Estratégia de diversificação econômica do botswana

Estratégia de diversificação econômica do Botswana
Diversificação econômica no Botswana.
Quando o presidente da República de Botswana, H. E. O Sr. Festus Mogae, trouxe uma equipe que incluiu 25 representantes empresariais na Cúpula de Negócios de Estados Unidos da América dos EUA, ele estava perseguindo o objetivo de seu país de desenvolver parcerias comerciais entre o Botswana e os Estados Unidos. A equipe do Botswana está interessada em aproveitar o sucesso da Cúpula. Eles estão ansiosos para traduzir as relações estabelecidas durante a Cúpula em transações comerciais concretas. O tema da Cúpula "Construir Parcerias" cabe bem com os esforços do Botsuana para diversificar a atividade econômica longe da mineração de diamantes para incluir oportunidades na fabricação, serviços financeiros, turismo e tecnologia da informação. O Botswana goza de todas as vantagens do direito e da exportação livre de tarifas para os Estados Unidos e a União Européia. O país está enclavado, mas fica confortavelmente no coração da África Austral. O tamanho do mercado da região da Comunidade de Desenvolvimento da África Austral (SADC) é estimado em 200 milhões de pessoas. A adesão do Botswana à União Aduaneira da África Austral (SACU), em breve para concluir um acordo de livre comércio com os Estados Unidos, oferece oportunidades para os investidores que buscam localizar e aproveitar os benefícios do livre comércio.
... .. Fotos. O turismo cultural é um dos principais contribuintes potenciais para a economia do Botswana.
A Autoridade de Desenvolvimento e Investimento de Exportação de Botswana (BEDIA), o Centro Internacional de Serviços Financeiros (IFSC) e a Botswana Development Corporation (BDC) da Botswana são três dos principais atores que esperam para receber, ajudar e parcerias com investidores. Quer se trate de processamento de suco de frutas, curtimento de couro, fabricação de calçados, fabricação de vidro, corte e polimento de diamantes, fabricação de sabão ou vestuário e, ou por último, mas não menos importante, bens elétricos e peças sobressalentes para veículos motorizados, os investidores podem beneficiar de um imposto de baixa empresa taxa de apenas 15%. Esta taxa de 15% também será aproveitada por aqueles que investem no Centro de Serviços Financeiros Internacionais de Botsuana até junho de 2020.
O suporte de imposto de renda mais alto paga apenas 25%, e a taxa de imposto sobre as empresas aplicada às empresas não fabris é a mesma. Aqueles que investiram no Botswana reconhecem as vantagens desta baixa taxa e lhe direcionarão rapidamente os benefícios que oferece em comparação com outros locais para investir.
Os fatores respondem pela confiança que os investidores devem ter no Botsuana.
& # 149; A estabilidade política que reinou desde que Botsuana se tornou independente em 1966;
& # 149; A disciplina fiscal e monetária do governo;
& # 149; A ausência de controles cambiais;
& # 149; Os mais altos padrões de transparência no governo, nos setores não governamentais e corporativos (Transparência Internacional e Fórum Econômico Mundial avaliaram e registraram esse fato);
& # 149; Um rating de crédito "A" soberano, concedido tanto pela Moody's Investor Services e Standards and Poor;
& # 149; Infra-estrutura de telecomunicações modernas e confiáveis ​​e uma grande variedade de instalações de lazer; e.
& # 149; Excelentes instalações de cuidados médicos e instituições educacionais bem respeitadas em todos os níveis.
Estas são apenas algumas das características que fazem do Botsuana um lugar atraente para investir. Nós, no Botswana, também entendemos que todo o trabalho e nenhum lazer pode não ser um bom equilíbrio. É por isso que o governo está promovendo ativamente a experiência da região selvagem de Botswana para o viajante internacional. A concentração de espécies de vida selvagem, a paisagem única de deserto e delta e ricas áreas de patrimônio cultural fazem do Botswana um destino de férias de primeira classe.
Durante a recente visita do presidente Bush à África, a cobertura se concentrou principalmente em questões da Liberia e HIV / AIDS. Nenhum governo, especialmente o Botswana, pode negar a ameaça representada pela pandemia da AIDS. É por isso que nosso programa ofensivo contra a doença, apoiado por nossas parcerias com o setor privado dos EUA, notadamente a Merck & amp; Empresa, Bill e Melinda Gates Foundation e Harvard Aids Institute, está criando esperança para um futuro melhor, para o Botswana e o resto da África. O poder gerado pela atividade comercial nos muitos setores em que o Botsuana procura diversificação pode traduzir essa esperança em prosperidade sustentável para o povo do Botswana. O capital dos EUA pode desempenhar um papel integral na consecução desse objetivo.
Para obter mais informações sobre oportunidades de negócios no Botswana, os leitores devem visitar os seguintes sites:
1. Botswana Export Development & amp; Autoridade de Investimento (BEDIA), bedia. co. bw.
2. Botswana Development Corporation (BDC). bdc. bw.
3. Embaixada da República do Botsuana. botswanaembassy.
4. Centro Internacional de Serviços Financeiros. ifsc. co. bw.
5. Para conhecimento geral sobre o país, visite a página de Turismo de Botswana no botswana. tourism.
Estamos todos esperando para agilizar sua mudança de negócios para o Botswana.

Estratégia de diversificação econômica do Botswana
Diversificação econômica no Botswana.
Quando o presidente da República de Botswana, H. E. O Sr. Festus Mogae, trouxe uma equipe que incluiu 25 representantes empresariais na Cúpula de Negócios de Estados Unidos da América dos EUA, ele estava perseguindo o objetivo de seu país de desenvolver parcerias comerciais entre o Botswana e os Estados Unidos. A equipe do Botswana está interessada em aproveitar o sucesso da Cúpula. Eles estão ansiosos para traduzir as relações estabelecidas durante a Cúpula em transações comerciais concretas. O tema da Cúpula "Construir Parcerias" cabe bem com os esforços do Botsuana para diversificar a atividade econômica longe da mineração de diamantes para incluir oportunidades na fabricação, serviços financeiros, turismo e tecnologia da informação. O Botswana goza de todas as vantagens do direito e da exportação livre de tarifas para os Estados Unidos e a União Européia. O país está enclavado, mas fica confortavelmente no coração da África Austral. O tamanho do mercado da região da Comunidade de Desenvolvimento da África Austral (SADC) é estimado em 200 milhões de pessoas. A adesão do Botswana à União Aduaneira da África Austral (SACU), em breve para concluir um acordo de livre comércio com os Estados Unidos, oferece oportunidades para os investidores que buscam localizar e aproveitar os benefícios do livre comércio.
... .. Fotos. O turismo cultural é um dos principais contribuintes potenciais para a economia do Botswana.
A Autoridade de Desenvolvimento e Investimento de Exportação de Botswana (BEDIA), o Centro Internacional de Serviços Financeiros (IFSC) e a Botswana Development Corporation (BDC) da Botswana são três dos principais atores que esperam para receber, ajudar e parcerias com investidores. Quer se trate de processamento de suco de frutas, curtimento de couro, fabricação de calçados, fabricação de vidro, corte e polimento de diamantes, fabricação de sabão ou vestuário e, ou por último, mas não menos importante, bens elétricos e peças sobressalentes para veículos motorizados, os investidores podem beneficiar de um imposto de baixa empresa taxa de apenas 15%. Esta taxa de 15% também será aproveitada por aqueles que investem no Centro de Serviços Financeiros Internacionais de Botsuana até junho de 2020.
O suporte de imposto de renda mais alto paga apenas 25%, e a taxa de imposto sobre as empresas aplicada às empresas não fabris é a mesma. Aqueles que investiram no Botswana reconhecem as vantagens desta baixa taxa e lhe direcionarão rapidamente os benefícios que oferece em comparação com outros locais para investir.
Os fatores respondem pela confiança que os investidores devem ter no Botsuana.
& # 149; A estabilidade política que reinou desde que Botsuana se tornou independente em 1966;
& # 149; A disciplina fiscal e monetária do governo;
& # 149; A ausência de controles cambiais;
& # 149; Os mais altos padrões de transparência no governo, nos setores não governamentais e corporativos (Transparência Internacional e Fórum Econômico Mundial avaliaram e registraram esse fato);
& # 149; Um rating de crédito "A" soberano, concedido tanto pela Moody's Investor Services e Standards and Poor;
& # 149; Infra-estrutura de telecomunicações modernas e confiáveis ​​e uma grande variedade de instalações de lazer; e.
& # 149; Excelentes instalações de cuidados médicos e instituições educacionais bem respeitadas em todos os níveis.
Estas são apenas algumas das características que fazem do Botsuana um lugar atraente para investir. Nós, no Botswana, também entendemos que todo o trabalho e nenhum lazer pode não ser um bom equilíbrio. É por isso que o governo está promovendo ativamente a experiência da região selvagem de Botswana para o viajante internacional. A concentração de espécies de vida selvagem, a paisagem única de deserto e delta e ricas áreas de patrimônio cultural fazem do Botswana um destino de férias de primeira classe.
Durante a recente visita do presidente Bush à África, a cobertura se concentrou principalmente em questões da Liberia e HIV / AIDS. Nenhum governo, especialmente o Botswana, pode negar a ameaça representada pela pandemia da AIDS. É por isso que nosso programa ofensivo contra a doença, apoiado por nossas parcerias com o setor privado dos EUA, notadamente a Merck & amp; Empresa, Bill e Melinda Gates Foundation e Harvard Aids Institute, está criando esperança para um futuro melhor, para o Botswana e o resto da África. O poder gerado pela atividade comercial nos muitos setores em que o Botsuana procura diversificação pode traduzir essa esperança em prosperidade sustentável para o povo do Botswana. O capital dos EUA pode desempenhar um papel integral na consecução desse objetivo.
