Doing Business with Botswana

A comprehensive guide to doing business, exporting, investing, and manufacturing in Botswana.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Botswana Investment And Trade Centre

Tel: +267 363 3300
Email: enquiries@bitc.co.bw
Web: www.bitc.co.bw

null

Botswana Unified Revenue Service (BURS)

Tel: +267 363 8000
Email: info@burs.org.bw
Web: www.burs.org.bw

National Chamber of Commerce

Business Botswana

Tel: +267 395 3459
Email: publicrelations@bb.org.bw
Web: www.bb.org.bw

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Botswana Ministry of Finance

  • Type of Government: Parliamentary Republic
  • Population: Approximately 2.4 million
  • GDP: Around $18 billion USD
  • Corporate Tax Rate: 22%
  • Personal Income Tax Rate: Up to 25%
  • Major Exports: Diamonds, copper, nickel, beef
  • Major Imports: Machinery, fuel, foodstuffs, vehicles

Exporting to Botswana involves several steps to ensure compliance with local regulations. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze demand for your product in Botswana.
    • Identify potential competitors and market entry strategies.
  2. Verify Product Compliance

    • Ensure your product meets Botswana’s standards and regulations.
    • Contact the Botswana Bureau of Standards (BOBS) for guidance.
    • Botswana Bureau of Standards
  3. Register Your Business

    • Ensure your business is legally registered to export.
    • Consult your local Chamber of Commerce for necessary documentation.
  4. Obtain Necessary Certifications

    • Identify required certifications or licenses for your product.
    • Work with Botswana Unified Revenue Service (BURS) for import regulations.
    • Botswana Unified Revenue Service
  5. Understand Tariffs and Taxes

    • Check applicable import duties and taxes for your goods.
    • Use Botswana’s tariff schedule for detailed information.
  6. Arrange Logistics and Shipping

    • Choose a reliable shipping company familiar with Botswana logistics.
    • Ensure all shipping documents are accurately completed.
  7. Prepare Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with customs requirements.
  8. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any duties and taxes required for the import.
  9. Distribution and Sales

    • Establish distribution channels within Botswana.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

Importing goods into Botswana involves several steps to ensure compliance with local regulations. Here’s a detailed guide:

  1. Research Import Regulations

  2. Register Your Business

    • Ensure your business is registered and has the necessary licenses.
    • Contact the Companies and Intellectual Property Authority (CIPA) for guidance.
    • CIPA
  3. Check Product Compliance

  4. Understand Tariffs and Taxes

    • Check applicable import duties and taxes for your goods.
    • Use Botswana’s tariff schedule for detailed information.
  5. Arrange Shipping and Logistics

    • Select a reputable shipping company.
    • Ensure compliance with shipping and labeling requirements.
  6. Prepare Import Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Verify documentation with Botswana Customs.
  7. Customs Clearance

    • Work with a customs broker to facilitate the clearance process.
    • Pay any duties and taxes required for the import.
  8. Receive and Distribute Goods

    • Arrange for the delivery and distribution of goods upon clearance.
    • Establish partnerships with local distributors if needed.

Key Contacts

  • Botswana Unified Revenue Service (BURS)
  • Companies and Intellectual Property Authority (CIPA)
  • Botswana Bureau of Standards (BOBS)

Incorporating a company in Botswana involves several key steps. Here’s a detailed guide:

  1. Choose a Business Structure

    • Decide on the legal form of your company (e.g., Private Limited Company).
    • Consult with a legal advisor to choose the best structure.
  2. Register a Company Name

    • Ensure the name is unique and complies with local regulations.
    • Register the name with the Companies and Intellectual Property Authority (CIPA).
    • CIPA
  3. Prepare the Incorporation Documents

    • Draft necessary documents, including the Memorandum and Articles of Association.
    • Obtain legal assistance to ensure compliance.
  4. Submit the Application

    • File the incorporation documents with CIPA.
    • Pay the registration fee, typically around BWP 360.
  5. Obtain a Tax Identification Number

    • Register with the Botswana Unified Revenue Service (BURS) for a Tax Identification Number (TIN).
    • BURS
  6. Open a Corporate Bank Account

    • Open an account with a local bank to handle business transactions.
  7. Register for VAT

    • If applicable, register for Value Added Tax with BURS.
  8. Obtain Necessary Permits and Licenses

    • Depending on your business activity, additional permits may be required from local authorities.
  9. Register for Social Security

    • Register with the Botswana Unified Revenue Service for employee contributions if you plan to hire staff.

