Investment Incentives in Botswana

Investment Incentives in Botswana

General Incentives

Citizen Enterpreneual Development Agency (CEDA). This is an independent agency under the Ministry of Finance and Development Planning. It gives loans to any viable businesses of Botswana citizens. Loans of P500 – P1500 are charged interest rate of 5%. Between P1500 and P2 million the interest rate is 7.5%.

Botswana offers the following unique investment incentives:

  • Corporate tax rate is only 15% for manufacturing enterprises, the lowest in the region
  • The Financial Assistance Policy comprising refund of wages for shop-floor workers (80% – 20%) over a five-year period, capital grant (US$200 per job created) and training grant (50%)
  • Profits, dividends and capital can be readily repatriated ( no foreign exchange control in Botswana)
  • Foreign reserves to the tune of US$6 billion, representing thirty month/ import cover
  • Political stability and social harmony are key features of the country
  • Inflation is in single figures
  • Credibility and credit-worthiness is very high (number three in Africa)
  • Rated the least corrupt country in Sub-Saharan Africa by Amnesty International
  • Highest per capita expenditure on education in the world
  • Educated and readily trainable English speaking labour force
  • Good industrial relations, no worker unrest or strikes

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