WT/TPR/S/324/Rev.1 • Botswana 
 
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  ANNEX 1 - BOTSWANA 
 
 WT/TPR/S/324/Rev.1 • Botswana 
 
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  CONTENTS 
1   ECONOMIC ENVIRONMENT ........................................................................................ 54  
1.1   Main Features of the Economy .................................................................................... 54 
1.2   Recent Econ omic Developments.................................................................................. 56 
1.3   Trade and Foreign Dire ct Investment Performance ........................................................ 58 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 62  
2.1   Institutional and Legal Framework .............................................................................. 62 
2.2   Trade Policy Form ulation and Ob jectives ...................................................................... 63 
2.3   Internationa l Trade Relations ..................................................................................... 64 
2.3.1   WTO ................................................................................................................... . 64 
2.3.2   Regional trade agreements ...................................................................................... 64 
2.4   Investme nt Regime .................................................................................................. 65 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 68  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 68 
3.1.1   Customs procedur es and requirements ..................................................................... 68 
3.1.2   Custom s valuation ................................................................................................. 69 
3.1.3   Rules of origin .......................................................................................................  69 
3.1.4   Tariffs ............................................................................................................... ... 70 
3.1.4.1   Other du ties and charges ..................................................................................... 71 
3.1.4.2   Tariff and tax exemptions ..................................................................................... 72 
3.1.5   Import prohibitions, restrictions, an d licensing ........................................................... 73 
3.1.6   Anti-dumping, countervai ling, and safegu ard measures ............................................... 76 
3.1.7   Standards and othe r technical requirements .............................................................. 76 
3.1.8   Sanitary and phyt osanitary requ irements .................................................................. 78 
3.2   Measures Directly Affecting Exports ............................................................................. 80 
3.2.1   Export procedur es and requirements ........................................................................ 80 
3.2.2   Export taxes, charges, an d levies ............................................................................. 81 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 81 
3.2.4   Export suppo rt and pr omotion ................................................................................. 82 
3.2.5   Fiscal incentives .................................................................................................... 82 
3.2.6   Export promotion ................................................................................................... 83 
3.2.7   Export finance, in surance, and guarantees ................................................................ 83 
3.3   Measures Affectin g Production and Trade ..................................................................... 83 
3.3.1   In centives ............................................................................................................  83 
3.3.2   Competition policy and price controls ........................................................................ 85 
3.3.2.1   Price controls and administered prices .................................................................... 87 
3.3.3   State trading, state-owne d enterprises and privatization.............................................. 87 
3.3.3.1   St ate trad ing ...................................................................................................... 87 
3.3.3.2   State-owned ente rprises and pr ivatization .............................................................. 87 
3.3.4   Governme nt procurement ....................................................................................... 90 WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.3.5   Intellectual property rights ...................................................................................... 92 
3.3.5.1   Copyright ........................................................................................................... 93 
3.3.5.2   Industrial  property rights ..................................................................................... 95 
3.3.5.2.1   Patents ...........................................................................................................  95 
3.3.5.2.2   Indu strial designs ............................................................................................. 97 
3.3.5.2.3   Layout designs and integrated  circuits ................................................................. 98 
3.3.5.2.4   Trademarks ..................................................................................................... 98 
3.3.5.2.5   Geographical indications .................................................................................... 99 
3.3.5.2.6   Traditional kn owledge and ha ndicrafts ................................................................. 99 
4   TRADE POLICIES BY SECTOR ................................................................................... 101  
4.1   Agriculture ............................................................................................................ 101 
4.2   Mining and Energy .................................................................................................. 105  
4.2.1   Mining ................................................................................................................ 105  
4.2.2   Energy ............................................................................................................... 109 
4.2.2.1   Electricity ......................................................................................................... 110  
4.2.2.2   Petroleum ........................................................................................................ 11 1 
4.2.2.3   Coal ................................................................................................................  111 
4.3   Services ................................................................................................................  112 
4.3.1   Financial services ................................................................................................. 112  
4.3.1.1   Banking ........................................................................................................... 1 12 
4.3.1.2   In suranc e ........................................................................................................ 11 5 
4.3.2   Telecommunications ............................................................................................. 116  
4.3.3   Transpor t services ............................................................................................... 119  
4.3.3.1   Road  transport ................................................................................................. 119  
4.3.3.2   Rail transport ................................................................................................... 12 0 
4.3.3.3   Air transport ..................................................................................................... 121  
4.3.4   Tourism .............................................................................................................. 122  
REFERENC ES ................................................................................................................ 125  
5   APPENDIX TABLES .................................................................................................. 128  
 
CHARTS 
 
Chart 1.1 Product composition of merchandise trad e, 2008 an d 2014 ...................................... 59 
Chart 1.2 Direction of merchandise trade, 2008 and 2014 ...................................................... 60 
Chart 3.1 Import cont rol by HS Section ............................................................................... 76 
 
TABLES 
 
Table 1.1 Selected macroeco nomic indicato rs, 2008- 14 ......................................................... 54 
Table 1.2 Balance of payments, 2008-14 ............................................................................. 57 
Table 1.3 Foreign direct  investment, 2008-13 ...................................................................... 61 WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 2.1 Main institutions involved in trade policy formulation and implementation................... 63 
Table 3.1 Tariff lines where the applied MFN rate might be higher than the bound rate, 
2015  ......................................................................................................................... ... 70 
Table 3.2 Import restrict ions ............................................................................................. 74 
Table 3.3 Botswana labelling legislation, 2014 ...................................................................... 78 
Table 3.4 SPS legislation ................................................................................................... 79 
Table 3.5 Fiscal incentives ................................................................................................. 84 
Table 3.6 CEDA's assistance , 2014  ..................................................................................... 85 
Table 3.7 State participation in parastat als and commercial enterprise s, 2015 .......................... 89 
Table 3.8 Procurement methods ......................................................................................... 91 
Table 3.9 Intellectual property treaties to which Botswana is a part y, 2014 .............................. 93 
Table 3.10 Main intellectual property legislation, 2014 ........................................................... 93 
Table 3.11 Copyright protection ......................................................................................... 94 
Table 3.12 Pate nts, 2009 -14 ............................................................................................. 97 
Table 3.13 Industrial  designs,  2009- 14 ............................................................................... 97 
Table 3.14 Tradem arks, 2009- 14 ....................................................................................... 99 
Table 4.1 Principal indicators for agricu lture, forestry an d fishing,  2008-14 ............................ 101  
Table 4.2 Government expenditure on  agriculture, 2 009/10-2013 /14 .................................... 104  
Table 4.3 Principal indicators for mining, 2008-14 ............................................................... 106  
Table 4.4 Mining licensing framework, 2015 ....................................................................... 107  
Table 4.5 Tax and non-tax revenue from  diamond industry, 2008/09-2014/15 ....................... 108  
Table 4.6 Electricity ta riffs, 2009 and 2014 ........................................................................ 111  
Table 4.7 Financial soundness and prudential standards of licensed  banks, 2009-14 ................ 112  
Table 4.8 Selected telecom indicators, 2009-14 .................................................................. 116  
Table 4.9 Telecom lice nsing framework ............................................................................. 118  
Table 4.10 Rail traffi c, 2007/08–2 013/14 .......................................................................... 120  
Table 4.11 Air tra ffic, 2008- 14 ......................................................................................... 121  
 
BOXES 
 Box 2.1 Botswana invest ment incent ives, 2014 .................................................................... 67
 
Box 4.1 Licensing requirements for banks .......................................................................... 113  
 
APPENDIX TABLES 
 
Table A1.1 Merchandise exports by destin ation, including re -exports, 2008-14 ....................... 128  
Table A1.2 Merchandise impo rts by origin , 2008-14  ............................................................ 129  
Table A1.3 Merchandise exports by produc t group, including re -exports, 2008-14 ................... 130  
Table A1.4 Merchandise imports by product grou p, 2008-1 4 ................................................ 131  
 
Table A2.1 Notifications to the WT O, 1 October 200 9–30 June 2 015 ...................................... 132  
 WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A3.1 Botswana  bound tariffs ................................................................................... 133  
Table A3.2 Reservation and price preference schemes for citizens of Botswana , 2015 .............. 135  
 
Table A4.1 Botswana bilateral ai r services agre ements, 2014 ............................................... 137  
 
 WT/TPR/S/324/Rev.1 • Botswana 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Main Features of the Economy 1.1.  Botswana, a landlocked country in Southern Africa, is a middle-income country with an 
income per capita of US$7,385 in 2014 (Table 1. 1). Supported by the discovery of diamonds in 
1967, Botswana's economy has been one of the fastest growing in Africa. However, despite a 
record of good governance and solid economic growth supported by prudent macroeconomic and 
fiscal management, Botswana continues to have high levels of poverty and inequality and 
generally low human development indicators. Pove rty rates have remained unchanged since 2008, 
with some 19% of the population living below the poverty line in 2013 (most recent data); they are especially high in rural areas. The Gini coefficient for Botswana stands at over 0.60, indicating a skewed income distribution.
1 Although education expenditure is among the highest in the world 
in terms of GDP percentage (around 8% of GDP in 2008-09) and the provision of primary 
education is nearly universal and free, these efforts have not generated the skilled labour required for Botswana to diversify its economy. There is still persistent unemployment; although the 
unemployment rate has decreased somewhat, from 21.8% in 2008 to some 20% in 2013 (most 
recent data), it remains high and attaining the objectives of poverty elimination and income inequality remains a challenge. The HIV/AIDS pandemic has further exacerbated the situation; 
Botswana has one of the highest HIV/AIDS adult prevalence rates in the world
2, contributing to 
education and health outcomes below those of countries in the same income group. 
1.2.  Botswana has attempted to foster su stainable economic growth by promoting the 
diversification of its economy, increasing competition, and enhancing the role of the private sector. 
However, efforts until now have not been successful, as Botswana continues to rely heavily on the 
mining sector, specifically on diamond exports.  Nonetheless, the 2015 Budget Speech made clear 
that economic growth and economic diversification remain Botswana's economic priorities and the 
authorities recognize that economic growth is required to eradicate poverty, decrease 
unemployment and improve equality. One of the chal lenges faced has been the low level of total 
factor productivity, especially labour productivi ty. In this regard, the Government intends to 
improve productivity by further investing in education, and is envisaging a labour market reform to 
allow for a more efficient market and thus tackle the persistently high unemployment. In addition, public sector reform, focused on improving the performance of state owned enterprises (SOE), 
would help reduce their reliance on public resources and liberate resources which could be 
invested in the infrastructure re quired to foster development. 
Table 1.1 Selected macroeconomic indicators, 2008-14 
 2008 2009  2010  2011  2012 2013 2014  
GDP at current prices 
(Pula million)a 75,867 72,316 93,390 105,071 110,763  124,122 141,942 
GDP at current prices 
(US$ million)a 11,113  10,107  13,747  15,365  14,537  16,291 15,813 
Real GDP growth rate at 
constant 2006 prices (%)a 3.9  -7.8  8.6  6.2  4.3  5.8 4.4 
Nominal GDP per capita (US$)a 5,804 5,181 6,916 7,588 7,047 7,031 7,385 
Population (million) 1.9 2.0 2.0 2.0 2.1 2.1 2.1 
Unemployment, total (% of 
total labour force) 21.8 18.4 17.9 17.8 17.7 20.0 .. 
GDP distribution by type of 
economic activity (at 2006 constant )
a (% of GDP) 
Agriculture  2.4 2.8 2.9 2.1 2.2 2.1 1.9 
Mining  28.3 16.8 18.6 17.0 15.1 15.8 18.9 
Manufacturing 6.5 7.5 7.1 7.3 7.3 7.0 6.7 
Water & electricity  1.4 1.4 1.4 1.1 0.7 0.5 0.4 
Construction  6.0 7.4 6.9 8.0 8.7 8.6 8.1 
                                               
1 World Bank's World Development Indicator database. Viewed at: 
http://databank.worldbank.org/data/vi ews/variableselection/selectvariables.aspx?source=world-development-
indicators .  
2 Some 22% of the population aged 15-45 is living  with HIV/AIDS. Online information. Viewed at: 
http://www.unaids.org/en/regionscountries/countries/botswana/ . WT/TPR/S/324/Rev.1 • Botswana 
 
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   2008 2009  2010  2011  2012 2013 2014  
Services 55.5 64.1 63.0 64.4 66.0 66.0 63.9 
 Trade, hotels & restaurants  16.2 18.6 18.4 19.5 19.7 19.8 19.8 
 Transport & communication  4.9 6.2 5.8 5.9 6.2 6.1 6.1 
 Finance & business services  14.1 15.8 15.9 16.0 16.9 16.9 16.1 
 General government  14.1 15.9 15.6 15.6 15.2 15.2 14.5 
 Social & personal services  6.2 7.6 7.3 7.4 7.9 8.0 7.6 
GDP by type of economic 
activity (at constant 2006 
prices)a (Annual % change) 
Agriculture  2.0 6.4 16.7 -22.9 10.2 2.0 -0.3 
Mining  -8.0 -46.2 22.7 -2.3 -7.0 10.6 4.5 
Manufacturing -2.6  3.9 11.4 3.7 2.2 0.4 
Water & electricity  6.6 -5.2 10.2 -13.9 -36.7 -27.2 -18.5 
Construction  0.8 12.3 3.6 23.1 14.4 3.8 2.8 
Trade, hotels & restaurants  18.0 3.9 9.3 14.0 5.5 6.3 7.1 
Transport & communication  10.2 14.8 4.7 8.8 9.5 3.7 7.4 
Finance & business services  11.7 1.5 11.5 7.7 11.0 5.5 3.1 
General government  0.2 2.8 8.4 7.0 2.1 5.5 5.2 
Social & personal services  15.2 11.3 6.2 8.3 12.2 6.0 4.2 
GDP by type of expenditure 
(at constant 2006 prices)a (Annual % change) 
Real GDP 3.9 -7.8 8.6 6.2 4.3 5.8 4.4 
Gross domestic expenditure  13.6 3.9 13.5 4.6 8.1 1.5 6.8 
 Final consumption 13.8 4.9 7.4 7.2 5.5 8.7 2.3 
Government final 
consumption 5.0 3.0 3.7 5.0 13.6 14.2 -1.9 
Household final consumption 17.3 5.5 8.6 7.9 2.9 6.7 4.0 
 Gross fixed capital formation 3.3 9.5 9.2 12.2 17.0 -6.8 15.3 
Exports of goods and services -2.5 -37.7 16.0 27.5 4.2 30.0 0.6 
Imports of goods and services 17.5 -10.9 6.5 19.2 28.7 1.6 -5.8 
Prices and interest rates        
Inflation (%) 12.6 8.2 6.9 8.5 7.5 5.9 4.4 
Prime lending rate (%) 16.5 11.5 11.0 11.0 11.0 10.0 9.0 
Deposit rate (Pula denominated 
deposits, %) 7.2 4.1 3.7 3.4 3.1 2.8 2.6 
External sector (% of GDP, unless otherwise indicated) 
Pula/US$ (annual average)  6.8 7.2 6.8 6.8 7.6 8.4 9.0 
Real effective exchange rates 
(Percentage change: (-) 
depreciation) -0.4 12.5 8.3 -1.0 -3.3 -4.2 -5.2 
Nominal effective exchange 
rates (Percentage change: (-) depreciation) -7.9 4.2 4.5 -4.6 -7.8 -7.4 -7.3 
Current account 1.3 -6.5 -2.6 3.1 -1.9 10.2 22.5 
Exports of goods and services 49.4 41.6 40.6 50.1 48.2 58.3 66.4 
Imports of goods and services 52.1 54.2 47.7 53.7 62.4 56.1 53.1 
Gross official reserves (includes 
gold, current US$ billion) 9.1 8.7 7.9 8.1 7.6 7.7 .. 
Months of imports of goods and 
services 16.1 17.8 13.2 11.6 10.5 11.3 .. 
 2008/
09 2009/
10 2010/
11 2011/  
12 2012/ 
13 2013/ 
14  
Public finance (central 
government) (% of GDP)b        
Revenue 40.9 39.1 33.1 36.0 36.9 38.5 .. 
 Tax  36.5 34.9 30.7 33.2 34.2 34.8 .. 
 of which:         
 Customs & excise 
 (SACU revenue) 10.4 10.3 6.4 7.9 12.6 10.4 .. 
 Mineral revenuec 13.7 11.8 12.5 14.8 10.7 14.5 .. 
 Non-mineral income tax 6.2 7.2 6.7 5.7 6.0 5.9 .. 
 Non-tax 3.6 3.2 2.0 2.3 2.3 3.4 .. 
 Grants 0.8 1.0 0.3 0.5 0.4 0.3 .. 
Expenditure 47.2 51.4 39.8 36.1 36.1 32.8 .. 
Recurrent  32.1 33.5 28.1 26.9 28.4 26.1 .. 
Development  15.4 16.9 11.8 9.3 7.3 7.0 .. 
Net Lending -0.3 1.0 0.0 -0.1 0.3 -0.3 .. 
Surplus/Deficit -6.3 -12.3 -6.8 -0.2 0.8 5.7 .. WT/TPR/S/324/Rev.1 • Botswana 
 
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   2008/
09 2009/
10 2010/
11 2011/  
12 2012/ 
13 2013/ 
14  
Total external debt (at the end 
of March) 2.8 12.1 13.0 13.2 13.5 12.2 .. 
Total domestic debt (at the end 
of March) 4.8 6.1 6.4 7.0 5.6 5.5 .. 
Total government debt (at the 
end of March) 7.7 18.2 19.5 20.2 19.4 17.7 .. 
.. Not available. 
a The figures for 2010-14 are provisional. 
b The fiscal year runs from 1 April to 31 March. c Mineral royalties and dividends are included under mi neral tax, hence they form  part of tax revenue. 
This differs from Ministry of Finance and Developm ent Planning publications where these are shown 
separately under non-tax revenue.  
Source: Bank of Botswana (2015), Botswana Financial Statistics, Issue,  February; Bank of Botswana, Annual 
Reports 2011, 2012 and 2013 ; Statistics Botswana (April 2015), Gross Domestic Product, Fourth 
Quarter of 2014 (No. 2015/1) ; IMF online information, "International Financial Statistics". Viewed at: 
http://elibrary-data.imf.org/DataExplorer.aspx ; IMF World Economic and Financial Surveys, Regional 
Economic Outlook: Sub-Saharan Africa, Octobe r 2014 and April 2015; and World Bank's World 
Development Indicator database. Viewed at: http://databank.worldbank.org/dat a/views/variableselection/selectvariables.aspx?source=world-
development-indicators . 
1.2  Recent Economic Developments 
1.3.  During the period 2008-14, real GDP grew at an annual average rate of 4.5%. Real GDP 
growth slowed to around 4% in 2012 after two years of strong post-crisis growth, mainly as a 
result of a significant contraction in activity in the mining sector due to continued subdued global 
demand (affecting both volumes and prices). However, the economy bounced back in 2013, with 
real GDP growing by 5.8%, before contracting again in 2014 (4.4%) as a result of a slowdown in 
the mining sector; the economy is estimated to grow at 4.9% in 2015 (Table 1.1). Economic growth in Botswana is determined to a large extent by developments in the mining sector, which 
remains the largest sector of the economy, accounting for 18.9% of GDP in 2014. The continued 
strength of the diamond industry, which led to ov erall mining growth of 10.6% in 2013, has been 
the main driver of recent growth. Growth in the non-mining sectors has been erratic, with some 
sectors such as electricity and water contracting for several years, which has undermined growth 
prospects in other sectors of the economy. Botswana's ongoing problems regarding power and 
water supply, which include unreliable domestic electricity production and reliance on rainfall, continue to be major constraints to attaining sustainable economic growth having, in addition, a 
negative impact on potential investors' perceptions. 
1.4.  The central government recorded an ov erall surplus in FY 2012/13 and FY 2013/14. The 
budget surplus was achieved through reining in of current expenditure, higher mining revenues 
and an increase in SACU revenues, in addition to a decline in development expenditures, as the 
Government decided to cut spending on new projects.
3 Botswana's 2014/15 Budget emphasizes 
tight fiscal management and a need to continue to rebuild fiscal buffers in the face of vulnerabilities in the country's two main revenue sources (diamonds and the SACU customs pool), 
while highlighting the importance of economic  growth to address Botswana's development 
challenges. The government projects a surplus of  1% of GDP in 2014/15 as revenues are expected 
to be robust (up 10.5% from the previous fiscal year), sustained by higher revenue from minerals 
(up 15%) and continued strong revenue from the SACU customs pool (up 16.7%). However, in the 
medium term, the authorities recognize the need for a shift toward a greater emphasis on expanding the domestic revenue base and reducing  the heavy reliance on SACU transfers, which 
reached a peak of almost 35% of revenue (10.4% of GDP) in 2013/14.
4 According to the 
authorities, this is to be achieved through, inter alia , improving the efficiency of the public sector, 
including public enterprises. 
1.5.  The Bank of Botswana's monetary policy objective is to achieve price stability, defined as a 
sustained level of inflation within the medium-term objective range of 3% to 6%. Monetary policy 
is also formulated with a view to safeguard the stability of the financial sector. The Bank has 
                                               
3 Information provided by the authorities. 
4 Ministry of Finance and Development Planning (2013). WT/TPR/S/324/Rev.1 • Botswana 
 
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  adopted a broadly neutral monetary stance. Monetary policy is implemented through the use of 
open market operations to attain market interest rates consistent with the monetary stance, with the Bank and lending rates remaining stable. However, it seems that in 2013 the Bank adopted a more expansionary monetary policy, causing market interest rates to fall. Inflation has maintained 
a downward trend since 2008, when it stood at 12.6%, but it remained above 6% until 2013, 
when it fell to 5.9% before continuing to decline to 4.4% in 2014, remaining well within the Bank of Botswana's 3%-6% objective range (Table 1.1). Inflationary pressures dampened in 2014 
against a background of weak demand, modest  wage growth, small or no increases in 
administered prices and government levies. The amendments to the VAT Act that came into effect in 2015 extended the range of goods that are zero-rated; this will provide for lower prices on goods that comprise approximately 5% of the CPI basket, which could lead to a short-term 
reduction in headline inflation (Section 3).
5 
1.6.  The exchange rate policy aims at supportin g the competitiveness of domestic industries, and 
is intended to contribute to the national objectives of economic diversification and employment 
creation. The authorities consider that this may be partly achieved by maintaining a stable real 
effective exchange rate (REER) of the Pula against a basket of currencies of Botswana's major trading partner countries. Since 2011, the Central Bank has been applying a downward-crawl 
regime, to allow for a gradual nominal depreciation of the Pula (Table 1.1). This has also resulted 
in a real depreciation. Botswana recognizes that REER stability alone is not enough to ensure the competitiveness of local producers. Competitiveness can only be achieved through an increase in productivity, which in turn requires structural reforms, such as the rationalization of the public 
sector to allow the private sector to grow. 
1.7.  Botswana ran a deficit in its current account of the balance of payments for several years 
during the period under review, but in recent years (2013–14) the current account registered a 
surplus (Table 1.2). The current account's erratic be haviour during the period under review reflects 
overall external instability, triggered by a lack of export diversification, which leaves the economy vulnerable to diamond price fluctuations (Table 1.2). For instance, the current account's 
improvement observed in 2014 is a result of an incr ease in exports, driven almost exclusively by 
the growth in diamond exports, and a decrease in imports. 
1.8.  Botswana is a net importer of services. Impo rts of services increased during the period under 
review, boosted mainly by demand for transport, but also for communication, and business, 
professional and technical services.
6 Current transfers have increased almost every year since 
2008, mainly as a result of an upsurge of SACU receipts. The capital account remained just balanced for most of the review period, while th e financial account recorded some surpluses in 
2008, 2009, 2011 and 2012 due to an increase in foreign direct investment (FDI) flows; 
nevertheless FDI flows have been volatile while portfolio investment has declined since 2009. Foreign reserves accounted for 11.3 months of imports in 2013. 
Table 1.2 Balance of payments, 2008-14 
(US$ million)  
  2008  2009  2010  2011  2012  2013  2014  
A. Current account 149  -658  -357  477 -283 1,668 3,563  
Merchandise -380 -1,317 -1,001 -701 -2,297 11 1,529 
 Exports 4,838 3,353 4,601 6,461 5,923 8,249 9,153 
 Imports 5,218 4,671 5,603 7,162 8,220 8,238 7,624 
 Services 83 42 25 140 227 345 586 
 Transportation -57 -85 -81 -153 -115 -84 -14 
 Credit 22 17 35 31 37 81 47 
 Debit  79 102 116 185 152 165 61 
 Travel 284 433 482 548 560 624 701 
 Credit 514 666 780 865 857 886 977 
 Debit  230 233 298 317 297 262 276 
 Other services -143 -307 -376 -256 -218 -195 -102 
 Credit 114 163 167 335 187 277 328 
 Debit  257 470 543 591 405 472 430 
                                               
5 The goods exempt from VAT as of 1 January 2015 include: unprocessed fruit and vegetables, cereals 
which were not already covered, milk, bread flour and brown bread (Bank of Botswana, 2015b). 
6 UNCTAD-ITC-WTO Trade in  Services database.  WT/TPR/S/324/Rev.1 • Botswana 
 
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    2008  2009  2010  2011  2012  2013  2014  
Income -755 -239 -550 -113 44 -376 -295 
 Compensation of employees 3 -14 -17 -20 -13 7 -5 
 Investment income -758 -226 -533 -93 57 -383 -291 
Current transfers 1,200 857 1,170 1,151 1,744 1,687 1,744 
 Private 1 -15 -50 52 64 100 41 
 Credit 90 22 38 265 215 231 108 
 Debit  89 37 88 213 151 131 67 
 Government 1,199 872 1,220 1,099 1,680 1,587 1,703 
 Credit 1,238 916 1,258 1,175 1,731 1,630 1,724 
 Debit  39 44 38 76 51 43 21 
B. Capital account 0  0 3 0 0 0 0 
C. Financial account 733 276 -363 1,028 200 -959 -110 
 Direct investment 617 202 218 1,385 480 314 350 
 Portfolio investment 539 -332 -402 -214 -175 -1,245 -79 
 Other investment -424 406 -178 -143 -104 -29 -381 
D. Net errors and omissions 220 -260  -243  -1,002  -31 -549 -2,182  
Overall balance (A through D) 1,101  -641  -959  503 -113 160 1,271  
E. Reconciliation/Financing -1,101  641 959 -503  113 -160 -1,271  
 Change in the level of reserves -1,491 1,504 1,040 -1,383 125 -1,008 -1,264 
 Valuation adjustments 390 -863 -81 879 -12 848 -7 
Source: Bank of Botswana. Informat ion provided by the Authorities. 
1.3  Trade and Foreign Dire ct Investment Performance 
1.9.  Like the other BNLS countries Botswana is highly dependent on international trade: exports 
and imports of goods and services accounted for 95% of GDP in 2008 and for 110% of GDP in 
2014. However, the country's contribution in 2013 to total world exports was 0.04% and the same 
for imports. In 2013, Botswana ranked 102nd among world merchandise exporters and 
111th among importers.7 
1.10.  Botswana's trade patterns have not changed substantially since the last Review in 2009. 
Botswana remains heavily dependent on exports of  diamonds, which accounted for 63.0% of total 
merchandise exports (including re-exports) in 2008, increasing to 84.4% in 2014 (Chart 1.1). This 
increase may be partly attributed to the transfer of major functions of the Diamond Trading Company (DTC) from London to Gaborone. Since 2012, aggregation of rough diamonds has been 
undertaken in Botswana, and this has resulted in an increase in re-exports as local production 
traded in London was re-exported into Botswana, and also in an increase in imports of diamonds 
to be beneficiated in Botswana (from 8.9% of total imports in 2008 to 33.9% in 2014). Exports of other manufactured products, such as clothing, have decreased despite the preferential access to 
the U.S. market under the African Growth and Opportunity Act (AGOA), apparently due to the 
phase out of an incentive programme (Table A1.3).
8 Exports of primary products, which include 
traditional products, such as beef, copper-nickel an d soda ash have also fallen during the period 
under review. Beef exports declined because of an  outbreak of food and mouth disease, which led 
to the closure of some international markets (Section 4).  
1.11.  Merchandise exports remained concentrated in Europe and Africa (mainly South Africa) up 
to 2013, albeit with some changes. The share of exports to Europe increased, while those destined 
for Africa declined substantially from 25.5% in 2008 to 15.6% in 2013, mainly as a result of 
South Africa's decrease in importance as a market; possibly due to the Government's efforts to diversify export markets (Chart 1.2). However, as a result of moving the diamond trade from 
London to Gaborone, as of 2014 other destinations such as Asia (24.1%) – mainly India (14.9%) – 
and the Middle East (13.1%) became increasingly important; while Europe and Africa, on the other hand, became less important markets (Table A1.1). 
                                               
