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Botswana

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List of incentives available in this location for quick easy reference below.

Incentives

Table key

  • Incentive offered
  • Incentive not offered
  • Did not submit information
Cash grants/incentivesMore [+]Less [-]

Share capital invested by a non-resident may be repatriated upon disposal of the shareholdings or on the liquidation of the company.
Tax exemptionsMore [+]Less [-]
  • Botswana has a liberalized foreign exchange and the exchange rate is actively managed to maintain a stable relationship with the South African rand. Under the SACU agreement there is the infant industry protection for a period of 8 years.
  • Corporate income tax is capped at 25 per cent, while a special 15 per cent rate is available for certain categories of manufacturing and all companies operating within the jurisdiction of the International Financial Services Centre (IFSC).
  • Development approval order-zero corporate tax can be available to investors for a period of 5 to 10 years.
  • All machinery and equipment for purpose of manufacturing is imported duty free.
Property assistance / other fiscal incentiveMore [+]Less [-]
  • Land acquisition facilitation: BEDIA builds factory units for lease to industrialists at affordable subsidized rentals at BWP 10.00/ square meter while market rate ranges from BWP18-BWP32 per square meter, and with the option to purchase at market value.
Training and labor market assistanceMore [+]Less [-]

An employer is allowed a deduction of 200% of the cost of training employees
Loan guarantees, cheap loans or financeMore [+]Less [-]

Joint Venture between citizen and non citizen are given a loan amount of BWP500,000 up to BWP30,000,000 at a prime interest rate of 5% per annum and loan period is up to 15 years excluding grace period.
Exemptions from regulationsMore [+]Less [-]
  • Exemptions from requirements for work permit.
  • There are no Foreign Exchange controls in Botswana, allowing for free repatriation of profits, dividends and capital.
Target sectorsMore [+]Less [-]
  1. Manufacturing sector
  2. Mining
  3. Services (tourism and financial services)
Sectors specific incentivesMore [+]Less [-]
  • Mining sector Incentives:

o Free repatriation of profits

o Stability in Environmental Management Legislation

o Foreign exchange retention

o Stability of fiscal regime: variable income tax rate which is based on project profitability and 100% capital redemption

o Unlimited carry forward of tax losses

o Import-duty mining equipment and spares are zero-rated

o 100% depreciation of capital expenditures

  • Manufacturing sector Incentives:

o Corporate income tax is capped at 25 per cent, while a special 15 per cent rate is available for certain categories of manufacturing and all companies operating within the jurisdiction of the International Financial Services Centre (IFSC).

  • Custom Incentives:

o Industrial Rebate Concession: exemption from payment of customs duties of some raw materials used for products sold either for local or external market. (Applies to industries such as textiles, foodstuff and beverages)

o General rebates: This is available for companies that are exclusively export-oriented.

o Customs Duty Drawback Facility: claim refunds on customs duties paid for imported raw materials.

o Schedule 470.03: Manufacturing companies registered are allowed to import raw materials duty-free.

o Machinery and equipment: All machinery and equipment for purposes of manufacturing is imported duty-free.

o Duty Credit Certificate Facility: This is a product-specific duty rebate facility and it applies to clothing and clothing accessories, household textiles, yarns, fabrics and other textiles.

Sponsorship

If you are the authorised promotions agency for Botswana and would like to have your location highlighted on fDi Atlas, you can contact our sales team on + 44 (0) 207 775 6667 or contact us here.