Country Profile
Botswana is a land-linked country at the heart of Southern Africa. The country lies between longitudes 20 and 30 degrees East of Greenwich and between the latitudes 18 and 27 degrees approximately South of the Equator. Botswana is bordered by Zambia and Zimbabwe to the Northeast, Namibia to the North and West, and South Africa to the South and Southeast. At Kazungula, four countries - Botswana, Zimbabwe, Zambia and Namibia - meet at a single point mid-stream in the Zambezi River.
Botswana's climate is semi-arid. Though it is hot and dry for much of the year, there is a rainy season, which runs through the summer months. Rainfall tends to be erratic, unpredictable and highly regional. Often a heavy downpour may occur in one area while 10 or 15 kilometres away there is no rain at all. Showers are often followed by strong sunshine so that a good deal of the rainfall does not penetrate the ground but is lost to evaporation and transpiration.
Economic Overview
Botswana's strong economy is the hallmark of its success. The country's economic stability has been the result of the prudent management of its diamond wealth which in the early years of its independence, fuelled the country's rapid growth and robust infrastructural development, rapidly changing Botswana into a modern African metropolis. Botswana has over many years maintained a high economic growth rate, (real GDP growth rate was 5.8% in 2022), resulting in the accumulation of substantial foreign reserves and investment in the development of its people.
Botswana presents a low operational risk environment for FDI. Operational Risk Index provides a country-comparative evaluation of the labour, logistics, trade and investment and crime and security risks to business operations. The country has fewer labour market unrests and lower security risks than competitor FDI destinations in Sub Saharan Africa.
Legal and Political Overview
Botswana’s stable political environment includes a multi-party democratic tradition, with general elections held every five years. Its legal system is dual comprising of the Roman Dutch Law existing and the Customary Law.
Botswana Constitution establishes the 3 arms of government (the Executive, the Legislature and the Judiciary). The judiciary is an independent body with the mandate of adjudication of both civil and criminal cases involving citizens and the state.
General Facts
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Area |
582,000 km2 |
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Population (2024) |
2.699 million (World meter) |
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Capital |
Gaborone |
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Form of Government |
Parliamentary |
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Head of State |
His Excellency, President, Dr. Mokgweetsi E. K. Masisi. |
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Official Language |
English and Setswana |
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Gross Domestic Product (2022) |
20.36 USD Billion (World Bank) |
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Per Capita GDP (2022): |
7738.00 USD (World Bank) |
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GDP Real Growth Rate for (2022) |
5.8% (World Bank) |
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Currency |
ISO code is BWP, One Pula = 100 Thebe |
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Weights & Measures |
Metric system |
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Trading across borders |
Trans-regional highways, railways, airports and efficient border control mechanisms all contribute to Botswana’s competitive trading position |
Why Botswana?
a) Peace, Stability and Transparency
Botswana is stable, peaceful and transparent. It provides a peaceful and stable environment to its citizens and investors and has maintained peace since Independence in 1966
Further, Botswana has zero tolerance for corruption, and boasts of a sound legal system and adherence to the rule of law rating consistently as the second least corrupt country in Africa by Transparency International.
b) Sound Fiscal Policy and Economic Freedom
Botswana has very low debt levels, a robust institutional framework, strong governance and a balanced economic concentration in mining and related activities, as well as very low susceptibility to political, liquidity and banking-related event risks. Moody’s Investors Service ranked the country at “A3” with a “stable Outlook” for 2023.
c) Commitment to Continued Growth
Botswana is consistently investing in new and improved core infrastructure such as power plants, fibre-optic networks, roads, railways and international banking institutions. It is establishing itself as a centre for Innovation and Research and Development (R&D) via the Botswana Innovation Hub.
d) Quality Workforce
Botswana’s workforce is well educated with 90% literacy levels with English being the most spoken language. The people are peaceful and humble, and the different communities maintain harmonious relations. Further, there are no labour tensions.
e) Rich in Natural Resources
Minerals, energy, protected environmental areas, agriculture, pastureland, and non-timber forest products give Botswana natural capital that amounts to one-third of its total wealth.