7 WTO Country Profiles. Viewed at: 
https://www.wto.org/english/res_e/ booksp_e/trade_profiles14_e.pdf. 
8 Bank of Botswana (2013). WT/TPR/S/324/Rev.1 • Botswana 
 
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  Chart 1.1 Product composition of merchandise trade, 2008 and 2014 
 
2008 2014
(a)    Exports including re-exports (f.o.b.)
Other 
manufactures
11.7%
Manufactures
74.7%Other 
manufactures
5.0%
Diamonds
(SITC 6672)
84.4%Manufactures
89.4%Mining
7.5%
Total:   US$5.0 billion Total:  US$7.9 billion
(b)    Imports (c.i.f.)
Manufactures
67.0%Other 
manufactures
19.2%
Non-
electrical 
machinery
9.8%Diamonds
(SITC 6672)
8.9%Agriculture
12.8%Other 
1.2%
Fuels
16.9%
Transport 
equip.
11.2%
Electrical 
machines
7.3%Chemicals
7.4%Textiles & 
Clothing
3.2%Ores and other 
minerals and non-
ferrous metals
2.1%Agriculture
9.3%
Fuels
15.5%Other 
manufactures
11.8%
Transport 
equip.
7.9%
Chemicals
6.2%
Diamonds
(SITC 6672)
33.9%Non-electrical 
machinery
6.4%Electrical 
machines
4.9%Textiles & 
Clothing
2.1%Other 
1.4%
Ores and other 
minerals and non-
ferrous metals
0.6%
Manufactures
73.3%
Total:   US$5.2 billion Total:   US$7.8 billionDiamonds
(SITC 6672)
63.0%Other
1.0%Agriculture
2.1%Agriculture
3.1%Other 
2.9%
Mining
19.3%
 
Source: WTO Secretariat calculations, based on UNSD Comtrade database, SITC Rev.3. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Chart 1.2 Direction of merchandise trade, 2008 and 2014 
 
2008 2014
(a)    Exports including re-exports (f.o.b.)
EU (28)
28.1%Asia
24.1%
Americas
7.0%South 
Africa
11.8%
EFTA
6.4%Other Africa
2.2%Middle East
13.1%
Africa
21.4%Other Asia 
9.2%India 14.9%
Total:   US$5.0 billion Total:  US$7.9 billion
(b)    Imports (c.i.f.)
Other 
2.1%
EU (28)
11.3%Americas
1.6%Other Africa 
1.3%
Africa
79.1%
South Africa
77.3%Asia
5.8%Namibia
0.6%
Other 
2.0%
EU (28)
6.6%Americas
11.5%Other Africa 
1.1%
South Africa
63.2%Asia 3.4%
Africa
76.4%Namibia
12.1%
Total:   US$5.2 billion Total:   US$7.8 billionEU (28)
59.1%Asia
6.3%
Americas
1.0%South Africa
18.3%
EFTA
5.0%Other Africa 6.1%
Middle East
3.1%Africa
25.5%
Other Asia 5.9%India 0.4%Namibia
1.1%
Namibia
7.4%
 
Source: WTO Secretariat calculations, based on UNSD Comtrade database. 
1.12.   Total merchandise imports amounted to US$7.8 billion in 2014. Manufactured products 
accounted for some 73.3% of total imports in 2014, an increase since 2008 (Chart 1.1). Imports of 
diamonds have seen a major increase, due to the recent changes in the diamond trade, as 
mentioned above (Table A1.4). Imports of machiner y and transport equipment continue to be high 
(19.2% of total merchandise imports in 2014) beca use of the ongoing mining and infrastructure 
projects. Botswana remains a net food and fuel importer (Table A1.4) (Section 4). Notwithstanding 
a decline in its share, South Africa remains the major source of imports, accounting for 63.2% of WT/TPR/S/324/Rev.1 • Botswana 
 
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  the total in 2014. Imports from other African countries such as Namibia have increased since 2008 
(Table A1.2).  
1.13.  Foreign direct investment (FDI) declined significantly as a result of the global financial crisis 
but resumed thereafter (Table 1.3). The stock of FDI was US$3.3 billion at the end of 2013. 
Foreign direct investment is concentrated in the mining and banking sectors (Section 4). 
Table 1.3 Foreign direct investment, 2008-13 
  2008  2009  2010  2011 2012 2013  
  (US$ million) 
Flow        
 Direct investment in Botswana 521 129 136 1,093 147 188 
 Direct investment abroad -91 6 1 -10 9 -0.3 
Stock        
 Direct investment in Botswana 2,272 2,698 2,938 3,508 3,540 3,337 
 Direct investment abroad 865 980 1,017 861 842 750 
  (% of GDP) 
Flow        
 Direct investment in Botswana 4.7 1.3 1.0 7.1 1.0 1.2 
 Direct investment abroad -0.8 0.1 0.0 -0.1 0.1 0.0 
Stock        
 Direct investment in Botswana 20.4 26.7 21.4 22.8 24.3 20.5 
 Direct investment abroad 7.8 9.7 7.4 5.6 5.8 4.6 
Source: UNCTADstat database. Viewed at: http://unctad.org/en/Pages/Statistics.aspx . 
 WT/TPR/S/324/Rev.1 • Botswana 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  Institutional and Legal Framework 
2.1.  The Constitution of Botswana, which dates to 1966, established a parliamentary system.1 The 
Parliament consists of the President and the Nati onal Assembly. The government is divided into 
three branches: the executive, the legislative and the judicial.  
2.2.  The executive branch consists of the Pr esident, the Vice-President, the Cabinet and the 
Attorney General. The President is the head of state and assumes office through elections that 
take place every 5 years. The President, who may hold office for a maximum of 2 consecutive 
periods, is elected by the National Assembly from amongst its members. The President appoints the Vice-President and the Cabinet from members of the National Assembly.
2 The Attorney General 
is also appointed by him.3  
2.3.  The legislative is comprised of the Presiden t and the National Assembly. The President is an 
ex officio member of Parliament and is entitled to speak and vote in all proceedings.4 The National 
Assembly consists of 57 members elected by the people, and 4 that are specially elected.5 These 
4 members are elected by secret ballot from amongst 4 candidates nominated by the President 
and 4 candidates nominated by the elected member s of the National Assembly. The core function 
of the legislative is to enact laws but it is also in charge of controlling public finances, through the 
approval of the National Budget, and of scrutinizing government.6 In addition to the legislature, 
the Ntlo ya Dikgosi ("House of Chiefs"), which comprises 35 traditional leaders, advises the 
Parliament regarding traditional matters. 
2.4.  The judicial branch is composed of the High Court and the Court of Appeals.7 There are also 
specialized parallel courts and other subordinate courts. The court of first instance is the High 
Court; it has unlimited original jurisdiction to hear and resolve any civil or criminal proceedings. The Court of Appeal is the highest court of the land. 
2.5.  Botswana's legal system consists of Roman-Dutch and customary law; the latter is 
administered by the customary courts. Botswana's legislation may take one of three forms: acts of parliament, delegated or subsidiary legislation, an d autonomic legislation. Acts of parliament are 
the principal source of law in Botswana; they must be consistent with the Constitution, the 
supreme law of the country.
8 Acts are initiated through a bill drafted in the National Assembly at 
the request of the relevant ministry; thereafter  the draft is submitted for discussion and if 
necessary amended. Once approved by the National  Assembly, bills are presented to the President 
for assent, which he or she may withhold. If sanctioned it becomes an Act, but it needs to be 
gazetted to have the force of law.9  
2.6.  Subsidiary or delegated legislation is issued under the direction of subordinate bodies under 
specific powers delegated to them by Parliament. Subsidiary legislation is usually in the form of 
proclamations, regulations and orders. Autonomic legislation is issued by an autonomous, specialized body that has been given the power to create laws to regulate itself, for instance, the 
Law Society of Botswana. 
2.7.  For international agreements to be implem ented they need to be approved by the Cabinet 
and by the National Assembly.  
                                               
1 Constitution of Botswana Chapter 01:01, Section 57. 
2 Constitution of Botswana Chapter 01:01, Section 50(3). 
3 Constitution of Botswana Chapter 01:01, Section 51(1). 
4 Constitution of Botswana Chapter 01:01, Section 58(1). 
5 Constitution of Botswana Chapter 01:01, Section 58(2)(b). 
6 Constitution of Botswana Chapter 01:01, Section 118. 
7 Constitution of Botswana Chapter 01:01, Sections 95(1) and 99(1). 
8 Constitution of Botswana Chapter 01:01, Sections 87(7) and 86. 
9 Constitution of Botswana Chapter 01:01, Section 87(5). WT/TPR/S/324/Rev.1 • Botswana 
 
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  2.2  Trade Policy Formulation and Objectives 
2.8.  The Ministry of Trade and Industry is resp onsible for the formulation and implementation of 
trade policy, along with other stakeholders, thro ugh the National Committee on Trade Policy and 
Negotiations (NCTPN), which consists of represen tatives of different ministries, parastatals, the 
private sector, academic and research institutions, and non-governmental organizations 
(Table 2.1).10 The NCTPN is supported by various techni cal committees in charge of trade policy 
formulation, which in turn have representatives of different ministries and the private sector. 
These committees meet on a quarterly basis and their recommendations are passed to the NCTPN. 
The NCTPN is in charge of coordinating the form ulation and implementation of trade policy and of 
ensuring its consistency with Botswana's international commitments.11 The private sector and 
public enterprises are represented in this process by the Botswana Confederation of Commerce, 
Industry and Manpower (BOCCIM) and the Botswana Exporters and Manufacturing Association 
(BEMA). 
Table 2.1 Main institutions involved in trade policy formulation and implementation 
Institutions Trade related function 
Development of policy  
Ministry of Trade and Industry  
National Committee on Trade Policy and Negotiations 
(NCTPN)  Provides a forum for consultations regarding the 
formulation of trade policy and of Botswana's position in trade negotiations  
Department of International Trade Develops, implements and monitors trade policy; 
Responsible for negotiatio n and implementation of 
multilateral, regional and bilateral trade 
agreements 
Department of Industrial Affairs Develo ps and reviews polici es, programmes and 
strategies aimed at dive rsifying the economy, 
creating employment and stimulating local entrepreneurship 
Cabinet Approves and endorses trade policy 
Implementation of policy   
Ministries (e.g. Ministry  of Trade and Industry, 
Ministry of Agriculture an d Ministry of Finance and 
Development Planning)  Implements trade policy and the trade agreements 
Parastatals (e.g. Botswana Investment Trade Centre 
(BITC)) Implements trade policy by  facilitating specific 
policy objectives (e.g. export promotion and FDI 
facilitation) 
Evaluation and review   
Ministry of Trade and Industry 
National Committee on Trade Policy and Negotiations (NCTPN) Parliamentary Committee on  Foreign Affairs, Trade 
and Security (PCFATS)  Reviews trade policy every five years or whenever 
it deems necessary  
Source: Ministry of Trade and Industry (2009), National Trade Policy for Botswana , Gaborone, July. Viewed 
at: http://www.mti.gov.bw/webfm_send/182. 
2.9.  Botswana sees trade policy as a means to achieve its overall economic policy objective of 
sustainable growth, economic and export diversification, and social inclusion. More specifically, its overall trade objective is to increase and improve market access and international competitiveness 
for its exports through reduced transaction costs, investment in education and improved 
infrastructure.
12 Botswana's trade policy is defined largely by its membership of SACU, as well as 
other regional arrangements, such as SADC. However, within the framework of these arrangements, Botswana has developed several policies which outline its national trade policy. 
These include: the National Development Plan 10 (NDP10), the National Trade Policy (2009), the 
Industrial Development Policy (2014), the Economic Diversification Drive (2011), the National Export Strategy (2010), the Special Economic Zones Policy (2010) and the Citizen Economic 
Empowerment Policy (2012). All these instruments seem to share the same goals and objectives 
regarding trade and economic policy and in certain instances they overlap. 
                                               
10 Ministry of Trade and Industry (2009). 
11 Ministry of Trade and Industry (2009). 
12 Ministry of Trade and Industry (2009). WT/TPR/S/324/Rev.1 • Botswana 
 
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  2.3  International Trade Relations  
2.3.1  WTO 
2.10.  Botswana is a founding Member of the WTO.13 Botswana provides MFN treatment to all 
Members and other trading partners.  
2.11.  Botswana is not an observer to the Committee on Government Procurement, nor is it a 
signatory to the Information Technology Agreement. 
2.12.  In the last Ministerial Conference, Botswana  recognized the importance of the conclusion of 
the Doha Round especially for small economies and restated its commitment to the work programme of the WTO.
14 
2.13.  Botswana has not participated in any trade disputes. 2.14.  During the period under review, Botswana submitted a number of notifications (Table A2.1). 
However, some remain outstanding, particularly those related to import licensing. 
2.3.2  Regional trade agreements 
2.15.  During the period under review, Botswana renegotiated a bilateral trade agreement with 
Zimbabwe and together with other African countries  finalized the negotiations of an EPA with the 
EU. Botswana is also participating in the negotiations of the different regional integration 
processes with the Southern African Customs Union (SACU),  SADC and SADC-EAC-COMESA 
(Main Report). Botswana is currently implementing the SADC Trade Protocol.
15 The negotiations on 
the SADC Protocol on Services have been concluded and the protocol was adopted in August 2012 but has not yet been implemented (Main Report). 
2.16.  As a member of SACU, Botswana is a signatory to the SACU-MERCOSUR Preferential Trade 
Agreement of 2004, the SACU-USA Trade, Invest ment and Development Cooperation Agreement 
(TIDCA) of 2007
16, and the SACU-EFTA FTA, which entered into force in 2008 (Main Report).17  
2.17.  The EPA negotiations between the EU and the SADC EPA Group concluded in mid-July 2014. 
This agreement will replace the interim EPA, signed by the EU and by Botswana, Lesotho, 
Mozambique and Swaziland in 2009, which was never ratified. The recently concluded agreement 
has not yet been signed.18 
2.18.  Botswana, together with the other SACU members, is negotiating a Preferential Trade 
Agreement (PTA) with India.19  
2.19.  Botswana has bilateral agreements with Zimbabwe and Malawi. The trade agreement with 
Zimbabwe was initially signed in 1956 and amended in 1988 and 2010.20 The agreement provides 
for duty-free access to goods that are either wholly originated in either country or meet a local 
content requirement of 25%. Manufacturers are required to produce for a period of three months before starting to export to enable customs to  confirm local content requirements. The amended 
agreement allows accumulation to confer origin, recognizes waste and scrap as inputs in the 
manufacturing processes, and grants an exemption to the three-month "production requirement".
21 The Botswana-Malawi Customs Agreement was signed in 1956; it has not since 
been renegotiated but is at present being eval uated. The agreement allows duty-free access to 
goods grown, produced and manufactured in Botswana and Malawi. Although Botswana has not signed a large number of bilateral and regional  trade agreements, the overlap in concessions 
                                               
13 Online information. Viewed at: https://www.wto.org/english/thew to_e/countries_e/botswana_e.htm .  
14 Statement by Hon Dorcas Makgato-Malesu, Minister of Trade and Industry, Ninth Session of the WTO 
Ministerial Conference 3-6 December 2013. 
15 Online information. Viewed at: http://www.sadc.int/about-sadc/integration-milestones/free-trade-
area/ . 
16 Online information. Viewed at: http://www.state.gov/r/pa/ei/bgn/1830.htm . 
17 Online information. Viewed at: ht tp://www.mti.gov.bw /tradeagreements. 
18 European Commission (2015). 
19 Online information. Viewed at: ht tp://www.mti.gov.bw /tradeagreements. 
20 UNCTAD (2006). 
21 Online information. Viewed at: http://www.mt i.gov.bw/content/botswan a-zimbabwe-agreement. WT/TPR/S/324/Rev.1 • Botswana 
 
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  becomes evident as preferences under these two agreements and the SADC Protocol on Trade are 
very similar. Hence, trade between Botswana an d Malawi is currently mainly undertaken through 
the SADC Protocol on Trade, except in cases where the rules of origin under the agreement 
between Botswana and Malawi are easier to comply with. 
2.20.  Botswana is a beneficiary of the African Growth and Opportunity Act (AGOA). Botswana 
exports mainly textiles and apparel under AGOA.22 According to the authorities, exports under this 
preferential system have fluctuated over the years mainly due to supply-side constraints. 
Botswana still benefits from Generalized System of Preferences schemes from, inter alia , 
Norway.23 
2.4  Investment Regime  2.21.  Botswana does not have a specific foreign investment law; foreign investment is regulated 
by an array of laws. General investment restri ctions, reservations, licensing requirements and 
incentives are all regulated by different legal instruments and policies.
24 These include: the 
Industrial Development Act, the Trade Act, the Companies Act, the Companies Amendment Act, 
the Companies Regulations, the Co-operative Societies Act, the Companies and Intellectual 
Property Authority Act and the Registration of Business Names Act.25 Sectoral laws also stipulate 
the requirements and restrictions regarding investment in specific sectors (Section 4).26 In 
addition, Botswana imposes a series of reservations on foreign investment which are outlined in 
several documents. The citizen reservation requirements affect foreign investors' decisions, as they are perceived to be discriminatory and non- transparent especially if reservations are not 
well-defined and/or change often. 
2.22.  According to the authorities, Botswana is committed to having transparent investment 
policies that accord the same treatment to all investors. However, the myriad of laws and 
regulations that regulate FDI, together with the administrative and bureaucratic bottlenecks that 
exist to obtain licences and permits, considerably compromise the country's competitiveness to 
attract FDI. The consolidation of all regulations and policies related to FDI would clarify Botswana's 
FDI regime. It would also help to make foreign investment rules more understandable and predictable, thus creating a more favourable environment for domestic and foreign investment, 
which would in turn allow the Government to attain the objectives outlined in its Investment and 
Private Sector Development Strategies. The NDP10 also deems that foreign and domestic 
investment need to increase to attain higher sustainable rates of growth (Section 1).
27 
2.23.  A number of activities are reserved for citi zens of Botswana or are restricted for foreign 
investors. Under the Industrial Development (Amendment) Regulations (2008), small-scale 
manufacturing is reserved for citizens of Botswa na or companies wholly owned by citizens of 
Botswana, as is small-scale mining (Section 4).28 Establishments that sell liquor, other than bars 
linked to hotels, are also reserved for citizens of  Botswana or companies wholly owned by citizens 
of Botswana.29 Similarly, the Trade Act (2003) lists several activities that are reserved for citizens 
of Botswana or for companies wholly owned by citizens of Botswana. However, despite these restrictions, medium and large enterprises
30 operating as joint ventures between citizens and 
                                               
22 Online information. Viewed at: http://agoa.info/profiles/botswana.html . 
23 Information provided by the authorities. 
24 Online information. Viewed at: http://www.mti. gov.bw/webfm, and http:// www.mti.gov.bw /licenses. 
25 Online information. Viewed at: http://www.mti.gov.bw/webfm. 
26 For instance, investment in the financial sector  is regulated by the Banking Act, the Non-Bank 
Financial Regulatory Authority Act or the Botswana Stock Exchange Act. In the mining sector investors need to apply for a mining licence, which is regulated by the Mines and Minerals Act; while in the energy sector a 
company needs to apply for an indepe ndent power producer lic ence, regulated by the Electricity Supply Act 
(Amendment of 2007). 
27 Investment Strategy for Botswana: 2009–2016 and Private Sector Development Strategy. 
28 Activities included under this reservation are ma nufacturing of: school uniforms, school furniture, 
burglar bars, protective clothing, ce ment bricks and baked earth (mud) br icks, peanut butter, floor polish, 
traditional leather products and traditional crafts, traditional sour milk, candles, ice, and fencing material; baking bread and making confectioner y; bottling water; milling sorghum;  packaging; and meat processing 
(Industrial Development (Amendment) Regulations (2008) and Mines and Minerals Act (1999)). 
29 The Liquor Act 2003. 
30 Micro enterprises are those with fewer than 6 empl oyees and an annual turnover of up to P 100,000. 
Small enterprises are those with fewer than 25 employees and an annual turnover of P 100,001-P 1,500,000. 
Medium enterprises are those with 25-100 employees and an annual turnover of P 1,500,001-P 5,000,000. (Trade Act (Size of Enterprises) Order, 2011). WT/TPR/S/324/Rev.1 • Botswana 
 
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  foreigners are allowed to engage in these reserved  activities, provided that 51% of the company is 
held by citizens (or otherwise subject to appr oval by the Minister of Industry and Trade).31  
2.24.  A foreign investor is required to either register its company under the Registration of 
Business Names Act or incorporate it under the Companies Act, and obtain the required licences to operate in Botswana.
32 Licences are required to manufacture or sell manufactured products; these 
are issued by the relevant licensing committee or the Industrial Licensing Authority for an 
indefinite period. A licensee would require a new li cence to manufacture (sell) a new product or to 
change the location of its enterprise. Permission  is also required to transfer the licence. The 
Minister of Trade and Industry may decide that licen ces, for a particular activity (or in a prescribed 
area of the country), will only be issued to nati onals or to companies wholly owned by citizens of 
Botswana.33 In contrast, the Minister may prescribe that licences to undertake activities reserved 
for citizens, carried out by medium or large ente rprises may be issued to joint-ventures between 
citizens and foreigners, provided that 51%  of the company is held by citizens.34 
2.25.  Botswana registered companies providing specific financial services may seek IFSC 
certification to obtain fiscal incentives (Box 2.1). The Minister may grant IFSC certification for other operations on a case-by-case basis.
35 There are no requirements to have resident 
shareholders in an IFSC accredited company, but the Companies Act (2004) requires that at least 
one director resides in Botswana. IFSCs are allowed to hire experts from outside Botswana but are 
required to employ qualified nationals. 
2.26.  Land in Botswana is divided into three categories (freehold, state and tribal). Land, no 
matter its category, can be put to any use. Freehold land, which amounts to 3% of Botswana's 
land area, is the only type of land that can be purchased by (or transferred to) foreign nationals, 
without government approval, except if it is ag ricultural land. State-owned land accounts for 27% 
of Botswana's total land. Foreign-owned companies registered in Botswana can lease this type of 
land. This land is allocated through an application process or on a first-come-first-served basis by 
the Ministry of Lands and Housing. Leases are renewable and are granted for 50 years for commercial purposes and 99 years for residentia l use. The Government has set aside land for 
investors, which is managed by the Botswana Investment Trade Centre (BITC). Tribal (communal) 
land can be leased for 50 years for commercial, agricultural, and industrial use and it accounts for 70% of the country.
36 The use of tribal land may be granted to a foreigner subject to the Minister 
of Lands and Housing's approval. 
2.27.  The BITC was established in 2011 to, inter alia , attract FDI.37 In addition to promoting 
Botswana as an investment destination, the BITC functions as a "one-stop shop" to facilitate 
investment procedures, such as the acquisition of licences and permits, and access to industrial and commercial land.
38 To attract FDI, Botswana has established a number of "hubs" and is in the 
process of establishing Special Economic Zones.39  
                                               
31 Activities included under this reservation are:  auctioneers, bookshops, boutiques, car washes, 
cleaning services, curio shops, department stores, dist ributors, dry cleaning, fresh produce, funeral parlours, 
furniture shops, general clothing, gene ral dealers, hair dressers, hardware, laundromats, motor dealers, petrol 
stations, rental services, restaurants, supermarkets/c hain stores, take-away restaurants, wholesale, and 
workshops. 
32 The Industrial Development Act 2007. 
33 In accordance with the Trade Regulations (2011) lic ences have been reserved for citizens of Botswana 
or for companies that are wholly owned by citizens of  Botswana for the following activities: auctioneers, 
agents, car washes, cleaning services, curio shops, dr y cleaners, florists, fresh produce, funeral parlours, 
general dealers, general clothing, gene ral hire services, laundromats, petrol filling stations, takeaways, hair or 
beauty parlours, and internet cafes or copy shops.  
34 Micro enterprises are those that with less than 6 employees and an annual tu rnover of up P100, 000. 
Small enterprises are those with less than 25 employee s and an annual turnover of P 100,001–P 1,500,000. 
Medium enterprises have 25-100 employees and an annual turnover of P 1,500,001 to P 5,000,000 (Trade Act (Size of Enterprises) Order, 2011). 
35 Activities eligible for IFSC certification include: banking and finance operations transacted in a foreign 
currency, securities trading denominate d in a foreign currency, insurance and related activities, activities that 
exploit intellectual property, and accounti ng and financial administration services. 
36 Adams (undated). 
37 BITC resulted from a merging of the Botswana  Export Development and Investment Authority 
(BEDIA) and the Botswana International Financial Services Centre (IFSC). 
38 BITC, through the one-stop shop system, assists with: registering companies and businesses; 
processing trade and business  licences; gettin g entry visas, work and residenc e permits; securing connection WT/TPR/S/324/Rev.1 • Botswana 
 
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  2.28.  Botswana also provides fiscal incentives and grants to attract FDI (Box 2.1). Some 
incentives are granted only to companies that have IFSC certification40, others are sector-specific 
or provided on a case-by-case basis. The Minister of Finance and Development Planning may grant tax relief under Development Approval Orders. Tax incentives provided under these orders may 
include tax holidays for income tax for up to 5 years; they are granted on a case-by-case-basis 
depending on the projects' prospects of benefiting the economy or contributing to the economic advancement of Botswana's nationals (Section 3). According to the authorities, Development 
Approval Orders are rarely used; at present only two projects are beneficiaries under these orders. 
The tax regime for diamond projects may also be negotiated on a case-by-case basis (Section 4).
41 
Foreign investors also have access to grants, through the Citizen Entrepreneurial Development 
Agency (CEDA), provided that they partner with nationals.42  
Box 2.1 Botswana investment incentives, 2014 
Specific fiscal incentive  
IFSC certified companies are entitled to:  
A corporate tax rate of 15% until 2020 
Exemption from withholding taxes on inte rest, dividends and management fees  
Exemption from VAT and capital gains tax 
A tax rebate of 200% on income tax on training costs  
Tax exemption on income derived from the disposal of shares in IFSCs  
Credits for withholding taxe s in other jurisdictions 
Collective investment undertakings (CIUs) (a pass-t hrough fund management mechanism) managed by IFSC 
are taxed exempt.  
Companies accredited to an Innovation Hub ar e entitled to: a corporate tax rate of 15% 
Manufacturing companies are entitled to:  
A corporate tax rate of 15% 
Import machinery and equipment duty-free 
 
Manufacturing companies registered under Schedule 470.03 are entitled to import raw materials duty-free, 
provided that 100% of output is exported outside the CCA. Companies that sell some of their produce within 
the CCA pay duty only on those raw materials used to manufacture those goods sold within the CCA 
(Section 3).  
Source: SADC online information. Viewed at: www.sadc.int/files/8813/9323/6319/Botswana.doc ; and 
http://www.bitc.co.bw/incentives-investors .  
2.29.  Botswana has signed several bilateral investment treaties; however, there are only two in 
force (with Germany and Switzerland).43 I t  h a s  a l s o  s i g n e d  d o u b l e  t a x a t i o n  a g r e e m e n t s  w i t h  
Barbados, France, India, Mauritius, Mozambique , Namibia, Seychelles, South Africa, Sweden, 
United Kingdom, the Russian Federation and Zimbabwe.44 Similar agreements have been signed 
with China, Ireland, Swaziland and Zambia but are awaiting ratification; while others with Belgium, Lesotho, Luxembourg and Malawi have been concluded but have not yet been signed.
45 Botswana 
is a member of the Multilateral Investment Guarantee Agency and of the International Centre for 
the Settlement of Investment Disputes.46 
 