Para obter mais informações sobre oportunidades de negócios no Botswana, os leitores devem visitar os seguintes sites:
1. Botswana Export Development & amp; Autoridade de Investimento (BEDIA), bedia. co. bw.
2. Botswana Development Corporation (BDC). bdc. bw.
3. Embaixada da República do Botsuana. botswanaembassy.
4. Centro Internacional de Serviços Financeiros. ifsc. co. bw.
5. Para conhecimento geral sobre o país, visite a página de Turismo de Botswana no botswana. tourism.
Estamos todos esperando para agilizar sua mudança de negócios para o Botswana.

Departamento de Estado dos E. U.A.
Diplomacia em Ação.
Declaração de clima de investimento 2015 - Botswana.
Botswana é um país ligado à terra localizado na África Austral. Botswana tem historicamente desfrutado entre as maiores taxas de crescimento econômico do mundo e sua economia orientada para as exportações está altamente correlacionada com tendências econômicas globais. O desenvolvimento tem sido impulsionado principalmente pela receita da indústria do diamante, o que permitiu que o Botswana forneça infra-estrutura, como transporte e serviços sociais. Durante os 12 meses anteriores a setembro de 2014, a economia do Botswana cresceu 4,2 por cento e a inflação permaneceu na parte inferior do espectro de 3 por cento a 6 por cento do banco central. De acordo com o Governo do Botswana (GOB), os investimentos no Botswana totalizaram US $ 4 bilhões em 2012. De acordo com a escala de classificação do Banco Mundial, a renda per capita do Botswana é de US $ 7,730 torna maior do que a maioria dos outros subsaarianos países. Em dezembro de 2014, a dívida soberana da Moody & rsquo; s e S & P PST Botswana como A2 e A-, respectivamente.
Botswana é um país estável e democrático com um sistema judiciário independente. Ele mantém um ambiente macroeconômico estável, disciplina fiscal, um sistema bancário bem capitalizado e um sistema de taxa de câmbio sensível de rastreamento. A corrupção no Botsuana permanece menos abrangente do que em outras partes da África; No entanto, as empresas estrangeiras e nacionais comentaram uma crescente corrupção relacionada ao concurso, onde os funcionários de confrontos manipulam o processo. O GOB lançou iniciativas para promover o investimento estrangeiro em setores-chave, a fim de diversificar sua economia além da indústria de diamantes e criou o Botswana Investment and Trade Center para auxiliar os investidores locais e estrangeiros neste empreendimento. O Botswana é um estado membro tanto para a convenção ICSID quanto para a convenção de Nova York de 1958.
Apesar do compromisso de atrair investimentos, as políticas do GOB nem sempre facilitam as operações de negócios no exterior no Botswana. Atualmente, eles não possuem um quadro legal consolidado que esclarece as proteções e incentivos oferecidos aos investidores e há limitações à participação estrangeira no mercado. Pelo menos vinte empresas diferentes do setor de serviços estão reservadas para nacionais. Complementar a isso são as preferências institucionalizadas de aquisição de bens e serviços de fontes de propriedade do cidadão. Os gerentes citam déficits de habilidades locais, baixa produtividade do trabalho e desafios que obtêm licenças de trabalho para trabalhadores estrangeiros como restrições comerciais importantes no Botswana. Os obstáculos burocráticos e a escassez de água e eletricidade também prejudicam a atividade econômica no Botswana e o crescente número de empresas estatais (SOE) do governo e as participações no mercado expulsam o setor privado. O GOB procura melhorar seus processos aduaneiros e de compras com a assistência da USAID e da Agência de Comércio e Desenvolvimento dos EUA.
O Banco Mundial classificou o Botsuana 74 em 189 economias na categoria de Facilidade de Fazer Negócios. As principais oportunidades de investimento incluem grandes projetos de infra-estrutura de água, eletricidade, transportes e telecomunicações que o GOB planeja implementar. A participação do leão nas atividades econômicas fora do setor de diamantes é impulsionada por compras governamentais e o GOB tem um orçamento aproximado de US $ 5 bilhões para o ano fiscal de 2015. Especialistas econômicos observaram que o Botswana tem um potencial considerável em áreas como; setor de beneficiamento de mineração, eletricidade, indústria de carne, turismo e serviços financeiros.
1. Abertura para, e restrições, investimento estrangeiro.
Atitude em direção ao investimento estrangeiro direto.
O GOB enfatiza publicamente a importância de atrair o investimento estrangeiro direto (IED). O GOB lançou iniciativas para promover a atividade econômica e o investimento estrangeiro em áreas específicas, incluindo o estabelecimento de centros para promover o crescimento econômico nos setores de agricultura, diamante, educação, saúde e transporte. As oportunidades de investimento adicionais no Botsuana incluem grandes infra-estruturas de água, eletricidade, transporte e telecomunicações. Botswana importa a maioria dos seus produtos para consumo; alimentos, roupas, eletrodomésticos, equipamentos de mineração e matérias-primas.
Em 2012, o Ministério do Comércio e Indústria (MTI) elaborou um documento de posição para uma proposta de Lei de Facilitação de Investimento e solicitou uma Revisão da Política de Investimento da OCDE para informar suas discussões sobre a consolidação de um regime legal de investimento. Ele aboliu todos os controles de câmbio, instituiu baixas taxas de imposto sobre empresas e o Botswana Investment and Trade Center oferece assistência a investidores estrangeiros (seção de Incentivos ao Investimento de referência). Apesar do desejo de atrair investimento estrangeiro, certas políticas do GOB não facilitam as empresas estrangeiras para fazer negócios.
Outros Requisitos de Política de Investimento.
Em dezembro de 2014, a Organização de Cooperação e Desenvolvimento Econômico (OCDE) divulgou uma Revisão de Política de Investimento no Botswana. (oecd-ilibrary / finance-and-investment / oecd-investment-policy-reviews-botswana-2014_9789264203365-pt).
O Botswana tem sido uma Organização Mundial do Comércio (OMC) desde 1995. Como membro da União Aduaneira da África Austral (SACU), a OMC realizou uma revisão da política comercial em 2009. (wto / english / tratop_e / tpr_e / tp322_e. htm)
Leis / Regulamentos do Investimento Estrangeiro Direto.
De acordo com a Lei das empresas da Botswana, os estrangeiros que desejam operar uma empresa devem se registrar e obter as licenças e licenças relevantes, conforme prescrito na Lei de Comércio de 2008.
As licenças são necessárias para um vasto leque de negócios, incluindo serviços bancários, serviços financeiros não bancários, transporte, serviços médicos, mineração, provisão de energia e vendas de álcool. Embora as recentes emendas ao Trade Act tenham eliminado a categoria de licença comercial diversa, os investidores informaram sobre as autoridades locais que insistem em que uma empresa solicite uma licença, mesmo quando não se enquadra nas categorias estabelecidas. Além disso, algumas empresas observaram que a aplicação das licenças, bem como o tempo de inspeção para cumprir os requisitos de licenciamento, varia muito entre as autoridades governamentais locais. Os processos da Botsuana para obter uma licença de construção são longos (uma média de 110 dias), além da necessidade de completar vinte etapas separadas. A Embaixada dos EUA continua a se envolver com o GOB para destacar estes e outros desafios de licenciamento.
O Botswana Investment and Trade Center serve como um recurso útil ao registrar uma empresa e obter licenças e licenças. O MTI também fornece orientação sobre o processo de registro de uma empresa em seu site (mti. gov. bw/businessregistration).
A Estratégia Nacional de Exportação do GOBs identifica oito setores prioritários voltados para o crescimento: (1) artes e ofícios; (2) vestuário; (3) têxteis; (4) jóias; (5) processamento mineral (incluindo diamantes); (6) produtos de vidro e vidro; (7) produtos de couro e couro; e, (8) carne bovina. The Economic Diversification Drive, um programa governamental utilizado para implementar uma estratégia para diversificar a economia além da indústria de diamantes, acrescentou cinco áreas adicionais: (9) energia renovável; (10) produtos de materiais reciclados; (11) serviços auxiliares de apoio; (12) banca, finanças e seguros; e, (13) construção / construção.
Limites do Controle Estrangeiro.
O Botswana reserva algumas licenças unicamente para cidadãos, incluindo açougues, estabelecimentos comerciais, postos de gasolina, lojas de bebidas alcoólicas, supermercados (excluindo lojas de corrente), bares (além dos associados a hotéis), certos tipos de restaurantes, boutiques, leiloeiros, lavagem de carros, serviços de limpeza doméstica, lojas de curiosidades, vendedores de produtos frescos, funerarias, cabeleireiros, vários tipos de serviços de aluguel / aluguer, lavanderias, tipos específicos de projetos de construção do governo sob um determinado valor em dólares, certas atividades relacionadas à construção e manutenção de estradas e vias férreas e certos tipos de atividades de fabricação, incluindo a produção de móveis para escolas, soldagem e alvenaria.
A MTI informou ao Comitê Nacional de Doing Business (NDBC) em 2015 que permitiria que os estrangeiros começassem a operar um número indeterminado de setores de negócios atualmente limitados aos cidadãos Batswana.
A MTI, que administra a iniciativa de participação cidadã, adotou uma ampla interpretação do termo cadeias, de modo que engloba qualquer loja com mais de uma saída. Esta ampla interpretação resultou na necessidade de aplicar isenções a certos supermercados, operações de especialidade simples e lojas comerciais em geral. Conseqüentemente, muitos grandes mercados de mercadorias em geral, restaurantes e redes de supermercados são de propriedade de estrangeiros.
O GOB se representou profundamente comprometido com a privatização, até mesmo juntando uma força-tarefa em 1997. Esta força-tarefa aprovou regulamentos em 2000 para privatizar todas as suas empresas estatais; e formou uma Agência de Avaliação e Privatização de Empresas Públicas (PEEPA) para supervisionar esse processo. Na prática, nenhuma das entidades estatais (SOE), conhecidas como paraestatais, foram privatizadas e o GOB expandiu suas empresas públicas nos últimos anos. Em 2012, o GOB criou a Okavango Diamond Company e a Mineral Development Company Botswana para supervisionar suas participações na indústria mineral. Em 2014, o GOB adquiriu operações para formar um centro de mineração sob uma grande estratégia de diversificação econômica denominada Polaris II e lançou o Botswana Oil Limited para gerenciar o abastecimento de combustível do país.
