Botswana Offers A Window Of Incentives To Foreign Investors
According to the US Department of State, Botswana has the best credit rating in mainland Sub-Saharan Africa. The Government of Botswana offers a cutting-edge package of fiscal and non-fiscal incentives to attract foreign investments to its tourism industry in the context of the structural reforms it has undertaken to enhance the industry’s value chain and its multiplier effect on other sectors of the economy.
This strategy falls under the ‘Reset Agenda’ rolled out by the authorities of Botswana to transform the country into a high income economy by 2036.
Sustaining the 5% average annual growth Botswana has achieved during the last decade will require developing new sources of durable growth other than the mining sector and tourism stands out as one of the new pillars of the bubbling economy.
To encourage investment in Botswana, additional tax relief on revenue generated or capital accounts is granted to specific business development projects that will be beneficial to Botswana.
Furthermore, there are also incentives for tourism operators but also, for agriculture and manufacturing industries, based on the geographical region where a company operates.
For instance, the Selibe Phikwe Economic Development Unit(SPEDU) region incentive provides a preferential company tax rate of 5% for the first five years of the business operation and afterwards, a special rate of 10% to qualifying businesses will be applied after approval by the Ministry of Finance and Economic Development.
Source: Breaking Travel News