21 Aug 2014

The acting permanent secretary in the Ministry of Trade and Industry (MTI), Mr Boniface Mphetlhe says the country acknowledges the important role that Foreign Direct Investment (FDI) plays in economic development.

Speaking during the on-going Francistown Investment Forum, Mr Mphetlhe said Botswana was confident that its investment promotion endeavours would convince investors to choose the country as a destination of their firms to set-up and flourish.

“The government of Botswana is fully committed to stimulating and supporting businesses by facilitating and fostering stronger private sector participation economy,” he said.

Mr Mphetlhe said MTI continued to create a conducive environment for investors to set-up in Botswana by providing an attractive and enabling investment climate.

He said Botswana offered attractive investment incentives for both local and diversification through coordinated efforts and contributions from various sectors in the economy.

“Botswana provides among other things the lowest corporate tax rate in the region at 22 per cent and 15 per cent for manufacturing companies,” he said.

Mr Mphetlhe said Botswana has also signed a number of double taxation avoidance agreements with countries such as South Africa, the United Kingdom, Sweden, Mauritius, India and Russia adding that the Ministry of Finance and Development Planning continued to negotiate with other countries to ensure that most of investors could benefit from the incentive.

He said companies setting up in Botswana enjoy readily accessible incentives that include a competitive corporate tax incentive framework, exemption from capital gains tax and withholding tax.

Mr Mphetlhe said though there was no tax and legal considerations peculiar to Francistown, the policy was applicable throughout Botswana.

He said Francistown was however a strategic location to a wider market than other areas in the country.

Earlier in his welcome remarks, the Mayor, Mr James Kgalajwe said the objective of the forum presented an opportunity to Batswana and their global village counterparts to invest in the vast opportunities presented by Francistown. 

Mr Kgalajwe said the forum also aimed at attracting foreign direct investment to Francistown; promote joint partnerships between the business community and those from other regions in Botswana as well as foreign investors and to promote the city as the area of choice for investors.

The mayor also noted that the city strategic geographical placement gives access to market base of 200 million people, boasting of an international standard airport, good rail and road connectivity, abundant water and land resource, reliable energy supply, divine scenic views, endowed with rich untapped mineral resources and diverse culture. ENDS