f) Wide Market Access via FTAS
Botswana provides investors with preferential access to the Southern African Development Community’s (SADC) entire marketplace which has over 393 million people. Further it provides duty-free access to South Africa, Namibia, Lesotho and Eswatini (Southern African Customs Union (SACU). It also provides duty-free and quota-free access to the European Union (EU) market. Further, it is a member of African Continental Free Trade Area (AfCFTA) with a population of 1.3 billion people with an estimate GDP of USD 3.4 billion.
g) Business Friendly Environment
The government of Botswana is committed to make investments work for investors. Currently, there are no foreign exchange controls or restrictions on business ownership. Taxes are competitive with manufacturing and International Finance Service Centre (IFSC) companies attracting 15% while other businesses attract 22% and 25% for individuals. Botswana also allows remittance and full repatriation of profits and dividends.
Botswana Investment and Trade Centre (BITC)
BITC plays a critical role in driving Botswana’s economic growth through the attraction of Foreign Direct Investment (FDI), domestic investment, and facilitation of expansions and further spearheads the growth of exports by promoting locally manufactured goods to regional and international markets.
BITC operates an Investment Facilitation Centre (BOSSC) which houses relevant government agencies as a single cohesive structure that provides prompt, efficient and transparent services to investors. BOSSC has made available shortened and simple administrative procedures and guidelines for issuance of business approvals, permits and licenses, thereby removing bottlenecks faced by investors in establishing and running businesses in Botswana. It provides the following services:
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Investment Incentives
a) Liberal Tax Regime
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b) Incentives for IFSC Accredited Companies
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Access to a growing network of Double Taxation Avoidance (DTA) Treaties;
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A competitive corporate tax incentive framework;
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Denomination of share capital in any major convertible currency;
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Exemption from Capital Gains Tax (CGT) and Withholding Tax (WHT);
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Flat Corporate Tax rate at 15%;
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No withholding tax on dividends, interest, royalties, management fees;
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Specified Collective Investment Undertakings (CIUs) managed by IFSC companies are tax exempt;
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Zero-rate for Value-Added-Tax;
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Access to growing network of Double Taxation Avoidance (DTA) treaties
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c) SPEDU Incentives
The SPEDU Region has the following incentives:
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d) Special Economic Zones (SEZ) incentives
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Duty-free imports of specialist plant and machinery for manufacturing purposes;
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Waiver on transfer duty on land and property and property tax exemption for five (5) years;
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Zero-rated VAT on raw materials for manufacturing for export;
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Fast-tracked land allocation and long-term renewable land leases;
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5% corporate tax for the first 10 years then 10% corporate tax thereafter;
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Exemption from payment of transfer duty for purchase of land in Special Economic Zones.
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Investment Opportunities
a) Agriculture
Botswana has a surface area of 581,730 km2 of which 45.63 percent has been zoned for agricultural production as agriculture is deemed vital to the livelihood of many citizens who operate subsistence farms. Livestock production, especially cattle, contributes an estimated 80% to the agricultural GDP.
Opportunities abound in:
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b) Manufacturing
The manufacturing sector is one of the sectors that Government of Botswana has chosen to diversify the economy. Investment in the sector is not only expected to increase its contribution to GDP, but to also create employment and reduce the high unemployment rate in the country. Opportunities exist in:
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c) Automotive
Botswana is one of the most promising and fastest-growing automobile markets in the region. The automobile industry is supported by multiple factors such as labour availability, R&D efforts, geographic advantage and government support. With a positive outlook for the economy and greater household purchasing power, automobile sales in the country are set to witness a strong surge in sales by 2030.
Opportunities exist in:
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Supply of parts and components to South Africa’s and Africa’s automotive sector;
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Supply of replacement parts for vehicles of large-scale projects;
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Expansion of existing component manufacturing industries;
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Research and development services;
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Diversification of aftersales services for private and commercial vehicles;
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Establishment of skills development / training facilities for auto mechanics and technicians;
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E-mobility, specifically manufacturing of EV-batteries.
d) Cargo, Freight & Logistics
Centrally located in SADC, Botswana offers land-linked access to seven fast-growing markets and serves as the perfect location to leverage regional trade growth, with intra-regional transport volumes expected to more than double within the next two decades.
