If you're considering starting a business in Botswana then you are heading in the right direction. Botswana is not only the least corrupted countries in Africa but also has a zero-tolerance policy towards corruption and has some of the best laws and regulations in Africa. It's strategic location at the heart of the southern African development community. Here are the different industries in Botswana
- Tourism Industry
- Business and Financial Service Industry
- Manufacturing Industry
- Energy Industry
- Health Industry
- Agriculture Industry
- Mining Industry
- Automotive Industry
1. Tourism Industry
One of the industries through which you can kick-start your business in Botswana is forming your travel and tourism business. Tourism in Botswana is a very important industry which contributes nearly 12% to the GDP. In fact, it is home to one of the largest herds of free-ranging elephants in the world. Due to this, Botswana has a lot to offer to the incoming potential tourists especially with the European tourists particularly from the Northern Europe allowing them to travel in a low cost flight to Gaborone or to South Africa where they tend to take another flight to Botswana.
2. Business and Financial Service Industry
Botswana has become one of the world-class hubs for cross-border financial and businesses in Africa and globally. Along with this the workforce of Botswana is well educated and has a high literacy rate of over 88.5% with a majority of them speaking fluently in the English language.
Here are some of the International Financial Services Centres (IFSC) Sectors.
- International Insurance-The location is attractive to establish internationally the insurance services such as captive insurance focused on the African Market.
- International Business Companies-These companies present and have the most growth potential in Africa from the IFSC platform.
- International Investment Fund- The IFSC is set to seek opportunities to secure the establishment, management, and location in the Pan-African investment funds.
3. Manufacturing Industry
Manufacturing in Botswana employs more than 35,000 workers and is growing steadily since the early 2000s. The main manufacturing process involves the production of goods and services mainly for exports purpose which is due to the abundance of raw materials which are available.
4. Energy Industry
Botswana has very limited energy sources and it relies on imports of electricity and petroleum products. There is currently a deficit in power supply in Sothern Africa and plenty of opportunities for doing business in Botswana by using solar and coal to generate power for domestic as well as export purposes. Currently, the energy resources are:
The current coal energy can generate up to 90MW and will be decommissioned by 2020 and new coal plants have been commissioned which can generate up to 3000MW of power and will be constructed in small units.
The solar power can generate up to 200MW by 2020 and currently needs donors to support. There are many opportunities to set up solar farms to supply and balance the current deficit.
5. Health Industry
The Botswana healthcare system consists of both the private sectors as well as public sectors. The public sector healthcare services are generally very reasonable or sometimes even provided for free to all the citizens of the nation. Despite having a healthcare system, there are plenty of opportunities open for investments.
Many diagnostic and laboratory services are located outside Botswana which results in extremely long delays in the analysis. By bringing the facilities within the country will speed up the process and improve the overall efficiency in the system gradually.
Pharmaceutical Manufacturing Industries
The medical tourism is clocking a growth rate of 20-25% annually and the entire industry is estimated to be about $100Billion.Botswana can expect to improve the overall development of its clinical centre and development in health and Life Sciences.
6. Agriculture Industry
The agriculture industry is an important industry in Botswana and with the current national developments, the agriculture sector is decreasing in terms of GDP with the need to increase the production and promote investments in the agro-industrial and supply chain development. There are multiple investment opportunities such as:
- Grain/fruits and vegetable Value Chains Investment
- Livestock Value Chain Investment
7. Mining Industry
The mining industry contributes to nearly 24% of the GDP of Botswana and is one of the key industries in the country. The industry has plenty of opportunities which include; expansion of existing mining projects as well as improving the value chain benefits. The various investment opportunities in the mining industries are
The copper mine currently exports most of the raw copper ore for processing while a domestic refinery is adding value to it.
The Coal Mining has a lot of untapped resources in various parts of the country making Botswana the 2nd largest producer of coal after South Africa. The quantity and quality of the coal have been the reason to export these materials to the East. Here are some of the benefits of investing in Botswana Coal:
- Centrally located in SADC region
- Easy access to the coal resources
- Easy Distribution via Southern African power pool
- Best Mining Destination in Africa
Soda Ash Mining
Mining of Soda Ash is for the production of pure chromium which can be obtained by using the chromites ore when it's heated with a mixture of calcium carbonate and sodium carbonate in the presence of air.
This is one of the most promising areas of opportunity in the Mining Industry in Botswana The Diamond Hub was established to facilitate cutting, polishing, and operations in Gaborone. The opportunities to invest in this sector include:
- Diamond Trading, Cutting and Polishing
- Accounting and Human Resource Services
- IT and Security Services
- Hotels, Restaurants and Transportation Services
8. Automotive Industry
The Automotive industry is one of the most affluent economies in Southern Africa which has a robust growth outlook. It is home to the growing automotive market and due to the increase in demand by the African people. The agriculture industry will also grow with the increasing developments in the automotive industry which has mainly to do with the logistic issues.
If you are businessman wanting to set up a business in Botswana, this list might excite you. Given the opportunities in these wide ranges of industries, your business setup dream is just one click away. We at Business Setup Worldwide can help you start your business in Botswana. Do contact us today to know more about the registration process.