                                                                                                                                               
to utilities (e.g. power, water, tele communications); registering for income  tax and VAT; obtaining construction 
permits; allocation of BITC factory space (subject to  availability); ensuring comp liance with environmental 
requirements; and opening bank accounts (inf ormation provided by the authorities). 
39 BITC (undated). 
40 For more information on IFSC certification plea se refer to the online information. Viewed at: 
http://www.bitc.co.bw/incentives-investors . 
41 Companies that mine other minerals are taxed acco rding to the Twelfth Schedule to the Income Tax 
Act; the tax regime is not negotiated (Income Tax Act (Chapter 52:01). Online information. Viewed at: 
http://www.botswanaifsc.com/docs/income_tax_act.pdf). 
42 Online information. Viewed at: http://www.ceda.co.bw/objectives . 
43 Online information. Viewed at: http://investmentpolicyhub.unctad.org/IIA/CountryBits/26 . 
44 Online information. Viewed at: http://www.bitc.co.bw/incentives-investors, and information provided 
by the authorities. 
45 Information provided by the authorities. 
46 Online information. Viewed at: http://www.miga.org/whoweare/index.cfm?stid=1789 and 
https://icsid.worl dbank.org/apps/ICSIDWEB/about/Page s/Database-of-Member-States.aspx . WT/TPR/S/324/Rev.1 • Botswana 
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures and requirements 3.1.  Customs procedures in Botswana continue to be regulated by the Customs and Excise Duty 
Act (as amended) and by the Customs and Excise Duty Regulations (as amended).
1 The Customs 
and Excise Duty Act is currently under review to develop new regulations. 
3.2.  The documents required for customs clearance are the same as those specified in the 
previous Review. These are: the customs declaration, commercial invoice, bill of lading, certificate 
of origin (for goods covered by preferential trad e agreements), and packing list. Depending on the 
nature of the product, a technical conformity/health/veterinary certificate and/or an import licence or permit may also be required. Declarations of origin are required for goods subject to 
preferences or to anti-dumping and countervailing duties or to safeguard measures.  
3.3.  Importers need to register as a business or a company, under the Companies Act, and obtain 
a trading licence under the Trade Act. If an indivi dual, rather than a registered company, seeks to 
import, they require a hawker's/street vendor lic ence. In addition to the trading licence, all 
importers are required to register with the Customs and Excise Division of the Botswana Unified Revenue Service (BURS) and importers with an an nual turnover of at least P 30,000 (in 2015) are 
required to obtain a Trader Identification Number  (TIN) from Customs in order to facilitate the 
payment of taxes and the import procedures.
2 The use of clearing agents is not compulsory in 
Botswana.3 There are no nationality restrictions to become a clearing agent; however, as to 
perform any other business clearing agents need to be licensed. 
3.4.  Botswana continues to use UNCTAD's Au tomated System for Customs Data (ASYCUDA), a 
risk-based inspection system, to clear customs. The customs declaration form is processed electronically but the supporting documents must be submitted in paper format.  
3.5.  Botswana operates a post-clearance audit system to verify import (and export) declarations. 
Nevertheless, imported goods, including those originating in any of the SACU countries, may be subject to inspection using a risk-based system, based on the importer's profile and profile of 
imports; the selectivity parameters are reviewed from time to time. Products are checked to 
ensure compliance with sanitary and technical re quirements, and to enforce intellectual property 
rights (IPRs). Customs has the authority to stop any goods from entering Botswana if they do not comply with the country's SPS and TBT regulations or if they infringe IPRs. Goods infringing any of 
these requirements or IPRs may be placed under embargo, destroyed or otherwise disposed of. If 
after an investigation it is determined that there was no infringement, goods are returned to the importer. Customs performs inspections on behalf of, inter alia , the Departments for Animal Health 
and Protection, Water Affairs, Wildlife and National Parks and the Botswana Police Service. 
3.6.  Administrative decisions by Customs can be appealed in Court within three months of the 
decision. According to the authorities, there have  not been many cases of such appeals. Since 
2009 there have been three appeals to decisions taken by Customs mainly related to the searching 
of warehouses and the seizure of smuggled cigarettes.
4 
3.7.  Schedule 8 of Botswana's Customs and Exci se Duty Regulations stipulate the ports of entry 
and exit into the national territory. In general these entry (and exit) points can be used for any 
type of goods, with the exception of the airfields located in Orapa and Jwaneng, which can only be 
                                               
1 Customs and Excise Duty Act, Amendment, Ac t 31, 2004; Customs and Excise Duty Regulations 
S.I. 127, 2004; S.I. 88, 2005; and S.I. 49, 2006. 
2 The amount of the annual turnover may be reviewed from time to time. 
3 Information provided by the authorities. 
4 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  used for the importation (and exportation) of goods consigned (to) by the Orapa and Jwaneng 
mines from (or to) any place within or outside the Common Customs Area.5 
3.8.  Imported goods may be kept in licensed bonded warehouses for a period of up to five years. 
Such warehouses may be licensed either for the storage of goods (known as customs and excise 
storage warehouses) or for the manufacture of goods (known as customs and excise 
manufacturing warehouses); a warehouse may be licensed both as a storage and a manufacturing warehouse provided that both activities are separated.
6 Sorting, packing and/or repacking in a 
customs and excise storage warehouse may be allowed if such activities are required to preserve 
the goods, sell them locally or export them. Duti es and the VAT will only become due and payable 
when goods are entered for home consumption. An appropriate bill of entry filled out in the prescribed manner must be used to clear goods from a bonded warehouse. Customs duties and 
sales tax could also be charged if, during any of the Customs' routine inspections, the stocks 
stored in a warehouse are found to be less or greater than the quantity allowed in such warehouses. 
3.9.  Botswana does not apply pre-shipment inspection. 
3.1.2  Customs valuation  3.10.  The Customs and Excise Duty Act and it s Regulations, as amended, set the customs 
valuation procedures in Botswana. According to these Regulations, the value of imported goods at 
the time of entry for home consumption should be the transaction value. If the transaction value cannot be ascertained at the time of entry, the customs value will be assessed according to the 
WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 
1994 and any of its Interpretative Notes.
7 
3.1.3  Rules of origin 3.11.  Botswana applies non-preferential and preferential rules of origin.
8  
3.12.  The non-preferential rules of origin indicate that goods are produced or manufactured in a 
particular territory if: (a) at least 25% of the production cost of the good is accounted for by materials originating and work performed in that terr itory; (b) the last process in the production or 
manufacturing has taken place in that territory; and (c) any other process as prescribed by the 
Minister of Industry and Trade has taken place in that territory. According to the authorities, the 
Minister has never used this faculty. The Minister may also, by regulation, increase or reduce the percentage of local content needed to determine origin in regard to any imported product from a 
particular territory.
9  
3.13.  Preferential rules of origin are determin ed by the Southern Africa Development Community 
(SADC) and Botswana's bilateral trade agreements with Malawi and Zimbabwe. The general 
criteria to confer origin under SADC are: wholly produced goods, change in tariff heading, regional 
value content and substantial transformation. The SADC Trade Protocol also provides for specific rules of origin and for more lenient rules of origin for SADC least developed countries (LDCs) 
(i.e. Malawi, Mozambique, Tanzania and Zambia  (MMTZ)) for textiles and garment products 
(HS Chapters 50–63) shipped to the Southern African Customs Union (SACU). The SADC Trade Protocol also allows for the de minimis  rule, which provides relief when a product does not qualify 
                                               
5 Schedule 8 of the Customs and Excise Duty Regulations (28 March 1974, as amended). Viewed at: 
http://www.burs.org.bw/phocadownload/Revenue_laws/CAP%2050-
03%20Customs%20and%20Excise%20Duty%20A ct%20Subsidiary%20Legislation.pdf . 
6 Part IV of the Customs and Excise Duty Regulation s, 1974 (S.I. 36 of 1974) (as amended up to S.I. 49 
of 2006). 
7 Information provided by the authorities. 
8 Origin of Goods Customs and Excise Duty Regu lations, 1974 (S.I. 36 of 1974) (as amended up to 
S.I. 49 of 2006). 
9 The authorities are not aware of any incidents or circumstances under which the Minister increased or 
reduced the percentage of local content. WT/TPR/S/324/Rev.1 • Botswana 
 
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  as originating only because some non-originating material of little value fails to meet the minimum 
percentage in terms of value criteria.10 
3.14.  Under the Botswana-Malawi Trade Agreemen t, origin is granted only to goods wholly 
obtained and manufactured in either country, with the exception of spirits.11 
3.1.4  Tariffs 
3.15.  Botswana applies the import duties stipulated by the SACU Agreement (please refer to the 
Main Report). 
3.16.  At the time of the Uruguay Round, Botswana bound its entire tariff schedule, with the 
exception of some agricultural goods, soda ash and small tractors, at the same levels as that of South Africa (Table A3.1). Al l tariff lines were bound at ad valorem  rates. On 16 tariff lines, the 
2015 MFN applied tariff rates appear to be higher than the bound rate (Table 3.1). Some of these 
are specific to Botswana; these relate to dairy products. 
Table 3.1 Tariff lines where the applied MFN ra te might be higher than the bound rate, 
2015  
Tariff code Product descriptions MFN applied rates Bound 
rates 
(%) Specific duty AVEa 
2014 2015 
Specific to Botswana      
04039010 Buttermilk, curdled milk and cream 450c/kg with a 
maximum of 96% 88.0 14.0 20.0 
ex 
04052000 Dairy spreads 500c/kg with a 
maximum of 79% 25.3 5.9 20.0 
ex 
04052000 Dairy spreads 500c/kg with a 
maximum of 79% 25.3 5.9 37.0 
04029100 Milk and cream, not containing 
added sugar or other sweetening matter 450c/kg with a 
maximum of 96% 14.0 24.0 20.0 
04029910 Milk and cream, in aerosol 
containers 450c/kg with a 
maximum of 96% 96.0b 96.0b 20.0 
04029990 Milk and cream, other than in 
aerosol containers 450c/kg with a 
maximum of 96% 96.0b 96.0b 20.0 
04069011 Cheddar, imported from 
Switzerland 500c/kg with a 
maximum of 95% 95.0b 95.0b 20.0 
Botswana (and Namibia, South Africa and 
Swaziland)     
12119020 Basil, borage, hyssop, mint, 
rosemary, rue and sage, neither 
ground nor crushed 0.45c/kg 0.01 0.01 0.0 
12119030 Basil, borage, hyssop, mint, 
rosemary, rue and sage, ground or crushed 4c/kg 0.2 0.1 0.0 
ex 
16010090 Sausages and similar products, of 
meat (other than "pâté de foie 
gras" and "foie gras") 40% or 240c/kg 40.0 40.0 37.0 
ex 
16010090 Sausages and similar products, of 
meat (other than "pâté de foie gras" and "foie gras") 40% or 240c/kg 40.0 40.0 60.0 
19059010 Gluten bread 3.6c/kg with a 
maximum of 25% 0.1 0.1 0.0 
20060040 Sweet corn  
(zea mays var. saccharata ) 30% or 7.25c/kg 30.0 30.0b 22.0 
22021010 Waters, containing added sugar or 
other sweetening matter or 
flavoured, in sealed containers 
holding 2.5 l or less  4.36c/l 0.4 0.4 0.0 
                                               
10 Rules of Origin Exporters Guide Manual. Viewed at: 
http://www.sadc.int/files/9613/5413/6410/3._Rul es_of_Origin__Exporters_Guide_Manual.pdf . 
11 Online information. Viewed at: http://www.mitc.mw/index.php?Itemid=530.  WT/TPR/S/324/Rev.1 • Botswana 
 
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  Tariff code Product descriptions MFN applied rates Bound 
rates 
(%) Specific duty AVEa 
2014 2015 
22021090 Waters, containing added sugar or 
other sweetening matter or flavoured, in sealed containers holding more than 2.5 l 3.3c/l 0.5 0.7 0.0 
ex 
73202010 Helical springs 30.0 n.a. n.a. 15.0 
ex 
73202010 Helical springs 30.0 n.a. n.a. 30.0 
ex 
84212330 Oil or petrol-filters for internal 
combustion engines 16.0 n.a. n.a. 15.0 
ex 
84212330 Oil or petrol-filters for internal 
combustion engines 16.0 n.a. n.a. 30.0 
84501290 Other machines, with built-in 
centrifugal drier 30.0 n.a. n.a. 20.0 
84502010 Household or laundry-type washing 
machines 30.0 n.a. n.a. 0.0 
85285190 Other monitors, of a kind solely or 
principally used in an automatic 
data processing system 25.0 n.a. n.a. 0.0 
n.a. Not applicable. 
a Ad valorem  equivalents (AVEs) for 2014 and 2015 were estimated based on South Africa's data on 
imports for 2013 and 2014 at the HS 8-digit level. Where trade data was not available (i.e. for tariff lines HS 04029910, HS 04029990, HS 04069011 and HS 20060040), only the ad valorem  part of the 
mixed duty rates was used. 
b The ad valorem  part is used for mixed duty rates if no AVEs are estimated. 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS); and WTO, CTS database.  
3.17.  Botswana does not apply MFN tariff rate quotas. However, under the EFTA-SACU Agreement 
preferential tariff rate quotas apply to some me ats and cheddar cheese originating in Switzerland. 
According to the authorities, Botswana has never administered any tariff rate quotas under this 
agreement.  
3.1.4.1  Other duties and charges 3.18.  Imports into Botswana are subject to the excise duties and levies that are imposed as a 
result of being party to the Customs Union. Thes e include: specific excise duties on locally 
manufactured or imported goods; ad valorem  excise duties on locally manufactured or imported 
goods; environmental levies; fuel levy; road accident fund levy and ordinary levy (please refer to the Main Report).
12 
3.19.  Article 26 of the SACU Agreement allows members to provide temporary protection to infant 
industries for a maximum of 8 years, through the imposition of additional duties. Revenues from these additional duties must be deposited in the Common Revenue Pool. Under this provision, 
Botswana has levied an additional duty of 40% on  imports of UHT milk since 2008, which will be 
eliminated by 2016.
13 
3.20.  Botswana also charges a flour levy at a rate of 15% on imports of wheat flour to protect the 
milling industry in order to promote its development.14 The levy will be gradually phased-out over 
a period of ten years starting in 2015.15 
                                               
12 Schedules to the Customs and Excise Act, 1964 (Tariff Book). Viewed at: 
http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx . 
13 Information provided by the authorities. 
14 This levy is imposed as per the author ity granted to the Minister of Trade by  The Control of Goods, 
Prices and Other Charges Act. 
15 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.21.  The internal taxes levied by Botswana on imports and domestic goods and services remain 
mostly unchanged since the last Review in 2009. These are: the value-added tax, fuel levy, alcohol levy, and a copyright levy. In 2013, Botswana introduced a tobacco levy. 
3.22.  VAT is applied both on domestic and imported goods and services, including from other 
SACU members. The major changes regarding the a pplication of VAT since the last Review were: 
an increase in the standard rate from 10% to 12% in 2010, and the removal of some food items 
from the list of items that were zero-rated and their inclusion in the list of goods that are 
exempt.
16 Up to 2014, zero-rate VAT goods included: staple foods (brown bread, rice, milk, 
sorghum or maize meal, millet gr ain and meal, wheat grain, maize cobs, flour, sugar, Setswana 
beans, and some vegetables and fruits); fuel (petrol, unleaded petrol, diesel oil and illuminating paraffin); fertilizers, pesticides, and farming tractors; and international transport services.
17 
Domestic passenger transport services; financial, educational and medical services; long-term 
residential letting; and the supply of prescription drugs are amongst the services that are exempt 
from VAT.18 In addition, since 2015: staple foods and farming equipment, have been exempt from 
VAT.19  
3.23.  Imports and domestic sales of petroleum products (i.e. petrol and diesel) are subject to a 
fuel levy of P 0.12 per litre of petrol and P 0.07 per litre of diesel.20 The levy is collected at point of 
entry and finances the National Petroleum Fund (NPF) that is used to stabilize the price of oil 
products in the domestic market.  
3.24.  Domestically produced and imported liquor are subject to a levy of 30% which was 
increased to 50% in 2013 and to 55% in 2014.21 The value used to assess the intoxicating liquor 
levy for locally produced items is the price paid or payable for the alcoholic beverages when sold 
for home consumption to any buyer, inclusive of the import duty but exclusive of VAT; and for imported items, it is the value used to assess customs duties plus the duty paid or payable on the 
goods transport and insurance costs, exclusive of VAT. Revenue from this levy is credited to the 
Levy on Alcoholic Beverages Fund to promote activities aimed at combating alcohol abuse. The levy is not charged on products that are exported directly by the manufacturer or from a bonded 
warehouse. 
3.25.  The Ministry of Health introduced a tobacco levy of 30% in 2014. The base to calculate the 
levy on domestically produced tobacco products is the purchase/invoice price and for imported products it is the landed cost plus the applied import duty. The revenue collected is used to finance 
anti-tobacco initiatives and other related activities.
22  
3.26.  Botswana charges a copyright levy on imported and locally manufactured carrier media.  3.1.4.2  Tariff and tax exemptions 
3.27.  The 2002 SACU Agreement stipulates that all members need to apply the same rebates
23, 
refunds24 or drawbacks25 of customs duties on imported goods. There are, however, some 
                                               
16 Value Added Tax (Amendment) Act, 2015 and Value Added Tax (Exemption) Regulations. Viewed at: 
http://www.burs.org.bw/index.php/tax/value-added-tax . 
17 First Schedule Zero-Rated Supplie s (Chapter 50:03 Value Added Tax). 
18 Second Schedule Exempt Supplies (Chapter 50:03 Value Added Tax). 
19 2014 Budget Speech. Viewed at: 
http://www.parliament.gov.bw/phocadownload/ContentArchives/Budget-Speech/2014budgetspeech.pdf. 
20 Information provided by the authorities. 
21 Goods subject to the intoxicating liquor levy ar e: traditional African beer  powder, beer made from 
malt, wine of fresh grapes, including fortified wines; ve rmouth and other wine of fresh grapes flavoured with 
plants or aromatic substances; othe r fermented beverages; mixtures of fermented beverages and mixtures of 
fermented beverages and non-alcoholic beverages, not elsewhere specified or included; undenatured ethyl 
alcohol of 80% volume or higher; ethyl alcohol and ot her spirits, denatured, of  any strength; undenatured 
ethyl alcohol of an alcoholic strength by volume of less  than 80% volume; spirited liqueurs and other spirituous 
beverages; and compound alcoholic preparation of a kind  used for manufacturing beverages. (Control of Goods 
(Intoxicating Liquor (Levy)) Regulations (Section 3(2)(d)) (31 October 2008) and Statutory Instrument No. 151 of 2014) 
22 Online information. Viewed at: http://www.gov.bw/en/Ministries--
Authorities/Ministries/Ministryo fHealth-MOH/News/TOBACCO-LEVY/ . 
23 Part of the duty or all of the du ty is reduced or remitt ed subject to compliance with certain conditions. 
24 Repayment of all or part of the duty  paid at the time of importation. WT/TPR/S/324/Rev.1 • Botswana 
 
- 73 - 
 
  country-specific rebates. In general, Botswana applies the tariff exemptions and other concessions 
that are stipulated in the Schedules to the Customs and Excise Act of 1964, which are: the Industrial Rebate of Customs Duty; the General Re bate of Custom Duties; the Specific Drawbacks 
and Refunds of Custom Duties; Fuel levy and En vironmental Levy; and Refunds and Rebates of 
Excise Duties, Fuel Le vy and Environmental Levy
26 (Main Report). Other country-specific rebates 
are those for wheat (HS1011) (excluding durum wheat) and dairy products (HS 04), which are used only by Botswana, Lesotho, Namibia, and Swaziland (BLNS). However, the use of these 
rebates has to be allowed by the agricultural authorities of the four BLNS countries. 
3.28.  Concessions applied by SACU countries (including Botswana) include rebates that affect 
specific industries and those that are more gene ral and apply to imports by diplomats (based on 
reciprocal treatment), special events such as international exhibitions, relief in cases of natural 
disasters and famines, and to goods being re-imported into Botswana or goods sent abroad for 
processing or repair that are re-imported.
27 Industrial rebates (Schedule 3) are available to 
stimulate selected industries such as: food and beverages; textile and clothing; pharmaceuticals; 
pulp and paper; wood and articles of wood; an d vehicles. These rebates allow for imported raw 
materials, usually not available locally, to enter th e SACU territory, at a reduced rate of duty, if 
they are to be used in one of the specific sched uled industries. The rate of the rebate varies 
according to product; however, in many instances it is as high as 100%. Rebated inputs can be 
used either to manufacture products to be sold in the SACU market, upon payment of duties, or for export outside the SACU region. According to the authorities, during the period under review only two firms in the textile industry benefited fr om industrial rebates. All duly registered and 
licensed businesses may benefit from the existing rebates.
28 
3.29.  Goods imported for a specific purpose or under different customs regimes may also be 
exempt from VAT. As a result, goods imported, inter alia , (1) for the relief of distress of persons in 
cases of famine or other natural disaster; (2) under any technical assistance agreement; (3) to 
fulfil obligations under any multilateral international agreement to which Botswana is a party; or (4) for welfare or charitable purposes, are exempt from VAT.
29 In addition, imported or locally 
manufactured articles sent abroad for processing or repair, provided they retain their essential 
character, and are returned to the same ex porter, are exempt from VAT. Goods that are 
temporarily exported for outward processing are also exempt from VAT when re-imported and so 
are goods temporarily admitted for processing, repair, cleaning or reconditioning or to be exported 
in the same state at a later stage. 
3.1.5  Import prohibitions, restrictions, and licensing 3.30.  Imports may also be subject to non-tariff barriers including prohibitions, permits and 
quotas, imposed on grounds of, inter alia , health, safety, morality or security, but also for 
self-sufficiency reasons and to comply with requirements imposed by agreements to which 
Botswana is a signatory or to comply with UN resolutions. In fact, the Minister may by regulation 
prohibit or restrict the importation of any goods, if he or she considers any such prohibition or 
restriction necessary for public interest.
30 
                                                                                                                                               
25 Part or all of the duty paid on  the imported goods is refunded to the importer once the imported 
goods are used to manufacture a product that  is exported out of the customs union. 
26 Schedules to the Customs and Excise Act, 1964 (Tariff Book). Viewed at: 
http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx . 
27 The authorities indicated that du ring the period under review the most commonly used rebates were 
under Schedule 4 of the Customs and Excise Tariff B ook namely for the following tariff headings: 405.00 
(exemptions for cultural items), 406.00 (exemptions for diplomatic use), 408.00 (exemptions for trophies), 409.00 (exemptions for re-imported goods), 410.00 (exemptions for goods used for industrial and commercial purposes), 412.00 (general rebates), 414.00 (imported goods for special sporting events), 460.00 (temporary rebates apply to several goods), 470.00 (goods that are temporarily admitted for repair), 480.00 (goods that are temporarily admitted for specific purposes), and 490.00 (goods temporarily admitted subject to exportation). 
28 Information provided by the authorities. 
29 For the complete list of imports exempt from VAT please refer to the Third Schedule (Exempt 
Imports) of Chapter 50: 03 (Value Added Tax). 
30 Prohibitions and restrictions, Chapter 50:01, Customs and Excise Duty. WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.31.  Import prohibitions apply to such g oods as narcotic drugs, obscene material, and 
environmentally hazardous products, such as toxic or radioactive waste, mainly to protect health, safety and morality. Imports of semi-precious stones and certain plants are also prohibited.
31 
3.32.  Imports of several agricultural products require a permit, unless imported in small quantities 
(e.g. 10 kg to 25 kg) (Table 3.2). These import permits are required to promote local production of 
basic products. Occasionally, Botswana links the use of trade policy instruments to domestic policy considerations. For instance, import restrictions are relaxed when there are supply shortages and 
vice-versa. As a result, in some cases (e.g. horticultural products) permits might not be granted 
when the domestic supply is deemed sufficient, which results in a ban on imports.
32 According to 
the authorities, this ban lasts for a pre-determined period which is publicly communicated by the Ministry of Agriculture.  
3.33.  Import permits for other agricultural goods seem to be issued at all times
33, but are only 
authorized if the applicant submits proof that a specific amount has already been purchased in Botswana. This is the case for imports of maize grain, of which 30% must be purchased locally; 
maize meal, samp, maize rice or animal feed fo r poultry and livestock, of which 70% must be 
purchased locally; and sorghum grains (50%) and sorghum meal, sorghum rice or any other processed sorghum products (70%).
34 Imports of agricultural products also require sanitary and 
phytosanitary clearance prior to obtaining the permit; both are obtained from the Ministry of 
Agriculture. Unless cancelled or revoked, import permits for dried grains and grains products are valid for 1 month, while permits for horticultural products are valid for 7 days from the date of issuance and may be renewed; however, when rene wing an import permit, the Ministry may vary 
the conditions attached to it and may impose additional conditions. Import permits cannot be 
transferred nor sold.
35 
Table 3.2 Import restrictions  
Products Type of 
restriction/objective Legal instrument 
Animal feed for poultry and 
livestock; bananas; beetroot; butternuts; cabbage; carrots; fresh milk; green pepper; maize; maize products; mangoes; onions; oranges; potatoes; pulses; pumpkin; sorghum; sorghum products; sweet potatoes; tomatoes; water melon; wheat and 
wheat flour Import permit/food 
security  Control of Goods (Import and Export of 
Agricultural Products) Regulations (under Section 3) (25 November 1985) First Schedule Restricted Agricultural Imports (reg. 3(1)) Control of Goods (Restriction on Importation of Wheat Flour) Regulations (under Section 3) (29 March 1985) Control of Goods (Import Control) 
Regulations (under Section 3) 
(3 April 1987) 
Eggs and poultry Meat Import permit/food 
security Control of Goods (Importation of Eggs and 
Poultry Meat) Regulations (under 
Section 3) (7 December 1979) 
Sugar Import permit/food 
security Control of Goods, Prices and Other Charges 
(Restriction on Importation of Pre-packed Refined Sugar) Regulations, 2008 
Pre-packed refined sugar Import permit/food 
security Control of Goods, Prices and Other Charges 
(Restriction on Importation Of Pre-packed 
Refined Sugar) Regulations (Section 3) 
(1 March 2006) 
Bread loaves and pie past ries Import permit/food 
security Control of Goods, Prices and Other Charges 
(Restriction on the Importation of Bread Loaves and Pie Pastries) Regulations (under Section 3) (14 October 2003) 
                                               
31 These include: agate, amethyst, Botswana pink, jade, rose quartz, carnelian, chalcedony, crystal 
quartz, tourmaline, jasper, tanzanite, garnet, moss ag ate, tiger's eye, sodalite, aquamarine, azurite and 
malachite. Online information. Viewed at: https://botswana.visahq.com/customs/#!import-regulations . The 
First Schedule of the Plant Protection Regulations lists all plants that are prohibited from importation. 
32 Control of Goods, Prices and Ot her Charges (Restriction on the Importation of Bread Loaves and Pie 
Pastries) (Import and Export of Agricultural Products) Regulations (under Section 3) (14 October 2003). 
33 Control of Goods (Import and Export of  Agricultural Prod ucts) Regulations. 
34 Control of Goods (Import Control) Regulations (under Section 3) (3 April 1987). 
35 Control of Goods (Import Control) Regulations (under Section 3) (3 April 1987). WT/TPR/S/324/Rev.1 • Botswana 
 
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  Products Type of 
restriction/objective Legal instrument 
Hormones and oestrogens, 
anabolic steroids, zeranol 
(resorcylic acid lactones), antibiotic 
feed additives and animal feed 
containing antibiotics, and all other 
products used for the purpose of 
growth promotion in animals Import permit/health Control of Goods (Animal Feed Additives 
and Growth Promoters) Regulations (under 
Section 3) (12 August 1977) 
Firearms and ammunition Import permit/security 
reasons Arms and Ammunition Act 
Boats Import permit/security 
reasons Fish Protection Act 
Second-hand goods motor vehicles 
and clothing Import 
permit/environmental and health reasons Control of Goods, Prices and Other Charges 
Act (goods refer to both new and second-hand) 
Cigarettes with a mass of more 
than 2 kg per 1,000 cigarettes are 
prohibited Import prohibition/health Prohibitions and restrictions, 
Chapter 50:01, Customs and Excise Duty 
Source: WTO Secretariat. 
3.34.  In addition to the import permit, milk imports, including from other SACU members, were 
also subject to import quotas established on a quarterly basis by a Milk Importation Committee 
comprising producers and processors. According to the authorities, these quotas were removed in 
2011. 
3.35.  Up to 2008, imports of sugar, except for a maximum of 12.5 kg for personal consumption, 
could only be undertaken by the Botswana Development Corporation, which held a monopoly up to 
2008.36 Since then imports of sugar have been allowed in quantities higher than 50 kg.37 
3.36.  Import permits are generally required for imports of industrial products originating outside 
SACU, with the exception of goods originating in Malawi and Zimbabwe. Permits are issued by the Ministry of Trade and Industry, in order to, inter alia , promote the development of an industry
38 
(Chart 3.1).39 Industries are chosen according to Botswana's industrial development priorities and 
the SADC Industrial Strategy.  
3.37.  Applications for an import permit for indust rial goods are made to the Ministry of Trade and 
Industry. To apply for a permit, the person needs to: hold a valid traders licence; be a citizen of 
Botswana or hold a resident permit authorizing him or her to carry on business in Botswana; or be 
a company registered and carrying on business in Botswana. The application must be accompanied by proof of payment of the required fee (i.e. P 50 for processed goods and P 100 for bread loaves 
and pie pastries).
40 Unless cancelled or revoked, import permits for industrial products are valid for 
a period of 6 months; however, when renewing an import permit, the Ministry may vary the 
conditions attached to it and may impose additional conditions. Import permits cannot be 
transferred nor sold.41 
                                               