Opportunities exist in:
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Consolidation, deconsolidation, distribution, transport services, and handling of cargo;
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Warehouse management and integrated systems.
e) Education
Botswana's education system comprises of seven years of primary education, three years of junior secondary education, and two years of senior secondary education and the university. The system also incorporates pre-vocational preparation in the junior and senior secondary schools.
Opportunities exist in establishments of:
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f) Financial & Business Services
Botswana hopes to spur economic prosperity by supporting such sectors as financial and business services among others. As of Oct 2022, the banking sector comprised of 10 commercial banks and three statutory banks.
Opportunities exist in:
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Provision of Banking, insurance and investment funds.
g) Health
Healthcare in Botswana is organized based on a publicly-funded primary healthcare. The government is committed to increasing health access to the entire population of over 2.699 million people.
Opportunities exist in:
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h) Information Communication Technology
The ICT sector realized an annual growth rate of 4.6 percent and the sector contributed around 1.6 billion to the economy during the fourth quarter of 2022 (Statistics Botswana)
Opportunities in the sector include:
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i) Mining and Mineral Beneficiation
Botswana’s mining industry, and particularly diamond mining, remains one of the best in the world. As a matter of fact, Botswana is the world’s leading producer of diamonds in terms of value. As a result, the mining industry has largely contributed to Botswana’s Gross Domestic Product (GDP).
In order to diversify the mining sector and lessen its reliance on diamond mining, the Ministry of Energy and Minerals (“Ministry of Minerals”) is aggressively encouraging more investment in the sector through the discovery and exploitation of non-diamond minerals.
Opportunities exist in:
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j) Tourism
Tourism is a major contributor to the national economy and has tremendous potential for growth. The sector began to rebound in 2022 due to more relaxed travel restrictions and more tourism activities. Botswana seeks to broaden its tourism base by adding more products and increasing the geographic spread of tourism. The government encourages new investments and joint ventures in tourism and continues to play a major role in developing tourism projects.
Opportunities exist in:
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Starting a Business
The Companies and Intellectual Property Authority (CIPA) facilitates registration of businesses as per the Companies Act and the Registration of Business Names Act.
Forms of Businesses
There are two structures for businesses in Botswana – business names and companies.
A. Business Names
A business name entails sole proprietorships and partnerships.
B. Companies
There are four company types one can establish in Botswana:
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Private company – formed with the aim of creating a profit, and has a maximum of 25 shareholders; does not offer shares to the public; the name ends with (Proprietary) Limited;
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Public company – has an unlimited number of shareholders, usually listed with Botswana Stock Exchange; sells shares to the public; the name ends with Limited;
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A close company – formed by 1-5 members only; each member makes an initial contribution; not expected to meet international financial reporting standard (IFRS) requirements but expected to keep books of accounts; name ends with ‘CC’;
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A company limited by guarantee (typically used by NGOs, etc) – does not declare dividends or share profits among members; one should state its mandate, donors, projects being undertaken; any profit is to be used for the same objectives not earned for personal benefit.
Business Registration Process
Botswana's Companies And Intellectual Property Authority (CIPA)has automated the registration of businesses through the Online Business Registration System (OBRS).
To register a company, an applicant is first required to create a profile with the OBRS and then proceed to reserve a business/company name. After submitting a name for review, one should expect feedback on the state of the request within 24 hours. The cost for this process is P20.
Once the name has been reserved successfully, the applicant will proceed to register the company by filling the online form and attaching the required documents. These include;
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National Identity card (Omang)/passport;
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Director consent form;
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Shareholder consent form;
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Secretary certificate;
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Tax agent certificate.
Please note that one can upload the secretary and tax agent certificates at a later date after incorporating the company.