Depois de mais de 12 anos de esforço e múltiplas tentativas de chegar a um acordo de privatização sobre a companhia aérea estatal Air Botswana, até hoje a companhia aérea ainda continua sendo parte do GOB. As privatizações de outras seis organizações estatais, incluindo a Botswana Telecommunications Corporation (BTC) e o Banco Nacional de Desenvolvimento, também estão atrasadas. Em setembro de 2014, o GOB anunciou que manteria uma oferta pública inicial para vender 49% de suas atuais disponibilidades de BTC apenas para empresas nacionais, bem como empresas de propriedade do cidadão, mantendo uma redução de 51%. Desde o início desse anúncio em 2014, GOB diferiu esta oferta pública inicial em três ocasiões distintas. Nenhuma nova data foi anunciada.
A capacidade do PEEPA para gerenciar a privatização das empresas estatais é dificultada pela falta de legislação correspondente para fazer cumprir o processo. Como resultado, a decisão de privatizar, e a velocidade com que é feito, permanecem a critério do ministério ou departamento.
O Botswana Investment and Trade Center analisa o investimento estrangeiro direto (IDE) no Botswana ao avaliar se deve ajudar os investidores.
O Botswana desenvolveu legislação e políticas antitruste para assegurar uma concorrência adequada no ambiente empresarial. De acordo com a Lei da Concorrência, a Autoridade da Concorrência recém-criada está agora monitorando fusões e aquisições. Entre abril de 2013 e março de 2014, a Autoridade da Concorrência investigou 61 casos de alegadas práticas de monopólio. A Autoridade da Concorrência está habilitada a rejeitar as fusões quando consideradas não estarem no melhor interesse público. A Autoridade da Concorrência interpretou essa habilidade para significar que pode proibir fusões quando o resultado final é a concentração de uma maioria de ações nas mãos de investidores estrangeiros.
O GOB declarou seu desejo de atrair investimentos estrangeiros adicionais, no entanto, suas políticas existentes nem sempre tornam mais fácil para as empresas estrangeiras fazer negócios. Não há um quadro legal consolidado para esclarecer as proteções e os incentivos concedidos aos investidores e as limitações à participação estrangeira no mercado. O Manual do investidor do Botswana de 2014 (botswana. usembassy. gov/economic_information_reports. html) publicado pelo Investment and Trade Center (BITC) mostra alguma luz sobre os aspectos da estrutura de investimento. Os partidos políticos do Botswana enfatizam a importância do empoderamento cidadão, um termo intercambiável que se refere à segurança social ou à criação de políticas econômicas que criem novas oportunidades para seus cidadãos. Mais de vinte empresas no setor de serviços são reservadas exclusivamente para cidadãos. A Política de Empoderamento Econômico do Cidadão de 2012 enfatizou a preferência pelas empresas locais. Em outubro de 2014, o GOB e a Câmara dos Minas criaram um comitê para supervisionar a compra de mineração com preferência em relação às produzidas localmente.
O Botswana caiu oito lugares no Banco Mundial de 2015, Doing Business Report para 74 de 189 devido à deterioração de procedimentos como o pagamento de impostos, o início de uma empresa, o registro de imóveis e o contínuo baixo ranking no comércio transfronteiriço . Procedimentos burocráticos onerosos, além do racionamento da água, cortes de energia e infra-estrutura fraca dificultam a atividade econômica. O Ministério do Trabalho e dos Assuntos Internos, negou as licenças a um grande número de trabalhadores estrangeiros qualificados, sem fornecer nenhuma explicação, levando câmaras de comércio estrangeiras, a manifestar preocupação com a capacidade de estabelecer ou manter operações comerciais no país. Em 2014, o GOB aumentou sua participação de mercado ao adquirir operações de mineração privadas e ao lançamento do novo Botswana Oil Limited estatal para gerenciar o abastecimento de combustível do país. A principal câmara de comércio do Botswana se manifestou em resposta contra o crescente número de empresas estatais do governo, observando que multiplica o setor privado.
Ao longo do último ano, o GOB tomou medidas para melhorar o clima de investimento. Se implementado, essas reformas facilitarão o investimento no Botswana; no entanto, a implementação do GoB & rsquo; s das reformas planejadas historicamente está atrasada. Em maio de 2014, o parlamento aprovou uma Lei das Transações e Comunicações Eletrônicas destinada a agilizar os procedimentos criando um sistema on-line centralizado para armazenar e aprovar documentos. O GOB também começou a conceder isenções de licenças para empresas em 2014 e afirmou que removerá em 2015 os requisitos para licenças que não estão relacionadas à saúde ou à segurança. Em janeiro de 2015, o Gabinete GOB aprovou o estabelecimento da Janela Única Nacional do Botsuana, que permite que os comerciantes internacionais apresentem documentos regulatórios em um único local para facilitar o comércio. A partir de março de 2015, o Botswana Unified Revenue Services está consultando o setor privado em um projeto para alterar o Ato de Alfândega e impostos especiais de consumo, com vista a simplificar os procedimentos e reduzir os custos de importação e exportação. O Centro para o Comércio da África Austral da USAID prestou assistência técnica ao GOB durante o processo de redação.
A MTI informou ao National Doing Business Committee (NDBC) em março de 2015 que aprovou um conjunto sem precedentes de reformas empresariais em dezembro de 2014. As principais mudanças apresentadas incluem a criação de um corpo de juízes especializados em comércio no sistema judicial civil, a racionalização do registro de imóveis, e permitindo que os estrangeiros operem em um número indeterminado de setores de negócios atualmente limitada aos cidadãos batswana. O MTI informou ao NDBC que o GOB implementaria reformas administrativas incluídas no pacote até o final de 2015 e reformas legais até o final de 2016. O GOB também está considerando implementar um roteiro de reforma de compras com a Agência de Comércio e Desenvolvimento dos EUA Iniciativa de compras globais: Compreensão do programa de assistência técnica de melhor valor.
Índice de Percepção de Corrupção TI.
Relatório de Negócios do Banco Mundial & ldquo; Ease of Doing Business & rdquo;
Índice de Inovação Global.
PIB do Banco Mundial per capita.
2. Políticas de conversão e transferência.
Não existem controles de câmbio no Botswana nem restrições sobre saídas de capital através de instituições financeiras. Os bancos comerciais são obrigados a garantir que os clientes completem os formulários básicos, indicando nome, endereço, finalidade e outros detalhes antes de processar solicitações de transferência de fundos ou pedidos de empréstimo. O Ministério das Finanças monitora os dados coletados nos formulários para informações estatísticas sobre os fluxos de capital, mas o formulário não requer aprovação do governo antes do processamento de uma transação e não atrasa as transferências de capital.
Para incentivar o investimento de carteira, desenvolver mercados de capitais nacionais e diversificar os instrumentos de investimento, os não residentes podem negociar e emitir obrigações denominadas em Pula no Botswana com prazos de vencimento superiores a um ano, desde que esses instrumentos sejam cotados na Bolsa de Valores de Botswana ( BSE). O Certificado de Economia de Lettonle da Botswana (equivalente a um vínculo do Tesouro dos EUA) só pode ser comprado pelos cidadãos da Botswana. Os estrangeiros só podem deter participações em empresas da Botswana listadas na BSE.
Os viajantes não estão restritos ao valor da moeda que podem transportar, mas são obrigados a declarar à alfândega no porto de partida qualquer montante em dinheiro superior a BWP 10 000 (USD 1.200). Não há limites quantitativos no acesso à moeda estrangeira para transações de conta corrente.
As contas bancárias denominadas em moeda estrangeira são permitidas no Botsuana. Os bancos comerciais oferecem contas denominadas em Dólares americanos, Libras britânicas, Euros e Rand sul-africano. Empresas e outros órgãos incorporados ou registrados no país podem abrir contas sem a aprovação prévia do Banco do Botswana. O governo também permite a emissão de empréstimos denominados em moeda estrangeira.
Após a desinvestir por um não residente, o não residente é permitido repatriamento imediato de todos os ganhos, incluindo lucros, aluguéis, taxas, etc.
O Botswana Pula (BWP) tem uma taxa de câmbio rastejante e está vinculado a uma cesta de moedas composta pelo rand sul-africano, ponderado em 50%, com os direitos de saque especiais do FMI (consistindo no dólar norte-americano, no euro, Libra britânica e iene japonês) compreendendo os outros 50 por cento. O Banco do Botswana reduziu a ponderação do rand sul-africano de 55% para 50% em janeiro de 2015. O BWP continua a ser fortemente influenciado pelos movimentos do rand sul-africano contra o dólar dos EUA. Não há dificuldade em obter câmbio. A escassez de divisas que levaria os bancos a bloquear transações são altamente improváveis.
Em 2014, a Agência de Inteligência Financeira do Ministério das Finanças (FIA) começou a processar relatórios de transações suspeitas. A FIA está preparada para ajudar o Serviço de Polícia de Botsuana, a Direção de Corrupção e Crime Econômico e o Ministério Público a identificar e investigar delitos de lavagem de dinheiro. Sob a fiscalização da FIA, os bancos de Batswana começaram a melhorar as práticas de combate ao branqueamento de capitais, introduzindo os sistemas de conformidade da AML. Além disso, em 2014, o parlamento aprovou a Lei contra o Terrorismo e a Lei de Processos e Instrumentos de Crime, atendendo aos requisitos do Grupo de Anti-Lavagem de Dinheiro da África Oriental e Austral (ESAAMLG). O Botswana estava previamente monitorado por ESAAMLG antes de introduzir essas reformas.
