Why Trade in Botswana

SACU Market Access
Gateway to the SACU Market

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.

Political and Economic Stability
Exceptional Political and Economic Stability

Botswana is renowned for its stable democracy, prudent economic management, and low corruption, offering a predictable and reliable trading environment.

Logistics and Transport
Developing Logistics and Transport Corridors

Botswana is a key node in regional networks like the Trans-Kalahari Corridor, linking ports in Namibia and South Africa to inland Southern Africa.

Financial Services Hub
Growing Financial Services Hub

The Botswana IFSC provides cross-border financial services in a well-regulated, tax-efficient environment, supporting regional trade and investment.

Export Diversification
Commitment to Export Diversification

The government promotes non-traditional exports such as processed beef, textiles, and leather goods, creating opportunities for value-added trade.

Efficient Customs
Efficient and Streamlined Customs

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

Trade Policy Framework: A Multi-Layered & Stable System

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.
Trade Potential: A "Diamonds and Beyond" Strategy

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.
Trade Facilitation: A Model of Efficiency & Connectivity

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

Stability and Governance
Unmatched Stability and Governance

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.

Financial Services Centre
A Leading Financial Services Centre

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.

Agricultural Value Addition
Hub for Agricultural Value Addition

Leverage Botswana’s world-renowned cattle industry. Investment opportunities exist in meat processing, leather tanning, and high-value leather goods manufacturing for export markets.

Strategic Manufacturing
Strategic Focus on Manufacturing

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.

Resource Beneficiation
Gateway for Resource Beneficiation

Beyond diamond mining, Botswana offers high potential in value addition: cutting and polishing, jewellery manufacturing, and processing of minerals like soda ash.

Special Economic Zones
Special Economic Zones (SEZs)

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

Financial & Business Services
Financial & Business Services

Hosting corporate headquarters, treasury operations, and investment funds under the IFSC. BPO, KPO, and shared service centres serving the Southern Africa region.

Agro-Processing (Beef & Leather)
Agro-Processing (Beef & Leather)

Expanding meat processing and packaging facilities. Establishing modern tanneries and manufacturing plants for footwear, upholstery, and fashion accessories.

Manufacturing
Manufacturing

Production of automotive components, textiles, glass manufacturing, and fast-moving consumer goods (FMCG) for the SACU market.

Tourism
Tourism

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.

Logistics & Infrastructure
Logistics & Infrastructure

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

Technology Facts & Figures

47%
Internet Penetration
Population with Internet Access (2023)
78%
Mobile Subscription
Active mobile users in Botswana (2023)
8+
Tech Hubs
Startups & incubators in Gaborone & beyond
2.3%
ICT Contribution
To Botswana’s GDP (2023 est.)
6
Key Tech Sectors
FinTech, AgriTech, eHealth, eGov, EdTech, Logistics
4.5%
Fixed Broadband
Estimated household penetration (2023)

Key Technology Sectors in Botswana

FinTech in Botswana
FinTech

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.

AgriTech in Botswana
AgriTech

Technology-driven agriculture solutions like traceability systems, precision farming tools, and digital market platforms are key to boosting Botswana’s agricultural sustainability and output.

E-Government in Botswana
E-Government Services

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.

HealthTech in Botswana
HealthTech

Technology is improving access and quality of healthcare through electronic health records, remote diagnostics, telemedicine, and digital public health monitoring.

MiningTech in Botswana
MiningTech

Implement smart technologies to increase safety, productivity, and sustainability in Botswana’s mining operations, while fostering a shift to high-value knowledge services.

TourismTech in Botswana
TourismTech

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

Botswana Innovation Hub
Botswana Digital & Innovation Hub (BIH)

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 Strategy
SmartBots Strategy

SmartBots is the national digital transformation strategy promoting universal internet access, digitized public services, and grassroots innovation toward a knowledge-based economy.

BoFiNet Infrastructure
Botswana Fibre Networks (BoFiNet)

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.

Botswana International University of Science and Technology
Botswana International University of Science & Technology (BIUST)

BIUST is a premier institution developing top talent in STEM fields, producing the engineers, scientists, and innovators needed to fuel Botswana’s tech ecosystem.

Data Protection Act
Data Protection Act


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

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.

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