36 Control of Goods (Importation of Sugar) Regulations (under Section 3) (1 January 1985). 
37 Control of Goods, Prices and Othe r Charges (Restriction on Importat ion of Pre-packed Refined Sugar) 
Regulations, 2008 and Statutory Instrument No. 86 of 2008 Restriction on the Importation of Pre-packed Refined Sugar. 
38 Control of Goods, Prices and Other Charges Act. 
39 Information provided by the authorities.  
40 Control of Goods (Import Control) Regulations (under Section 3) (3 April 1987). 
41 Control of Goods (Import Control) Regulations (under Section 3) (3 April 1987). WT/TPR/S/324/Rev.1 • Botswana 
 
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  Chart 3.1 Import control by HS Section 
(% of total lines) 
0% 1% 2% 3% 4% 5% 6%Works of art (XXI)Miscellaneous (XX)Articles of stone, plaster, cement (XIII)Footwear (XII)Raw hides and skins (VIII)Precious stones (XIV)Wood pulp (X)Animal or vegetable fats and oils (III)Ammunitions (XIX)Minerals (V)Wood and articles of wood (IX)Chemicals (VI)Machinery (XVI)Vehicles (XVII)Plastics (VII)Base metals (XV)Vegetables (II)Animal products (I)Prepared foods (IV)Textiles and textile articles (XI)
 
Note: The 2014 tariff is based on HS 12 nomenclature consisting of 7,322 tariff lines (at 8-digit tariff line 
level). 
Source: WTO Secretariat estimates, based on Schedule 1 of the Control of Goods (Import Control) 
Regulations (under Section 3).  
3.1.6  Anti-dumping, counterva iling, and safeguard measures 
3.38.  As a result of its SACU membership, Botswana must apply anti-dumping, countervailing or 
safeguard measures resulting from investigations conducted by the International Trade 
Administration Commission (ITAC) of South Africa on behalf of Botswana and the other SACU members. In 2010, Botswana notified to the WTO that it had not established an authority 
competent to initiate and conduct investigations to impose anti-dumping or countervailing 
measures.
42 However, in 2013, Botswana enacted the Botswana Trade Commission Act, 2013, 
which calls for the establishment of the Botswana Trade Commission (BTC), which will be responsible for amongst others, trade remedies.  
3.39.  According to Botswana's legislation, if the Minister of Trade and Industry deems that a 
country: (a) has imposed on any goods originating in Botswana any duty, charge or restriction which is not imposed upon like goods produced or manufactured in other countries; or (b) has 
discriminated against goods originating in Botswana in such manner as to place them at a 
disadvantage in comparison with goods that origin ate in a third territory, the Minister may impose 
additional duties on goods originating from that country.
43 Under any of these circumstances, the 
Minister of Trade and Industry can ask ITAC to undertake an investigation on behalf of Botswana. 
However, once the Botswana Trade Commission is established, it will undertake the investigations. 
3.40.  During 2009-14, Botswana did not invoke the special agricultural safeguard.44  
3.1.7  Standards and other technical requirements 
3.41.  Standards and technical regulations are developed in accordance with the Standards Act 
No. 16 of 1995 (Chapter 43:07) following, as far as possible, internationally accepted standards and quality control procedures. Standards and te chnical regulations are applied to ensure the 
protection of human, animal and plant life an d health, and are not intended to be overly 
burdensome or to restrict trade.
45 
                                               
42 WTO documents G/ADP/N/193/BWA, 19 April 2010 and G/SCM/N/202/BWA, 25 January 2010. 
43 Discrimination by other countries, Customs and Excise Duty Regulations, 1974 (S.I. 36 of 1974) (as 
amended up to S.I. 49 of 2006). 
44 WTO documents G/AG/N/BWA/8, 14 July 2010; G/ AG/N/BWA/12, 6 March 2012; G/AG/N/BWA/15, 
28 August 2012; G/AG/N/BWA/18, 13 February  2014; and G/AG/N/BWA/21, 9 December 2014. 
45 Ministry of Trade and Industry (2009). WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.42.  The Botswana Bureau of Standards (BOBS) is responsible for developing standards and 
coordinating quality assurance activities. BOBS is the national enquiry point under the WTO TBT Agreement and the national notification authority.
46  
3.43.  Botswana standards are based on standards developed by other national, regional and/or 
international standardization bodies, and are ad opted as they are or adapted to Botswana's 
cultural, climatic, industrial or economic environment. According to the authorities, there were no major changes related to the process of standard ization in Botswana during the period under 
review. Standards are developed in seven stages: identification of the need, proposal, drafting, 
technical committee review, public comment (validation), approval, and publication in the Standards Catalogue.
47 Standardization projects are initiated through requests from interested 
parties, which include: members of the technical committees, government departments, industrial 
groups, research institutes, and consumer or prof essional bodies. Draft standards are reviewed by 
the technical committees and circulated for public comment for 2 months. Once comments are incorporated, the draft standard is sent to the Technical Advisory Committee for approval. 
Standards are reviewed on a regular basis every five years to detect whether it is necessary to 
adapt them to new realities. Following the revi ew, a standard may be confirmed without change, 
go forward for revision or be withdrawn.
48 
3.44.  Technical regulations usually apply to products and services that are likely to affect the 
health and safety of people and animals, and the environment.49 According to the authorities, the 
procedures to develop standards and technical regulations are the same. However, for a standard to become a technical regulation a notice has to be issued in the Gazette and thereafter needs to 
be mentioned in the Standards (Import Inspection) Regulations (SIIR), which are updated as 
required when new technical regulations come into force. Any standard can be declared a "compulsory standard", either in the original notice or in a subsequent notice. In this case, at least 
two months before making a recommendation for a standard to become "compulsory", BOBS must 
publish a preliminary notice in the Gazette setting forth as precisely as possible the details of the "compulsory standard", and inviting those interested to comment within a month of the publication 
of the preliminary notice.  
3.45.  BOBS is in charge of implementing the Standards (Import Inspection) Regulations (SIIR) of 
2008 (last amended in 2013). The main purpose of th e Regulations is to control the quality of the 
prescribed imports as listed in the regulations. Imports of all commodities listed in the SIIR, 
referred to as regulated products, must comply with the required specifications and require 
certificates of compliance from the country of or igin. Some of the products that are subject to 
import inspection under the SIIR include: electrical plugs, adaptors, socket outlets, electric irons, 
milk (raw and pasteurized), yoghurt, pulses, canned fish, cattle feeds and chicken feeds.
50 If upon 
arrival to Botswana, these goods do not have a certificate of compliance, they will not be allowed to enter until samples have been tested by BOBS to ascertain their quality or compliance with the 
requirements. Once tested, if products are found to be non-compliant with the relevant technical 
requirements referred to in the SIIR, the product mi ght be re-exported or disposed of in Botswana. 
BOBS may revoke a certificate issued under the SIIR where subsequent testing of a product which has already been released into the market reveal s that the quality of the product does not meet 
the relevant prescribed "compulsory" standard.  
3.46.  Botswana has inspectors that undertake regular checks to ensure technical regulations are 
complied with. Violations of "compulsory stan dards" are liable to a fine of P 5,000 and 
imprisonment of three years. 
3.47.  Botswana's conformity assessment infrastructure continues to be limited: there are 
5 accredited testing laboratories in Botswana. BOBS has submitted applications for accreditation of 
                                               
46 WTO document G/TBT/2/Add.97, 30 October 2007.  
47 The Standards Catalogue is available online  at:http://www.bobstandar ds.bw/Pages/Published-
Standards.aspx?mnusub=23&pid=18&mp=0&sp=18. 
48 The list of withdrawn standards is available online at: 
http://www.bobstandards.bw/Pages/Withdrawn -Standards.aspx?mnusub=26&pid=18&mp=0&sp=18 .  
49 The list of the technical regulations applied at present is available online at: 
http://www.bobstandards.bw/Pages/Prescribed -Standards.aspx?mnusub=27&pid=18&mp=0&sp=18 .  
50 The list of regulated produc ts is available online at: http://www.bobstandards.bw/Pages/Regulated-
Products.aspx?mnusub=53&pid=46&services=bob&sp=46 . WT/TPR/S/324/Rev.1 • Botswana 
 
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  17 test methods. Botswana recognizes foreign test results from accredited testing laboratories. 
Botswana has not signed any mutual recognition agreements.  
3.48.  Botswana has several laws and regulations prescribing labelling requirements (Table 3.3). 
Requirements stipulated in these laws are mandatory. Provisions apply to both locally produced 
and imported goods and affect mainly pre-packaged foods, food additives, and tobacco and 
cigarettes. BOBS also stipulates general requirements regarding labelling, presentation and advertising of goods for sale. 
Table 3.3 Botswana labelling legislation, 2014  
Legislation 
Customs and Excise Duty Regulations, 1974 (as amended)  
Standards (Import Inspection) Regulations (SIIR), 2003 (as amended) 
Labelling Control of Goods (Marking of Goods) Regulations, 1974 
Labelling of Prepackaged Foods Regulations 
Labelling of Food A dditives Re gulations 
Source: WTO Secretariat. 
3.49.  In general, food products have to be clea rly marked and labelled, including price, content, 
name and address of manufacturer, country of origin, lot identification, date marking of food additives, and instructions on keeping and use. Th e presentation, the language and the size of the 
letters of the labels are also prescribed by legislation. The importation, distribution, or sale of food 
that is not marked and labelled as prescribed by law is considered an offence liable to fines of P 1,000 to P 7,000 and to imprisonment for 3 to 6 months, depending if it is the first offence or a 
subsequent offence. 
3.50.  There are special provisions regarding sizes and types of containers which may be used by a 
manufacturer for the packing of cigarettes and cigarette tobacco.
51 Imports of cigarettes are not 
allowed unless they have been packed in the prescribed manner and a stamp impression has been 
made on their containers. 
3.1.8  Sanitary and phytosanitary requirements 3.51.  The institutions in charge of adopting  and implementing sanitary and phytosanitary 
regulations have remained largely unchanged since the previous Review. The Ministry of 
Agriculture (through the Departments of Crop Production and Veterinary Services) is responsible for adopting and implementing sanitary and phytosanitary measures. The Ministry of Health 
continues to be responsible for food safety and is advised by the National Food Control Board.
52 
The Board comprises government officials from a number of ministries, including the Ministries of Health, Agriculture, and Commerce and Industry, as well as, other stakeholders representing the 
BOBS, the food industry and consumers. 
3.52.  The Ministry of Agriculture is the national  enquiry point and notification authority on SPS 
matters.
53 During the period under review, Botswana did not make any notifications regarding the 
adoption of SPS measures, nor was it able to actively participate in the WTO SPS Committee. 
According to the authorities this is due to Botswana's lack of capacity in this area. Nevertheless 
Botswana recognizes the importance of protecting human, animal and plant health, thus it has a vast body of legislation (Table 3.4). The proper enforcement of these laws and the implementation 
of practices aimed at improving sanitary conditions in the country are necessary for Botswana to 
attain food security, one of their main goals, as we ll as to take full advant age of international trade 
opportunities, especially as an exporter of meat products. In this regard, one of Botswana's major 
achievements since the previous Review has been that in 2013 certain zones were declared free of 
foot-and-mouth disease (FMD) by the OIE.
54  
                                               
51 Customs and Excise Duty Regulations, 1974 (S.I. 36 of 1974) (as amended up to S.I. 49 of 2006). 
Viewed at: http://www.wipo.int/edocs/lexdocs/laws/en/bw/bw020en.pdf . 
52 Food Control Act of 1993. 
53 Information provided by the authorities. 
54 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 3.4 SPS legislation  
Legislation 
Plant Protection Act (Chapter 35:02) 
An Act to prevent the introduction, spread and establishm ent of plant pests; to facilitate trade in plants; to 
enable Botswana to comply with its international obligations; and to provide for matters incidental thereto. Plant Protection Regulations (Section 29) - 17 July 2009 
Diseases of Animals Act (Chapter 37:01) 
An Act to provide for the prevention and control of di seases of animals; to regulate imports, exports and 
movement of animals; to provide for the quarantine of animals in certai n circumstances; and to provide for 
matters incidental to and connected with the foregoing. 
Diseases of Stock (Quarantine and Compensation) Regulations (Chapter 37:01) - 31 December 2008  
Diseases of Stock (Poultry) Regulations (Chapter 37:01) - 31 December 2008 
Movement of Stock (Restriction) Order (Chapter 37:01) - 01 January 1976 
Foot-and-Mouth Disease (Conveyance of Products) Order (Chapter 37:01) - 31 December 2008 
Disease of Stock Regulations (Chapter 37:01) - 31 December 2008 
Stock Diseases (Semen) Regulations (Chapter 37:01) - 31 December 2008 
Declaration of Foot and Mouth Disease (Infected Area) Order (S.I. No. 3 of 2003) 
Diseases of Animals (Livestock Identification and Trace-back) Regulations (Chapter 37:01) - 
31 December 2008 
Diseases of Animals (Prohibition of use of Anabol ic Hormones and Thyrostatic Substances) Regulations 
(Chapter 37:01) - 31 December 2008 
Diseases of Animals (BSE Control (Removal of Specified Risk Material)) Regulations (Chapter 37:01) - 
31 December 2008 
Diseases of Animals (Declaration of Stock-Free Zones) Order (Chapter 37:01) - 31 December 2008 
Diseases of Animals (Muzzling) Order (Chapter 37:01) - 31 December 2008 
Diseases of Animals (Stock Feed) Regulations (Chapter 37:01) - 31 December 2008 
Prohibition of Sale of Imported Cattle to the Botswa na Meat Commission for Expo rt to the European Union 
Regulations (Chapter 37:01) - 31 December 2008 
Diseases of Animals (Inoculation) Order (Chapter 37:01) - 31 December 2008 
Livestock and Meat Industri es Act (Chapter 36:03). 
An Act to re-enact, with some amendments, the Livestock and Meat Industries Act, to regulate the slaughter of 
domestic livestock, farmed game, wild  game and poultry for human consumpt ion; to control the operation of 
abattoirs, slaughter slabs, cold stor age facilities, meat processing plants , cutting premises, canning plants; and 
to govern marketing, grading and insp ection of livestock, livestock products and other matters related thereto. 
This Act prohibits the operation of an abattoir unless the abattoir is registered with the Director of the Department of Animal Health and Production. 
Livestock and Meat Industries (Meat In spection and Control of Red Meat Abattoir) Regulations (Chapter 36:03)  
Livestock and Meat Industries (Poultry  Abattoir) Regulations (Chapter 36:03) 
Grading of Carcasses Regulations (Chapter 36:03) Livestock and Meat Industries (Producers' Agents) Regulations 
Veterinary Surgeons Act (Chapter 61:04) 
An Act to provide for the re gistration and control of veterinary su rgeons and for other matters incidental 
thereto and connected with the practice of veterinary surgery and veterinary medicine. 
Importation of Bees Act (Chapter 49:02) 
An Act to prevent the introduction of the disease amongst bees known as "foul brood". 
This Act introduces measures to prevent the spreading of  a disease affecting bees. It  prohibits the importation 
of bees without the written permission of the President and the importation of specified material relating to 
bees altogether. The Act sets out powers of authorized officers in relation with inspection of consignments, 
apiaries or places where honey or beeswax is sold and defines the regulation-making powers of the President.  
Food Control Act (Chapter 65:05) 
To ensure the provision of clean, sa fe, and wholesome food to consumers. 
This Act makes provision for the establishment of the Na tional Food Control Board and provides for the control 
of the supply of wholesome food and pure water to the pu blic. The National Food Control Board shall advise the 
Minister on food quality and food safe ty and shall perform such other functions as may be  assigned by the Act. 
The Minister shall appoint public analysts for purposes of this Act and local administration councils shall appoint 
authorized officers. The Act further contains provisions relative to warranties regarding the quality of food to be 
given by food producers or distributo rs, the duty of an authorized offi cer to guarantee the supply of clean 
water to the public, the suitability of premises used fo r food, and the regulation-making powers of the Minister. 
The Act also defines offences in relation  to food production and distribution. 
Labelling of Food Additives Regulations (Chapter 65:05) 
Labelling of Prepackaged Foods Regulations (Chapter 65:05) Marketing of Foods for Infants and Young Children Regulations (Chapter 65:05) 
Public Health Act (Chapter 63:01) 
An Act to make the notification of certain diseases compulsory and to control such diseases; makes provision 
regarding diseases subject to the International Health Regulations; prevents the introduction of diseases into 
Botswana; regulates sanitation and housing; provides fo r the protection of foodstu ffs and of water supplies; 
and generally makes provis ion for public health. 
Source: FAO online info rmation. Viewed at: http://www.fao.org/countryprofiles/index/en/?iso3=BWA . WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.53.  The Plant Protection Act (Chapter 35:02) an d its regulations stipulate provisions to contain 
and eradicate plant diseases and pests in Bots wana and to prevent them from entering the 
country. According to the Act, phytosanitary measures applied by Botswana are based on international standards or on a pest risk analysis. The First Schedule of the Act lists all pests 
subject to quarantine requirements in Botswana. In addition, Botswana designates certain places 
as plant quarantine stations, where plants or plant products may be kept for phytosanitary observation, research, inspection, testing, treatmen t, detention or destruction; and requires that 
imported material be kept or cultivated at a plant quarantine station or any other location, and 
kept under supervision for as long as it deems necessary. The owner or user of any land or premises, who knows or suspects of a pest subject to quarantine, should notify the authorities. If 
the existence of a pest can be determined the pr emises will be quarantined and, where necessary, 
infected plants will be dest royed if treatment has failed. 
3.54.  In order to protect plant health, imports of  plants and other plant-related material require 
an import permit and the importation of some plant products is prohibited.
55 Import permits are 
issued by the Division of Plant Protection under  the Department of Crop Production. Efforts to 
establish the National Plant Protection Organization (NPPO) have been undermined by resource constraints. Imports also require an original phytosanitary certificate issued in the country of 
origin. If the imported articles are not accomp anied by the required documentation they are 
re-exported or destroyed. In addition, imported pl ants and plant products are subject to inspection 
at approved ports of entry and may be disinfected and destroyed if necessary.
56 
3.55.  Disease prevention and control continues to be based on the Diseases of Animals Act of 
1977 (as amended). As in the case of plants and plant products, any person who suspects or has 
reason to suspect that animals are affected by a di sease needs to report it immediately, and as far 
as possible keep the animals separated. If an area  is declared as infected no animals should be 
moved from or into that area, without being previously disinfected and granted a written 
permission from a veterinary officer. The Director of Veterinary Services is required to issue an 
import (export) permit for any animal, animal product, or other pathogenic agent capable of 
causing diseases in animals. In addition Botswana applies strict controls at the borders including, 
inter alia , quarantine, testing and inoculation of suspected animals. As part of the disease control 
strategy, the country is divided into fenced-off control zones. These are: the OIE-recognized FMD-free area (no buffalo may enter) and the liv estock-free areas (no livestock may enter). The 
principle is to separate livestock and buffalo, vaccinate cattle at risk and keep them separate from 
OIE-recognized FMD-free cattle. The movement of an imals is also controlled. There are quarantine 
points for the movement of animals. 
3.56.  Botswana does not have regulations on biotechnology or genetically modified organisms. 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 
3.57.  Exporters, like importers, need to register as a business or a company under the Company 
Act, and obtain a trading licence under the Trade Act (for registered businesses or companies); while individuals need a hawker's/street vendor licence prior to engaging in any commercial activity (Section 2).  
3.58.  An export declaration form in electronic  format together with other supporting documents 
(e.g. invoice, bill of lading, packing list and insurance documents) is required for all commercial exports.
57 Additional documents such as certificates of origin and sanitary and phytosanitary 
permits are required according to the product and the destination. Other types of certificates to 
ensure that Botswana is complying with requirements stipulated in international conventions to which it is a signatory might also be needed when exporting. Exports (and re-exports) of plants 
and plant products also require phytosanitary certificates, issued by the Division of Plant 
Protection, these are only issued after a physical inspection is undertaken to ascertain that the consignment meets the importing country's documentary and sanitary requirements. The 
                                               
55 Products prohibited from entering Botswana are list ed in the First Schedule to the Plant Protection 
Regulations, 17 July of 2009. 
56 The Fourth Schedule to the Plant Protection Act lists the approved ports. 
57 Customs and Excise Duty Regulations, 1974 (S.I. 36 of 1974) (as amended up to S.I. 49 of 2006). WT/TPR/S/324/Rev.1 • Botswana 
 
- 81 - 
 
  certificate may be withdrawn where sanitary conditions have changed. Exports of livestock and 
animal products also require a sanitary certificate issued by the Director of the Veterinary Service.
58 
3.59.  Rough diamonds exported from Botswana n eed to have a valid Kimberley Process Certificate 
issued by the Ministry of Minerals, Energy, an d Water Resources (Diamond Office). Imports of 
rough diamonds must also have valid Kimberly Process Certificates issued by the exporting country. 
3.60.  Most exports from Botswana do not require permits or licences, but certain exceptions apply 
in agriculture, including basic goods, and hides and skins.
59 
3.2.2  Export taxes, charges, and levies 3.61.  Goods and services exported from Botswana are VAT zero-rated. 
3.62.  Exports of live cattle or cattle slaughtered at the Botswana Meat Corporation, municipal 
abattoirs, private abattoirs, and butchers  are subject to a levy of P 30 per head.
60 The revenue 
collected from this levy will be credited as fiscal revenue. 
3.63.  Levies on the export of hides and skin s, bonemeal, bloodmeal and carcass meal are in 
place.61 However, according to the authorities levies on hides and skins have not been charged 
since 2010. 
3.2.3  Export prohibitions, restrictions, and licensing 
3.64.  Export permits issued by the Department of Agribusiness Promotion at the Ministry of 
Agriculture are required for the following products : animal feed for poultry and livestock, sorghum 
grains and sorghum products, maize grain and maize products, millet grains and millet products, 
wheat grain and wheat products, pulses (castor beans and groundnuts), sunflower seed and basic 
foods and vegetables not exceeding a specific quantity stipulated by law.62 Permits are issued to a 
holder of a valid trading licence, who could either be a citizen of Botswana, a resident foreign 
national or a company or firm registered and carry ing on business in Botswana. Permit applications 
must be accompanied by the trading licence and certificate of incorporation; and a sanitary and phytosanitary permit and/or Botswana Bu reau of Standards (BOBS) Certificate. 
3.65.  Exports of sugar used to require a permit. Pe rmits were also required for exports of sugar to 
South Africa if the amount exported exceeded 25 kg per month; a permit would allow exports of a maximum of 100 kg per month.
63 However, according to the authorities, exports of sugar have 
been liberalized.  
3.66.  An export permit issued by the Agricultural Resources Board is also required to export 
grapple plant ( Harpagophytum procumbers ) or any part thereof.64 
3.67.  The exportation of wild animals or their products (trophy or meat) is prohibited unless 
accompanied by an export permit issued by th e Department of Wildlife and National Parks. 
                                               
58 Control of Livestock Industry Act of 1941 (as amended). 
59 Online information. Viewed at: http://www.gov.bw/en/Ministries--
Authorities/Ministries/MinistryofAgriculture-MOA/Tools--Services/Services--Forms/Hides-and-skins-services/ . 
60 The Cattle Export and Slaughter Levy Act 10 of 2005. 
61 According to the KPMG Botswana Fiscal Guide 2012/13 these charges are still in force (KPMG, 2013). 
62 The products and quantities listed in the Second Schedule (of Specified Agricultural Products and 
Quantity) of the Control of Goods, Prices and Other Ch arges: Subsidiary Legislation are: bananas (20 kg per 
person); beetroot (10 kg pe r person); butternuts (10 kg per person); cabbage (30 kg per person); carrots 
(10 kg per person); fresh milk (2 litres per person); green pe pper (10 kg per person); maize (25 kg per 
person); maize products (25 kg per pe rson), mangoes (10 kg per person); po tatoes (20 kg per person); pulses 
(25 kg per person); pumpki n (10 kg per person ); onions (15 kg per person ); oranges (15 kg per person); 
sorghum (25 kg per person ); sorghum products (25 kg per person);  sweet potatoes (10 kg per person); 
tomatoes (10 kg per person);  watermelon (10 kg per person) and wheat (25 kg per person) (Control of Goods, 
Prices and Other Charges: Subsidiary Legislation). 
63 Control of Goods (Sugar Exportation) Regulations (under Section 3) (14 September 1979). 
64 Control of Goods (Export of Grapple Plant) Regulations (under Section 3) (5 May 1978). WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.68.  Exports of unprocessed semi-precious stones are prohibited to ensure, according to the 
authorities, value addition through processing in Botswana. 
3.2.4  Export support and promotion 3.69.  Botswana notified the WTO Committee on Agriculture that it did not provide any export 
subsidies to agricultural products during financial years 2009/10 to 2013/14.
65 
3.2.5  Fiscal incentives 3.70.  Imported goods (including packing containe rs) re-exported and thereafter returned to or 
brought back by the exporter or any other pa rty, without being subject to any process of 
manufacture or manipulation are exempt from the full duty less any rebate, refund and drawback 
granted previously.
66 
3.71.  Goods (including packing containers) produced or manufactured in Botswana, which are 
exported and thereafter returned to or brough t back by the exporter, without having been 
subjected to any process of manufacture or manipulation are exempt from the import duty less the amount of any rebate, refund and drawback granted previously.
67 
3.72.  Duty rebates and drawback are provided in  Botswana to stimulate production and exports 
by reducing the costs of inputs. Rebate item 470 is a SACU industrial incentive programme which 
covers all goods produced exclusively for export outside SACU. Registered companies are 
exempted from duty on raw materials used in the manufacturing, processing, finishing, equipping 
or packaging of goods exclusively for export. Ex porters must register with Botswana Unified 
Revenue Services (BURS) as a user of the rebate it em to obtain a "rebate permit", which is issued 
by the Minister of Trade and Industry.68 Goods imported, under such permits, may also be exempt 
from VAT.69  
3.73.  Specific drawbacks and refunds of custom duties are in place, whereby exporters can claim 
refunds on customs duties and the fuel levy paid on specific inputs imported for the manufacturing 
of specific products to be exported. This claim n eeds to be submitted within a period of six months 
from the time of export and must be accomp anied by evidence that the final product has 
effectively been exported.70 The drawback is only available to certain industries: foodstuffs, 
textiles and clothing, chemicals and allied products, base metals and machinery.  
3.74.  The Duty Credit Certificate (DCC) Facility for textiles and clothing, which was extended to 
companies exporting outside the SACU area, was phased out in 2010 by a SACU Council decision.
71 Unlike other rebates, the amount of the duty for which a company could have been 
granted a credit under DCC was calculated as a given percentage of the value of the exported 
goods, as opposed to the actual rate of customs duty or sales tax. In 2010, the percentage of the 
sales value of proven exports was 25% for clothing and accessories; 17.5% for household textiles; 
12.5% for fabrics and other textiles, and 8% for yarn.72  
3.75.  In addition to the DCC, at the time of the last Review Botswana operated another 
industry-specific import duty credit scheme link ed to export performance, the Motor Industry 
                                               
65WTO documents G/AG/N/BWA/9, 14 July 2010; G/AG/N/BWA/11, 6 March 2012; G/AG/N/BWA/14, 
28 August 2012; G/AG/N/BWA/17, 13 February  2014; and G/AG/N/BWA/22, 9 December 2014. 
66 Schedule 4 of the Schedules to the Customs and Excise Act, 1964 (Tariff Book). Viewed at: 
http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx . 
67 Schedule 4 of the Schedules to the Customs and Excise Act, 1964 (Tariff Book). Viewed at: 
http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx . 
68 Online information. Viewed at: http://www.gov.bw/en/Ministries--Authorities/Ministries/Ministry-of-
Trade-and-Industry-MTI/Tools--Services/Services--
Forms/?FromPageID=1886&FromPageType=1&pid=1&ClearSearch=true . 
69 For the complete list of imports exempted from VAT  please refer to Third Schedule (Exempt Imports) 
of Chapter 50:03 (Value Added Tax). 
70 Schedule 5 (Specific Drawbacks and Refunds of Customs Duties and Fuel Levy) of the Schedules to 
the Customs and Excise Act, 1964 (Tariff Book). Online information. Viewed at: 
http://www.sars.gov.za/Legal/Primary-Legislation/Pages/Schedules-to-the-Customs-and-Excise-Act.aspx . 
71 Information provided by the authorities. 
72 Online information. Viewed at: http://www.finance.gov.bw/cus toms/webpages/pfmat/dccf.htm . WT/TPR/S/324/Rev.1 • Botswana 
 