Não aplicável / informação não disponível.
3. Expropriação e compensação.
A seção 8 da Constituição do país proíbe a nacionalização da propriedade privada. O GOB nunca seguiu uma política de nacionalização forçada e é altamente improvável que adote uma. A Lei de Aquisição de Propriedade fornece um processo para qualquer expropriação, incluindo parâmetros para determinar o valor de mercado e receber compensação. A Emenda de 2007 à Lei de Abastecimento de Eletricidade permite ao GOB revogar a licença de um Produtor de Energia Independente e confiscar as operações com compensação para fins de interesse público.
Sistema Legal, Tribunais Especializados, Independência Judicial, Julgamentos de Tribunais Estrangeiros.
A Constituição local prevê um sistema judicial independente. O sistema jurídico do Botswana é baseado na lei romano-holandesa, tal como influenciado pelo direito comum inglês. Este tipo de sistema convive com legislação, decisões judiciais e leis consuetudinárias locais. Os tribunais aplicam adequadamente os contratos comerciais, e o sistema judicial é amplamente considerado como justo. Tanto os investidores estrangeiros como os nacionais têm igual acesso ao sistema judicial. Botswana não tem um tribunal comercial dedicado. O Tribunal Industrial estabelecido pela Lei de Disputas Comerciais de 2004 aborda principalmente assuntos trabalhistas.
Como parte do pacote de reformas de dezembro de 2014 que o MTI apresentou ao Comitê Nacional de Doing Business, o GOB está planejando criar um corpo de juízes especializados em comércio dentro do sistema de tribunais civis. Sob o novo sistema, os casos comerciais serão supervisionados pelos juízes comerciais, a fim de acelerar o tratamento e garantir conhecimentos relevantes. O GoB planeja implementar essas mudanças até o final de 2016; No entanto, a implementação das reformas planejadas pelo GoB tem historicamente atrasado.
Os litigantes dos EUA queixaram-se de que o tempo necessário para obter e fazer valer um julgamento em uma disputa comercial é excessivamente longo. O tempo de resposta para casos civis é de aproximadamente dois anos. Em um esforço para criar decisões mais eficientes, o governo estabeleceu tribunais de terras, tribunais industriais, pequenas reivindicações e corrupção. Nos últimos anos, alguns dossiês melhoraram, mas o progresso foi desigual.
As leis locais são acessíveis através do site do Escritório do Procurador Geral da Botswana (laws. gov. bw). Pode demorar até 24 meses para que uma lei, uma vez aprovada, apareça no site.
Botswana’s commercial and bankruptcy laws are comprehensive. Secured and unsecured creditors enjoy similar rights under bankruptcy proceedings as they would in the United States.
There are no known investment disputes involving U. S. persons.
Botswana accepts international arbitration to settle investment disputes.
ICSID Convention and New York Convention.
Botswana has ratified the convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). They are also a member state to the International Centre for the Settlement of Investment Disputes (ICSID convention), and the Multilateral Investment Guarantee Agency (MIGA).
Duration of Dispute Resolution.
The duration in reaching a resolution involving an investment dispute depends on a number of factors. When local courts are involved they will usually call the aggrieved parties and recommend that they try to settle their differences out-of-court. If negotiations fail, the matter will be assigned to a judge whom will place the case on his docket. There is also an option to label the matter as urgent in order to speed up the process but this too requires a subsequent judicial assessment to determine if the matter is urgent.
Performance Requirements and Investment Incentives.
Botswana is a World Trade Organization (WTO) member since 1995. Botswana does not keep any policies that are inconsistent with WTO TRIMS requirements.
Botswana has several mechanisms in place to attract foreign direct investment (FDI). The BITC provides assistance to local and foreign investors. BITC is responsible for promoting foreign direct investment, investor aftercare, and the promotion of locally-manufactured goods in export markets. It assists investors with company registration, land acquisition, factory shells, utility connections, and work and residence permits for essential staff. Requests by investors for investor support from BITC and other agencies are evaluated based on the extent to which the proposed project assists in the government’s diversification efforts, contributes to the growth of priority sectors, and provides employment and training to Botswana citizens. The government also makes grants available to investors who partner with citizens and will extend credit to investors presenting proposals that have undergone appropriate due diligence and which have completed a feasibility study. Foreign investors are encouraged to transfer technology to Botswana and skills to Botswana citizens with a view to preparing them for promotion into management positions.
Botswana offers a relatively low tax rate of 22 percent of the corporate taxable income and 7.5 percent withholding tax on all dividends distributed. The MTI can grant manufacturing companies the reduced level of 15 percent taxable income. Companies can pay the reduced rate of 15 percent of profit with accreditation from the Innovation Hub or the International Financial Services Centre on approved operations.
The Minister of Finance and Development Planning has the authority to issue development approval orders which are used for specific projects, which include providing tax holiday and education and training grants. The Minister must be satisfied that the proposed project will be beneficial to Botswana’s economy. Any firm, local or foreign, may apply for a Development Approval Order through the Permanent Secretary for Finance and Development Planning. Applications will be evaluated against the following criteria: job creation for Botswana citizens; the company's training plans for Botswana citizens; the company's plans to localize non-citizen positions; Botswana citizen participation in company management; amount of equity held by Botswana citizens in the company; the location of the proposed investment; the project's effect on the stimulation of other economic activities; and the project's effect on reducing local consumer prices. The MTI also offers rebates on imported materials for manufactures that produce products for export.
Research and Development.
Information is not available.
Performance requirements are not imposed as a condition for establishing, maintaining, or expanding an investment in Botswana, or for access to tax and investment incentives. Foreign investors are encouraged, but not compelled, to establish joint ventures with citizens or citizen-owned companies.
Foreign investors wishing to invest in Botswana are required to register the company in accordance with the Companies Act and comply with other applicable legislation. Investors are encouraged, but not required, to purchase from local sources. The Government does not require investors to locate in specific geographical areas, use a specific percentage of local content, permit local equity in projects, manufacture substitutes for imports, meet export requirements or targets, or use national sources of financing for private-sector investments.
As a matter of policy, the GOB encourages foreign firms to hire qualified Botswana nationals rather than expatriates. The granting of work permits foreign workers may be made contingent upon establishment of demonstrable localization efforts. The government may additionally require evidence that a local is being trained to assume duties currently being fulfilled by foreign worker, specially focused at the middle-management level. The GOB offers incentives to companies that train local employees, including the deduction of 200 percent of training expenses when training is carried out by an accredited institution. The government has introduced a range of policy initiatives intended to mitigate the impending loss of diamond revenue and decrease government spending, including an Economic Diversification Drive, which employs government purchases to stimulate local production and consumption, as well as a wage freeze to reduce the size of the public sector wage bill.
Investors who rely on expatriate managerial and technical expertise see these limitations on immigration as a major regulatory constraint. In 2012, Botswana implemented a Points Based System (PBS) to evaluate work permits, in response to complaints that immigration authorities lacked the necessary expertise to properly evaluate applications for individuals with certain skill sets. This resulted in immediate and widespread complaints that the PBS was too stringent. The government then announced that it would review the policy; however, there is no indication that restrictions have not relaxed. The Ministry of Labor and Home Affairs has recently denied work permits to a large number of skilled foreign workers.. Even recent amendments to the Immigration Law do not appear to address the problem. Firms that retain BITC’s investment services are afforded priority in the permitting process and may avoid some of the delays that have been reported in finalizing immigration documents.
Grants are available to foreign investors who partner with Botswana citizens. The Citizen Entrepreneurial Development Agency has established a venture capital fund to provide equity to citizens and ventures between citizens and foreign investors. Foreign investors do not have access to Botswana government loans and grants designed specifically for citizen-owned contracting firms or for small enterprises.
The government, the largest procuring entity in the country, has directed central government, local authorities and state-owned enterprises to purchase all products and services from locally-based manufacturers and service providers if the goods and services are locally available, competitively priced, and meet tender specifications in terms of quality standards as certified or recognized by the Botswana Bureau of Standards. The Department of Industrial Affairs under the MTI administers this program.
In order for a foreign firm to qualify with the Department of Industrial Affairs as a locally-based manufacturer or service provider to sell goods or services to the government of Botswana, the firm first must be registered with the Registrar of Companies and possess a relevant license or waiver letter. Few of these procedures can be completed online. Therefore, in practice companies see the need to hire an agent on the ground to handle registrations.
For Companies Act registration purposes, enterprises are classified as follows: Micro Enterprises —less than 6 employees including owner and annual turnover of up to BWP 60,000; Small Enterprises — less than 25 employees and annual revenue between BWP 60,000 and 1,500,000; Medium Enterprises — less than 100 employees and an annual revenue between BWP 1,500,000 and 5,000,000; Large Enterprises —more than 100 employees and an annual revenue between BWP 5,000,000 or more.
There are no requirements to store data within the country.
6. Right to Private Ownership and Establishment.
The GOB reserves some business sectors for citizen ownership, has instituted local procurement preferences, and limits the land permitted to be sold to foreigners (see Sections 1, 7, and 8). Botswana has no other known restrictions on investment ownership, the sources of financing for investments, the marketing of products, the sources of technology used by companies, or the methods of training used by companies; however the absence of a consolidated investment framework has resulted in a lack of clarity regarding limitations on foreign investment.
6. Protection of Property Rights.
As part of the December 2014 reforms packet that the MTI presented to the National Doing Business Committee, the GOB plans to streamline and standardize property registration procedures by the end of 2016; however implementation of GOB-planned reforms has historically lagged. There are three main categories of land in Botswana: freehold, state land, and tribal land. Tribal and state land cannot be sold to foreigners. There are no restrictions on the sale of freehold land, but only about 5 percent of land in Botswana is freehold. In the capital city of Gaborone, the number of freehold plots is limited.
