16 Mar 2016

Botswana and Malawi on Tuesday signed an agreement on the avoidance of double taxation and prevention of fiscal evasion in Gaborone upon the end of the SADC council of ministers meeting.

The agreement will ensure that trade between the two countries is efficient for investors in that once their income is subjected to tax in one country it will not be taxed again in the other country.

Speaking at the signing ceremony, the Minister of Finance and Development Planning, Mr Kenneth Matambo said the agreement was compliant with international standards on transparency and exchange of information for tax purposes.

He said the agreement would facilitate even closer cooperation between the two countries tax administrators since it provides for mutual assistance in collection of revenue and exchange of information to guard against tax evasion.
Mr Matambo said there were a lot of untapped opportunities for investment in Botswana, especially in sectors such as manufacturing and agriculture.

He said despite the government’s deliberate and concerted efforts to revamp the sectors, their contribution to GDP was still low. He said since Malawi was well versed in agriculture there exist an opportunity for cooperation and investment in Botswana in the sectors.

“I take this opportunity to invite and encourage investment from Malawi because Botswana offers a lot of advantages for investors.”

The minister noted that Botswana has the lowest tax rates in the region, no foreign exchange controls and low levels of crime. The Minister of Foreign Affairs in Malawi, Dr George Chaponda said the two countries have enjoyed a fruitful partnership and have strengthened their bilateral relations.

He noted that Botswana offered Malawi assistance when their country was affected by floods that left many citizens homeless. He highlighted that the agreement would make the two countries trade easier and also encourage investors to move from one country to the other.

“Bilateral and multi-lateral relations are important because they help the two countries for the betterment of the citizens of the two countries.”

Dr Chaponda said Malawi has areas of interest for investment such as agro-processing, manufacturing, mining and agriculture. Ends