- 83 - 
 
  Development Programme (MIDP), designed to prom ote exports to non-SACU markets. According 
to the authorities, this programme was eliminated in 2012.  
3.2.6  Export promotion 3.76.  Up to 2012, export promotion in Botswana fell under the responsibility of the Botswana 
Export Development and Investment Authority (BEDIA). In 2012, BEDIA and the Botswana 
International Financial Services Centre (IFSC) we re merged to create the Botswana Investment 
and Trade Centre (BITC). One of BEDIA's mandates was to identify markets for locally 
manufactured products and promote Botswana products in foreign markets.
73 BEDIA conducted 
overseas market research aimed at finding export markets for Botswana-made products, including investigating opportunities in markets that have trade agreements with Botswana, so as to maximise benefits. Thereafter, BEDIA arranged participation in regional and international 
exhibitions, and facilitated contacts between buyers and sellers.  
3.77.  The BITC absorbed BEDIA's export promotion role and it also promotes Botswana as the 
leading destination for investment in Africa with the aim of accelerating economic growth and 
diversification, employment creation and export de velopment. The BITC is also in charge of the 
national brand and hence is accountable for the development, implementation and monitoring of the Nation Brand strategies and plans. 
3.78.  The Export Development Programme (EDP) launched in 2007 by BEDIA is now implemented 
by the BITC. The EDP aims at increasing exports of products and services to contribute to the 
diversification of the economy and the export base by training companies to become exporters. The goal is to train selected companies to im prove product design, quality and productivity. 
Targeted sectors for the EDP are textiles and garments, meat and meat processing, jewellery 
making, furniture, arts and crafts, services, leather and leather products, glass and glass products and chemicals. However, companies in other sectors will also be considered.
74  
3.2.7  Export finance, insurance, and guarantees 
3.79.  Botswana does not have an entity dedicated to providing financing for export activities. 
There are, however, institutions which provide general financing for businesses, namely, the 
Citizen Entrepreneurial Development Agency (CED A), the National Development Bank (NDB) and 
the Botswana Development Corporation (BDC).  
3.80.  The Government encourages financial institutions in both the public and private sectors to 
provide export insurance facilities to support ex port development. However, at present only the 
Export Credit Insurance and Guarantee Company Botswana (Pty) Ltd (BECI), a subsidiary of 
Botswana Development Corporation Limited (BDC), provides export credit insurance that covers both commercial and political risks.
75 BECI offers insurance against non-payment by foreign buyers 
resulting from commercial risk (default and insolvency) and from political risk (transfer delays, 
strikes, war, and other import restrictions that would prevent entry to the importing country). It covers up to 85% of commercial risks and up to  90% of political risks. Exports of goods and 
services are both eligible. Exports covered in 2009-14 included: batteries, beef, cans, industrial 
clothing, metal products, packaged food, paper bags, and PVC pipes. BECI has reinsured political risk since 1997
76, while commercial risks are reinsured by the private reinsurance market. 
3.3  Measures Affecting Production and Trade 
3.3.1  Incentives 
3.81.  In general Botswana does not provide industry specific incentives, with certain exceptions 
for mining and agriculture and, as of 2009, for th e textiles and clothing industry. Incentives are 
mainly granted to diversify the economic and export base, and to support local citizens.  
                                               
73 Export Enterprise Development online information. Viewed at: 
http://www.proudlyafrican. info/Botswana/BEDIA.aspx# .  
74 Online information. Viewed at: http://www.bitc.co.bw/export-development-programme .  
75 Online information. Viewed at: http://www.beci.co.bw/ .  
76 Export Credit Re-Insurance Act, 1997 (No. 12 of 1997). WT/TPR/S/324/Rev.1 • Botswana 
 
- 84 - 
 
  3.82.  A Special Support Programme for the Textile and Clothing Industry was introduced in 2010 
as a result of the financial crisis in 2009. The assistance was initially provided for 2 years and thereafter extended until September 2014.
77 The Programme's objective was to retain jobs by 
preventing the closure of companies and improv e the industry's competitiveness, through the 
provision of subsidies to pay wages of nationals employed in the industry.   
3.83.  The Minister of Finance and Development Planning can enter into a tax agreement with any 
taxpayer. The agreement has to be approved by th e National Assembly, and it can provide for tax 
deductions, tax holidays or exemptions. For instance, investors in diamond mines may negotiate 
such agreements (sections 2.4 and 4.2.1). 
3.84.  In addition, the Minister of Finance and Development Planning grants Development Approval 
Orders on a case-by-case basis. These orders offer, inter alia , tax incentives (e.g. tax holidays for 
5-10 years) for specific projects (Table 3.5). The extent of relief can take any form and is entirely 
negotiable. The approved projects must benefit the economy or contribute to the economic advancement of citizens. At present only 2 projec ts are granted incentives under the Development 
Approval Orders.
78 
3.85.  In 2005, the Business and Economic Advisory Council (BEAC) recommended the 
development of Special Economic Zones (SEZs). The main objective of the SEZs is to diversify 
Botswana's economy and export base. However, the laws and regulations governing the 
development and operation of the SEZs have not been enacted. Botswana Investment Trade Centre (BITC) is the interim Special Economic Zones Authority. 
3.86.  Botswana's policy on SEZs aims to attract domestic and foreign investors through the 
provision of fiscal incentives and to minimize red tape for enterprises located within these zones. 
The fiscal incentives include: exemption or reduction of corporate tax and exemptions from all other local taxes; duty-free importation of raw materials, capital goods, and intermediate inputs; 
no restrictions on capital and profit repatriation; exemption from foreign exchange controls; and 
no export charges. According to the authorities, the incentives package granted to both national 
and foreign investors is consistent with Botswana's international trade obligations.
79 
Table 3.5 Fiscal incentives  
Taxation 
Development Approval Orders: zero co rporate tax can be available to investors for a period of 5 to 10 years 
(subject to approval) 
Subject to approval, manufacturing companies pay a corporate tax rate of 15% (instead of 22%) 
Companies established in the Botswana Innovation and Diamond Hubs pay a corporate tax rate of 15% 
(instead of 22%) 
Companies established in the International Financial Service Centre pay a corporate tax rate of 15% (instead 
of 22%) 
Citizen training expenditure: Companies are allowed to deduct 200% as an allowable expense from their income after training their employees at a Botswana accredited institution. The employee needs to be a Motswana 
Source: Taxation in Botswana. Viewed at: http://www.gov.bw/en/Ministries--Authorities/Ministries/Ministry-
of-Finance-and-Development-Planning1/P arastatals121/Understanding-Financing/ . 
3.87.  SEZs are considered areas outside the customs territory; hence goods produced within the 
SEZs will be subject to import duties, taxes and other charges paid by importers into the domestic 
and regional markets. Goods going into the SEZs from domestic and regional customs areas will be 
treated as exports. Likewise, goods going from the SEZs areas into the domestic and regional customs areas will be treated as imports. 
3.88.  Botswana has also created six specialized institutions called "hubs", which are currently at 
different stages of development to facilitate the development of a specific sector. These are: the Agricultural Hub (2008), the Botswana Innovation Hub, the Diamond Hub, the Education Hub, the 
                                               
77 Online information. Viewed at: http://www.gov.bw/en/Ministries--Authorities/Ministries/Ministry-of-
Trade-and-Industry-MTI/Tools--Services/Services--
Forms/?FromPageID=1886&FromPageType=1&pid=1&ClearSearch=true . 
78 Information provided by the authorities. 
79 Ministry of Trade and Industry (2010b).  WT/TPR/S/324/Rev.1 • Botswana 
 
- 85 - 
 
  Health Hub (2008) and the Transport Hub (2008). A ccording to the authorities, the "hubs" only 
facilitate establishment; they are not a mechanism to provide incentives. 
3.89.  The Citizen Entrepreneurial Development Agency (CEDA), created in 2001 to promote 
citizen entrepreneurship, inter alia,  provides funding and collateral for SMMEs so that they can 
have access to financial resources. CEDA provides loans ranging from P 500 to P 4 million at 
preferential rates to Botswana nationals (Table 3. 6). CEDA also has a credit guarantee scheme for 
SMEs, offers mortgages for Botswana entrepreneurs, and provides training and mentoring to 
CEDA-financed citizen-owned businesses. CEDA also finances large scale projects and businesses. 
This was, up to August 2013, done through the Venture Capital Fund, which was then phased out. 
During 2009-14, CEDA issued 1,882 loans which amounted to P 1,548.4 million. 
3.90.  In 2007 CEDA started operating the Young Farmers' Fund, which provides subsidized loans 
and training to young agricultural producers.  
Table 3.6 CEDA's assistance, 2014  
 Small/micro scale 
projects Medium scale 
projects/medium 
businesses Large scale 
projects/large 
businesses 
Beneficiaries 100% citizen-owned 
projects  100% citizen-owned 
projects   100% citizen-owned 
projects  Joint ventures with foreigner investors/technical partners 
Loan limit  Minimum P 500 -
maximum P 500,000  Minimum P 500,001 - 
maximum P 4 million  Minimum P 4,000,001 - 
maximum P 30 million 
Interest rate (annual)  5% 7.5%  Prime rate  
Repayment period  Maximum 5 years  Loans of P 500,001 to 
P 2,000,000 repayment 
within a maximum period 
of 12 years 
Loans of P 2,000,001 to 
P 4,000,000 repayment 
within a maximum period 
of 15 years  Maximum 15 years  
 
Grace period  Not applicable Not applic able Maximum 48 months 
without interest 
Number of loans issued 
(2009-2014)  1,212  658 12 
Total (2009-2014) P 350 million  P 1,020.4 million  P 178 million 
Source: Information provided by the authorities. 
3.3.2  Competition policy and price controls  
3.91.  A major change in Botswana since the previous Review has been the enactment of the 
Competition Law of 2009 and the issuance of  the Competition Regulations in 2011. The 
Competition Policy of 2005 is still in place. The Competition Law covers all areas of the economy, with some exceptions. The law applies across all sectors to a number of practices such as: 
agreements related to intellectual property rights  holders; enterprises operating on the basis of 
statutory monopoly; any practice relating to exports of goods from Botswana; conduct designed to achieve a non-commercial socio-economic objective; and collective bargaining by unionized 
workers.
80 Sectors which have specific regulatory bodies are also covered by the law.  
3.92.  The Ministry of Trade is in charge of  monitoring the implementation of Botswana's 
Competition Policy. In accordance with the Competition Law, a Competition Authority was 
established to implement the Competition Policy and enforce the Act. The Competition Authority is 
responsible for preventing anticompetitive practice s in the economy, even in areas where there is 
another regulator such as the Civil Aviation Authority, the Botswana Communications Regulatory Authority (BOCRA), the Non-banking Financial Institution Regulatory Authorities (in charge of 
non-banking financial institutions), and the Bank of Botswana (financial institutions). These 
                                               
80 Section 3(3) of the Competition Law. WT/TPR/S/324/Rev.1 • Botswana 
 
- 86 - 
 
  institutions have memoranda of understanding (MoUs) with the Competition Authority and the Act 
provides for the establishment of a consultation mechanism between the Authority and sector regulators. The determination of the Authority is final on any competition issue arising in sectors under the jurisdiction of a regulator. The Comp etition Commission, established in 2010, is the 
governing and adjudicative body of the Competition Authority.  
3.93.  Implementation of competition policy is still incipient in Botswana. The Competition 
Authority is conducting some research on its own initiative to determine whether there are any 
anti-competitive practices that need to be addressed in certain sectors of the economy 
(e.g. poultry, retail and cement). The Authority can take initiative to conduct an investigation and prosecute transgressions of the Competition Act. Where the Authority determines that a prohibited practice has been established, it must refer the matter to the Commission, which decides on the 
sanctions or directions that the enterprises need to take to redress the practice. The Commission 
has the faculty to impose penalties.
81 Parties aggrieved by a decision of the Competition Authority 
or of the Commission have the right to appeal to the High Court. 
3.94.  The law prohibits certain horizontal and vertical agreements82, while other such agreements 
may be prohibited only following an investigation by the Authority to determine if the agreement prevents competition in a specific market.
83 In the case of horizontal agreements, an investigation 
will be initiated if the parties to the agreement together supply or acquire 10% or more of the 
goods or services in any market in Botswana; in the case of vertical agreements, the investigation is initiated if any of the parties individually supply or acquire, at either one of the two levels of the market to which they are linked by the agreemen t, 10% or more of goods or services of the 
market.
84 Exemptions may be granted for the public interest. The Authority may grant an 
exemption from the prohibition (of an agreement)  if the agreement is expected to benefit the 
public by promoting exports and employment; if the agreement occurs within the context of the 
citizen empowerment initiative; or if the agreement enhances the effectiveness of the 
Government's development programmes, including the industrial development and privatization 
programmes. However, the Authority has not issued any such exemptions. 
3.95.  The abuse of a dominant position is also prohibited by the law following a determination 
through an investigation. The Authority may consid er an enterprise (or enterprises) to be in a 
dominant position if it supplies or acquires at least 25% of the goods or services in the market; or if three or fewer enterprises supply or acquire at least 50% of the goods or services in the market. 
However, notwithstanding these thresholds, the Authority may initiate an investigation into the 
conduct of any enterprise where the Authority has reasonable grounds to suspect that: its  conduct 
has caused or is likely to cause serious or irreparable harm to the market or to consumers; or if  
one or more enterprises have sufficient market power as to allow them to set prices and/or adjust 
production without any constraint from competitors. However, as in the case of vertical and horizontal agreements, in determining whether an abuse of dominant position has occurred, the 
Authority will take into account whether the conduct: promotes exports and employment in 
Botswana; advances the strategic or national interest in relation to a particular economic activity; provides social benefits which outweigh the effects on competition; occurs within the context of a citizen empowerment initiative; enhances the competitiveness of small and medium-sized 
enterprises; or enhances the effectiveness of any development programme. The authorities 
indicated that cases of abuse of dominance have been investigated but did not reach the prosecution stage as the alleged abusive conduct could not be determined. 
3.96.  Mergers have to be notified to the Author ity depending upon a threshold: if the combined 
annual turnover of the merging enterprises in  Botswana exceeds P 10,000,000; the combined 
assets in Botswana of the merging enterpri ses exceeds P 10,000,000; or the enterprises 
concerned would, following implementation of th e merger, supply or acquire at least 20% of a 
                                               
81 The Commission might require an enterprise to: terminate or amend an agreement; cease or amend 
a practice or course of conduct, including conduct in rela tion to prices; observe specified conditions in relation 
to the continuation of an agreement or conduct; supply goods or services, or grant access to facilities, either generally or to named parties; separate  or divest itself of an y enterprise or assets; or provide the Commission 
with specified information on a continuing basis. 
82 These agreements include: directly or indirectly fixing a purchase or  selling price; dividing markets; 
bid rigging; restraints on production or sale; concer ted practice; or agreements that involve resale price 
maintenance. 
83 Part V of the Competition Act, 2009. 
84 Section 3 of the Competition Regulations, 2011. WT/TPR/S/324/Rev.1 • Botswana 
 
- 87 - 
 
  particular good or service in Botswana.85 Mergers above these thresholds cannot be implemented 
unless permitted. However, the Minister may allow the merger or may prescribe an alternative system of merger review if the merger is in the public interest. The authorities indicated that this has not yet happened. The Authority may revoke the decision to approve a merger, if the decision 
was based on materially incorrect or misleading information. 
3.97.  The Consumer Protection Act of 1998 is still  in force. The Consumer Protection Unit of the 
Department of Trade and Consumer Affairs, at the Ministry of Trade and Industry, is mandated to 
protect consumers against unfair business practices as stipulated in the Act.
86 The Department is 
in charge of investigating unfair practices, mediating, and negotiating on behalf of consumers. Remedies regarding consumer protection are not very stringent; usually they consist of compensation or replacement of goods.
87 In addition to the Consumer Protection Act, there are 
other pieces of legislation that also deal with consumer matters and their implementation falls 
under the responsibility of other agencies.88 
3.3.2.1  Price controls and administered prices 
3.98.  In general, product prices are not regu lated by Government, except where there exists 
evidence of monopolistic exploitation of consumers or where Government has itself granted a monopoly.
89 Nevertheless, the Control of Goods, Prices, and Other Charges Act of 1973, which is 
still in force but under review, allows the Minister of Trade and Industry to regulate and control the 
wholesale and retail prices of strategic goods. Under this Act, Botswana sets a maximum retail price for petroleum products.
90 Other goods and services subject to administered prices include: 
water; electricity; train, certain bus and taxi fares; certain mail and parcel deliveries; and 
telephone installation and certain telephone tariffs.91 
3.3.3  State trading, state-owne d enterprises and privatization 
3.3.3.1  State trading 
3.99.  The intervention of the State in Botswana's economy continues to be important. For 
instance, Botswana's two major export products (beef and diamonds) are traded by state-owned 
or invested companies. The Botswana Meat Commission (BMC), which is 100% state-owned, has a 
statutory monopoly on beef exports and Debswana, the diamond mining company (50% state 
ownership), holds a de facto monopoly over exports of rough diamonds.  
3.100.  In 1997, Botswana notified to the WTO that it had no state-trading enterprises within the 
meaning of Article XVII:4(a) of the GATT 1994.92 Since then, Botswana has not made any 
notifications pursuant to Article XVII:4(a) of the GATT 1994. 
3.3.3.2  State-owned enterprises and privatization 3.101.  The Privatization Policy launched in 2000 out lines the strategies, principles and procedures 
to be followed to restructure and privatize identified public sector institutions in Botswana. 
Thereafter, the Privatization Master Plan of 2005 was developed, and later revised to align it with the National Development Plan (NDP10) and the Government's economic diversification reform 
strategy. This revision resulted in the Privatization Master Plan II, with the main objective of 
identifying services and public enterprises that ar e suitable for privatization during the period 2014 
to 2019, as well as to enhance the rationalization of parastatal enterprises. The Plan defines privatization as "all measures and policies aimed at strengthening the role of the private sector in 
                                               
85 Section 20 of the Competition Regulations, 2011. 
86 Online information. Viewed at: http://www.mti.gov.bw/customercomplaints .  
87 Information provided by the authorities. 
88 These include: the Food Control Act, Public Heal th Act, Hire Purchase Act, Standards Act and the 
Trade Act. 
89 The Revised National Policy on Incomes, Employme nt, Prices and Profits, Government Paper No. 1 of 
1990.  
90 Control of Goods, Prices, and other Charges (Petroleum Prices) Regulations (Section 3) (1 July 2000) 
and WTO (2009). 
91 Information provided by the authorities.  
92 WTO document G/STR/N/1/BWA, 7 February 1997. WT/TPR/S/324/Rev.1 • Botswana 
 
- 88 - 
 
  the economy". Privatization methods, according to the draft Plan, will include sale of assets or 
shares of public enterprises, management of public  enterprises or public functions/services, leasing 
of government assets, commercialization, outsourcing of public services, and concessions through public-private partnerships.
93  
3.102.  A key element of Botswana's privatization policy is the promotion of citizen participation in 
the ownership of national firms through the reserv ation of shares from privatized agencies, as 
stated in the Citizen Economic Empowerment Policy (CEE Policy).94 Foreign participation in 
privatization is encouraged and any restrictions on foreign ownership are to be decided on a 
case-by-case basis.  
3.103.  Over the years, the parastatal sector in Botswana has grown both in number and 
complexity, hence the need to review the role that  they play in the country's development. As a 
result, in 2009, the Public Enterprises Evaluation and Privatization Agency (PEEPA) revised the 
Rationalization Strategy, which had been developed in 2006. The objective was to address issues of overlapping mandates, improve the efficiency  in service delivery and reduce the costs to 
Government associated with maintaining parastatals with similar mandates. As a result of this 
strategy, several mergers have taken place. For instance, as has already been mentioned, the 
Botswana Export Development and Investment Authority (BEDIA) and Botswana International 
Financial Services Centre (IFSC) were merged and a new entity, the Botswana Investment and 
Trade Centre (BITC), was formed and started operating in 2012. The merging of Botswana Postal Services (BPS) and the Botswana Savings Bank (BSB) has not been finalized, but the legislation transforming these two institutions into a limited liability company has been approved.
95 The 
holding company providing postal, courier and bank ing services is expected to start operating 
during the 2015/16 financial year. 
3.104.  Despite Botswana's efforts to disinvest and rationalize the participation of the Government 
in the economy, there are a number of state-owned enterprises in operation (Table 3.7). Some of 
the enterprises that provide public utilities and other services have a de facto  or de jure  
monopoly.96 Since the last Review in 2009, there have been some changes regarding public 
ownership in the different sectors. Some of the most important changes have been the divestiture 
in 2010 of 49% of the State's shares in Botswana Telecommunications Corporation; the approval in 2011 of a model for the privatization of the National Development Bank; the leasing of 99,000 hectares of the Banyana (Pty) Limited's cattle ranch, and the placement of the 
Government's shares in Botswana Building Society into the Botswana Privatization Assets Holdings 
(BPAH) company. A Strategy for Private Sector Participation in the Electricity Supply Industry and Botswana Power Corporation was developed and the Ministry of Minerals, Water and Energy 
Resources is at present considering the modalities for its implementation. In contrast, however, in 
2013, in order to ensure the supply of petroleum products, a national oil company, Botswana Oil Limited, was created and started operating.
97 The Government has also initiated the construction 
of a fuel storage facility with a capacity of 150 million litres of fuel, which will allow an increase in 
fuel reserves from the current 18 days to 60 days and hence avoid disruptions of oil and petroleum supplies, which have affected the manufacturing, agriculture and transport sectors. 
3.105.  The performance of the parastatals during the period reviewed has been mixed. Some of 
them, like the Botswana Telecommunications Corporation, the Botswana Development 
Corporation, the National Development Bank and th e Botswana Savings Bank, recorded net profits, 
while others such as the Botswana Power Corporation (BPC) and the Botswana Meat Commission 
recorded significant losses; thus, subsidies to these organizations have grown substantially over 
the years. Therefore, in order to reduce the burden on public finances and allow parastatals to 
                                               
93 The privatization methods outlined in the 2000 Privatization Policy include: commercialization, 
corporatization, management contract s, franchising, leases, concessions, joint ventures, and stock market 
flotation. 
94 Government Paper No. 1 of 2012. 
95 These pieces of legislation are: The Botswana Communications Regulatory Authority Act aimed at 
corporatizing Botswana Postal Serv ices (BPS) and the Botswana Savings Bank (BSB) Transition Act which 
allows BSB to be transformed into a limited liability company. 
96 A parastatal in Botswana is a pu blic entity created by the State (by Act of Parliament) to achieve a 
specific social or economic go al determined by Government. 
97 2014 Budget Speech. Viewed at: www.finance.gov.bw . WT/TPR/S/324/Rev.1 • Botswana 
 
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  continue having a positive impact on economic growth, Botswana intends to continue its policy of 
privatization and restructuring of state-owned enterprises.98 
Table 3.7 State participation in para statals and commercial enterprises, 2015  
 State participation, 
2015 (%) Main activities Privatization 
scenario 
Non-financial enterprises     
Air Botswana 100 Air transport services Planned management 
contract, then 
divestiture 
Banyana Pty Ltd. 100 Commercial ca ttle ranch Part of the ranch has 
already been leased and the leasing of the rest is planned 
BCL Limited 100 Copper/nickel mining  None 
Tati Nickel Mining Company (Pty) Ltd. 15 Nickel mining None 
Botswana Agricultural Marketing 
Board 100 Import/export, 
marketing, and storage 
of selected agricultural 
products; and sale of 
agricultural services and 
inputs  Planned divestiture 
Botswana Housing Corporation 100  Property development None 
Botswana Meat Commission 100 Cattle abattoir; canning 
and tanning; beef 
export; and transport  Planned outsourcing 
of non-core services 
Botswana Postal Services 100 Postal services and 
Courier services Ongoing restructuring 
through merger with Botswana Savings Bank 
Botswana Power Corporation 100 Electricity generation, 
transmission, and 
distribution Planned restructuring 
Botswana Railways 100 Rail transport services Planned restructuring 
Botswana Telecommunications 
Corporation 100 Telecommunication 
services Ongoing divestiture 
through an IPO 
Botswana Fibre Networks Ltd. (Bofinet) 100 Network None 
Botswana Vaccine Institute 100 Production and 
marketing of vaccines Completed 
corporatization and 
partial divestiture 
Debswana Diamond Mining 50 Diamond mining and coal 
mining (commercial joint 
venture) None  
Okavango Diamond Company 
(ODTC) 100 Diamond mining None 
DTC Botswana 50 Diamond sorting, 
valuation, cutting, and polishing
 (commercial 
joint venture) None 
Soda Ash Botswana Ltd. 50 Soda ash and salt mining 
(commercial joint 
venture) None 
Water Utilities Corp oration 100 Provision of water to 
urban centres  Planned restructuring 
Botswana Oil Limited 100 Supply of petroleum 
products None 
Financial institutions    
Botswana Building Society 25 Property finance Planned divestiture 
Botswana Development 
Corporation 100 Development finance Planned restructuring 
Botswana Motor Vehicles 
Accidents Fund 100 Insurance services None  
                                               
98 2014 Budget Speech. Viewed at: www.finance.gov.bw. WT/TPR/S/324/Rev.1 • Botswana 
 
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   State participation, 
2015 (%) Main activities Privatization 
scenario 
Botswana Savings Bank 100 Banking services Ongoing restructuring 
through merger with Botswana Postal Services 
Government Employees Motor 
Vehicle and Residential Property 
Advance Scheme 100 Loan guarantee fund Planned management 
contract 
Guaranteed Loans Insurance Fund 100 Insurance fund Completed 
management contract 
National Development Bank 100 Development finance Planned divestiture 
Source: Information provided by the Botswana authorities. 
3.106.  The Public Enterprises Evaluation and Privatization Agency (PEEPA) started drafting 
guidelines to be used by Government to monito r and oversee the performance of parastatals. The 
oversight responsibility of parastatals will be decentralized to line Ministries. Furthermore, the 
Government is considering the adoption of the Privatization Master Plan II. The main objective of 
the Plan is to identify services and public enterprises that are suitable for privatization during 2015-20, as well as to enhance guidance for the rationalization of parastatals. 
3.3.4  Government procurement  
3.107.  Botswana's public procurement policy, legislation and institutional framework have not 
changed substantially since the previous Review. The policy's main objectives are, inter alia , to 
ensure value for money, transparency, and accountability. However, at the same time, the policy 
seeks to promote the economic empowerment of citizens of Botswana through reservation and 
preference schemes in accordance with the Econom ic Diversification Drive Strategy (EDD Strategy) 
and the Citizen Economic Empowerment Policy (CEE Policy), which intend to ensure that procuring 
entities support local manufacturers and service providers.
99 In general terms, the procurement 
policy is in practice used as an instrument to promote the use of locally produced goods and services. 
3.108.  Botswana is not an observer to the Committee on Government Procurement.  
3.109.  The Public Procurement and Asset Disposal Act (PPAD Act) of 2001, and the Public 
Procurement and Asset Disposal Regulations of 2006 continue to regulate procurement by central 
government entities. Procurement at local level is governed by the Local Authority Procurement 
and Asset Disposal Act (LAPAD Act); while procurement for parastatals is handled through their 
own procurement procedures, which are vetted by  the Public Procurement and Asset Disposal 
Board (PPADB) to ensure that they conform to th e principles of procurement in accordance with 
the PPAD Act. The law covers procurement of works, services, and supplies. 
3.110.  The Public Procurement and Asset Disposal Board (PPADB), an independent body 
appointed by the Minister of Finance and Develo pment Planning, manages public procurement at 
the central government level. The Board sets up different committees to assist with public 
procurement and the assets disposal process. These are: the Ministerial Tender Committees 
(MTCs), District Administrative Tender Commi ttees (DATCs), Special Procurement and Asset 
Disposal Committee and other committees set up on an ad hoc basis. The PPADB examines the 
performance of these Committees on a yearly basis to assess whether their financial thresholds 
can be adjusted. As a result, the thresholds  for MTCs and DATCs were increased in 2014. 
3.111.  The procurement methods used by Botswana  have not changed since the previous Review. 
These are: (i) open domestic bidding; (ii) open international bidding; (iii) restricted domestic 
bidding; (iv) restricted international bidding; (v) quotation proposal procurement; (vi) micro procurement; and (vii) direct procurement (Table 3.8). The tender method is selected by PPADB 
according to the thresholds. 
                                               