Once these documents are uploaded, one will be required to pay the company registration fees. This can either be made via credit/debit or via cash.
Costs
Register a Private or Public Company P 360
Register an External Company P 4,600
Register a Company Limited by Guarantee P 4,600
Register a Close Company P 360
The application will be approved within 24 hours once the payment is done. The applicant is notified via an SMS, as well as an email with the certificate of incorporation attached. The PDF certificate can also be downloaded from the portal.
Taxation
The following categories of taxes are applicable to individuals and businesses in Botswana
a) Individual Taxes
The Botswana tax system operates on a territorial basis, and income is taxable in Botswana if the source is within Botswana. Income for services performed outside Botswana is deemed to be from a Botswana source if the services are incidental to employment in Botswana.
A resident is taxable on all income from a Botswana source in accordance with the PIT rates.
A non-resident is taxable on earned income in accordance with the PIT rates, but pays withholding tax (WHT) only at the rate of 15% for interest, commercial royalties, and management and consultancy fees, 10% for dividends, and 10% for entertainment fees, where such income is of Botswana origin.
Resident Individual Taxpayers
|
Taxable income (BWP) |
Tax on column 1 (BWP) |
Tax on excess (%) |
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Over |
Not over |
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0 |
48,000 |
0 |
0 |
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48,000 |
84,000 |
0 |
5 |
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84,000 |
120,000 |
1,800 |
12.5 |
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120,000 |
156,000 |
6,300 |
18.75 |
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156,000 |
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13,050 |
25 |
Non-resident Taxpayers
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Taxable income (BWP) |
Tax on column 1 (BWP) |
Tax on excess (%) |
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Over |
Not over |
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0 |
84,000 |
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5 |
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84,000 |
120,000 |
4,200 |
12.5 |
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120,000 |
156,000 |
8,700 |
18.75 |
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156,000 |
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15,450 |
25 |
b) Corporate tax
A company is liable to tax on its income like any other person. In broad terms a company is taxed on its income after deducting expenses that are “wholly, exclusively and necessarily incurred” for the production of that income. The income is then subject to tax at the rate of 22% for resident companies and 30% for non-resident companies, except for:
a) Approved manufacturing companies – 15%;
b) IFSC Companies – 15% and;
c) Pension and Provident funds not approved by the Commissioner – 7.5%;
d) Mining profits, other than profits from diamond mining are taxed according to the formula: Annual tax rate = 70 minus (1,500/x), where x is taxable income as a percentage of gross income. The tax rate shall not be less than the flat CIT rate of 22%;
e) Diamond mining is usually taxed in terms of an agreement with the government of Botswana.
c) Value Added Tax
VAT is an indirect tax levied on the supply of goods and services consumed within Botswana. Any person making taxable supplies with a value of more than 1 million Botswana pula (BWP) per annum must register for VAT purposes. The standard VAT rate of 14% applies to all supplies that do not qualify for an exemption or are not zero-rated.
d) Withholding Tax (WHT)
WHT, must be deducted from payments to residents and non-residents unless a DTA exists.
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Residents |
WHT rate (%) |
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Dividends |
10 |
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Interest |
10 |
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Payments due under certain construction contracts |
3 |
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Payments made for livestock purchased for purposes of slaughter or feeding for slaughter |
4 |
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Non-residents |
WHT rate (%) |
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Dividends |
10 |
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Interest |
15 |
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Payments due under certain construction contracts |
3 |
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Payments made for livestock purchased for purposes of slaughter or feeding for slaughter |
4 |
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Payments for royalties, management, or consultancy fees |
15 |
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Payments for entertainment fees |
10 |
All rent and commission or brokerage payments to residents or non-residents are subject to WHT at 5% and 10%, respectively, where the total payment is BWP 48,000 per annum or more.
e) Customs and Excise Duties
Customs and excise duties are charged on importation of goods (including currencies) into or exported out of Botswana. The import duties may also include anti-dumping and countervailing duties. No customs duties and excise duties are charged on trade between Botswana and South Africa, Lesotho, Namibia, and Eswatini (SACU). In terms of the Botswana, Zimbabwe Trade Agreement, goods originating from either of the trading partners are exempted from payment of customs duties under the condition that the goods meet a minimum of 25% local content. Excise duty and local taxes, such as VAT, are due and payable where applicable.
