08 Dec 2015

About 190 foreign owned companies are presently operating in Botswana under the Industrial Licensing Act,  Minister of Trade and Industry, Mr Vincent Seretse has said.

These include 105 which are 100 per cent foreign owned and 85 which are joint ventures with citizens, Mr Seretse told Parliament on Monday.

He said the companies are involved in various sectors including aluminium, assembly of motor vehicles, trailers, semi-trailers, bicycles and other transport machinery, printing and publishing, wood and wood products, textile and wearing apparel, chemicals and grain milling.

The minister explained that Botswana citizens were reserved enterprises at small-scale level, while at medium-scale and above, foreigners were allowed to have joint venture partnerships with citizens. 

He said there are currently 23 companies that operate enterprises that have been reserved for citizens.

“Reservation came with the revised Industrial Development Act of 2006 and by then some foreigners were already engaged in those activities and therefore could not be affected. Some are joint ventures with citizens being majority shareholders.

Therefore such companies have been legally allowed to venture into the reserved activities at a medium to large scale so that citizens can benefit from the foreign expertise,” Mr Seretse explained.

The minister further explained that 1 320 foreign owned companies are operating in Botswana under the Trade Act 2003 and Liquor Act 2003, saying there are foreigners who operate 275 businesses reserved for Batswana.

He said the reserved businesses are licensed under the Trade Act 2003 and Liquor Act 2003, but that some businesses were licensed before the commencement of these legislations and are therefore protected.

The MP of Selebi Phikwe West, Mr Dithapelo Keorapetse had asked the minister to state the number of foreigners operating businesses in Botswana, and sectors they are involved in; the number of foreigners operating businesses reserved for Batswana. Ends