99 Ministry of Trade and Industry (2011); and Government of Botswana (2012).  WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 3.8 Procurement methods  
Method  Description/requirements 
Open domestic bidding  Used for tenders exceeding a value of P 150,000. 
Open international bidding  No threshold for open international bidding. Special permission required 
from the Board.  
Restricted domestic bidding Bids are solicited from a limited number of potential suppliers.  
Restricted domestic bidding is used where the supplies, works or services are available only from a limited number of providers; or where there is 
insufficient time for an open bidding procedure due to an emergency situation. 
Restricted international bidding This method is used when: works, se rvices or supplies are only available 
from a limited number of service providers; there is insufficient time for 
open bidding in an emergency or urge nt situation; and under exceptional 
circumstances justifying departure from an open bidding method upon 
approval of the PPADB.  
Quotation proposal procurement  Used for procurement of a value between P 30,000 and P 150,000. 
Bids sought from at least five suppliers.  This method is used when there is not enough time to use an open or restricted bidding procedure due to an emergency situation. 
Micro procurement Used for procurement of a maximum value of P 30,000 (and a special 
dispensation of P 500,000 for CMS). 
Suppliers are selected without competition, there is no bidding 
documentation, written bid, or signed contract.  
Direct procurement The supplier is selected without competition. 
Used when: there is an emergency situation; there is only one provider; an existing contract is extended and additional supplies, works or services 
need to be compatible with existing ones; or it is advantageous to purchase from the original su pplier to ensure continuity. 
Source: Information provided by the authorities. 
3.112.  The most commonly used procurement method in Botswana is the open domestic bidding 
method, which is used for tenders exceeding a value of P 150,000.100 Tenders are published in the 
Botswana Government Gazette, in local newspapers and on the Government's central website. 
Pre-qualification is sometimes used under open bidding procedures to obtain a shortlist of bidders 
with proven capability to perform the contract. 
3.113.  Participation of foreign companies registered in Botswana is allowed in open domestic 
tenders but reservations/preferences provided for in the Economic Diversification Drive (EDD) 
Strategy and the Citizen Economic Empowerment (CEE) Policy apply (Table A3.2). Open international bidding may be used in place of op en domestic bidding where: the outcome of the 
project may be improved by the participation of foreign bidders; non-resident foreign bidders 
would increase value for money; or the technical complexity of the project requires the 
participation of non-resident foreign bidders. Th e procuring entities need permission from the 
Board to use the open international bidding method ; there is no threshold for open international 
bidding. International bidders not domiciled in Bots wana do not need to register with the PPADB. 
When contracts are awarded to foreign firms, Botswana offers those firms incentives, in the form of price preferences, to sub-contract Batswana.
101  
3.114.  Bid evaluation, which falls under the responsi bility of procuring entiti es, is based on one of 
the following methods: (i) quality- and cost-based selection; (ii) quality-based selection; (iii) fixed-budget selection; (iv) least-cost selection; and (v) qualification selection. For works, the quality and cost method, or the least-cost methods are used; for supplies, the least-cost method; 
and for services, any of the above methods ma y be used. Following the bid evaluation, the 
procuring entity makes a recommendation to PPADB or its Committees depending on the threshold for adjudication and approval based on an asse ssment of cost and technical merit, and citizen 
participation considerations (reservation and pr eference schemes). Award decisions by PPADB are 
published in the Government Daily News and on the PPADB website.
102 
                                               
100 Information provided by the authorities; however,  Botswana does not collect data on the value of 
procurement awarded using the diffe rent methods of procurement. 
101 Government of Botswana (2012). 
102 WTO (2009). WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.115.  There is an Independent Complaints Revi ew Committee which deals with complaints by 
bidders, including tender awards. Administrative decisions may subsequently be challenged before the High Court. Numerous PPADB decisions have been challenged in court. There is also the 
Suspension and Delisting Disciplinary Committee, which is in charge of investigating any 
complaints made to the Board. Once the investigations are complete, the Disciplinary Committee 
submits recommendations to the Board for a decision. The decision may involve: reprimanding the contractor; suspending the contractor for a specific period of time from participating in 
government procurement and asset disposal; or removing the company concerned from the PPADB 
registration system. 
3.116.  Botswana has reservation and price prefer ence schemes in place under the CEE Policy and 
the EDD Strategy. Botswana citizen-owned compan ies benefit from a reservation for supplies, 
services and works ranging from P 720,000 to P 75 million. The price preference margin over 
foreign companies is in the range of 2%-10% for works and services, and of 5-15% for supplies. Price preferences may also be capped to meet the dual objectives of citizen empowerment and 
value for money in government procurement.
103 
3.117.  In 2010, the EDD strategy replaced the local procurement policy (LPP) and the Use of 
Locally Manufactured Goods and Services Programm e. The EDD Strategy stipulates that central 
government, local authorities and parastatal organizations should purchase all their products and 
services from locally based manufacturers and service providers, provided that the goods and services are competitively priced and meet tender specifications in terms of quality standards as certified by the Botswana Bureau of Standards (BOBS) or other recognized certifying bodies.
104 
The programme provides preference margins based on the firm's turnover; these were revised in 
2010.105 All manufacturing enterprises and service providers can apply for registration to 
participate in the programme at the Ministry of Trade and Industry provided that they: are 
registered in Botswana; possess a valid, relevant licence/registration certificate; and operate in 
Botswana. 
3.118.  Under the local procurement policy (LPP) implemented until 2010, the government set 
aside a portion (up to 30%) of its annual supply purchases by the central government for LPP 
eligible firms. These companies could also participate in the remaining 70% through open competitive tenders. Supplies purchased under the LPP had to be filled by local manufacturing firms.
106 Products to be purchased under the LPP were published in advance each year by the 
Department of Industrial Affairs. Eligible companies wishing to tender for LPP procurement had to 
register annually with that Department. Both domestic and foreign-owned firms operating in Botswana were eligible under the LPP. In order to qualify, manufacturing companies had to have a 
minimum local content of 25% and either: employ between 10 and 200 people or have an annual 
turnover ranging from P 200,000 to P 500,000. 
3.119.  In 2013, Botswana introduced the Local Procurement Scheme (LPS) designed to facilitate 
economic development in rural areas using public procurement in line with the CEE Policy in order 
to empower women, young people and people with disabilities, mainly in the rural areas.
107 The 
Scheme introduced preferences for tenders within the District Administrative Tender Committees (DATCs) thresholds (i.e. from P 2 million and P 4.5 million). The Scheme requires that 20% of the 
contract be reserved for disadvantaged groups (i.e. women, young people and people with 
disabilities) in all tenders above P 30,000,
 and provides a price preference of up to 15%. 
3.3.5  Intellectual property rights 
3.120.  Botswana has continued to strengthen its intellectual property regime. Since its last 
Review in 2009, Botswana has adopted new legislation to protect industrial property and it continues to be party to a number of WIPO-administered intellectual property conventions, 
                                               
103 Information provided by the authorities. 
104 Government of Botswana (2010). 
105 For firms with a turnover of up to P 5 million the preference margin is 15%; for firms with a turnover 
of more than P 5,000,001 and up to P 19,999,999 the prefer ence margin is 10%, and for firms with a turnover 
of P 20,000,000 and above the preference margin is 5%. 
106 Government of Botswana (2012). 
107 This is in line with the dispositions of Section 66(3) of the PPAD Act which allows for the imposition of 
reservations and preferential treatment to  attain economic an d social objectives. WT/TPR/S/324/Rev.1 • Botswana 
 
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  including as of 2013 the Beijing Treaty on Audiovisual Performances108 (Table 3.9 and Table 3.10). 
The Companies and Intellectual Property Office (CIPA) established in 2011, which replaced the 
Office of the Registrar of Companies and Intellectua l Property (a Department within the Ministry of 
Trade and Industry), is in charge of implemen ting intellectual property laws and acts as 
Botswana's national IPR enquiry point.109  
Table 3.9 Intellectual property treaties  to which Botswana is a party, 2014  
Treaties Entry into force 
Beijing Treaty on Audiovisual Performances 20 November 2013 
Hague Agreement Concerning the Internatio nal Registration of Industrial Designs 5 December 2006 
Protocol Relating to the Madrid Agreement Concerning the International Registration 
of Marks 5 December 2006 
WIPO Copyright Treaty 27 January 2005 
WIPO Performances and Phonograms Treaty 27 January 2005 
Patent Cooperation Treaty 30 October 2003 
Berne Convention for the Protection of Literary and Artistic Works 15 April 1998 
Convention Establishing the World In tellectual Property Organization 15 April 1998 
Paris Convention for the Protection of Industrial Property 15 April 1998 
Source: WIPO.  
Table 3.10 Main intellectual property legislation, 2014  
Subject Legislation (date of entry into force) 
Industrial property Industrial Property Act (Date of Commencement) Order, 2012 (2012) 
Industrial Property Act, 2010 (Act No. 8 of 2010) (2010) 
Industrial Property Regulations, 2012 (S.I. 70 of 2012) (2012) 
First Schedule Relating to Industrial Pr operty Rights Application Forms & Second 
Schedule Relating to Fees (2010) 
Copyright Copyright & Neighbouring Rights Act, 2000 (Act No. 6 of 2006) (2006) 
Copyright & Neighbouring Rights Regulations, 2007 (2008) 
Enforcement Customs and Excise Duty Regulations, 1974 (S.I. 36 of 1974) (as amended by 
S.I. 49 of 2006) (2006) 
Source: WTO notifications and WIPO.  
3.3.5.1  Copyright 
3.121.  The Copyright and Neighbouring Rights Ac t (Chapter 68:02) 2006, is the main piece of 
legislation protecting copyright and neighbouring rights in Botswana. This Act is administered by 
the Copyright Office of Botswana, a department of the Companies and Intellectual Property Authority (CIPA), formerly the Registrar of Co mpanies and Intellectual Property (ROCIP). The 
Copyright Society of Botswana (COSBOTS) established in 2008, began operating in 2010 to, inter 
alia, grant licences with the agreement of copyright owners for, inter alia : (i) the adaptation of 
works, performances and sound recordings, or (ii) the use of works for publicity purposes. COSOBTS also sets rates for royalties, in accordance with international standards, and collects 
royalties from users of copyright/protected works and distributes them to the appropriate owners 
of copyright.
110  
3.122.  The law protects: literary and artistic works; musical works with or without accompanying 
words; photographic works; audiovisual works; speeches, lectures, addresses, sermons and other 
oral works; works of drawing; dramatic works; stage productions; illustrations; works of applied art; sketches and three–dimensional works relative to geography, topography, architecture or science; and computer programs
111; and derivative works.112 Databases or compilations of data 
are also protected as derivative works. Authors and holders of copyright enjoy both economic and 
                                               
108 WTO document IP/N/1/BWA/2, 18 July 2013. 
109 WTO document IP/N/3/BWA/1, 19 August 2014. 
110 Copyright Society of Botswana (COSBOTS) online information. Viewed at: 
http://www.cosbots.com/index.php/homemain .  
111Copyright and Neighbouring Rights Act, Section 3(1). 
112 These include translations, adaptations, arrangemen ts and other transformations or modification of 
works. WT/TPR/S/324/Rev.1 • Botswana 
 
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  moral rights. Performers also enjoy both economic and moral rights; thus they have the exclusive 
rights to broadcast, and to make fixations and reproductions.113  
3.123.  Under the Act, original works are protected by mere creation, irrespective of its mode or 
form of expression, as well as of its content, qua lity and purpose. Registration is not a precondition 
for protection. However, the law stipulates that the Copyright Office must maintain a register of 
works published in Botswana and a database on copyright matters and on authors and their works, 
which seems equivalent to a registration (deposit) of literary and artistic works (Section 22B of the 
Copyright and Neighbouring Rights Act).  
3.124.  The period of copyright protection varies  according to the type of work. In general, 
copyright is protected for the life of the author and 50 years after his/her death. The law also 
provides for exemptions or limitations to exclusive rights, which include, inter alia,  reproduction for 
private use, teaching or for public information, and importation for personal purposes. The scope 
of protection in Botswana also ex tends to foreign works (Table 3.11). 
Table 3.11 Copyright protection  
Copyright 
Protection 
Authors are protected for the life of th e author plus 50 years after death. 
Joint authorship: copyright is protected for the lifetime of  the last surviving author and for 50 years after his or 
her death.  
Collective work (other than a work of  applied art) and audiovisual work ar e protected for 50 years from the date 
on which the work was made, first made available to the pu blic, or first published, wh ichever date is the latest. 
Works of applied art are protected for 25 years from the making of the work. 
Performers are protected for fifty years following the year  in which the performance wa s fixed in a phonogram or 
in which it took place.  
Broadcasting organizations are protecte d for a period of 50 years from the year  in which the broadcast took place.
Producers of sound recordings are protected for 50 years from the year of publication or the year of fixation of the 
sound recording. 
Scope of the application 
The work of authors who are nationals of, or have their habitual residence in Botswana 
Works first published in Botswana, and works first published in another count ry and also published in Botswana 
within thirty days of their first pu blication, irrespective of the nationality or residence of their authors 
Audiovisual works whose producer has his or her headquarters or habitual residence in Botswana 
Works of architecture erected in Botswana and other artist ic works incorporated in a building or other structure 
located in Botswana 
Works that are protected in Botswana by  virtue of and in accordance with any international convention or other 
international agreement to which the country is party 
Performers who are nationals of Botswana 
Performers who are not nationals of Botswana but whose performances: 
 take place on the territory of Botswana; 
 are incorporated in sound recordings that are pr otected under the Botswana  Copyright Act; or  
 have not been fixed in a sound recording but are incl uded in broadcasts that can be protected under the 
Botswana Copyright Act 
Sound recordings: 
 sound recordings produced by nationals of Botswana 
 sound recordings first fixed in Botswana 
 sound recordings first published in Botswana 
Broadcasts: 
 broadcasts of broadcasting or ganizations whose headquarters are situated in Botswana 
 broadcasts transmitted from transmitters situated in Botswana 
Performers, producers of sound recordings and broadcas ting organizations protecte d by virtue of and in 
accordance with any international convention or othe r international agreement to  which Botswana is party 
Source: Copyright and Neighbouri ng Rights Act (Chapter 68:02). 
3.125.  The Copyright and Neighbouring Rights Ac t (Chapter 68:02) requires that all sound and 
audiovisual recordings made available to the public for commercial purposes in Botswana have a 
security device or hologram affixed to them. The security device (hologram) is sold for P 0.30 at 
the Copyright Office either in Gaborone or Francist own. A duly accredited owner of the work or an 
importer may purchase the devise; accreditation costs P 40. The Copyright Office may issue an 
                                               
113 Sections 23-25 of the Copyright and Neig hbouring Rights Act (Chapter 68:02). WT/TPR/S/324/Rev.1 • Botswana 
 
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  accreditation certificate to an importer, only if the applicant has a valid authorization from the 
owner of the copyright, permitting the importation of such works into Botswana.114  
3.126.  A (copyright) levy is imposed on all imported and locally manufactured blank sound and 
audiovisual carriers, compact discs and equipment that can be used to copy protected materials.115 
The levy is at present 1%-2% of the sales price. It is collected by the Department of Customs and 
Excise and is deposited in a Levy on Technical Devices Fund to compensate right-holders for the unauthorized copying of their works, as well as for training, and to implement public awareness 
campaigns, and to fund projects that promote creativity.
116 
3.127.  The Act provides for civil remedies, crimin al sanctions and other remedies for protecting 
copyright holders in the case of copyright infringement. Civil remedies include: impounding or destruction of works or sound recordings imported without authorization; payment of damages; 
awarding of punitive damages. Criminal proceedings can also be brought against those who 
conduct acts that contravene provisions of the Act. Copyright infringements are prescribed as criminal offences subject to penalties of imprisonment and/or fines, of up to ten years and P 
20,000 for the first offence, and of up to ten years and from P 30,000 to P 5 million for subsequent 
convictions. 
3.128.  The magistrates' courts and the High Court are the competent courts responsible for the 
adjudication of matters concerning copyright and related rights. However, the law provides for the 
establishment of a Copyright Arbitration Panel, which is responsible for settling disputes under the Act (Section 33A). Foreign natural and legal persons enjoy the same right as nationals to take action in the courts of Botswana. 
3.129.  Customs is the authority responsible for co mbating piracy at the borders. Customs officials 
can act ex officio at the borders in cases of copyright infringement. They are entitled to impound copies of works or sound recordings suspec ted of being made or imported without the 
authorization of the owner of any right protected in  the Act, as well as being entitled to impound 
the packaging, the implements that could be used, and the documents, accounts or business 
papers referring to such copies. Any goods imported into the country that are in contravention of 
the provisions of the Copyright Act may be placed under embargo or destroyed. 
3.3.5.2  Industrial property rights 3.130.  Industrial Property Act No. 14 of 1996,  last amended in 1997 (Industrial property 
(Amendment) Act No. 19) was replaced by the Industrial Property Act 2010 which came into effect 
in 2012.
117 This Act, like the former law, provides pr otection for patents, trademarks, industrial 
designs and utility models, and introduces protecti on to layout designs of integrated circuits, 
geographical indications, and traditional knowledge and handicrafts. The law also provides 
protection of industrial property against unfair competition. Protection against unfair competition 
complements the protection of inventions, industrial designs, trademarks and geographical indications and it is particularly important for the protection of knowledge, technology or 
information not protected by a patent.
118 New regulations (Industrial Property Regulations 2012) 
implementing the provisions of the new Act, were  also introduced. These regulations introduced 
new forms for the protection of each intellectual property right covered under the Act and increased the fees stipulated in the Industrial Pr operty Act of 1996 by 50%. CIPA is now in charge 
of implementing and administering the Act. 
3.3.5.2.1  Patents 3.131.  The most important changes introduced by the 2010 Act regarding patents are: a new 
provision on parallel imports; a pre-patent gran t opposition procedure and the possibility for 
Botswana to process international patent applications filed under the Patent Cooperation Treaty (PCT). 
                                               
114 Section 35E of the Copyright and Neig hbouring Rights Act (Chapter 68:02). 
115 Section 35G of the Copyright and Neighb ouring Rights Act (Chapter 68:02).  
116 Information provided by the authorities, and WTO (2009), Trade Policy Review - SACU. 
117 WTO document IP/N/1/BWA/2, 18 July 2013. 
118 WIPO online information.  "Understanding Industrial Property". Viewed at: 
http://www.wipo.int/edocs/pubdocs/en/intproperty/895/wipo_pub_895.pdf .  WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.132.  Patent protection is for 20 years from the filing date. After formal examination of the 
patent application and within 18 months from the date of filling, the Registrar of Marks, Patents and Designs (the Registrar) publishes the patent application in the Journal for public inspection.
119 
Thereafter, the patent application is subject to substantive examination, which is undertaken by 
any institution appointed by the Chief Executive Officer, including designated foreign or regional 
industrial property authorities. Usually the exam inations are undertaken by the African Regional 
Intellectual Property Organization (ARIPO); this could take 18-24 months. The patent application 
procedure is the same for nationals as for foreign nationals. Before the granting or refusal of a 
patent, an applicant for a patent may, upon payment of a fee, convert his or her application for a patent into an application for a utility model certificate.
120 This conversion can be done only 
once.121 Patent holders have exclusive rights over making, selling and importing products; these 
rights are enforceable in the courts. There are spec ific limited exceptions to exclusive rights, such 
as experimental acts relating to a patented invention and right of prior use done in good faith. The right to a patent may be transferred by cession, assignment, testamentary disposition or by 
operation of law. 
3.133.  The patentee, in addition to any other rights, remedies or actions available to him or her, 
has the right to institute court proceedings against any person who infringes the patent  
3.134.  The Government, upon payment of an adequate remuneration to the patentee
122, may 
grant a compulsory licence either on grounds of public interest or if a court determines the exploitation of the invention is anti-competitive and constitutes an abuse of the patent.
123 Public 
interest covers national security, nutrition, health  or the development of other vital sectors of the 
national economy. The exploitation of patented inventions under compulsory licensing is only 
allowed for the supply of the domestic market. Compulsory licences may also be issued if the patent has been insufficiently used in Botswana, or is not being "supplied on reasonable terms", as 
determined by the High Court. During the period under review, Botswana did not issue any 
compulsory licences.  
3.135.  The Act also allows for licences to be issued to a government agency or any authorized 
person for the importation of patented products such as generic pharmaceutical products from any 
legitimate alternative foreign source without the approval of the patentee either on grounds of public interest or if the patented product is not supplied in sufficient quantities to fulfil the demand or on reasonable terms. The importation of the patented product by a government agency or any 
authorized institution should be solely for public non-commercial use within Botswana, except 
where paragraphs 1 or 3 of Article 31bis of the TRIPS Agreement could apply. Botswana has not issued any such licences.
124 
3.136.  Remedies available to the right holder include damages, profits derived from the 
infringement, injunctions restraining the illegal activity, and destruction of illegal works. Criminal penalties comprise fines of between P 2,000 and P 5,000 and/or imprisonment of six months to 
two years. 
3.137.  During the period under review 68 applications were filed. Botswana granted 16 patents, of 
which 14 to non-residents (Table 3.12). All patents are in force.
125 
                                               
119 The 2010 Act stipulates that a Journal of marks, patents, designs, geographical indications and 
traditional knowledge should be created (Section 5(e) of the Industrial Property Act, 2010). 
120 Fees are listed in the Second Schedule of the Industrial Property Regulations, 2012 (published on 
31 August 2012). 
121 Utility model certificates are granted to protect new and industrially applicable inventions for 
seven years from the date of filing. 
122 In the determination of adequate remuneration the Minister takes into account the economic value of 
the exploitation of the patented invention and the need for the elimination of anti-competitive practices (Section 31(2) of the Industrial Property Act 2010).  
123 The law does not define what constitutes an abuse of the patent. The High Court of Botswana or an 
administrative body will make a determination of what constitutes abuse of the patent (information provided 
by the authorities). 
124 Information provided by the authorities. 
125 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 3.12 Patents, 2009-14  
Patents 2009 2010 2011 2012 2013 2014 Total 
Filed  12 15 9 14 9 9a 68 
Examined 12 15 9 14 9 0 59 
Granted  2 4 6 1 3 0 16 
Residents 0 1 1 0 0 0 2 
Non-residents 2 3 5 1 3 0 14 
a These patents are still under substantive examination. 
Source: Information provided by the authorities. 
3.138.  The provisions that apply to patents are also applicable to utility models; however, a utility 
model certificate expires 7 years after the date of filing of an application. As in the case of a patent, an applicant may upon payment of a prescribed fee convert the application for a utility 
model certificate into an application for a patent. The conversion of the application can be done 
only once. 
3.3.5.2.2  Industrial designs  
3.139.  Protection of industrial designs is grante d under the Industrial Property Act of 2010, which 
introduced the possibility of international registration of industrial designs under the Hague Agreement. Registered new industrial designs are protected for 15 years (5 years initially, 
renewable twice). Application for the registration must be filed with the Registrar using the 
prescribed forms and with payment of the required fees. An applicant for registration who is not the creator needs to provide proof of his/her author ity to apply for the registration; otherwise, the 
application cannot be accepted. The Registrar undertakes a substantial examination of the 
application prior to granting the right of protection.
126 The owner of a design has exclusive rights 
of use.127 The owner has to grant consent for third parties to make, import or sell an article that 
bears the design or a design not substantially di fferent from the one registered. The law does not 
include provisions for issuing compulsory licences.  
3.140.  The owner of a registered design has the right to institute court proceedings against any 
person exploiting the design without his/her consent. The court may grant relief by way of 
damages, profits derived from infringements, injunctions against illegal activity, and destruction of 
infringing products.  
3.141.  During the period under review 34 applications were filed; 13 industrial designs were 
registered, of which 2 to non-residents (Table 3.13). All industrial designs are in force.128 
Table 3.13 Industrial designs, 2009-14  
Designs 2009 2010 2011 2012 2013 2014 Total 
Filed  n.a. n.a.  7 12 12 10 34 
Examined n.a. n.a. 7 12 12 10 34 
Registered n.a.  n.a. 0 6 3 4 13 
Residents n.a. n.a. 0 6 1 4 11 
Non-residents n.a.  n.a. 0 0 2 0 2 
n.a. Not applicable. 
Source: The Companies and Intell ectual Property Authority. 
                                               
126 Please refer to Section 49 of the Industrial Property Act, 2010 for more details regarding this 
examination. 
127 If two or more persons have made the design jointl y, the right belongs to them jointly. If the design 
is made by two or more persons separately, the person whose application bears the earliest date shall have the 
right to the design; unless  priority is claimed. 
128 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  3.3.5.2.3  Layout designs and integrated circuits 
3.142.  The Industrial Property Act of 2010 in troduced the protection of layout designs of 
integrated circuits.129 Original layout designs of integrated circuits are protected upon registration. 
Protection is granted for 10 years from the date of filing an application for registration or from the 
first commercial exploitation wherever it occurs; th e protection lapses 15 years after the creation 
of the layout design. Protection confers on the owner the right to reproduce, import, sell or distribute a layout design for an integrated circuit for commercial use. On grounds of public 
interest, the law allows the Minister of Trade an d Industry to grant permission to persons other 
than the owner to import any product covered by the integrated circuit of the layout design.
130 
This provision has not been used.131 
3.3.5.2.4  Trademarks 
3.143.  Marks, collective marks and trade names continue to be protected under Botswana's 
industrial property legislation. Important ch anges since the previous Review include: the 
introduction by the Industrial Property Act of 2010 of a new provision that allows for the 
reinstatement of lapsed marks upon providing co mpelling reasons and the introduction of the 
international registration of marks under the Madrid Protocol.132 
3.144.  The exclusive right to a mark is acquired  by registration with the Registrar, who will 
undertake a substantial examination of the application and take into consideration any opposition 
to the registration of such mark.133 Marks can only be registered if they are capable of 
distinguishing goods and services of an enterprise. The law also protects well-known marks by preventing registration of identical or confusingly similar marks. If a geographical indication was 
registered as a mark prior to the protection of ge ographical indications in Botswana the mark will 
continue to be protected by law.  
3.145.  Registration of the mark confers on the ow ner an exclusive right over the use of the mark 
for 10 years after the filing date of the application for registration. Protection can be renewed 
indefinitely for consecutive periods of 10 years upon written request and payment of the renewal fee. A mark may be removed from the register if it has not been used in Botswana for a 
continuous period of three years after registration; however, an owner that loses its rights on 
grounds of non-use can request the reinstatement of  its rights. The authorities noted that during 
the period under review this has not happened.  
3.146.  Foreign applicants are required to submit  applications to the Registrar through a local 
agent. Applications are published for a three-month opposition period; it takes five months to 
register a trademark in Botswana.  
3.147.  The owner of the mark, as is the case for other industrial rights, is allowed to institute 
proceedings against anyone infringing his or her rights. The court may grant relief by way of 
damages, profits derived from infringements, injunctions against illegal activity, or the destruction of the infringing products. Criminal penalties also apply to illegal use of trademarks.
134  
3.148.  During the period under review 6,333 applications were filed; 3,926 trademarks were 
registered, of which 3,230 to non-residents (Table 3.14). All trademarks are in force.135 
                                               
129 Part VII of the Industrial Property Act of 2010. 
130 Examples of public interest incl ude: supply of the product covered by the right is not sufficient to 
meet local demand in Botswana, the quality of the product is substandard or the price is abusive (Section 73 of the Industrial Property Act of 2010). 
131 Information provided by the authorities. 
132 Part IX of the Industrial Property Act of 2010. 
133 The rights conferred by registration are listed in Section 81 of the Industrial Property Act of 2010.  
134 Section 134(6) of the Industrial Property Act, 2010. 
135 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 3.14 Trademarks, 2009-14  
Trade marks 2009 2010 2011 2012 2013 2014 Total 
Filed  966 1,070 989 1,168 1,073 1,067 6,333  
Examined 966 1,070 989 1,168 1,073 1,067 6,333  
Registered  912 401 989 361 391 872 3,926  
Residents 106 54 194 55 103 184 696 
Non-residents 806 347 795 306 288  688 3,230 
Source: The Companies and Intell ectual Property Authority. 
3.3.5.2.5  Geographical indications 
3.149.  Protection has been granted to geographical indications in Botswana since 2012; prior to 
that date geographical indications were protec ted as marks. As in the case of trademarks, 
geographical indications need to be registered to  be protected. Applications are examined by the 
Registrar and opposition to registration is allowed under the law. The owner of the registered right 
has the right to prohibit third parties from using the geographical indication and to institute court proceedings against any person infringing his or  her right. However, the right conferred by 
registration of a geographical indication may not be invoked to prevent a national or domiciliary of 
Botswana, who has previously used the geographical indication to identify wines or spirits, to continue its use if the geographical indication has been used continuously for at least 10 years prior to 15 April 1994 or in good faith after that date. In 2014, an application for a geographical 
indication was filed; it is still under investigation.
136 
3.3.5.2.6  Traditional knowledge and handicrafts 3.150.  Traditional knowledge needs to be registered for it to be protected in Botswana. Traditional 
knowledge can be registered if it has not been disclosed to the public or, if it has been disclosed, 
such disclosure has not led to any commercial or industrial exploitation in Botswana. Traditional knowledge may be registered by a local practition er, a representative of any local community or 
any individual. Applicants can opt to keep all or parts of the elements of traditional knowledge 
under secrecy. 
3.151.  The Registrar must publish in the Journal (of marks, patents, designs, geographical 
indications and traditional knowledge) a notice of the registration of traditional knowledge which 
should contain, inter alia , a summary of the registered traditional knowledge if available and the 
identification of the local community or communities that created it. The law provides for the possibility of invalidating the registration.  
3.152.  The rights over traditional knowledge may be exercised in different ways. Where traditional 
knowledge is collectively owned, rights over it can be exercised and enjoyed collectively in accordance with cultural practices. Local communities that have registered individually for similar 
or identical elements of traditional knowledge have  the option to exercise and enjoy their rights 
over the traditional knowledge individually. An applicant community which is comprised of individuals from different countries, including Bo tswana, shall have the right to register and 
acquire rights over traditional knowledge in Botswana and in the other countries. 
3.153.  The exclusive rights conferred over traditional knowledge depend upon the matter being 
protected, which could be a product; a domesticated animal, cultivated plant or micro-organism; a design or object (including handicrafts); or a name, symbol or distinctive sign of a religious, 
spiritual, cultural or economic nature.
137 The protection of registered traditional knowledge expires 
when it loses its value as an element of cultural identification; as a result of abandonment by its owner or owners; or as a result of non-use or use in a distorted manner by third parties of which 
the owner or owners are aware. 
3.154.  The rights of local communities over regi stered traditional knowledge may not be assigned, 
ceded or transferred in any manner. However, the Minister of Trade and Industry may, on grounds 
                                               