Immigration Procedures
Visas
Foreigners wishing to visit Botswana are required to apply for a visa. Countries with visa abolishment agreements with Botswana are however exempted from applying for the visa. Investors can check whether they are exempted from visa here: https://evisa.gov.bw/#/needvisa.
Visa Application Process
Application for a visa is done online through the Botswana E-visa portal https://evisa.gov.bw/#/newvisa. An applicant is required to create an account with the portal then fill the online form, make payments and then upload the required documents. The e-visa will then be issued within 1-7 days.
General Requirements for Visa
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Valid Passport. The passport must have left validity of at least six months and more with at least three or more unused pages;
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Recently taken photo in JPG format not bigger than 30Kb in size;
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All supporting documents must be in English and uploaded as one pdf file not bigger than 5Mb in size;
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Copies of required documents must be certified.
NB
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Visa fee is non-refundable. Payment does not guarantee approval;
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Any visa granted will be subject to compliance with the Immigration Regulations of the Republic of Botswana;
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Payment is made via VISA/MasterCard.
Additional Requirements:
a) Business Visa
This is issued to prospective investors, entrepreneurs or traders to visit and explore business opportunities in Botswana.
Requirements
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Business profile/Invitation letter from the host or facilitator in Botswana;
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Meeting schedule (If coming to attend or organize a meeting);
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Certified copies of trade license, certificate of incorporation, share certificate of host if operating a business;
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500 Botswana Pula for single entry for a period up to 3 months;
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1000 Botswana Pula for multiple entry for a period up to 3 months;
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1500 Botswana Pula for multiple entry for a period up to 1 year.
b) Employment Visa
This is issued to individuals who wish to travel to Botswana for purposes of employment, internship, research, work, or voluntary services. This visa is issued with a validity period of six months and is extendable with justification.
Requirements
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Work and residence permit/approval letter;
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No payment (gratis).
c) Investor’s Visa
This visa is issued to business people who regularly visit Botswana as directors of companies based in the country. It is also issued to individuals who have investment projects in Botswana. The visa authorizes the holder to enter Botswana for investment purposes for a period of up to five (5) years.
Requirements
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Copies of work and residence permits;
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Certificate of incorporation, trade license, share certificate & list of directors;
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1000 Botswana Pula for multiple entry for a period up to 6 months;
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2500 Botswana Pula for multiple entry for a period up to 5 years.
Work Permits
Foreigners wishing to do business in Botswana are required to obtain work permits. This service gives a non-citizen permission to work in Botswana for a reward or to invest in Botswana for profit.
Work Permit Application Process
Download, complete the Work permit application form and submit with supporting documents to the nearest Immigration Office for processing and approval. If approved, the Department of Immigration will send a notification of approval after which the applicant can collect the work permit.
Requirements
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Additional Requirements Unique to Certain Professions
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Extra heavy-duty driver - Copy of Botswana Driver’s License or copy of classifications from the Department of Transport, Motor Vehicle Registration Book for vehicles and trailers, B A permits for trucks, P A permits for public transport and list of vehicles and transport permit numbers;
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Farm Worker - farm certificate/title deed/ lease agreement, brand certificate and proof of livestock ownership, employer’s copy of certified national identity card (omang);
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Seasonal agricultural worker for a period not exceeding 6 months - farm certificate/title deed/ lease agreement, brand certificate and proof of livestock ownership, employer’s copy of certified national identity card.
Professional or regulatory bodies (attach as annexure)
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Medical field - permission from the Botswana Nursing Council, the Midwifery Council of Botswana, Botswana Health Profession Council or the Ministry of Health;
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Teaching field - permission to teach from the Ministry of Education, qualification evaluation from the Botswana Qualification Authority (BQA);
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Accountants - clearance from the Botswana Institute of Chartered Accountants (BICA);
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Footballer - clearance from the Botswana Football Association or Premier League;
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Pilot - clearance from the Civil Aviation Authority of Botswana;
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Engineers - membership from Engineers Registration Board.