State land represents about 25 percent of land in Botswana. On application to the Department of Lands, both foreign-owned and local enterprises registered in Botswana may lease state land for industrial or residential use. Commercial use leases are for 50 years and residential leases are for 99 years. Waiting periods tend to be long for leasehold applications, but subleases from current leaseholders are available. In 2014, the GOB changed its implementing regulation to allow companies with less than five employees to operate in residential areas if their operations do not pose a health or safety risk to residents.
Tribal land represents 70 percent of land in Botswana. To obtain a lease for tribal land, the investor must approach the relevant local Land Board. Processes are unlikely to be streamlined or consistent across Land Boards.
Since independence, the trend in Botswana has been to increase the area of tribal land at the expense of both state and freehold land. Landlord-tenant law in Botswana tends to be moderately pro-landlord.
In addition to helping investors who meet its criteria obtain appropriate land leaseholds, the Botswana Investment and Trade Centre has also built factory units for lease to industrialists with the option to purchase at market value.
Intellectual Property Rights.
Intellectual property rights are protected under the Industrial Property Act of 2010, the Registration of Business Names Act of 1975 and the Copyright & Neighboring Rights Act of 2000. Other IP-related Laws include the Competition Act, the Value Added Tax Act, the Botswana Penal Code, the Customs and Excise Duty Act, the Monuments and Relics Act, the Broadcasting Act, and the Societies Act.
Botswana is a signatory to the Beijing Treaty on Audiovisual Performances, the Hague Agreement Concerning the International Deposit of Industrial Designs, the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks, the Convention Establishing the World Intellectual Property Organization (WIPO), the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, the Patent Cooperation Treaty, the Berne Convention for the Protection of Literary and Artistic Works and the Paris Convention for the Protection of Industrial Property.
In June 2014 GOB authorities worked with Namibian authorities and Interpol to seize 644,000 counterfeit items valued over USD 3 million in Botswana and Namibia.
For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at wipo. int/directory/en/.
Resources for Rights Holders.
Embassy point of contact: Goitseone Montsho: MontshoGstate. gov.
8. Transparency of the Regulatory System.
Bureaucratic procedures necessary to start and maintain a business tend to be open, though slow. Foreign investors’ complaints generally focus on the inefficiency and/or unresponsiveness of mid-level and low-level bureaucrats in government. The government has introduced a Performance Management System to improve the service and accountability of government employees, but its effectiveness has not yet been evaluated.
The Public Procurement and Asset Disposal Board (PPADB) oversee all government tenders. Prospective government contractors are required to register with the PPADB. The PPADB maintains a process by which tender decisions can be challenged, and a bidder can also challenge a tender procedure in the courts. The PPADB publishes its decisions concerning awarded tenders, prequalification lists, and newly registered contractors.
The PPADB Act calls for preferential procurement of citizen-owned contractors for works, service and supplies, as well as specific, disadvantaged women’s communities, though it states that such preferences must be time-bound, phased in and out as necessary, and consistent with the country’s external obligations and its “market-oriented, macroeconomic framework.” When a procuring entity wishes to reserve a tender for citizen-only participation, it is required to publish a notice to that effect either in the bid document or the pre-qualification notice.
Health and safety laws, embodied in the Factories Act of 1973, provide basic protection for workers from unsafe working conditions. Minimum working conditions required on work premises include cleanliness of the premises, adequate ventilation and sanitation, sufficient lighting and the provision of safety precautions. Health inspectors and the Botswana Bureau of Standards carry out periodic checks at both new and operating factories.
9. Efficient Capital Markets and Portfolio Investment.
The government encourages the establishment of new and diverse financial institutions to support increased foreign and domestic investment and to fill existing gaps where finance is not commercially available. There are eight commercial banks, one merchant bank and one offshore bank, one statutory deposit-taking institution and one credit union operating in Botswana. All have corresponding relationships with U. S. banks. Additional financial institutions include various pension funds, insurance companies, microfinance institutions, stock brokerage companies, asset management companies, statutory finance institutions, collective investment undertakings, and statutory funds. Historically, commercial banks have accounted for 92 percent of total deposits and 98 percent of total loans in Botswana. A large portion of the population does not participate in the formal banking sector.
Money and Banking System, Hostile Takeovers.
The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) was established in 2008 and provides regulatory oversight for the non-banking sector. It extends know-your-customer practices to non-banking financial institutions and is intended to help deter money laundering and terrorist financing. NBFIRA is also responsible for regulating the International Financial Services Centre, a hub charged with promoting the financial services industry in Botswana.
The central bank, the Bank of Botswana (BOB), acts as banker and financial advisor to the government and is responsible for the management of the country’s foreign exchange reserves, the administration of monetary and exchange rate policies, and the regulation and supervision of financial institutions in the country. Monetary policy in Botswana is widely regarded as prudent and the government has successfully managed to maintain sensible exchange rate and stable inflation rate, generally within the target of 3 to 6 percent.
Banks may lend to non-resident controlled companies without seeking approval from the Bank of Botswana. Foreign investors usually enjoy better access to credit than local firms due. In July 2014 USAID’s Development Credit Authority, in collaboration with the Barclays Bank of Botswana, implemented a program to allow Small and Medium Enterprises (SME) to access up to USD 15 million in loans in an effort to diversify the current economy.
The local Stock Exchange (BSE) has 36 publicly traded companies. As of 2015, 22 companies on the Domestic Board and 12 companies on the Foreign Equities Board. In addition, three exchange traded funds are listed on the exchange. The total market capitalization for listed companies, as of March 2015 was USD 41.95 billion though most of that is taken up by one company, Anglo-American Plc, which has a market capitalization of some USD 35 billion. The BSE is still highly illiquid compared to larger African markets and is dominated by mining companies which adds to index volatility. Laws prohibiting insider trading and securities fraud are still under development.
The government has legitimized offshore capital investments and allows foreign investors, individuals and corporate bodies, and companies incorporated in Botswana to open foreign currency accounts in specified currencies. The designated currencies are U. S. Dollar, Pound Sterling, Euro and the South African Rand. There are no known practices by private firms to restrict foreign investment participation or control in domestic enterprises. Private firms are not permitted to adopt articles of incorporation or association which limit or prohibit foreign investment, participation or control.
In general, Botswana exercises careful control over credit expansion, the Pula exchange rate, interest rates, and foreign and domestic borrowing. Banking legislation is largely in line with industry norms for regulation, supervision, and payments, and its anti-money laundering and combating the financing of terrorism regime is improving (see section two).
10. Competition from State-Owned Enterprises.
State-owned enterprises (SOEs), known as “parastatals,” are majority or one hundred percent owned by the Government. There is a published list of SOEs at the GoB portal (gov. bw) with profiles of financial and development SOEs. Some SOEs are state-sanctioned monopolies, including the Botswana Telecommunications Corporation, Botswana Meat Commission, the Water Utilities Corporation, Botswana Railways, and the Botswana Power Corporation.
Private and government-owned enterprises are governed by the same business registration and licensing laws. No law or regulation prohibits or restricts private enterprises from competing with SOEs. Botswana law requires SOEs to publish annual reports and, depending on how they are constituted, SOEs are audited by private sector accountants or the Auditor General. In 2011, Parliament also began overseeing SOEs, compelling Presidents and Chairmen to appear before Parliamentary committees to provide reports and answer questions regarding their performance. Many SOEs are not performing well and several, including the Botswana Meat Commission, the Botswana Telecommunications Corporation (BTC) and the Botswana Power Corporation, have been embroiled in scandals involving alleged fraud and mismanagement. One former CEO and several employees of the BTC were indicted on corruption charges in 2012. In 2013, the Parliamentary Committee investigated allegations of corruption and mismanagement at Botswana Meat Commission.
OECD Guidelines on Corporate Governance of SOEs.
SOEs appoint a CEO, who reports to a Board of Directors, which reports to the relevant government Ministry. Board members are appointed by line ministers and are drawn from both the government and the private sector. Corporate governance is still a very new phenomenon in Botswana, but most SOEs are moving towards implementing it. CEOs of some SOEs, i. e. Bank of Botswana, Public Procurement & Asset Disposable Board, are still holding the Chairman positions of their boards while the OECD guidelines good practice calls for separation of duties. Appointment of Board members and CEO is very much politically motivated. Nominated candidates for these positions are submitted to the parliament for approval and they can either accept or reject a candidate.
The Bank of Botswana maintains a long-term sovereign wealth fund, known as the Pula Fund, in addition to a regular foreign reserve account providing basic import cover. The Pula Fund, with an estimated value of some USD 7 billion, was established under the Bank of Botswana Act and forms part of the country’s foreign exchange reserves, which are primarily funded by diamond revenues. The Pula Fund is wholly invested in foreign currency-denominated assets and is managed by the Bank of Botswana Board with input from recognized international financial management and investment firms. All realized market and currency gains or losses are reported in the Bank of Botswana’s income statement.
11. Corporate Social Responsibility.
Corporate Social Responsibility (CSR) is recognized and embraced by government, some foreign and local firms, and customers. Major banks such as Standard Chartered and cell phone providers such as Mascom have established CSR programs, sponsor projects and support local nonprofit concerns. However, the CSR ethos has not taken hold in many smaller firms. The U. S. Embassy worked with the Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) on the issue of CSR and ethical compliance to help enlist companies to sign onto a Corporate Code of Conduct that covers, among other things, conflicts of interest, bribery, political interference, political party funding, procurement and bidding and issues surrounding residence and work permits. While the Code of Conduct is voluntary, it envisions amending Botswana’s Procurement Act to allow only firms that have signed on to participate in tenders. It also envisages procedures whereby firms may be de-listed as signatories. To date, more than 70 firms have signed the Code of Conduct.
OECD Guidelines for Multinational Enterprises.
The GoB actively encourages companies to embrace corporate social responsibility. The President of Botswana has publicly commended companies that exercise corporate social responsibility and challenged others to do the same.
The threat of political violence is considered low in Botswana. Public demonstrations are rare and seldom turn violent. The most recent protest involved public sector employees and occurred in April to June 2011. There were reports of police deployments and clashes with protestors. With the exception of a few minor instances demonstrations were largely peaceful.