136 Information provided by the Companies and Intellectual Property Authority. 
137 Section 121 of the Industrial Property Act of 2010. WT/TPR/S/324/Rev.1 • Botswana 
 
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  of public interest, after hearing any local community that owns traditional knowledge, authorize 
the scientific, commercial or industrial exploitation of that knowledge or any element of it. The local community or any other owner of the knowledge can initiate proceedings concerning the protection or infringement of rights over traditional knowledge. The Court may order the infringing 
party to pay to the local community a prescribed amount. 
 WT/TPR/S/324/Rev.1 • Botswana 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.  Agriculture remains one of the most important economic activities in Botswana. It plays a 
significant role in providing employment and inve stment opportunities to the Batswana, especially 
the rural population, and it is also an important supplier of raw materials for agro-based industries. 
The sector comprises the crops and livestock subsectors with production (in both subsectors) taking place under two farming systems: communal (traditional sector) and commercial. The 
dominant subsector is livestock, mainly beef cattle production and small stock (goats); while 
arable farming is primarily subsistence. Agriculture is characterized by cyclical performance mainly due to erratic rainfalls. The arable subsector has been more sensitive to climatic changes than the livestock subsector. On average, the performa nce of both subsectors has been worse than 
expected; with the arable subsector having a poorer performance.  
4.2.  Even though the sector's contribution to GDP has decreased over the years from over 40% in 
1966 to 2.4% in 2014, it remains the mainstay of the rural economy where it is the major source 
of livelihood. In addition, the livestock subsector's contribution to exports is significant; meat and 
meat products accounted for 70.3% of the country's agricultural exports (Table 4.1). 
Table 4.1 Principal indicators for agricu lture, forestry and fishing, 2008-14 
  2008  2009  2010  2011  2012 2013 2014  
Contribution to GDP  
(%, at current basic prices)a 2.8 3.3 3.2 2.8 2.9 2.6 2.4 
Contribution to GDP  
(%, at 2006 constant basic prices)a 2.4 2.8 2.9 2.1 2.2 2.1 1.9 
Growth rate at 2006 prices (%) 2.0 6.4 16.7 -22.9 10.2 2.0 -0.3 
Estimated number of paid employees in 
agriculture (% of total paid employees)b 3.0 3.1 3.2 3.2 3.1 .. .. 
Exports (including re-exports)               
Agriculture (US$ million)c 154 178 243 139 131 180 163 
Top 5 exports by HS 4-digit  
(% of total agriculture)d               
 0202 Meat of bovine animals, frozen 21.7 27.5 24.9 19.8 35.6 41.4 39.5 
 0201 Meat of bovine animals, fresh/chilled 37.0 36.1 40.2 14.0 13.7 22.7 30.8 
 1704 Sugar confectionery (not incl. cocoa) 7.8 8.1 9.1 17.0 14.7 8.5 9.1 
 1302 Vegetable saps and extracts 0.0 0.9 0.9 2.6 2.6 1.5 2.7 
 0102 Live bovine animals 0.1 0.0 0.0 7.7 2.3 2.7 1.8 
Top 5 exports (% of total exports) 2.1 3.7 3.9 1.4 1.5 1.8 1.7 
Total agricultural exports (% of total exports) 3.1 5.2 5.2 2.4 2.2 2.4 2.1 
Growth rate at current prices (%) 2.2 16.0 36.3 -43.0 -5.7 37.9 -9.5 
Imports               
Agriculture (US$ million)c 620 618 699 761 719 750 690 
Top 5 imports by HS 4-digit  
(% of total agriculture)d               
 1005 Maize (corn) 1.3 1.4 1.4 2.3 2.8 6.6 6.9 
 1701 Cane or beet sugar and chemically pure 
sucrose 5.3 6.8 6.3 6.3 6.8 6.4 6.3 
 1001 Wheat and meslin 3.6 4.8 3.8 2.8 0.6 5.2 6.0 
 2009 Fruit juices and vegetable juices 5.0 4.5 4.9 4.6 4.1 4.3 4.6 
 0402 Milk and cream 3.0 3.1 3.5 4.1 4.7 4.3 4.4 
Top 5 imports (% of total imports) 2.1 2.7 2.5 2.1 1.7 2.7 2.5 
Total agricultural imports (% of total imports) 11.9 13.1 12.4 10.5 9.0 10.1 8.8 
Growth rate at current prices, % 18.9 -0.3 13.1 8.9 -5.5 4.3 -8.0 
.. Not available. 
a The figures for 2010-14 are provisional. 
b Based on the month of September for each year, except for 2011 (June). c WTO definition. d Based on the 2014 values.  
Source: WTO Secretariat calculations, based on Bank of Botswana (2015a), Botswana Financial Statistics, 
Issue (February 2015); Statistics Botswana (April 2015), Gross Domestic Product, Fourth Quarter of 
2014 (No. 2015/1) ; data provided by the authorities; and UN Comtrade. WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.3.  Arable land accounts for some 5% of Botswana's total territory; most of the soil is poor and 
there is inadequate rainfall. The area cultivated varies from year to year, as the country is prone to drought on a regular basis.
1 There is also a disparity between the planted and harvested area; 
the harvest depends on the rainfall. Notwithstanding the adverse climatic and soil conditions, the 
long-standing focus on traditional rain-fed arable farming and the slow adoption of modern 
farming methods have contributed to a decline in yields. As a result, Botswana continues to be a net food importer. Food accounts for a large share of imports of agricultural products, with grains 
(maize, wheat and meslin) accounting for 12.9% of agricultural imports in 2014, followed by sugar 
(Table 4.1). The deficit in food trade was about US$466 million in 2008 and stood at US$527 million in 2014. 
4.4.  Botswana's agricultural policy is implemented by the Ministry of Agriculture within the 
framework of the National Development Plan 10 (NDP10) and the Vision 2016, which identify 
sustainable growth in the agricultural sector as a key to eradicating poverty. Agriculture remains the main source of income in rural areas, and thus plays a major role in contributing to the 
achievement of poverty reduction targets. 
4.5.  The 1991 National Policy on Agricultural Development is still in place but is currently under 
review. The Policy's objectives include: attaining food security
2, diversifying the production base, 
boosting productivity, increasing employment, an d protecting the environment. In 2010, a review 
of the agricultural policies called for public policy to focus mainly on the provision of infrastructure and extension services, but it also recognized the need to continue supporting the sector through economy-wide schemes such as the provision of grants, low interest loans and support services to 
the local industry, provided by the Citizen Entrepreneurial Development Agency (CEDA) and the 
Local Enterprise Authority (LEA)
3; and at the sectoral level, through a number of programmes 
targeted at different agricultural subsectors, for instance: the National Master Plan for Arable 
Agriculture and Dairy Development (NAMPAADD) (2002 to date); the Integrated Support 
Programme for Arable Agricultural Development (ISPAAD) (2008 to date) and the Agricultural Policy and the Livestock Management and Infrastructure Development (LIMID) (1997 to date).
4 
4.6.  SPS related issues continue to pose a challenge for Botswana, hence the proper enforcement 
of SPS measures and the implementation of practices aimed at improving sanitary conditions in the country are necessary for Botswana to attain food security, one of the country's main goals, as well as to take full advantage of international trade opportunities, especially given Botswana's 
reliance on meat exports. The Ministry of Agri culture, through the Departments of Veterinary 
Services and of Crop Production, is responsible for prevention and control of diseases and pests 
through the implementation of SPS legislation and movement of goods including import/export 
control. 
4.7.  As a SACU member, Botswana applies the Union's CET. Regarding tariff bindings Botswana 
adopted South Africa's bindings, with some exceptions mainly regarding agricultural products 
(e.g. dairy products, wheat, maize, rice, oil and cotton) (Main Report and Section 3). All tariff lines 
were bound at ad valorem  rates. The 2015 MFN applied tariff rates on some dairy products appear 
to be higher than the bound rate (Table 3.1). 
4.8.  The 2002 SACU Agreement stipulates that all members need to apply the same rebates, 
refunds or drawbacks of customs duties on impo rted goods (Main Report). There are, however, 
some country-specific rebates. For instance Botswana, applies specific rebates on wheat (HS 1011) (excluding durum wheat) and dairy products (HS 04). These rebates can only be used if it is 
allowed by the agricultural authorities of the four BLNS countries. In addition, a number of 
agricultural products and farming inputs and impl ements are either exempted from VAT or zero-
rated. 
                                               
1 Online information. Viewed at: 
http://www.fao.org/ag/AGP/AGPC/doc/Counprof/Botswana/botswana.htm . 
2 According to Botswana's agricultural policy, food  security is concerned with access to food at 
affordable prices, irrespective of the source of such food. Thus, imports play  an important role as a source of 
supply. 
3 A Young Farmers Fund (YFF) offered by CEDA was also launched in 2006 to issue loans at lower 
interest rates and longer repayment pe riods than the regular CEDA programme.  
4 Online information. Viewed at: http ://www.moa.gov.bw/?nav=agricpolicy; and 
http://www.moa.gov.bw/ ?nav=supportschemes. WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.9.  Temporary protection to infant industries for a maximum of 8 years, through the imposition 
of additional duties, is also allowed under the SACU Agreement. Under this provision Botswana has levied an additional duty of 40% on imports of  UHT milk since 2008, to be eliminated by 2015.
5 
Botswana also charges a flour levy at a rate of 15% on imports of wheat flour to protect the 
milling industry. This levy has been imposed under  the Control of Goods, Prices and Other Charges 
Act as an internal measure to develop the industry; according to the authorities, it will be phased 
out over a 10-year period starting in 2015. 
4.10.  During 2009-14, Botswana did not invoke the special agricultural safeguard.6 
4.11.  Botswana applies import/export restrictions on certain agricultural products to develop the 
sector and on food security grounds.7 These restrictions are imposed under the Control of Goods, 
Prices and Other Charges Act (Chapter 43:08). Prior to obtaining an import/export permit from the 
Ministry of Agriculture, imports/exports of agricu ltural products require sanitary and phytosanitary 
clearance. 
4.12.  Imports of several agricultural products require a permit, unless imported in small quantities 
for personal consumption (e.g. 10 kg to 25 kg) (Table 3.2). These permits are required to promote 
local production of basic products; hence the products subject to import permits vary according to the circumstances.
8 Permits are not granted when domestic supply is deemed sufficient, to ensure 
that local farmers can sell their produce; they are granted only when there are shortages in the 
domestic markets.9 Import permits for grains, such as maize, maize meal, sorghum grains and 
sorghum meal, will only be issued upon proof of local purchase.10 Imports of sugar are allowed in 
quantities higher than 50 kg.11 
4.13.  Most exports from Botswana are neither subject to restrictions nor require permits or 
licences, but certain exceptions apply in agriculture, including cattle, basic goods, and hides and skins.  
4.14.  Exports of live cattle and meat can only be undertaken by the Botswana Meat Corporation; 
they are otherwise prohibited unless authorized by the Minister.
12 
4.15.  Export permits issued by the Department of Agribusiness Promotion at the Ministry of 
Agriculture are required for the following products : animal feed for poultry and livestock, sorghum 
grains and sorghum products, maize grain and maize products, millet grains and millet products, wheat grain and wheat products, pulses (castor beans and groundnuts), sunflower seed, and basic foods and vegetables not exceeding a specific quantity stipulated by law. Permits are issued to a 
holder of a valid trading licence, who could either be a citizen of Botswana, a resident foreign 
national or a company or firm registered and carry ing on business in Botswana. Permit applications 
must be accompanied by the trading licence and certificate of incorporation; in addition to a 
sanitary and phytosanitary permit and/or Botswa na Bureau of Standards (BOBS) Certificate. 
4.16.  Exports of sugar from Botswana require a permit. Permits used to also be required for 
exports of sugar to South Africa if the amount exported exceeded 25 kg per month; a permit 
allowed exports of a maximum 100 kg per month. However, according to the authorities, exports 
of sugar have been liberalized. 
                                               
5 Information provided by the authorities. 
6 WTO documents G/AG/N/BWA/8, 14 July 2010; G/ AG/N/BWA/12, 6 March 2012; G/AG/N/BWA/15, 
28 August 2012; G/AG/N/BWA/18, 13 February  2014; and G/AG/N/BWA/21, 9 December 2014. 
7 Information provided by the authorities. 
8 Notices regarding the imposition of such permits are published on the Ministry of Agriculture's web 
page. Viewed at: http://www.moa.gov.bw/. 
9 Control of Goods, Prices and Ot her Charges (Restriction on the Importation of Bread Loaves and Pie 
Pastries) Regulations (under Section 3) (14 October 2003). 
10 In the case of maize grain 30% needs to be purc hased locally, 70% in the case of maize meal, 50% 
for sorghum grain and 70% for sorghum meal. 
11 Control of Goods (Importation of Sugar) Regulations (under Section 3) (1 January 1985); Control of 
Goods, Prices and Other Charges (Restriction on Import ation of Pre-Packed Refined Sugar) Regulations, 2008; 
and information provided by the authorities. 
12 Botswana Meat Commission (BMC) Act. WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.17.  An export permit issued by the Agricultural Resources Board is also required to export 
grapple plant ( Harpagophytum procumbers ) or any part thereof and Phane ( Gonimbrasia belina ).13 
4.18.  Botswana notified the WTO Committee on Agriculture that it did not provide any export 
subsidies to agricultural products during financial years 2009/10 to 2013/14.14 
4.19.  Exporters are entitled to duty drawback on inputs imported to be used in the production of 
exports. Export credit insurance is available th rough the Botswana Export Credit Insurance and 
Guarantee Company Botswana (Pty) Ltd (BECI). Export credit insurance is essential to stimulate 
non-traditional exports and diversify export markets. 
4.20.  The National Development Plan 10 (NDP10) id entified the agricultural sector as one of the 
areas that have potential to promote the diversification of the economy, to create employment, especially in rural areas, and to promote exports. As a result, the Agricultural Hub was established 
in May 2008 to promote commercialization and diversification of the sector.
15 
4.21.  Agricultural support is aimed at increasing  agricultural productivity and is targeted at 
low-income farmers. There are four main support programmes currently in place, as well as other 
programmes related to the provision of, inter alia , pest and disease control, extension and 
advisory services, and marketing and promotion services. These programmes have been notified to the WTO.
16 Amongst these programmes the most important is the Integrated Support 
Programme for Arable Agricultural Development (ISPAAD) which provides financing for low-income 
farmers to purchase inputs including the purchase of animals.17 Total domestic support has 
continued to increase during the period under review. Moreover, as reported at the time of the last Review in 2009, government support to agriculture is substantial, especially if compared with 
agricultural GDP (Table 4.2). 
Table 4.2 Government expenditure on agriculture, 2009/10-2013/14 
(Million Pula) 
 2009/10  2010/11  2011/12 2012/13 2013/14  
Total domestic support 114 344 175 355 580 
"Green Box"a 104 111 145 103 259 
Special and Differential Treatment - 
"Development Programmes"a 10 233 29 251 320 
of which: ISPAAD n.a. 209 0.4 201 261 
Government expenditure (agriculture, forestry 
and fishing) 1,185 1,107 1,289 1,538 1,750 
Government expenditure (agriculture, forestry 
and fishing), as a share of:       
Total government expenditure (%) 3.0 2.9 3.3 3.8 4.2 
Agricultural GDP, current prices (%) 55.5 51.0 45.0 53.4 59.3 
Total domestic support, as a share of:       
Total government expenditure of agriculture, 
forestry and fishing (%) 9.6 31.1 13.5 23.1 33.1 
Agricultural GDP, current prices (%) 5.3 15.9 6.1 12.3 19.7 
Total GDP, current basic prices (%) 0.2 0.4 0.2 0.3 0.5 
n.a. Not applicable. 
a Measures exempt from the reduction commitment.  
Source: WTO Secretariat's notifications; and Statistics Botswana (April 2015), Gross Domestic Product, 
Fourth Quarter of 2014 (No. 2015/1) ; and IMF online information, "International Financial 
Statistics". Viewed at: http://elibrary-data.imf.org/DataExplorer.aspx .  
                                               
13 Agricultural Resources Conservation Act No. 35:60. 
14 WTO documents G/AG/N/BWA/9, 14 July 2010; G/ AG/N/BWA/11, 6 March 2012; G/AG/N/BWA/14, 
28 August 2012; G/AG/N/BWA/17, 13 February  2014; and G/AG/N/BWA/22, 9 December 2014. 
15 Online information. Viewed at: http://www.moa.gov.bw/?nav=agrichub. 
16 WTO documents G/AG/N/BWA/13, 27 March 2012; G/AG/N/BWA/16, 15 January 2013; 
G/AG/N/BWA/19, 14 February 2014; and G/AG/N/BWA/20, 9 December 2014. 
17 For more details on this programme please refer to: Ministry of Agriculture (2013). WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.22.  In 2007, CEDA started operating the Young Farmers' Fund, which provides subsidized loans 
and training to young agricultural producers. 
4.23.  The livestock subsector continues to be heavily protected. In general imports of beef are 
restricted or prohibited18; while the Botswana Meat Commission (BMC) continues to operate as a 
monopoly for the export of beef and other meat  products. There are, however, privately owned 
abattoirs that slaughter to supply the domestic market. The BMC Act also prohibits the export of live cattle. According to the authorities, the price of livestock and livestock products is determined 
by market forces. 
4.24.  The livestock subsector has been driven la rgely by the international beef market including 
the EU and South Africa. The EU market is of great importance to Botswana. The suspension of Botswana beef exports to the EU in 2011 result ed in a substantial decrease in exports and 
highlighted the need to strengthen SPS-controls an d food-safety systems, which are closely tied to 
livestock movement, traceability and identification. Botswana depends on an effective animal identification and trace-back system to access  lucrative beef export markets that demand 
identification and trace-back to ensure food safety. Thus, to improve traceability Botswana 
changed the livestock identification and trace-back system (LITS) to a digital ear-tag system. This technology enables the Department of Veterinary Services to trace and individually identify 
livestock in any district. 
4.25.  Botswana's beef exports have seen a si gnificant rebound in 2013, following two years of 
consecutive dwindling after the suspended beef im ports from Botswana in early 2011. Exports of 
beef reached US$113.8 million in 2014, compared with the US$66 million recorded in 2012.
19 
Botswana is also making efforts to diversify its beef exports beyond the traditional markets (the 
EU, SACU members and other neighbouring countries), towards alternative markets such as Kuwait, Saudi Arabia and Dubai.
20 
4.26.  The other market in which there is substantial intervention is the grain market. The 
Botswana Agricultural Marketing Board (BAMB), established in 1974, has the mandate to provide a market for locally grown crops such as cereals, pulses/beans and oilseeds, and ensure an 
adequate supply to meet customer requirements at affordable prices.
21 In addition to set purchase 
and sale prices, BAMB is authorized to import or export22, transport, store, process and sell any 
"scheduled" produce. The Act also requires BAMB to  stabilize prices through the Stabilization Fund, 
which is financed with public funds. Currently BAMB sets producer prices based on monthly prices 
posted by the South African Futures Exchange, adjusted for transport costs, moisture, impurities 
and mark-up. The Government subsidizes the tran sport costs incurred by BAMB as a result of 
operating in remote areas of the country. BAMB also holds grain reserves to stabilize the market, 
which are estimated to cover 3 months (some 30,000 MT) of domestic consumption of sorghum, 
and 3 months (some 30,000 MT) of maize.  
4.2  Mining and Energy 
4.2.1  Mining  
4.27.  Mining continues to dominate Botswana's economy contributing some 25% to GDP in 2014. 
The sector absorbs less than 6% of the labour force, as mining is a capital-intensive activity which relies heavily on foreign direct investment. In 2012, it absorbed 72% of total FDI (latest available 
information).
23 Botswana is the world's largest producer (by value) and exporter of diamonds. 
Exports of diamonds accounted in 2014 for 84.5% of  total exports (Table A1.3). In addition to 
diamonds, Botswana produces other minerals, which are mainly for export (Table 4.3). Exports of 
mining products accounted for 92.7% of total exports in 2014. Given Botswana's reliance on 
diamonds and other primary products, the Government launched the Economic Diversification 
                                               
18 Information provided by the authorities. 
19 Based on information provided by the authorities. 
20 Information provided by the authorities. 
21 Act of Parliament, No. 2 of 1974. 
22 As per Statutory Instrument No. 66 of 2005. 
23 Bank of Botswana (2013). WT/TPR/S/324/Rev.1 • Botswana 
 
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  Drive (EDD) initiative in 2011, with the main obje ctive of diversifying the economy and its export 
base away from diamonds, into other sectors.24 
Table 4.3 Principal indicators for mining, 2008-14  
 2008 2009 2010 2011 2012 2013 2014 
Contribution to GDP  
(%, at current basic prices)a 29.2 15.9 27.1 27.0 21.8 24.5 25.3 
Contribution to GDP  
(%, at 2006 constant basic prices)a 28.3 16.8 18.6 17.0 15.1 15.8 18.9 
Growth rate at 2006 prices (%) -8.0 -46.2 22.7 -2.3 -7.0 10.6 4.5 
Estimated number of paid employees in mining  
(% of total paid employees)b 6 5.3 5.6 6 5.7 .. .. 
Exports (including re-exports)        Mining (US$ billion)c 4.2 2.8 4.0 5.0 5.3 7.0 7.3 
Top 5 exports by HS 4-digit (% of total mining)d        
 7102 Diamonds 74.4 77.1 81.1 88.3 88.7 89.9 91.6 
 710231 Non-industrial: unworked 66.9 69.2 69.1 73.8 74.9 77.4 79.9 
 710239 Non-industrial: other 7.3 7.7 11.5 14.2 13.2 11.3 11.2 
 7501 Nickel mattes 16.1 15.1 12.9 7.0 6.2 6.0 4.6 
 2603 Copper ores and concentrates 3.5 2.7 1.1 1.5 1.8 1.8 1.8 
 7108 Gold 2.4 2.7 1.5 1.6 1.6 0.8 0.6 
 2501 Salt 0.4 0.6 0.5 0.3 0.3 0.3 0.4 
Top 5 exports (% of total exports) 82.3 79.8 81.9 84.6 88.4 91.2 91.7 
Mining exports (% of total exports) 84.9 81.3 84.3 85.6 89.5 92.3 92.7 
Growth rate at current prices, % -4.1 -33.2 40.9 27.2 6.2 30.7 5.0 
Imports        Mining (US$ billion)c 1.1 1.0 1.4 1.7 2.8 2.6 3.2 
Top 5 imports by HS 4-digit (% of total mining)d         7102 Diamonds 40.9 37.9 47.6 51.9 77.2 76.6 83.3 
 710231 Non-industrial: unworked 40.3 37.0 45.6 47.7 75.2 73.3 63.7 
 710210 Unsorted 0.0 0.0 0.0 0.0 0.2 0.0 15.8 
 710239 Non-industrial: other 0.6 0.9 2.0 4.2 1.9 3.2 3.8 
2523 Portland cement 5.5 7.7 6.6 5.0 2.6 2.4 2.0 
 3102 Mineral or chemical fertilizers, 
 nitrogenous 1.1 0.7 1.1 0.9 1.0 1.6 1.3 
 7308 Structures 5.9 4.8 4.7 6.9 1.6 1.2 1.0 
 3105 Mineral or chemical fertilizers 0.4 0.8 0.5 0.3 0.3 0.4 0.6 
Top 5 imports (% of total imports) 11.7 10.6 14.8 14.9 28.8 29.2 35.9 
Mining imports (% of total imports) 21.7 20.5 24.5 22.8 34.9 35.6 40.7 
Growth rate at current prices, % 77.9 -14.1 42.9 19.6 68.7 -5.4 20.5 
Memo:        Diamonds (% of total exports) 63.2 62.7 68.4 75.6 79.4 82.9 84.9 
Diamonds (% of total imports) 8.9 7.8 11.7 11.8 26.9 27.3 33.9 
.. Not available. 
a The figures for 2010-14 are provisional. 
b Based on the month of September for each year, except for 2011 (June). c WTO definition of "minerals and metals". d Based on the 2014 values. 
Source: WTO Secretariat calculations, based on Bank of Botswana (2015a), Botswana Financial Statistics, 
Issue (February 2015); Statistics Botswana (April 2015), Gross Domestic Product, Fourth Quarter of 
2014 (No. 2015/1) ; data provided by the authorities; and UN Comtrade. 
4.28.  As at mid-2015, Botswana did not have a specific mining policy. In general, policies related 
to mining in Botswana aim at: encouraging prospecting, developing new mines, and promoting 
opportunities to create linkages with the rest of  the economy to expand value-added activities, 
especially through downstream processing of minerals. However, the policy framework for exploration, mining and mineral processing in Botswana is reviewed continuously to, inter alia , 
render the sector more competitive to stimulate investment; to encourage linkages with the rest of 
the economy to expand value addition activities , and thus generate more employment; and to 
safeguard the environment. 
4.29.  Mineral rights in Botswana are vested in th e State and it is the Minister of Minerals, Energy 
and Water Resources (MMEWR) who ensures that mineral resources are exploited in the most 
                                               
24 Ministry of Trade and Industry (2011). WT/TPR/S/324/Rev.1 • Botswana 
 
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  efficient, beneficial and timely manner. The depart ments in charge of the sector within the MMEWR 
include the Mineral Affairs Division, which has the pr imary responsibility of advising the Ministry on 
all matters concerning minerals policy25; the Department of Geological Survey; and the 
Department of Mines, which is in charge of implementing the legislation.26 The Diamond Hub was 
established in 2008, to coordinate the different activities related to the diamond sector such as: 
the trading of rough and polished diamonds, cu tting and polishing, and the manufacturing of 
jewellery.27 
4.30.  Mining and its ancillary activities are regulated by the Mines and Minerals Act of 1999, the 
Diamond Cutting Act of 1979, and the Precious and Semi-Precious Stones Protection Act of 1969, which have not undergone major amendments since the previous Review in 2009. The Mine and Minerals Act provides for security of tenure; a stable progressive fiscal regime that lessens the 
burden on marginal mines; clear licensing procedur es; and environmental obligations that relate to 
international best practice.  
4.31.  Botswana provides for the following mineral concessions: prospecting licences, retention 
licences, mining licences, and minerals permits for small-scale mining operations (Table 4.4). The 
terms of any new application, renewal, transfer or amendment of a mining licence for diamonds 
must be negotiated regarding technical, financial and commercial aspects of the proposed project 
including government participation.
28 
Table 4.4 Mining licensing framework, 2015  
Type of licence 
and permits Requirements for 
obtaining the 
licence or permit 
(including for 
foreign nationals) Fees Reservations 
for nationals Rights granted by the 
different licences or 
permits/duration of 
licence or permit 
Prospecting licences Adequate financial 
standing and technical competence. Adequate prospecting programme. Proposed prospecting area cannot overlap with existing prospecting, retention and mining areas.  P 5 per km
2 
subject to a minimum of P 500 for industrial minerals and P 1,000 for other minerals none Drill boreholes and make 
the excavations necessary for prospecting. Build temporary structures necessary for prospecting.  Licence valid for up to 3 years. It can be renewed twice each time for a period of up to 2 years. 
Retention licences Similar to the 
requirements for 
obtaining a mining 
licence.  
Copy of feasibility 
study for the period 
and the area that is to 
be retained with the 
details of prospecting 
work. Annual charge 
P 5,000 per km2, 
increasing 
annually by 
P 5,000 per km2 none Retain area for future 
mining. 
Carry on prospecting 
operations in the assigned 
area including the removal 
of minerals samples for 
analysis. Licence issued for 
a period of up to 3 years, 
renewable for up to 
3 years. 
Mining licence Adequate mining 
programme, proposed mining area not overlapping with existing mining areas, adequate financial resources and guarantee from parent company, proposed financial plan submitted as part of the feasibility study.  Annual charge of 
P 100 per km
2  none Mine only the mineral to 
which the licence relates.  Build the necessary structures for mining. Prospect within the mining area. Licence issued for a period of up to 25 years with provisions for multiple renewals, each of up to 25 years. 
                                               
