SCI Wealth
Financial Planners & Investment Advisers

Botswana

Investing in Botswana

 
Botswana Map

Botswana is a country of 2.35 Million People, with an area of 581,730 square kilometres.

Botswana’s land area is around half that of South Africa, a little larger than Germany (which has 35 times the population) and a little smaller than France (with 30 times the population).

Politics

Botswana gained independence in 1966, and since then has been a stable democracy - holding elections every 5 years

While the Botswana Democratic Party (BDP) has retained power throughout, each election has been considered free and fair, with a variety of opposition parties contesting the vote.

Currency

The unit of currency in Botswana is the Pula (lit. “rain” in Setswana) which is divided into 100 Thebe (lit. “shield” in Setswana). The Pula was introduced on August 23, 1976, subsequently known as “Pula Day”.

The Pula is one of Africa’s stronger currencies and is managed by the Bank of Botswana. Due to foreign exchange reserves earned mainly from Diamond sales, the Bank pegs the value of the Pula to a basket of currencies, currently dominated by the South African Rand.

Botswana has no foreign exchange controls.

Pula to Dollar

Long term chart of $1.00 in BWP

In the long term the Pula has gradually lost value against the US Dollar.

In 1973 the Pula was pegged to the USD at a rate of P1.00 to $1.15. By 2020 a Pula would buy 8 US cents.

Pula to Rand

Long Term chart of P1.00 in ZAR

In the long term the Pula has gradually gained value against the South African Rand.

In 1973 one Pula would buy one Rand. By 2020 a Pula would buy R1.45.

 

Language

The official languages of Botswana are English and Setswana. English is the language of official business and most written communication.

Business & Taxation

Botswana has a relatively low tax regime (especially compared to South Africa).

The maximum marginal rate of income tax is 25%

Company Tax is 22% with Dividend Tax at 7.5%

Concessions apply to certain sectors, with Manufacturing Company Tax at 15% and International Financial Services Company (IFSC) Tax at 15% with 0% Dividend Tax.

Botswana has developed an expanding network of Double Taxation Treaties, which currently include the UK, Zimbabwe, Mauritius, South Africa, France, India, Barbados, Lesotho, Swaziland

 

Help on Investing in Botswana

SCI Advisers understand your perspective.

We coordinate locally and internationally with reputable service providers for your:

  • Investments

  • Bank Accounts

  • Company Formation

  • Work and Residence Permit Applications

  • Business & Family Structuring Advice