06 Apr 2022

 All companies with shareholding in local companies and registered in Botswana are now required by the latest amendments to the Companies Act, to fully disclose nominee and substantial shareholders as well as beneficial ownership information.

Answering a question in Parliament recently, investment, trade and industry minister, Mr Mmusi Kgafela indicated that any transactions, shareholder and other information including financial and banking would henceforth be required to be fully disclosed through the locally registered companies. “These may include tax charged on the dividends and profits declared.
Therefore, we cannot amend the Act as it would reverse the efforts we made as a country, especially given that locally disclosure is done, which then cures the mischief otherwise anticipated,” Minister Kgafela said.

He further said Botswana was keen on attracting Foreign Direct Investment and by imposing such requirement on companies that had shareholding in local companies may be counterproductive to the efforts of attracting foreign investment to Botswana.

Selebi Phikwe West MP, Mr Dithapelo Keorapetse had asked the minister if he would consider reviewing the Companies Act and other related laws to make it illegal for entities incorporated in countries that had non-disclosure laws to own, in part or in whole, companies registered in Botswana to have the financial transactions go through the local banking system to avoid tax avoidance, transfer pricing and other undesirable consequences. ENDS