Investors
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Processing Duration
Fourteen (14) working days
Cost
Work Permit fee - BWP 1,500.00;
Work Permit renewal fee - BWP 1,500.00;
Work Permit Replacement/ Duplicate fee - BWP 1,500.00;
Late renewal submission fee - BWP 500.00 + BWP 20.00 each day after expiry of permits.
Residence Permit
All non-citizens who wish to stay in Botswana should apply for a residence permit to allow them to live in the country. Persons who are above 18 are required to apply separately if they wish to stay in Botswana and their applications should be supported by the person(s) upon whom they will depend on while in Botswana.
Eligibility
Any non-citizen who wishes to stay in Botswana beyond the visitation period is eligible for this service.
Application Process
Applicants are required to complete the following steps.
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Complete an application form for residence permit;
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Submit the application form to any Immigration office and pay the applicable fees;
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If application is successful the residence permit sticker will be stamped in the passport.
Requirements for Investors
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Processing Duration
Thirty (30) working days to complete.
Cost
The cost to apply for the residence permit is BWP 1500.00.
Permanent Residence Permit
This service provides applicants with an opportunity to be granted permanent residence status.
Eligibility
Non-citizens who meet the following criteria are eligible for this service.
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Resided lawfully in Botswana continuously for at least 5 years;
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Be of good character;
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Have made significant contributions to Botswana;
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Be of good standing in the society;
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Have enough means to support oneself and dependents.
Application Process
Visit any Immigration and Citizenship Office and Complete Form 21. Submit required documents and pay the prescribed fees to the Department of Immigration and Citizenship. Once approved, the applicant will be notified to collect the permit
Requirements
Applicable to All
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Covering letter from the applicant;
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Two copies of valid certified passport;
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Two recent coloured passport size photos per applicant;
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Certified marriage certificate if applicable.
Employees
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Curriculum Vitae;
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Certified educational certificates of the highest level of education obtained;
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Reference letter from employer;
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Letter of job offer from employer.
Investors
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Processing duration
This service takes six months.
Cost
The cost associated with this service is BWP 3000.00 per applicant.
Useful Contacts
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Botswana Investment and Trade Centre Gaborone Office BITC Head Office Plot 54351, Off PG Matante Road, Central Business District (CBD) Exponential Building, Gaborone Tel: +267 363 3300 Fax: +267 318 1941/ +267 317 0452 Email: enquiries@bitc.co.bw |
Companies and Intellectual Property Authority Plot 54358, Prime Plaza, CBD, Gaborone, Botswana +267 367 3700 Fax: +267 318 8130 |
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Botswana Unified Revenue Services McCarthy’s rust P/Bag 10, Tshabong 653 0056/ 653 0055 (+267) 363 9777
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Ministry of Investment, Trade and Industry Private Bag 004 Gaborone Botswana Plot 54380, Central Business District Tel. (+267) 3601200 Fax. (+267) 3971539 Email. Mitipru@gov.bw Website. www.mti.gov.bw Call Centre Number – 0800 600 777 |
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Ministry of Nationality, Immigration and Gender Affairs Block 8, Government Enclave, Khama Crescent Private Bag 002 Gaborone Botswana Tel: (+267)3611115 / 3611234 / 3611132 Fax: (+267) 3907426 Email:mnig-pro@.gov.bw |
Departmental HQ, Regional Immigration Offices and District Immigration Offices. Ministry of Nationality, Immigration and Gender Affairs Department of Immigration and Citizenship Migration and Visa Division Head Office, Block 8, Government Enclave Khama Crescent Gaborone, Botswana Private Bag 002 Tel. (+267) 361 1300 Toll Free. 0800 600 777 All Regional Immigration Offices, District Immigration Offices and Missions |