UN Anticorruption Convention, OECD Convention on Combatting Bribery.
Botswana has a reputation for a relative lack of corruption and a willingness to prosecute corrupt officials. Transparency International ranks Botswana as the least corrupt country in Africa (31st overall), and a 2014 report by the World Justice Project ranked Botswana number one on its regional rule of law index. Investors with experience in other developing nations describe the relative lack of obstruction or interference by law enforcement or other government agents as among the country's most important assets. Nevertheless, private sector representatives now note rising corruption levels in government tender procurements.
The major corruption investigation body is the Directorate on Corruption and Economic Crimes (DCEC). Overall, the DCEC is regarded as an active and independent organization. The DCEC has embarked on an education campaign to raise public awareness about the cost of corruption and is also working with Government departments to reform their accountability procedures.
Corruption is punishable by a prison term of up to 10 years, a fine of USD 50,000, or both. The DCEC received 1,471 reports of corruption in 2013, an 18 percent decrease from the 2011 statistics. The DCEC investigated 520 allegations in 2013, and the government typically obtains 16-20 convictions per year for corruption-related crimes. High level officials have been prosecuted. Allegations that the Director of Intelligence and Security Services escaped corruption charges because of his personal connections circulated widely in Batswana media in 2014. The Directorate of Public Prosecutions applied for a withdrawal of corruption charges against MTI Vincent Seretse in March 2015 citing the grounds that key witnesses were unavailable. The charges stemmed from alleged tender manipulation in 2008 when he was CEO of SOE Botswana Telecommunication Company.
The 2000 Proceeds of Serious Crime Act expanded the DCEC's mandate to include money laundering. The 2009 Financial Intelligence Act provides a comprehensive legal framework to address money laundering and establishes a financial intelligence agency (FIA). The FIA, which operates under the Ministry of Finance and Development Planning, cooperates with various institutions, such as Directorate of Public Prosecutions (DPP), Botswana Police Service, Bank of Botswana, the Non-Banking Financial Institutions Regulatory Authority (NBFIRA), the DCEC, and foreign FIAs to uncover and investigate suspicious financial transactions. Botswana is a member of the Eastern and Southern Anti-Money Laundering Group (ESAAMLG), a regional standards-setting body for ensuring appropriate laws, policies and practices to fight money laundering and the financing of terrorism.
Botswana is not a party to the OECD Anti-bribery Convention but is a party to the 2005 UN Anticorruption Convention.
Resources to Report Corruption.
Contacts for agencies responsible for combating corruption:
Name: Ms. Rose Seretse.
Organization: Directorate on Corruption and Economic Crime.
Address: Madirelo Extension 6, Gaborone, Botswana.
Telephone Number: +267 3914002/+267 3604200.
Name: Ms. Bridget John.
Tittle: Executive Director.
Organization: Public Procurement & Asset Disposal Board.
Address: Private Bag 0058, Gaborone, Botswana.
Telephone Number: +267 3602000.
Name: Mr. Abraham Sethibe.
Organization: Financial Intelligence Agency.
Address: Private Bag 0190, Gaborone, Botswana.
Telephone Number: +267 3998400.
One can also reach out to the Minister of the relevant Ministry for a particular tender and provide a copy of the complaint to the Public Procurement & Asset Disposal Board Executive Director.
14. Bilateral Investment Agreements.
The U. S. and the Southern Africa Customs Union (SACU), which includes Botswana, signed a Trade, Investment, and Development Cooperative Agreement (TIDCA) in 2008. The TIDCA establishes a forum for consultative discussions, cooperative work, and possible agreements on a wide range of trade issues, with a special focus on customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary (SPS) measures, and trade and investment promotion.
SACU has Free Trade Agreements with Iceland, Liechtenstein, Norway, Switzerland, and the European Free Trade Association. The preferential trade agreement between SACU countries and MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) was signed by MERCOSUR and SACU States in December 2008 and April 2009 respectively. The PTA establishes fixed preference margins as a first step towards the creation of a free trade area between SACU and MERCOSUR. Botswana has ratified the Agreement and is awaiting remaining Member States to complete ratification for the agreement to be implemented.
For more information on SACU’s tariff regime see the World Trade Organization (WTO) document: wto/english/tratop_e/tpr_e/s222-00_e. doc.
Botswana is also a member of the Southern African Development Community (SADC), is currently implementing the SADC Protocol on Trade. For more information about SADC, visit: sadc. int.
In 2014, Botswana concluded an Economic Partnership Agreement (EPA) with the European Union as part of SADC EPA Group. The EPA guarantees access to the EU market without any duties or quotas for Botswana, and gives asymmetric access to the SADC EPA Group.
Botswana has a trade agreement with Zimbabwe which provides duty-free access for goods that meet the 25 percent local content requirement.
Botswana’s trade regime is more open than that of an average sub-Saharan Africa country. According to the 2012 World Trade Indicators published by the World Bank, Botswana’s MFN Tariff Trade Restrictiveness Index (TTRI) was 5.2 percent, as compared to 7.4 percent in 2011 for sub-Saharan Africa (the lower percentage indicates fewer trade restrictions). Nevertheless customs procedures remain a challenge for businesses in Botswana. Botswana ranked 157 out of 189 in trade in the World Bank’s, 2015 Doing Business Report because it takes USD 3,145 and 27 days to export a container and USD 3,710 and 35 days for import procedures.
In 2015, the GOB Cabinet approved the establishment of Botswana's National Single Window which enables international traders to submit regulatory documents at a single location in order to facilitate trade. The Botswana Unified Revenue Services is consulting with the private sector on a draft to amend the Customs and Excise Duty Act with the view of streamlining procedures and lowering importing and exporting costs.
Botswana has erected some non-tariff barriers to trade, including import permit requirements for a variety of food products, seasonal trade bans on selected agricultural goods, and a state monopoly on beef exports.
Bilateral Taxation Treaties.
Botswana has not signed a double taxation treaty with the United States.
15. OPIC and Other Investment Insurance Programs.
The Overseas Private Investment Corporation (OPIC) makes insurance available for projects in Botswana. In October 2008, OPIC approved a USD 250 million guarantee facility for the diamond industry. The purpose of the guarantee was to develop a robust lending market to Botswana’s emerging cutting and polishing industry.
Botswana is a member of the Multilateral Investment Guarantee Agency (MIGA). MIGA offers investors protection against inconvertibility or transfer of currency, expropriation, breach of contract, and war and civil disturbance.
The Botswana Export Credit Insurance and Guarantee Ltd. allows investors to purchase coverage against certain events and losses such as the insolvency and inability of buyers to pay for purchases, unanticipated import restrictions, or the blockage by the buyer’s country of foreign exchange transfer.
Botswana has high unemployment (estimated to be 20 percent) and a severely constricted worker skills base. Employers can expect to engage in significant training efforts, depending on the industry. Retention of workers and absenteeism can pose problems. In addition, managers often cite workforce productivity as a point of frustration. The lack of trained local citizen professionals is generally resolved by the use of expatriates if they can secure work permits.
The Employment Act of 1992 provides basic guidelines for employment in Botswana. The legislation sets requirements for a minimum wage, length of the workweek, annual and maternity leave, hiring and termination. Standards set by the Act are consistent with international best practice as described by ILO model legislation and guidelines.
Employment-related litigation occurs and is both an example of trust in the court system and a cost to doing business in Botswana. Considerable expense and frustration can be avoided if an employer observes the provisions of the Employment Act, relevant labor regulations and prudence in advance of potential litigation. Before a potential litigant goes to one of eleven labor courts, the parties must attempt mediation through the Department of Labor.
All Botswana citizens, except those working in the Botswana Defense Force, police, and prisons are permitted to participate in trade unions. The largest unions are comprised of public sector workers. Although workers have a right to strike, those engaged in certain categories of “essential” services, including air traffic control, electricity services, fire services, the Bank of Botswana, health services, and sewage services are not permitted to strike. When the GoB tried to add diamond workers, veterinarians, and teachers to this list in the wake of a public sector strike in 2011, the public sector union sued the government to be taken off the list. The union won the case in April 2014. However, certain law provisions are found inconsistent with the ILO Conventions on Freedom of Association and Collective Bargaining Rights, including section 35(1)(b) of the Trade Disputes Act, which permits an employer or employers’ organization to apply to the commissioner to withdraw the recognition granted to a trade union on the grounds that the trade union refuses to negotiate in good faith with the employer; section 20(3) of the Trade Disputes Act which imposes compulsory arbitration of disputes of interest in non-essential service sectors. According to the ILO Committee of Experts, there is a lack of provisions of law which provide for adequate protection against acts of interference by employers.
17. Foreign Trade Zones/Free Ports/Trade Facilitation.
Botswana currently has no domestic free trade zones or free ports. Botswana approved a Special Economic Zone (SEZ) policy in 2009 and the government is currently drafting legislation to establish a SEZ authority. The government has allocated 426.6 hectares for SEZs to be overseen by the MTI.
18. Foreign Direct Investment and Foreign Portfolio Investment Statistics.
Table 2: Key Macroeconomic Data, U. S. FDI in Host Country/Economy.
Host Country Statistical source*
USG or international statistical source.
USG or International Source of Data:
BEA; IMF; Eurostat; UNCTAD, Other.
Host Country Gross Domestic Product (GDP) ($B USD)
Foreign Direct Investment.
Host Country Statistical source*
USG or international statistical source.
USG or international Source of data:
BEA; IMF; Eurostat; UNCTAD, Other.
U. S. FDI in partner country ($M USD, stock positions)
Host country’s FDI in the United States ($M USD, stock positions)
Total inbound stock of FDI as % host GDP.
*Bank of Botswana.
Table 3: Sources and Destination of FDI.
IMF Coordinated Direct Investment Survey data are not available for Botswana.
