’s largest diamond producer, and export revenue earned from gemstone finances government operations and social welfare programmes.

Key opportunities in Botswana:

Being a stable, peaceful country has elevated foreign investor confidence, and sound fiscal policy has given Botswana mainland sub-Saharan Africa’s highest credit rating
Promotion of local diamond sorting, cutting and polishing operations – all of which were recently done overseas – has added value to its mineral production and now contributes 5% to the national economy
Botswana hosts Africa’s largest elephant population, and the country’s wealth of other wild animal groups is responsible for a robust tourism industry

Key concerns/risks in Botswana:

Diamond dependency – 80% of export revenue – requires economic diversification to cushion for economic shocks
Climate change has placed environmentally arid countries at particular risk from rising temperatures. Botswana must prioritise water security against recurring droughts
Despite fair-to-good economic performance each year, economic inequity remains among the world’s highest, with future social conflict inevitable if this is not addressed

Find out about how IOA can help you with research and consulting services in Botswana

Tips on doing business in Botswana:

Starting a business:

Foreigners interested in starting a business locally are advised to contact the Botswana Investment and Trade Center, which can offer advice and support to new business and assist foreign investors in networking with local entities
Local authorities are particularly accommodating towards companies that can help diversify the economy away from the diamond business. Company setup can take 10-16 weeks based on whether one is starting an LLC, PLC or offshore company
(Read more at: https://botswanamission.ch/why-invest-in-botswana/)

Doing business:

Local tax rates can vary depending on business type. Whilst the typical corporate tax rate is 22%, local manufacturing companies can petition the Ministry of Investment, Trade and Industry to have this reduced to 15%
Red tape, an increasing shift towards localisation, a small population size and local skill deficits pose challenges. Formalised distribution channels and close integration with nearby South Africa offers significant opportunities in the retail and FMCG space

Culture and society:

English is widely spoken across the country which allows for easier penetration by businesses from Anglophone markets
Formality is considered important, which extends to formality in dress. Like elsewhere in Southern Africa, it is advisable to inquire after someone’s well-being first before initiating a conversation, even for brief interactions like asking directions and similar