Costs

  • Name Registration Fee: BWP 20
  • Company Registration Fee: Approximately BWP 360
  • Legal Fees: Vary based on the complexity of the incorporation process and legal assistance required

Key Contacts

  • Companies and Intellectual Property Authority (CIPA)
  • Botswana Unified Revenue Service (BURS)

Setting up a manufacturing plant in Botswana involves several steps. Here’s a detailed guide:

  1. Conduct Market Research

    • Analyze local demand and industry trends.
    • Evaluate potential competitors and supply chain logistics.
  2. Choose a Suitable Location

    • Identify industrial zones with necessary infrastructure.
    • Contact local municipalities for available sites and incentives.
  3. Register Your Business

    • Incorporate your company following local regulations.
    • Register with the Companies and Intellectual Property Authority (CIPA).
    • CIPA
  4. Obtain Necessary Permits

    • Apply for construction and environmental permits.
    • Contact the Ministry of Environment, Natural Resources Conservation and Tourism for specific requirements.
    • Ministry of Environment
  5. Secure Financing

    • Explore funding options through local banks or investment agencies.
    • Consider government incentives for manufacturing.
  6. Design and Construct the Facility

    • Hire local architects and contractors familiar with Botswana regulations.
    • Ensure compliance with building codes and safety standards.
  7. Install Equipment and Machinery

    • Import necessary machinery, ensuring compliance with local regulations.
    • Coordinate with Botswana Unified Revenue Service (BURS) for smooth importation.
    • BURS
  8. Recruit and Train Staff

    • Hire local talent and provide necessary training.
    • Contact the Ministry of Employment, Labour Productivity and Skills Development for assistance with labor laws.
    • Ministry of Employment
  9. Register for Taxation

    • Ensure your business is registered for VAT and other applicable taxes with BURS.
  10. Begin Operations

    • Ensure all systems are in place and test the production line.
    • Implement quality control measures.

Key Contacts

  • Companies and Intellectual Property Authority (CIPA)
  • Ministry of Environment, Natural Resources Conservation and Tourism
  • Botswana Unified Revenue Service (BURS)
  • Ministry of Employment, Labour Productivity and Skills Development

Registering a trademark in Botswana involves several steps to ensure legal protection of your brand. Here’s a detailed guide:

  1. Conduct a Trademark Search

    • Check if your trademark is available and not already registered.
    • Use the database of the Companies and Intellectual Property Authority (CIPA).
    • CIPA Trademark Search
  2. Prepare Your Application

    • Gather necessary information: trademark representation, goods/services classification, and applicant details.
  3. Submit Your Application

    • File the application with CIPA.
    • Ensure all documents are complete and accurate.
  4. Pay the Application Fee

    • The application fee is approximately BWP 300. Verify current fees with CIPA.
  5. Examination Process

    • CIPA reviews the application for compliance and potential conflicts.
    • Respond to any objections or requests for additional information.
  6. Publication and Opposition

    • If approved, the trademark is published in the Industrial Property Journal.
    • There is a 3-month period for oppositions.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered.
    • Receive a certificate of registration.
  8. Maintain and Renew the Trademark

    • Trademarks are valid for ten years and can be renewed indefinitely.
    • Submit renewal applications before expiry to maintain protection.

Costs

  • Application Fee: Approximately BWP 300
  • Additional Legal Fees: May vary based on legal assistance required

Key Contacts

  • Companies and Intellectual Property Authority (CIPA)

Resolving commercial disputes in Botswana involves several steps and options. Here’s a guide on the process:

  1. Attempt Negotiation

    • Start by negotiating directly with the other party to find an amicable solution.
  2. Mediation

  3. Arbitration

    • Consider arbitration as an alternative to court litigation.
    • It is generally quicker and can be less costly.
    • Utilize services from the Botswana Institute of Arbitrators.
    • Botswana Institute of Arbitrators
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, you can file a lawsuit in the Commercial Court.
    • Court fees vary; consult with the court for specific details.
  6. Court Proceedings

    • Prepare for the legal process, which includes hearings and presenting evidence.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Dependent on the case type and court; consult the court for specifics.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

  • Botswana Chamber of Commerce and Industry
  • Botswana Institute of Arbitrators

When considering doing business in Botswana, it’s important to understand various factors that can influence operations. Here’s an overview of social, cultural, political, and economic aspects:

Social and Cultural Factors

  • Language and Communication
    • The official language is English, with Setswana widely spoken.
    • Building strong personal relationships is essential for business success.
  • Business Etiquette
    • Punctuality is valued, and meetings often start with informal conversations.
    • Respect for hierarchy is important in business settings.

Political Environment

  • Government Structure
    • Botswana is a stable parliamentary republic.
    • Known for its strong democratic traditions and good governance.
  • Regulatory Environment
    • Business-friendly regulations with government support for investment.

Economic and Foreign Exchange Factors

  • Currency
    • The currency is the Botswana Pula (BWP).
    • Exchange rates are relatively stable, supported by sound economic policies.
  • Investment Incentives
    • The government offers incentives for foreign investment, particularly in sectors like mining and agriculture.

Rule of Law

  • Legal System
    • Based on Roman-Dutch law, providing a reliable legal framework.
    • Strong protection for contracts and property rights.
  • Property Rights
    • Property rights are well-protected, with clear legal processes.

Infrastructure

  • Transportation and Logistics
    • Well-developed road networks and improving rail infrastructure.
    • Landlocked, relying on neighboring countries for seaport access.
  • Telecommunications
    • Modern telecommunications network, though rural areas may have limited access.

Key URLs

  • Botswana Chamber of Commerce and Industry: bbcci.co.bw
  • Botswana Unified Revenue Service: burs.org.bw
  • Companies and Intellectual Property Authority: cipa.co.bw

Our Members Include Leading Organizations in Botswana

Ask our Experts on Doing Business in/with Botswana

If you’re looking to do business or invest in Botswana, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.