According to the Bank of Botswana, investment in Botswana totaled USD 4 billion in 2012. Foreign direct investment statistics trends show that FDI forms slightly over half of capital flows into Botswana, followed by portfolio and other types of investments. Portfolio investments, though small, have increased since the founding of the Botswana Stock Exchange. The mining sector continues to dominate Botswana’s investments, accounting for 72 percent of FDI and 42 percent of other investment inflows in 2012. The financing sector followed, comprising 22 percent of FDI and 10 percent of other investments. Europe was the primary source of FDI (75 percent), followed by Africa (22 percent). According to Bank of Botswana statistics the dominant countries contributing FDI in Botswana are Luxembourg (69 percent) and South Africa (14 percent). Non-FDI investments are dominated by an unspecified category of “other” countries (63 percent) and the bulk (77 percent) of non-FDI investments were provided to the public administration sector as external debt. The United States’ non-FDI investments totaled approximately USD 5.3 million. The Bank of Botswana announced that there were substantive changes to the 2012 data following revisions to align it with balance of payment flows.
Table 4: Sources of Portfolio Investment.
IMF Coordinated Portfolio Investment Survey data are not available for Botswana.

Visão geral.
Landlocked Botswana is located at the center of Southern Africa, a strategically positioned bridge between South Africa, Namibia, Angola, Zambia, and Zimbabwe. It has a relatively small population of a little more than 2 million people. One of the world’s poorest countries at independence in 1966, afterwards it rapidly became one of the world’s development success stories. Significant mineral (diamond) wealth, good governance, coupled with prudent economic management, has made it an upper middle-income country. The World Bank’s engagement is thus focused on helping it consolidate its progress while addressing a range of persistent and emerging challenges. Poverty is still widespread and the economy remains undiversified and vulnerable to macroeconomic and climatic shocks. Botswana also suffers from especially high rates of inequality and vulnerability, many of which threaten the gains it has made so far.
Botswana has a stable political environment with a multi-party democratic tradition. General elections are held every five years. The ruling Botswana Democratic Party (BDP) has been in power since 1966. While it is widely expected that the BDP will maintain its dominant position in the next general elections in 2019, the 11 th general elections held in October 2014 saw opposition parties increase the numbers of their parliamentary seats and reduce the BDP’s stronghold.
President Lieutenant General Seretse Khama Ian Khama is serving his second term of office, which is due to end on March 31, 2018.
Since gaining independence from Britain, Botswana’s has been one of the world’s fastest growing economies, averaging 5% per annum over the past decade. But its reliance on commodities renders it vulnerable to international market fluctuations. The prolonged uncertainty of global markets and slow pace of economic recovery in advanced countries both continue to act as a drag on Botswana's economic outlook.
Botswana’s fiscal deficit narrowed in fiscal year 2016/17 to 0.7% of GDP compared to -4.7% in the previous fiscal year, which starts in April. The fiscal deficit improved largely due to higher than expected mining revenues and stronger GDP growth. However, fiscal revenues are still highly dependent and vulnerable to two volatile sources of revenue inflows; mineral revenue (which accounts for almost 40% of total revenue) and Southern African Customs Union Revenues, (SACU), which account for over one quarter of total revenue. In aggregate, revenues increased by 0.8% of GDP in the fiscal year 2016/17, and reached 31.9% of GDP, although they are still low compared to the historical average of around 37%. Expenditures declined by 2.7% of GDP compared to the last fiscal year, and equaled 33.2% of GDP, mostly due to higher than anticipated GDP growth.
The economy is expected to rebound with projected GDP growth of above 4% in 2017, driven mainly by improvements in the mining sector, services sectors, and continued fiscal stimulus that will propel non-mining activity. This intensification of economic activity and domestic demand, combined with the gradual increase of the commodity prices, will raise inflation to around 4%, which is still within the Bank of Botswana’s medium term band of 3-6%. Budget revenues are expected to increase; if they do, this will be from higher mining revenues as industrialized economies stabilize and SACU receipts grow.
The combination of expenditure growth and higher revenues are expected to reduce the fiscal balance until 2019. The current account will moderately narrow in 2018 and 2019 as a result of higher imports triggered by the recovery of domestic consumption.
Despite Botswana’s economic growth, the country faces high levels of poverty and inequality, especially in rural areas and in the southern part of the country. It is expected to make slow progress on poverty reduction over the medium-term, with poverty falling only slightly from 13.2% in 2013 to 12.3% in 2018. Accelerating poverty reduction will require bold decisions that encourage greater private sector job creation, higher value-added agricultural production and services, credit expansion, and lower household debt.
While Botswana’s social sector expenditures have been generous, they have not yielded the impact one might expect. Education expenditure, for example, is among the highest in the world—at about 9% of GDP—and includes the provision of nearly universal free primary education. But the sector has not created a skilled workforce. Unemployment has remained stubbornly high at nearly 17.8% and, in consequence, Botswana’s income inequality is one of the highest in the world.
The HIV/AIDS pandemic has further exacerbated the situation; the HIV/AIDS adult prevalence rate remains where it has been for some time, at 22%, contributing to education and health outcomes below those of other upper middle-income countries.
Key Development Challenges.
Botswana’s extraordinarily high inequality is holding the country back, making it difficult for sustained growth to lead to rapid poverty reduction. Poverty remains high in rural areas, female-headed households, and those with low levels of education. Alarmingly, poverty is concentrated among children and youth, with significant implications for social inclusion and inter-generational effects.
Botswana is also marked by high levels of vulnerability, with approximately 30% of the population just above the poverty line. A broad range of macroeconomic or climate-related shocks could push this group back into poverty, significantly eroding Botswana’s hard-won gains. In short, Botswana’s significant social expenditures seem to have had little impact on inequality and vulnerability, suggesting that improved management leading to greater efficiencies would be possible.
Botswana faces a key policy dilemma of how to grapple with the predicted decline in previously buoyant diamond revenues. Projections for future diamond revenues are uncertain: while diamonds may not be fully exhausted for another generation, output is already well past its peak. Botswana has made some progress in reducing its dependence on diamonds in the past 20 years, but the level of economic diversification needed to offset diminishing mineral revenues remains a challenge. Recent projections for diamond production indicate that output should remain stable at current levels for the next 35 years, which provides a useful base for GDP, government revenues, and exports. At the same time, it is estimated that non-diamond GDP will need to grow at an average of 6.4% annually for the next 20 years (through to 2036) to reduce the country’s unemployment rate to 5%.
Botswana’s economic model will need significant adjustments if it is to meet the population’s current and future needs. The current economic model has delivered important results, but it has also generated strong state-dependence (as both the main investor and employer) and little in the way of innovative value-added manufacturing or services in the economy. More importantly, the model has not facilitated private sector-led job creation, which in turn has exacerbated national inequality. Policies designed to facilitate: a stronger investment climate for private sector-led growth; the more efficient management of social sector spending; and to strengthen its human and physical assets are essential if Botswana’s future development is to be even more inclusive and avoid the “middle-income trap.”
Last Updated: Oct 05, 2017.
Botswana’s Country Partnership Framework (CPF) for the period of FY16–FY20 was presented to the World Bank Group’s (WBG) Board of Executive Directors in November 2015. The CPF was informed by the Systematic Country Diagnostics endorsed in March 2015, and developed in consultation with the Botswana government. It endeavors to support the country to eradicate abject poverty, reduce inequality, and promote job creation. The main areas of the CPF are: (i) promoting private sector-led, jobs intensive growth; (ii) strengthening human and physical assets; and (iii) supporting effective resource management. The Country Partnership Framework supports the Government’s National Development Plan 11 (NDP 11) and Botswana’s Vision 2036 goals.
The planned date of the next Country Partnership Framework is 2020.
As of March 2017, the WBG’s portfolio has two projects:
In addition to its lending program, the World Bank is doing analytical work to help it better understand the apparent contradiction between the country’s strong track record in governance, macro-fiscal management, and growth vis-a-vis its high levels of poverty, inequality, and human development indicators, and to continue identifying key bottlenecks to economic diversification.
The Economic Diversification and Competitiveness RAS ($2.86 million): The WBG provides support to improve the business environment for accelerated job creation by small/medium-sized enterprises. This initiative also builds capacity for making regular projections of skills/jobs in priority sectors, as well as improves the country’s institutional capacity to develop economic clusters for both beef cattle and tourism. Public Sector Performance Strengthening RAS ($5.05 million): Botswana is supported by World Bank Group in the implementation of a national performance monitoring and evaluation system, with a focus on strengthening the design of large infrastructure projects and public procurement.
Last Updated: Oct 05, 2017.
In addition to past projects, the current Integrated Transport Project ($186 million) and its Emergency Water Security and Efficiency project ($145.5) loans, the WBG has contributed to Botswana’s development performance in the following areas:
Morupule B Electricity Generation and Transmission Project: The WBG arranged a partial credit guarantee under the Morupule B Electricity Generation and Transmission project to extend the maturity of a $825 million commercial loan to Botswana from 15 years to 20 years. Also, the Bank is supporting analytical work for the development of low-carbon energy alternatives, such as coal bed methane and renewable energy, including concentrated solar power. The Botswana National HIV/AIDS Prevention Project: The WBG brought global and regional experience to increase the efficiency of the national HIV/AIDS program by supporting the government to transition from an “emergency” response to a broader, more strategic and sustainable approach. The Botswana National HIV/AIDS Prevention Project closed in March, 2015. The WBG leveraged a contribution of $20 million from the European Commission using an innovative, performance-based “buy-down” structure to improve the performance of the National AIDS Coordinating Agency. The Northern Botswana Human Wildlife Coexistence Project: The WBG assisted with mitigating human–wildlife conflict through proactive, prevention interventions in selected rural communities in Northern Botswana, and supported employment options for local people in wildlife-based tourism to help them benefit directly from the presence of wildlife. The Northern Botswana Human Wildlife Coexistence Project, financed by the grant from Global Environment Facility grant, closed in January, 2016.
