Why Trade in Botswana
As a member of the Southern African Customs Union (SACU), Botswana offers duty-free and quota-free access to the integrated market of South Africa, Namibia, Lesotho, and Eswatini.
Botswana is renowned for its stable democracy, prudent economic management, and low corruption, offering a predictable and reliable trading environment.
Botswana is a key node in regional networks like the Trans-Kalahari Corridor, linking ports in Namibia and South Africa to inland Southern Africa.
The Botswana IFSC provides cross-border financial services in a well-regulated, tax-efficient environment, supporting regional trade and investment.
The government promotes non-traditional exports such as processed beef, textiles, and leather goods, creating opportunities for value-added trade.
Botswana has modernized customs procedures and implemented One-Stop Border Posts to ensure smooth and fast cross-border trade.
Botswana: A Hub of Stability, Strategy, and Diversified Trade
Botswana’s trade policy is anchored in stability, predictability, and deep integration within regional and global systems, making it one of Africa's most attractive investment destinations.
- Customs Union Core (SACU):
- Member of the century-old SACU single customs territory.
- Shares a Common External Tariff with South Africa, Namibia, Lesotho, and Eswatini.
- Global & Continental Integration:
- WTO member since 1995.
- Ratified the AfCFTA to expand continental trade.
- Active in the SADC Free Trade Area.
- Strategic Bilateral Agreements:
- SADC-EU EPA: Duty-free access to the EU.
- USA TIFA: Strengthening US-Botswana trade ties.
- Investment Promotion:
- BITC provides comprehensive support for investors and exporters.
Botswana is diversifying beyond diamonds, focusing on manufacturing, agro-processing, and services to create long-term value and new export opportunities.
- Current Trade Snapshot:
- Exports: Over 80% diamonds.
- Imports: Machinery, fuel, vehicles, food, textiles.
- Manufacturing & Value Addition:
- Diamond Beneficiation: Okavango Diamond Company fosters local cutting and jewellery industries.
- Beef Value Chain: World-class beef exports with growing processing and packaging focus.
- Financial Services Hub: IFSC drives investment in finance, fintech, and insurance.
- Special Economic Zones: Targeting FDI in pharma, auto parts, logistics, agro-processing.
Botswana is known for low-friction, efficient trade operations backed by infrastructure and policy innovation.
- Kazungula Bridge & OSBP:
- Game-changing cross-border trade link with Zambia.
- Replaces ferry delays, cutting border times drastically.
- Customs & Processes:
- BURS is a leader in customs modernization and professionalism.
- National Single Window to unify all clearance systems.
- Logistics & Regional Connectivity:
- Top performer in Africa for logistics and ease of doing business.
- Strategic roads and efficient border management make Botswana a preferred transit route.
Investment Facts & Figures
$5.2 Billion
Total Trade Volume
Annual trade volume for Botswana (2024)
$2.8 Billion
Export Revenue
Total export earnings from diamonds, beef, and textiles (2024)
75%
SADC Trade Share
Percentage of regional trade within SADC markets
Why Invest in Botswana
Botswana provides a low-risk environment for long-term investment, consistently ranking as Africa's least corrupt country and one of its most stable democracies.
The Botswana IFSC offers a well-regulated, low-tax environment (15% corporate tax) for regional and international financial services—ideal for corporate HQs, asset management, and treasury functions.
Leverage Botswana’s world-renowned cattle industry. Investment opportunities exist in meat processing, leather tanning, and high-value leather goods manufacturing for export markets.
The government supports manufacturers with incentives in key sectors like automotive components, textiles, and consumer goods—backed by access to the SACU free trade area.
Beyond diamond mining, Botswana offers high potential in value addition: cutting and polishing, jewellery manufacturing, and processing of minerals like soda ash.
SEZs in Botswana focus on finance, agro-processing, and manufacturing, offering excellent infrastructure and incentives like a 5% corporate tax for the first 10 years.
Key Investment Sectors in Botswana
Hosting corporate headquarters, treasury operations, and investment funds under the IFSC. BPO, KPO, and shared service centres serving the Southern Africa region.
Expanding meat processing and packaging facilities. Establishing modern tanneries and manufacturing plants for footwear, upholstery, and fashion accessories.
Production of automotive components, textiles, glass manufacturing, and fast-moving consumer goods (FMCG) for the SACU market.
Investment in high-end, low-impact eco-lodges and safari operations in iconic areas like the Okavango Delta and Chobe National Park. Development of MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities.
