Private Sector Development and Foreign Investment
World Bank ranks Botswana as a top investment destination in Sub-Sahara Africa
--Global Investment Promotion Benchmarking (GIPB) 2009 Report
Botswana’s economy is 70.3% free, according to the Heritage Foundation, 2010 Index of Economic Freedom assessment
--The overall freedom to start, operate, and close a business is well protected by Botswana’s national regulatory environment
Botswana seeks to further diversify its economy away from minerals, which account for over 40% of GDP. Botswana has implemented various policies to encourage and invite foreign investment to the country.
In pursuing investment, more specifically, foreign investment, Botswana continues to market its comparative advantages, which include political and macro-economic stability with a record of economic growth based on prudent management, and an educated, adaptable workforce. Botswana abolished foreign exchange controls in 1999, and has a low rate of corporate tax (15%), with no prohibitions on foreign ownership of companies. Botswana’s currency, the Pula, is fully convertible, and all profits and direct investment can be repatriated without restriction from Botswana. The Botswana Government devalued the Pula in May 2005, and adopted the crawling peg system, restructuring the exchange rate mechanism to safeguard against future large-scale devaluations.