BOTSWANA

Geographic Location
Botswana is centrally located in the heart of Southern Africa sharing borders with Zambia in the north, Zimbabwe in the
north-east, South Africa in the south and south-east finally Namibia in the north and north-west.

Total Area
581 730 square kilometres. The capital of Botswana is Gaborone which is located in the south-eastern of the country.

Climate
Botswana has a semi-arid to and climate. The average daily maximum temperature is about 33 - 40C in summer,
from September to April, and 22-30C in winter that is from May to August. The average minimum temperature is about
19C in summer and 5C in winter.

Botswana is one of the countries on the African Continent which has achieved an economic miracle
since independence in 1966. Botswana is a living example of democracy, peace and harmony. Free
and fair elections have been held every five years for the past 35 years since independence. It is a
perfectly safe and cos mopolitan place where people of various races, religion and creed live in
peace and mix freely with one another.

Botswana has been the fastest growing economy in the world during the period 1981 to 1991 with
an average GDP growth rate of 10% per annum. Since then, the growth rate has averaged about
9% per annum which is still an impressive achievement. Today Botswana has a GDP per capita of
US$ 3500, substantial foreign exchange reserves providing 34 months of import cover one of the
highest ratios in the world- a positive balance of pay ments, an insignificant debt burden and the
Pula, the local cur rency, is one of the strongest currencies in Africa.

To stimulate growth, the Government has taken decisive steps towards diversification of the
economic base of the country away from diamonds, by encouraging the establishment of export
ori ented manufacturing enterprises. All the necessary conditions for growth have been created in the
country including a well bal anced package of incentives to assist investors in establishing fi nancially
viable operations.

Good investment Climate

Botswana has over the years created a good investment climate:

- Political stability

- Fiscal and monetary policies continue to focus on maintaining economic growth and low inflation

- Botswana received the highest credit rating by Standard and Poor and Moody's Investor Services

- No foreign exchange controls including free repatriation of profits, dividends and capital

- Low tax regime - corporate tax is only 15% for manufacturing companies and 25% for others

- The highest bracket for income tax is only 25%

- Botswana has been rated among the top three countries in Africa terms of competitiveness by a study conducted by Harvard
Institute

- Corruption is low according to Transparency International and Botswana has adopted a slogan of ZERO TOLERANCE FOR
CORRUPTION

- Good infrastructure

- Stable workforce

- Excellent Industrial Relations Competitive labour costs

- New opportunities have opened through the Africa Growth and Opportunity Act which allows quota and duty free
entry of goods manufactured in Botswana to the US market

- Ready access to the European Union market under the Cotonou Partnership Agreement - products manufactured in
Botswana enter this market duty and quota free

- Ready access to the Southern African Customs Union (includes Botswana, South Africa, Namibia, Lesotho and
Swaziland) which allows free movement of goods among the member States

- Easy access to the Southern African Development Community (SADC) market comprising 14 countries through the
SADC Trade Protocol.

promotions are focused not limited

Promotion is focused but not limited to the following:
 Textiles

Establishment of a modern tannery Diamond cutting and polishing

Jewellery

Information technology Data processing

Tourism

Financial services

Besides placing emphasis on the manufacturing sector in order to mop up unemployment which
stands about 17 % in the country, the International Financial Services Centre which will eventually make
Botswana a sound financial base in Southern Africa is already operational.

Tourism has been identified as an engine of growth. The wildlife reserves especially Chobe National
Park, the Moremi Game Reserve, Mashatu, the Kalagadi Game Reserve and the
Okavango Delta are becoming major tourist attractions. Botswana is one of the rare
countries where people can freely breathe pure air in its reserves and combine pleasure with work. It is
a country where stress does not kill as the quality of life it offers to investors, tourists and its own people
is exceptionally good.

BEDIA, the friend of the investor

The Botswana Export Development and Investment Authority (BEDIA) was established in 1997 by the Government of
Botswana as an autonomous private sector led organisa tion to:

Promote investment in export-oriented activities and selected services which will result in economic diversification,
rapid economic growth and creation of sustained employment opportunities in accordance with Botswana's social
and economic policies and objectives. Identify market outlets for products manufactured in Botswana Construct
factory building for setting up of manufacturing enterprises

The Authority is dedicated to providing support to both potential investors and existing industrialists by:

- Identifying investment opportunities in the country Providing investment advice

- Identifying joint venture partners
- Organising visits and meetings between economic operators in the cou ntry and potential investors
- Assisting in obtaining factory space
- Assisting in obtaining pre-investment clearances (work and residence permits, licences e.t.c)
- Providing both economic and trade statistics
- Organising both inward and outward investment missions to familiarise potential investors with the
investment climate in the country
- Organising fairs, exhibitions and contact missions to market Botswana products

BEDIA provides a first class professional service to potential investors both before and after the investment, BEDIA
literally takes the foreign investor by hand and helps him clear all formalities. The Authority also assists investors
even during their operation to clear any problems that they may encounter. BEDIA prides itself in the professional
service that it provides to investors and its motto is "BEDIA takes good care of you".

Since BEDIA became operational, it has been very aggressive at the regional and international levels to promote
Botswana as a viable destination for investment. BEDIA in vites you to consider Botswana as your next investment
location. The Authority will pre pare a good programme of work on your behalf which will enable you to get first
hand information on the conducive investment climate offered.