botswana - kauppakamari · discussion outline 1. about botswana 2. about bitc 3. the bitc investor...
TRANSCRIPT
Tshephang Kelatile
Executive Director, International Business EU (A)
Botswana a place to live, work & invest
7th October , 2015
Discussion Outline
1. About Botswana
2. About BITC
3. The BITC Investor Facilitation Services
4. Investment Opportunities
5. The Special Economic Zones
6. The Global Expo 2015
About Botswana
4
Botswana : at a glance
Population
2 Million
Borders
S.A, Zimbabwe, Namibia,
Zambia
Land
582 000 km²
GDP (4% 2017)
USD 14.8 Billion (2014)
GDP per Capita
USD 7 248 (2014)
Inflation
4% (3.1% July 2015)
Interest Rates
Bank rate 6%: Prime rate 8%
Botswana’s Unique Selling Points
Within Close Proximity
of Fast-growing Markets
At the Heart of the
SADC Consumer
Market
Least Corrupt Country in
Africa 2014
Best Safety and Rule of
Law in Africa 2014
Africa’s Best Mining
Destination 2014
(Frazer Institute)
Highest Gross Fixed
Capital Formation
Ration in SADC
3rd most profitable country globally & 1st
in Sub Saharan Africa (Baseline
Profitability Index 2015)
Highest investment grade sovereign
credit rating in Africa long term “A-” &
short term “A-2”
2nd Freest Economy in
Sub Saharan Africa
2015
Competitive
Corporate Tax
Rates, Incentives
Political system: Multiparty democracy
Business language: English, neutral accent
Economy: Transitioning
More than 10 international schools
six universities and a variety of colleges
A number of private hospitals
Adult literacy rate: 85%
People: Warm and friendly
Crime: Low
UNESCO World heritage site: Okavango Delta
Life in Botswana
Work Live Invest
About BITC
Who We Are
Investment and Trade Promotion Agency
Promotes Investment (FDI, DI, Expansions)
Provides investor facilitation services
Export Development & Promotion
Annual Global Expo Botswana
Brand Botswana Management
Interim SEZ Authority
Regional Offices in South Africa, United Kingdom and India
Jointly promote with Botswana Missions Abroad
Investor Value Added Services
Business Linkages / Facilitate engagements / Company Visits
Investor facilitation services (One-Stop-Shop);-
• Partnerships and Joint Ventures
• Premises; Land,
• Work & Residence Permits, Visas
• Company registration, Licensing
• Incentives; IFSC, Manufacturing, Tax Holidays (DAO)
• Professional Advisory firms; registrations (company, tax etc.)
Aftercare Services – renewals, expansions etc.
Agriculture &
Agribusiness Cargo & Logistics
Manufacturing; import
substitution
Financial & Business
Services
Mining & Beneficiation
Energy & Renewable
Energy
ICT
Tourism
Education
Health
Investment Opportunities
. SECTOR OPPORTUNITY
Man
ufa
ctu
rin
g
High import Bill: P68 Bn
Top 4; Diamonds, Machinery, Food & Beverages, Fuel
Preference Margins for locally produced goods - Economic Diversification Drive
Beneficiation of Raw materials (Beef, Leather, Minerals, Glass manufacturing)
Specialised products e.g. Vehicle Harnesses
Ed
uc
ati
on
Photographic Safari Tourism Training / Hospitality Institute
Technical School of Mining & Energy
Medical and Health Sciences Academy
Post Harvest Technology and Food Quality Research Institute
Veterinary Science – specialist training courses for veterinarians
Ca
rgo
&
log
isti
cs
Maun Airport Project: Development of eco friendly airport: + $ 6 – 700 Mn
Trans Kalahari Railway Development Project: + $ 15 Bn (Infrastructure & Above rail)
Mosetse – Kazungula Rail Link Project
Mmamabula - Lephalale (RSA)
Botswana – Mozambique (Ponto Techobanine)
Rolling stock: investment & maintenance services
} + $ 1.8 Bn
Railway Route Alignment
. SECTOR OPPORTUNITY
MIN
ING
Investment in existing Mines
Partnerships with concession holders
Diamonds
Coal: + 212 Billion Tonnes (2 million mined annually currently),
Base Metals (Copper, Nickel Silver, Platinum Group Elements, Zinc)
Rail and rolling stock
ICT
E - Governance
E services; Health, Online Administration
e-Commerce
Business Process Outsourcing & Call Centers
HE
ALT
H
Diagnostic facilities (imaging and laboratory)
Pharmaceutical Manufacturing industries
Manufacturing of biomedical equipment: all biomedical equipment is currently imported.