Last Updated: Oct 05, 2017.
Botswana joined the International Finance Corporation (IFC) in 1979 and the Multilateral Investment Guarantee Agency (MIGA) in 1990. The International Finance Corporation (IFC) supports the competitiveness agenda through selective investment technical assistance interventions.
The MIGA will also support the country’s competitiveness agenda through the provision of political risk insurance, if and when it is needed by foreign investors active in the country.
Through the “buy-down” arrangement of the HIV/AIDS project, the European Commission has emerged as the Bank’s main partner with a substantive portfolio targeting a pressing development challenge of slowing the epidemic.
Last Updated: Oct 05, 2017.
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Botswana: Commitments by Fiscal Year (in millions of dollars)*
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Find out what the Bank Group's branches are doing in Botswana.
PHOTO GALLERY.
PERMANEÇA CONECTADO.
Africa's Pulse, No. 16, October 2017.
Africa needs to improve the quality of its education and teach basic skills to adults, too, says Africa’s Pulse.
Monitoring Progress in Policy.
IDA, the World Bank’s fund for the poorest, contributes nearly 50% of its funds to 39 African countries.
International Development Association (IDA) in Africa.
IDA, the World Bank’s fund for the poorest, contributes nearly 50% of its funds to 39 African countries.
World Bank Africa Multimedia.
Watch, listen and click through the latest videos, podcasts and slideshows highlighting the World Bank’s work in Sub-Saharan Africa.
Doing Business in Botswana.
The Doing Business report provides objective measures of business regulations and their enforcement. See where your country ranks.

Botswana economic diversification strategy

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What are Botswana's options for economic diversification?
Future economic growth, and by implication political stability, therefore depend on a reliable replacement for diamond revenues.
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WHAT IS THE BOTSWANA ECONOMIC ADVISORY COUNCIL (BEAC)? This past week President Khama chaired the 10th Meeting of the Botswana Economic Advisory Council (BEAC), which was convened over two days in Palapye. This is an important yet, one suspects, for too many citizens obscure body. The Council was originally established back in 2005 by the then President Festus Mogae as an advisory committee that would assist Government in achieving the twin national objectives of accelerated economic diversification and sustainable growth. From the beginning it was, moreover understood that achieving the said objectives would require a strategy for economic diversification aimed at reducing Botswana's dependence on minerals, more especially diamond mining, as the main source of government revenue and export earnings. The Economic Advisory Council was thus initially charged with four overarching tasks, being the: * Identification of existing constraints that impede accelerated economic diversification and growth, Foreign Direct Investment (FDI) flows and enterprises development in general, including regulatory, fiscal, systemic, procedural bottlenecks; * Formulation of recommendations on specific steps to be taken in order to overcome any and all identified constraints, so as to generate a climate of confidence for domestic and foreign investment; * Establishment of an new advisory framework for the enhanced public delivery of policies and support measures needed to create an enabling environment for sustainable growth, which would include the creation of appropriate structures and mechanisms to ensure the transformation, where necessary, of existing institutions; and * Preparation of an overarching Strategy for Economic Diversification and Sustainable Growth with supporting Action Plan. The latter task resulted in the drafting of the Botswana First "Excellence Strategy", whose action plan resulted, among other things in the formation of social and economic development hubs at the beginning of the current administration in 2008. But, the onset of the Global Economic downturn in the same year meant that both Government and the Council's attention was to a great extent re-focused on the immediate need to cope with the sudden reduction of existing revenues, as well as plan ways of raising future income. This naturally resulted in strategic adjustments. BEAC meetings are now managed through the National Strategy Office within the Ministry of State President. Under its current setup the Council routinely convenes twice a year, but can be called into additional sessions if deemed necessary. BEAC membership and partners include local and international experts, drawn from the business community and others outside of Government. Its diversity is intended to provide the Executive Leadership with the benefit of independent macro-economic insights, advice and expertise. Meetings of the Council are held in camera to allow for a full and frank exchange of ideas. Its areas of ongoing focus are not, however, hidden. Further to the above, it may be stated that the location of this week's gathering was, in part, intended to draw the Council's attention to the progress and of course challenges facing three key projects in the area: the Morupule B Power Station, the Glass Manufacturing Plant Project and the Botswana International University of Science and Technology. With respect to the first two projects, in particular, the Council interrogated the interventions that are currently being undertaken to bring them fully online in light of the past delays and the resulting public controversies surrounding them. As is routine, the Council also took time to further assess the overall progress of ongoing efforts to promote diversified growth in the context of global as well as domestic developments. Among the areas of general focus was the varied progress so far achieved by the economic hubs, such as those for diamond beneficiation, transport and innovation, as well as additional initiatives, notably including implementation of our country's commitment to introduce natural resource accounting. As readers may recall, in the context of our hosting the Summit for Sustainability in Africa last year, which gave rise to the "Gaborone Declaration", this country has committed itself to a process that will ultimately ensure that the true value of our natural capital is monetarised and integrated into our future national development planning. Such natural capital accounting, which attaches financial value to ecosystems, is understood as a new way of viewing the balance sheets for private businesses as well governments. Another emerging area of BEAC, as well as broader Government, attention is the recognised need to match and prioritise development initiatives and investment opportunities in different areas to those economic activities where there is local competitive advantage. As Vice President Kedikilwe emphasised during last week's Rural Development Pitso in Kang, there is a practical need to match development strategy to local environments at a district and sub-district level, such as, for example, a small stock abattoir in Kgalagadi, community based cultural tourism in Ghanzi or fish farming in the Chobe. In its partnership with the private sector, Government is also currently looking into ways to prioritise at national level investment in those sectors of the economy, which have the greatest potential for Export Diversification, such as Diamonds beneficiation, Tourism, value added beef processing and new mineral finds, as well as a continued commitment to financial services.
BWgovernment.
WHAT IS THE BOTSWANA ECONOMIC ADVISORY COUNCIL (BEAC)?
This past week President Khama chaired the 10th Meeting of the Botswana Economic Advisory Council (BEAC), which was convened over two days in Palapye. This is an important yet, one suspects, for too many citizens obscure body.
The Council was originally established back in 2005 by the then President Festus Mogae as an advisory committee that would assist Government in achieving the twin national objectives of accelerated economic diversification and sustainable growth.
From the beginning it was, moreover understood that achieving the said objectives would require a strategy for economic diversification aimed at reducing Botswana's dependence on minerals, more especially diamond mining, as the main source of government revenue and export earnings.
The Economic Advisory Council was thus initially charged with four overarching tasks, being the:
* Identification of existing constraints that impede accelerated economic diversification and growth, Foreign Direct Investment (FDI) flows and enterprises development in general, including regulatory, fiscal, systemic, procedural bottlenecks;
* Formulation of recommendations on specific steps to be taken in order to overcome any and all identified constraints, so as to generate a climate of confidence for domestic and foreign investment;
* Establishment of an new advisory framework for the enhanced public delivery of policies and support measures needed to create an enabling environment for sustainable growth, which would include the creation of appropriate structures and mechanisms to ensure the transformation, where necessary, of existing institutions; e.
* Preparation of an overarching Strategy for Economic Diversification and Sustainable Growth with supporting Action Plan.
The latter task resulted in the drafting of the Botswana First "Excellence Strategy", whose action plan resulted, among other things in the formation of social and economic development hubs at the beginning of the current administration in 2008.
But, the onset of the Global Economic downturn in the same year meant that both Government and the Council's attention was to a great extent re-focused on the immediate need to cope with the sudden reduction of existing revenues, as well as plan ways of raising future income. This naturally resulted in strategic adjustments.
BEAC meetings are now managed through the National Strategy Office within the Ministry of State President. Under its current setup the Council routinely convenes twice a year, but can be called into additional sessions if deemed necessary.
BEAC membership and partners include local and international experts, drawn from the business community and others outside of Government. Its diversity is intended to provide the Executive Leadership with the benefit of independent macro-economic insights, advice and expertise.
Meetings of the Council are held in camera to allow for a full and frank exchange of ideas. Its areas of ongoing focus are not, however, hidden.
Further to the above, it may be stated that the location of this week's gathering was, in part, intended to draw the Council's attention to the progress and of course challenges facing three key projects in the area: the Morupule B Power Station, the Glass Manufacturing Plant Project and the Botswana International University of Science and Technology.
With respect to the first two projects, in particular, the Council interrogated the interventions that are currently being undertaken to bring them fully online in light of the past delays and the resulting public controversies surrounding them.
As is routine, the Council also took time to further assess the overall progress of ongoing efforts to promote diversified growth in the context of global as well as domestic developments.
Among the areas of general focus was the varied progress so far achieved by the economic hubs, such as those for diamond beneficiation, transport and innovation, as well as additional initiatives, notably including implementation of our country's commitment to introduce natural resource accounting.
As readers may recall, in the context of our hosting the Summit for Sustainability in Africa last year, which gave rise to the "Gaborone Declaration", this country has committed itself to a process that will ultimately ensure that the true value of our natural capital is monetarised and integrated into our future national development planning.
Such natural capital accounting, which attaches financial value to ecosystems, is understood as a new way of viewing the balance sheets for private businesses as well governments.
Another emerging area of BEAC, as well as broader Government, attention is the recognised need to match and prioritise development initiatives and investment opportunities in different areas to those economic activities where there is local competitive advantage.
As Vice President Kedikilwe emphasised during last week's Rural Development Pitso in Kang, there is a practical need to match development strategy to local environments at a district and sub-district level, such as, for example, a small stock abattoir in Kgalagadi, community based cultural tourism in Ghanzi or fish farming in the Chobe.
In its partnership with the private sector, Government is also currently looking into ways to prioritise at national level investment in those sectors of the economy, which have the greatest potential for Export Diversification , such as Diamonds beneficiation, Tourism, value added beef processing and new mineral finds, as well as a continued commitment to financial services.