Through its first trade contact mission in South Africa, the Botswana Investment and Trade Centre introduced a host of incentives aimed at attracting South African investment.
The BITC hopes to export more products to South Africa and attract investment into priority sectors in specific Botswana regions.
According to the BITC’s executive director for international business, Moshie Ratsebe, Botswana has offered investors very competitive corporate taxes, currently standing at 22% – much lower than the continent’s average of 27.5% and the global average of 23.57%.
The corporate income tax rate could be as low as 5% in priority sectors, such as manufacturing and in areas such as the town of Selibe Phikwe, a mining town in the central district of Botswana.
The valued-added tax (VAT) rate in Botswana is 12% with the maximum personal income tax rate at 25%.
South Africa’s VAT is charged at 15% and the maximum personal income tax rate is 45%.
Botswana also offered tax holidays – when there was a temporary reduction or elimination of tax – for up to 10 years under certain circumstances.
“We have done a study to understand the South African market and identified a number of opportunities for 10 Botswana companies that we believe can export goods to South Africa and we have brought them here.
A lot of businesses take a narrow view because of the small population of Botswana when actually they should be looking at it as part of the regional block” Ratsebe adds.
In addition to attractive corporate taxes, Botswana has the benefit of political and economic stability having achieved the highest sovereign credit rating on the continent in the last few years.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.