Development of warehousing, cold chain logistics, and transport services along key corridors. Investment in industrial parks and infrastructure within the Special Economic Zones.
SADC-Aligned Investment Incentives
These incentives support regional development, integration, and competitiveness across Southern Africa in alignment with Malawi's economic cooperation goals.
Tax & Customs Incentives
- Corporate Tax: A flat rate of 22%, with a lower 15% rate for manufacturing and IFSC-registered companies.
- SEZ Corporate Tax: 5% for the first 10 years, and 10% thereafter.
- VAT: Zero VAT rating on all exports.
Human Capital
- Training Rebate: A rebate of 200% of the cost of training is deductible for tax purposes.
Business & Operational Support
- One-Stop Shop: AIPEX provides a "Balcão Único de Atendimento" (One-Stop Shop) to assist investors with the entire process of registering and implementing their projects.
Success Stories
Illustrative examples given the scale of the economy; focus on potential and established niches
Financial Services Hub
The Botswana International Financial Services Centre (IFSC) has successfully attracted numerous multinational corporations to set up their regional headquarters and treasury operations, leveraging the country's stability and favourable tax regime.
Manufacturing for Africa
Kromberg & Schubert, a German automotive supplier, operates a major manufacturing plant in Gaborone, producing wiring harnesses for export to the South African automotive industry, showcasing successful integration into regional value chains.
Agricultural Value Addition
The Botswana Meat Commission (BMC) is a long-standing success story in value addition, processing and exporting high-quality beef to markets in Europe and across the region, establishing the "Beef of Botswana" as a premium brand.
Investment News
Botswana Secures Major Beef Export Deal with Middle East Markets
Botswana Expands Diamond Trade Certification Program to Boost Exports
Botswana Launches Digital Trade Platform to Enhance SADC Regional Commerce
Botswana Textile Industry Sees 40% Growth in Export Revenue
Technology Facts & Figures
Key Technology Sectors in Botswana
Building on the strength of the IFSC, Botswana offers opportunities to develop and deploy fintech solutions in banking, insurance, and investment—serving both domestic and regional markets.
Technology-driven agriculture solutions like traceability systems, precision farming tools, and digital market platforms are key to boosting Botswana’s agricultural sustainability and output.
The government is a major technology buyer, creating demand for digital identity systems, e-services, and data platforms to drive smarter governance and citizen services.
Technology is improving access and quality of healthcare through electronic health records, remote diagnostics, telemedicine, and digital public health monitoring.
Implement smart technologies to increase safety, productivity, and sustainability in Botswana’s mining operations, while fostering a shift to high-value knowledge services.
Enhance Botswana’s world-class tourism offerings with digital booking systems, smart lodge technology, conservation data tools, and immersive virtual experiences.
Leading Technology Hubs & Initiatives
Located in Gaborone, BDIH is Botswana’s flagship innovation institution. It features a science and tech park with advanced infrastructure, incubation, and acceleration programs for startups.
SmartBots is the national digital transformation strategy promoting universal internet access, digitized public services, and grassroots innovation toward a knowledge-based economy.
BoFiNet is a state-owned wholesale provider managing Botswana’s national and international telecom infrastructure. It ensures affordable, equitable access to high-speed fibre networks.
BIUST is a premier institution developing top talent in STEM fields, producing the engineers, scientists, and innovators needed to fuel Botswana’s tech ecosystem.
Botswana’s data protection law aligns with global standards and ensures a secure, predictable environment for data centres, cloud providers, and digital service companies.
Botswana Technology News
Botswana Launches $75M Digital Transformation Strategy for Government Services
Gaborone Innovation District Attracts $120M in Tech Startup Investments
Botswana Unveils $300M Smart City Initiative for Gaborone
Botswana's Solar Tech Revolution: 200MW Plant Powers Digital Economy
Unlock The Potential Of Botswana
Botswana is positioning itself as a rising tech hub in Southern Africa, supported by strong governance, a stable economy, and a growing digital ecosystem. With increasing investments in broadband infrastructure, a thriving fintech scene, and government-led innovation programs, Botswana offers exciting opportunities in digital finance, e-government, healthtech, and smart agriculture. Its strategic location, investor-friendly policies, and commitment to digital transformation make it a compelling destination for tech entrepreneurs and investors.
Contact Us
Ezekiel Mukanga
1 Mulholland Drive, Chisipite
Harare, Zimbabwe