Cancer, Orthopedic treatment Centers
Base Metals Potential
Kaapvaal
craton
Zimbabwe
craton
Stratabound
Copper-silver at
Ngwako Pan
Pb-Zinc-silver in
Aha Hills
Molopo Farms Complex
Platinum Group
Elements
gold and
Nickel
Proterozoic
Mineraisation
Copper –Nickel
Mineralisation
15
Coal Potential
SECTOR OPPORTUNITY
EN
ER
GY
Power stations Projects;
Morupule A Refurb,
Morupule B Units 5 & 6 (300 MW),
Greenfield (300 MW),
Solar (100MW)
Orapa Diesel to LNG Conversion(90 MW)
Electricity distribution infrastructure; 400 KV (North West)
Coal-bed methane (CBM)
Off Grid Solar energy e.g. Off grid mines
Biogas and biodiesel
Solar component manufacturing
Coal to liquids
FIN
AN
CIA
L
SE
RV
ICE
S
Ideal location for Financial and Business Hub
Central Location
High Sovereign Credit Rating
Repatriation of Profits
IFSC: 15% Corporate Tax, Withholding, CGT Exemption
Existing & Proposed Transmission grid
Proposed 400KV line to supply
power North West Botswana
.
SECTOR OPPORTUNITY
Ag
rib
us
ine
ss
Grain, Fruit & Vegetables Value Chain Investment Opportunities
Botswana imports; 44353Mt of sorghum/Millet, 199 440Mt of Maize, 95 203Mt fruits & vegs
Zambezi Agro-commercial Development Project
Livestock Value Chain Investment Opportunities
Dairy Farming ( 42 million liters of milk are imported)
Beef & Other meat Procession: ( + 2.5 mn cattle; 2.1 million small stock and more than 300K hides
annually)
To
uri
sm
Luxurious Camps, Lodges & Hotels Medical Tourism Tented Safari Camps International Brand Hotels 5 Star Air Charter Services Entertainment and Sporting facilities
20
Investment Incentives
15% Corporate Tax Manufacturing, IFSC, BIH
22% Corporate Tax Non incentivised rate
25% Max Income Tax Personal Income
12% VAT National Rate
Tax Holiday 5 – 10 year tax break
200% Tax Rebate Training Costs
No Foreign Exchange Controls
Expanding Double Taxation Treaty Network
No Foreign Ownership Restrictions
Duty exemption: importation plant & machinery
The Southern African Customs Union (SACU) • Duty free and quota free market access to more than 56.9 million consumers in Botswana,
South Africa, Namibia, Lesotho and Swaziland
The Southern African Development Community (SADC) Trade Protocol • Preferential market access to more than 277 million consumers in the SADC region
The African Growth and Opportunity Act (AGOA)
• Duty free and quota free market access to the USA
The Interim Economic Partnership Agreement between SADC and the European Union (EU)
• Duty free and quota free market access to the European Union
The on-going discussions of the COMESA-EAC-SADC Tripartite Free Trade Area
• When concluded it will offer Botswana a market of over 700 million people
Market Access
Special Economic Zones
SEZs are designated areas within a geographical area of a country that
function with SPECIAL administrative, regulatory and fiscal regimes that are
different from the domestic economy.
Primary Aim of SEZs; overcome barriers to trade, investment & the attraction
of FDI
Address (i.e.) restrictive Policies, bureaucracy and limited access to serviced
land
Creating a more competitive or conducive business environment for the
attraction investors
Increase and diversify our export, increase foreign earnings
Create substantial employment
Special Economic Zones
SEZ Site SPECIALIZATION
Gaborone - Sir Seretse
Khama International Airport
Multi-Use SEZ. Partners : CAAB, BIH, BITC, and Diamond Hub.
Selibe Phikwe Mixed Use SEZ. Partners: Selibe Phikwe Economic Diversification Unit
(SPEDU) ,BCL and Council. Leveraging on Polaris II strategy. Main
products and industries: Sulphuric acid, Iron steel, Copper and Nickel,
Coal biciation, and positioning Selibe Phikwe as a logistics hub etc..
Gaborone at Fairgrounds Financial services and corporate HQ village.
Lobatse Beef, leather and biogas park.
Greater Palapye Integrated coal value addition: coal power generation, export of excess
power and, export of coal; Dry-port, logistics hub
Francistown Mining & logistics Hub and Downstream value-addition hub.
Pandamatenga Agricultural SEZ. Integrated farming. Agro business and food Processing.
Selebi-Phikwe: Horticultural SEZ in the Tuli Block Area.
Overview of Global Expo 2015
– 2015 Exhibition runs from 25th – 28th November 2015
– Venue: Botswana Conference & Exhibition Centre, Fairgrounds,
Gaborone
– Theme: “Promoting economic diversification through
export oriented Foreign Direct Investment and Domestic expansions”.
– Investment & Trade Conference runs for 1 day on 25th Nov, 2015
– There will be a SADC-EU EPA Conference on 24th Nov 2015
– On 25th Nov there will be topics ranging from, FDI/SEZ, Economic
Clusters, BPO/Call Centres and Bilateral Trade Agreements
+44 207 647 1027 (BITC London Office)
+46 8545 258 80 (Botswana Embassy)
www.bitc.co.bw