25 Online information. Viewed at: http://www.mmewr.gov.bw/department/?dept=mad . 
26 Online information. Viewed at: http://www.mmewr.gov.bw/department/?dept=dom . 
27 Online information. Viewed at: http://www.bitc.co.bw/diamond-hub . 
28 Section 51 of the Mines and Minerals Act of 1999. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Type of licence 
and permits Requirements for 
obtaining the 
licence or permit 
(including for 
foreign nationals) Fees Reservations 
for nationals Rights granted by the 
different licences or 
permits/duration of 
licence or permit 
Mineral permits for 
small-scale mining 
operations Satisfactory mining 
programme. Annual charge of 
P 100 per km2 Exploitation of 
industrial 
minerals is 
reserved for 
nationals Mine only the mineral to 
which the permit relates.  
Disposal of recovered 
minerals. 
Build temporary structures 
necessary for mining. 
Permit issued for a period 
of up to 5 years, with 
provision for multiple 
renewals, each of up to 
5 years. 
Source: Mines and Minerals Act. 
4.32.  The mining sector is the major source of government revenue accounting for 38% of total 
fiscal receipts in 2013/14, mainly in the form of  taxes, royalties and dividends from diamonds 
(Table 4.5). Royalties on mining products have not changed since the previous Review. Royalties for diamonds are 10% of gross market value, 5% for precious metals (e.g. gold, platinum, etc.), 
and 3% for all others minerals. Mining companies are taxed using a variable income tax rate based 
on a formula, with a minimum rate of 22% equivalent to that of the standard corporate rate. Deferral of royalty payments may be granted in certain instances to assist struggling companies. The tax regime for diamond projects may also be negotiated on a case-by-case basis.
29  
Table 4.5 Tax and non-tax revenue from diamond industry, 2008/09-2014/15 
(P million and fiscal year)  
Source of 
revenue 2008/09 2009/10 2010/11  2011/12  2012/13  2013/14 2014/15  
Mineral tax 3,451 2,360 2,949 5,136 3,262 6,190 4,149 
 % of total 
mineral rev. 33.9 26.0 24.5 32.5 27.0 33.6 24.1 
Mineral 
royalties and dividends 6,731 6,729 9,111 10,687 8,814 12,253 13,094 
 % of total 
mineral rev. 66.1 74.0 75.5 67.5 73.0 66.4 75.9 
Total mineral 
revenue 10,182 9,088 12,060 15,823 12,076 18,443 17,243 
 % of total 
fiscal 
revenue 33.4 30.3 37.8 41.1 29.0 37.7 .. 
.. Not available. 
Source: Information provided by the authorities.  
4.33.  Diamonds accounts for the bulk of all mineral revenue in Botswana. Debswana Diamond 
Company Pty Ltd (Debswana), a joint venture (50:50) between the Government and De Beers, is the largest diamond mining company in Botswana , producing some 90% of all diamonds, 70% of 
the country's exports, and 50% of tax revenues. The company is also the largest private-sector 
employer; in 2014, it employed 4,734 people. Debswana, whose mining licences are valid until 
2029, operates four mines (i.e. Orapa, Letlhakane, Damtsha, Jwaneng).
30 Even though Debswana 
holds a dominant market position, there are no restrictions prohibiting other companies from 
mining or marketing diamonds. There are 4 other diamond mining companies operating in 
Botswana.31 
                                               
29 Companies that mine other minerals are taxed acco rding to the Twelfth Schedule to the Income Tax 
Act; the tax regime is not negotiated (Income Tax Ac t (Chapter 52:01)). Online information. Viewed at: 
http://www.botswanaifsc.com/docs/income_tax_act.pdf. 
30 The licences were renewed in 2004-06 and for a maximum period of 25 years. 
31 These are: Boteti Mining (Karowe Mine), Gem Diamonds Botswana (Ghaghoo Diamond Mine), 
DiamonEx Botswana (Lerala Diamond Mine) and Firestone Diamonds (BK 11 Mine). Lerala Diamond Mine and 
BK 11 Mines have been under maintenance since 2012. WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.34.  The sorting and valuing of diamonds is also highly concentrated and state participation is 
significant. The most important sorting company is the Diamond Trading Centre Botswana (DTCB), which is owned 50:50 by De Beers and the Government of Botswana.
32 There is another 100% 
government-owned diamond trading company called Okavango Diamond Company which markets 
14% of Debswana's diamond production. Rough diam onds are mainly exported; however, there is 
US$800 million worth of the production that is sold locally. Local diamond manufactures (i.e. cutting and polishing factories) buy diamonds either from the domestic rough diamond trading 
companies or import them. The establishmen t of DTCB, in 2006, has promoted the local 
beneficiation of diamonds and hence th e increase in imports of diamonds.
33 Imports of diamonds 
have increased since 2009 from 7.7% of total imports to 18.9% of total imports in 2014. Since DTCB's establishment the number of diamond cutting and polishing factories has also increased 
from 4 in 2004 (prior to DTCB's establishment) to 20 in 2014. In 2014, DTCB sold US$936 million 
rough diamonds to the local industry for cutting and polishing. The industry is also becoming an 
important source of employment. In 2014 employ ment in the diamond cutting and polishing 
factories stood at 3,774 people.  
4.35.  Imports of diamonds are subject to a zero per cent tariff.
34 Imports/exports of rough 
diamonds require a valid Kimberley process certificate issued by the importing/exporting country. 
4.36.  The mining sector is the largest consumer of electricity in the country and is the second 
largest consumer of coal after power generation. 
4.2.2  Energy35 
4.37.  The Ministry of Minerals, Energy and Water Resources (MMEWR), through the Department of 
Energy (DoE), is responsible for formulating an d implementing the nation al energy policy. The 
policy is aimed at providing affordable and sust ainable energy to promote social and economic 
development. Specific programmes and projects are carried out by the DoE in conjunction with 
two parastatals: the Botswana Power Corporation (BPC) and Botswana Oil Limited (BOL). 
4.38.  Energy access and capacity is of particul ar concern; Botswana is highly dependent on 
imports to meet its energy requirements. Dependence has resulted in high costs not only in terms 
of foreign currency outflows and high prices of energy products, but also because of the 
unreliability of energy supply due to supply disrup tions. Energy constraints have had a negative 
impact on Botswana's economic development prospects. As a result, the National Development Plan 10 (NDP 10) proposed a departure from relying on "least cost" imported energy sources to 
becoming self-sufficient.
36 However, this would require not only the completion of domestic power 
projects currently under way, but also further investment as the latter will not produce enough energy to meet demand.
37 In order to attract investment, the Government of Botswana is in the 
process of establishing Botswana Energy and Wa ter Regulatory Agency (BEWRA), an independent 
regulator, aimed at "creating a level playing field in the sector".38 
4.39.  Botswana relies mainly on imports of energy sources, especially petroleum products and 
electricity, to meet local demand. However, it has abundant indigenous energy resources: coal 
reserves (200 billion tonnes), sunshine (3,200 hrs at 21 MJ/m2), biogas (2.2 million cattle, 
3 kg dung/LSU/day), and fuel wood (200 to nnes/annum), which remain underutilized. Solar 
energy is mainly used for water heating and ligh ting. Small photovoltaic (PV) systems have been 
installed in households and government institutions where there is no connection to the electricity 
grid. However, poor quality and lack of maintenance of solar water heating and PV systems has led to non-performance. The contribution of bioenergy to the energy mix is also minimal; biodiesel 
                                               
32 Debswana sells 86% of its diamond production th rough De Beers Global Sightholder Sales (DBGSS) 
(information provided by the authorities). 
33 DTCB was established in 2006 but was opened offi cially in 2008. Online information. Viewed at: 
http://www.dtcbotswana.com/faqs.php . 
34 Tariff information provided by the South African Revenue Service (SARS). 
35 This section is based on online information. Viewed at: http://www.reegle.info/policy-and-regulatory-
overviews/bw ; Ministry of Minerals, Energy and Water Resources (2009); OECD (2013); and information 
provided by the authorities. 
36 Information provided by the authorities. 
37 OECD (2013). 
38 World Bank (2012), and information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  production stands at 15,000 litres/month; while no guidelines have been developed to promote 
production and utilization of bio-energy.39 
4.40.  Petroleum products are the main source of primary energy supply (54%), followed by coal 
(29%), electricity (17%), and wood40; the contribution of renewable energy is insignificant. Net 
energy supply and final consumption is also dominated by petroleum products (64%), followed by 
electricity (18%) and coal (18%). The transport su bsector is the main consumer of energy (49%), 
followed by mining and quarrying (28%) and hous eholds (7%). The services sector consumes 7% 
of total energy while agriculture consumes 2%.41  
4.2.2.1  Electricity 4.41.  Electricity demand stood at 681 MW in 2014 and is expected to grow up to 1,017 MW by 
2025. Currently (mid-2015), Botswana produces about 67% of the electricity that it requires 
through the state-owned Botswana Power Corpor ation (BPC), and imports the rest from the 
Southern African Power Pool. Botswana's installed generating capacity stands at 892 MW, which is supplemented by imports (200 MW) from South Afri ca. There are also two diesel power plants 
(Orapa power plant (90 MW) and Matshelagabedi Alstom Power Rentals plant (70 MW)), which are 
used for emergencies. 
4.42.  In 2013, electricity imports amounted to US$239.9 million. Imports from South Africa 
accounted for 89.5% of total electricity imports.
42 Botswana has not exploited the regional energy 
market by concentrating trade almost exclusively on South Africa to the exclusion of the other 
SADC members. Botswana is  developing alternate routes and sources of alternative energy to 
diminish the reliance on South Africa. 
4.43.  Access to commercial electricity is low. Most of the population depend on biomass. Wood 
remains a major source of energy for rural and low-income urban communities and is mainly used for cooking, space heating, and lighting. However, the percentage of the population with access to 
electricity has increased from 49% in 2008 (43% in rural areas) to 65% in 2014.
43  
4.44.  The Electricity Supply Act was amended in 2007 to allow independent power producers and 
suppliers to enter the electricity market. However, there is still no private sector participation in 
Botswana's electricity sector. State-owned BPC continues to be responsible for electricity 
generation, transmission, distribution, and supply. BPC is a vertically integrated national power utility with monopoly power. Moreover, currently (mid-2015) there are no specific plans to unbundle the power utility.
44 
4.45.  Electricity tariffs are set and adjusted by MMEWR. Tariffs are usually adjusted on an annual 
basis. The tariffs comprise three charges: a fixed charge, which is the same for all but domestic consumers; an energy charge, which varies according to consumers; and a demand charge which 
is levied on medium and large businesses. Tariffs nearly doubled during the period under review 
(Table 4.6). Electricity prices are significantly a ffected by the cost of transport and electricity 
transmission as most of the electricity is imported. The costs are further increased due to the small 
size of the domestic market and the dispersion of the population. 
                                               
39 Information provided by the authorities. 
40 The contribution of wood even though significant is  difficult to account for.  However, it seems that 
fuelwood is the main cooking fuel fo r rural households (53% of rural hous eholds and 13% of urban households 
with a national average of 49.1%) (Sustain able Energy for All Initiative, undated). 
41 These figures are estimates hence they do not add up to 100% (information provided by the 
authorities). 
42 Information provided by the authorities. 
43 No information was provided on access to electricity in rural areas in 2014. 
44 Online information. Viewed at: http://www.energy.gov.bw/electricity.php. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table 4.6 Electricity tariffs, 2009 and 2014  
 Fixed charge 
(P/month)  Energy charge 
(P/kWh) Demand chargea 
(P/kW/month) 
2009 2014 2009 2014 2009 2014 
Domestic consumers 11.11 21.98 0.4000 0.7167 n.a. n.a. 
Small business 29.74 66.53 0.4579 0.8313 n.a. n.a. 
Medium business 29.74 66.53 0.2348 0.4814 56.21 135.04 
Large business 29.74 66.53 0.2117 0.4340 52.91 127.11 
Government  29.74 66.53 0.5935 1.3481 n.a. n.a. 
Water pumping  29.74 66.53 0.4669 0.9721 n.a. n.a. 
n.a. Not applicable.  
a The demand charge is calculated  on the basis of the actual dema nd or 90% of the peak demand 
recorded in the previous 12 mo nths, whichever is greater. 
Source: Information provided by the authorities. 
4.2.2.2  Petroleum 
4.46.  In 2014, Botswana consumed some 1.2 billion litres of liquid fuels (petrol, diesel, and 
illuminating paraffin) and 18 million litres of aviation fuels; on average, on a yearly basis, demand for petroleum has increased by approximately 5%.
45 
4.47.  Botswana relies solely on imports to supply its demand for petroleum fuels. About 95% of 
the petroleum products are imported from South Africa and the remaining from Namibia and/or Mozambique. Limited supply routes have led to periodic bottlenecks in fuel supply compromising Botswana's security of fuel supply. This has also been exacerbated by inadequate internal strategic 
storage capacity and the long-distance travel to supply petroleum products throughout the 
country.
46 Distribution is also hindered by limited infrastructure (e.g. road and rail) and large 
distances which increase costs. In addition, low levels of consumption in remote rural areas render 
deliveries unprofitable, discouraging companies from distributing.  
4.48.  In the petroleum subsector, several local subsidiaries of multinational oil companies and 
indigenous oil companies are responsible for the transportation, distribution, and retailing of 
petroleum fuels. Petroleum fuel prices are determ ined by the MMEWR. Imports and domestic sales 
of petroleum products (i.e. petrol and diesel) are su bject to a fuel levy of P 0.12 per litre of petrol 
and P 0.07 per litre of diesel.47 The levy is collected at point of entry and finances the National 
Petroleum Fund (NPF) that is used to pay petroleum retailers the difference between the 
administered price set by the Government for consumers and the prevailing international fuel 
prices. The price of LPG is not regulated.  
4.2.2.3  Coal 
4.49.  Botswana's vast coal resources are estimated to be some 200 billion tonnes, which 
represent significant development opportunities. Annual coal consumption (raw coal) stands at around 1.6 million tonnes (Mtpa). However, to meet energy requirements, demand for coal could 
rise up to 2.55 Mtpa. As at mid-2015, only one coal mine (Morupule Coal Mine) was being 
exploited; it has a production capacity of about 3.2 million tonnes per year, but at mid-2015 production amounted to only some 2 million to nnes. About 75% of the mined coal is used for 
power generation; the rest is used in different industries (e.g. abattoirs, breweries and soap 
production) or exported. Exports are hampered by inadequate transport infrastructure. 
4.50.  Botswana is promoting wider use of coal to substitute imports and to replace fuel wood with 
domestic coal; however, efforts have been unsuccessful. The National Coal Roadmap, which 
outlines Botswana's plans to develop the coal industry, regards the exploitation of coal as critical 
                                               
45 Information provided by the authorities. 
46 The strategic storage capacity is  approximately 16 days of national  consumption against the preferred 
minimum strategic storage capacity of 60 days. Commercial buffer stock cu rrently stands at less than 5 days of 
national consumption against the preferred minimum of 14 days cover (information provided by the 
authorities). 
47 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  to meet socio-economic and energy needs and achieve economic diversification away from 
diamonds. Further exploitation of the available re sources would, in principle, allow Botswana to 
use coal to generate electricity for domestic consumption and export the surplus to other SADC members. However, major challenges include: the lack of appropriate transport infrastructure for 
exports and the environmental impact, including carbon emissions.
48 
4.3  Services 4.3.1  Financial services  
4.3.1.1  Banking 
4.51.  The Botswana banking industry is an increa singly important sector of the economy, both in 
its own right and in terms of the role it plays in the development of other sectors. Over the 
2009-14 period the sector grew in real terms by  7% a year on average, while overall real 
economic growth averaged 4.2% a year over this  period. Over this period, the banking sector's 
share of GDP increased, from 13.4% in 2009 to 14.3% in 2014. 
4.52.  Botswana's banking system is well-capitalized and profitable with relatively low 
non-performing loans and average returns on equity of around 27% in 2014 (Table 4.7). Despite 
the subsector's high level of profitability and rapid growth, it remains relatively small for the size of the economy: total assets of commercial banks amounted to P 68 billion at end-2014, about half 
of GDP. The customer base is small, with viable commercial banking limited mainly to the urban 
areas and larger villages. Therefore, Botswana has put special emphasis on enhancing greater financial deepening and inclusion. As a result, even if annual growth in commercial bank credit fell from 23.6% in December 2012 to 14.2% in December  2014, mainly because of a slowdown of the 
non-mining sector, credit to households continued to grow at a high rate.
49 This increase in credit 
to households reflects greater financial deepening, with the intermediation ratio increasing from 82% in 2013 to 87.6% in 2014, as well as greater inclusion, both of which are important to 
promote economic development. However, the soar ing of consumer credit could pose potential 
vulnerabilities for the financial sector in the future, especially in periods of slow growth in incomes. 
At present the default ratios from household credit are low suggesting a low risk for the system. 
The spread between deposit and the lending rates was within the range of 7.4 and 6.4% during 
2009-14. 
Table 4.7 Financial soundness and prudenti al standards of licensed banks, 2009-14
a 
(%) 
Financial soundness 
indicators  Prudential 
standard 2009 2010 2011 2012 2013 2014 
Capital adequacy >15 19.0 22.8 20.4 20.2 19.3 18.9 
Liquid asset ratio >10 49.9 41.4 24.4 20.5 15.3 14.5 
Profitability (return on assets) Positive 2.8 3.0 3.3 3.2 3.0 2.3 
Profitability (return on equity) Positive 40.7 34.6 35.2 31.9 27.4 19.1 
Asset quality (non-performing 
loans/total loans >2.5 5.4 3.4 3.2 2.6 5.3 3.6 
Intermediation 
(advances/deposits) >50 52.4 53.1 64.7 72.9 81.3 87.6 
Deposit interest rate  4.10 3.72 3.37 3.14 2.80 2.58 
Lending interest rate  11.50 11.00 11.00 11.00 10.03 9.00 
a The figures are generated from the monthly and quarterly returns submitted by banks; they 
represent the average for all registered banks.  
Source: Bank of Botswana (2013), Banking Supervision Annual Report 2013;  and Bank of Botswana (2015a), 
Botswana Financial Statistics , Issue (February 2015). Viewed at: 
http://www.bankofbotswana.bw/content/ 2009110615035-botswana-financial-statistics . 
4.53.  The global financial crisis and its aftermath had little direct impact on the Botswana banking 
system mainly because of the structure of the banks' balance sheets, which had limited foreign 
                                               
48 Ministry of Minerals, Energy and Water Resource s (undated); and online information. Viewed at: 
http://www.miningweekly.com/article/botswanas-burgeoning-coal-industry-has-potential-but-challenges-
remain-2014-02-21 . 
49 At about 24% in 2013, latest figure available. WT/TPR/S/324/Rev.1 • Botswana 
 
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  exposure, bank profitability, and the level of re gulatory oversight. The basic structure of the 
Botswana banks' balance sheet was sound and there has traditionally been relatively little use of wholesale markets or offshore funding sources, hence the banks have not been vulnerable to outflows of funds and therefore credit was not cons trained because of a lack of funds. The Bank of 
Botswana also played an important role in shielding the banks from the crisis, as it has maintained 
an effective risk-based regulatory and supervisor y system that has prevented banks from taking 
on excessive risks. 
4.54.  The banking sector in Botswana is regu lated by the Banking Act of 1995 and the Banking 
Regulations of 2003. These pieces of legislation did not undergo major changes since the previous 
Review in 2009; however, the Banking Act is currently  under review with a view to adapting it to 
changing supervisory and regulatory requirements . Botswana also has legislation to avoid money 
laundering and counter the financing of terrorism.
50 
4.55.  Privately-owned financial institutions need to be licensed by the Bank of Botswana.51 The 
Banking Act lists the criteria to obtain a licence (Box 4.1). Applications for a banking licence to 
operate in Botswana are considered on merit, ta king into account the likely impact of any new 
financial institution on the existing domestic financial sector and its potential contribution to Botswana's development. The BOB's main concerns when granting a licence are to ensure that any 
new entrant to Botswana's financial sector is adequately capitalized, well managed, and pursues 
business strategies that are sound and responsive to  local needs, such as providing both advisory 
services and credit to small-scale entrepreneurs and enabling access to banking services by the unbanked. BOB's objective is to guarantee the financial stability of the system through ensuring 
that only sound and reputable banks operate in the country.
52 The award of a new banking licence, 
changes to the conditions of an existing licence,  or the revocation of a licence, is announced 
through press releases issued by the BOB. 
Box 4.1 Licensing requirements for banks  
The basic requirements for a bankin g licence application to be considered complete and acceptable for 
processing include the following:  
The applicant must be a company limited by sh are capital and incorporated in Botswana.  
The statutory minimum start-up capital is P 5 million.  
The prudential capital adequacy ratio is 15%.  
The parent company of the bank that is applying need s to demonstrate willingness and the ability to provide 
additional financial support as and when required  to the institution incorporated in Botswana.  
The applicant must demonstrate adequate managerial capacity; this includes the appointment of "fit and 
proper" persons. 
If the parent company of the applicant is a foreign bank , the foreign bank must be subject to adequate home 
supervision, and the consent of the pa rent's home supervisor for the subsid iary to operate in Botswana must 
be provided. 
The proposed ownership and organizational structure must  be acceptable to the Bank of Botswana, and the 
structure must be such that it allows for effective consolidated supervision. 
The applicant must submit a business plan that includes the strategic objectives of the bank, a set of five-year 
financial projections, a plan for the establishment of branches, products to be provided , and a demonstration of 
the ability to enhance effective competition. 
The application fee (currently P 16,800, VAT inclusive) is non-refundable. 
Source: Bank of Botswana. 
4.56.  Botswana does not seem to have any market  access limitations, such as on the number of 
foreign banks, maximum foreign equity participation, or the number of foreign nationals that can be employed. However, foreign banks are only au thorized to operate as  locally incorporated 
subsidiaries. Foreign bank branches are not allowed to provide banking services in Botswana.  
4.57.  Subsidiaries of foreign financial institutions may be licensed only if the home supervisory 
authority gives a report that it is satisfied with the prudential management and overall financial 
soundness of the applicant; and the BOB is sati sfied by both the supervisory and regulatory 
regime of the home supervisory authority. In addition, the BOB confirms the prudence of the applicant's operations regarding its business plan, internal controls, accounting and other records, 
                                               
50 Banking (Anti-Money Laundering) Regulations of 2003. 
51 The Banking Act (Chapter 46:04, Section 4). 
52 Online information. Viewed at: 
http://www.bankofbotswana.bw/assets/uploaded/licensing%20policy.pdf . WT/TPR/S/324/Rev.1 • Botswana 
 
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  staffing and management arrangements. Once a foreign subsidiary is licensed, supervision is a 
shared responsibility between the Bank, as "host supervisor", and the relevant "home 
supervisor".53 
4.58.  The financial institutions that can be licensed under the Banking Act of 1995 are: 
commercial banks, discount houses, credit institutions, investment/merchant banks, and 
representative offices. Each type of institution can undertake a specific set of activities (without discrimination between domestic and foreign providers).  
4.59.  Licensed commercial banks may conduct conventional commercial banking business
54; they 
cannot undertake non-bank financial activities, either directly or indirectly. At present, there are 11 commercial banks licensed and operating in Botswana; mainly foreign owned. The top four commercial banks (Barclays Bank of Botswana, St andard Chartered Bank of Botswana, Stanbic 
Bank of Botswana, and First National Bank of Botswana) account for about 81% of total bank 
assets. All banks have substantial foreign ownership as, according to the authorities, the aim is to facilitate the entry of new banks in order to promote competition and efficiency in the sector to 
stimulate financial intermediation. Foreign ownership has had some advantages for Botswana's 
financial system; as most of the banks are part of large, well-capitalized international banking groups, which has provided stability, as well as access to capital, resources and management 
expertise. There have also been gains with regard  to access to technology, which allows services 
to reach the underserved population in the rura l areas, and improved efficiency. However, the 
subsidiaries of banking groups may be affected by decisions taken by the parent company, hence indirectly affecting Botswana's financial system. This was the case in the aftermath of the 2008 
financial crisis; even though Botswana's banks fared quite well, they were affected by the 
credit-tightening decisions in the parent company.  
4.60.  Discount houses are licensed to deal in short-term money market instruments readily 
convertible into cash. They are restricted from enga ging in certain activities, including: buying and 
selling of foreign exchange; granting loans to the public; buying or selling goods for other institutions or the general public; and acquiring or holding shares in other financial institutions or 
any other business. Credit institutions, also licensed under the 1995 Act, are mainly involved in 
asset-based financing. The primary services that these institutions offer are, inter alia , credits and 
loans to purchase equipment (hire purchase and leasing), and credit to purchase stocks, money market instruments and transferable securities. Un der special circumstances, as provided by the 
BOB, credit institutions may accept deposits (of more than P 5,000 for more than six months) and 
provide property financing.  
4.61.  Investment or merchant banks are institutions licensed for the purpose of assisting with the 
issuance, purchase and trading of securities, managing financial assets and providing financial 
advice. Currently no merchant banks operate in Botswana. Under the provisions of the Banking 
Act, the Bank of Botswana may grant permission fo r a foreign bank to open a representative office 
in Botswana. While such an office may undertake activities on behalf of the parent bank, it cannot 
conduct banking business. Currently there are no representative offices operating in Botswana.  
4.62.  The BOB has direct supervisory responsibili ties over the financial system including direct 
oversight over the banks. Banking institutions have  to submit statutory returns to BOB providing a 
detailed breakdown of their assets and liabilities.
55 This is to ensure the so lvency of the individual 
institutions and, therefore, the stability of the financial system as a whole. Prudential supervision in Botswana follows conventional practice; it is risk based. Supervisory regulations and practices 
evolve in line with international norms. The Bank of Botswana has adopted the Basel II/III Capital 
Requirements Directive, which is envisaged to be fully implemented by mid-2015.
56 Besides capital 
adequacy requirements, there are also regulato ry requirements relating to: reserve asset 
holdings; minimum liquid asset holdings; concentration of lending; foreign currency exposure; 
significant changes of shareholding; and appointments of Board Members and the Chief Executive 
                                               
53 Online information. Viewed at: 
http://www.bankofbotswana.bw/assets/uploaded/licensing%20policy.pdf . 
54 These include: acceptance of deposits and savings; extension of credit; sale and purchase of 
commercial paper, securities and ot her negotiable instruments; dealing in foreign exchange and any other 
operations authorized by law or under customary ba nking practice. 
55 The Banking Act of 1995. 
56 Information provided by the authorities. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Officer. The Bank of Botswana is also in charge of implementing competition policy in the banking 
sector; it has a MoU with the Competition Authority. Although to date there have not been any anti-competitive practices in the banking sector, the BOB continues to closely monitor market conduct. In addition, BOB monitors if bank charges are a fair reflection of the services offered to 
consumers. In addition, banks are required to clearly communicate customer complaints 
procedures at the bank. 
4.63.  Botswana did not undertake any commit ments on banking services under the GATS. 
4.3.1.2  Insurance 
4.64.  The insurance subsector as at 30 September 2014 comprised 3 non-life reinsurers and 
21 insurers (9 life and 12 non-life), many of which are foreign-majority owned. In addition, there are 45 licensed insurance brokerage firms, 208 co rporate agents and 2,383 individual agents 
(natural persons) which are now referred to as Representatives. In 2013, Botswana Life Insurance 
Limited dominated the life insurance market holding 72% of gross written premiums. Total assets in the insurance industry amounted to P 19,558 billion in 2013 compared to P 20.368 billion in the 
previous year.  
4.65.  The Insurance Industry Act of 1987, which is under review, still regulates the domestic 
insurance industry, while the offshore industry is  regulated by the International Insurance Act of 
2005. There are no insurance companies licenced under the International Insurance Act yet. The 
Non-Bank Financial Institutions Regulatory Author ity (NBFIRA), established in 2008, is the national 
regulator for non-bank financial institutions in fields such as insurance, pensions, unit trusts and stock market operations. The insurance industry comprises insurers, reinsurers, brokers, agents, 
insurance surveyors, risk managers, loss adjusters and claims settlement agents. However, 
detailed regulation and monitoring is only carried out by NBFIRA on insurance companies, brokers and agencies. NBFIRA introduced new insurance prudential rules in 2012 and has since adopted 
the principles of a risk-based supervisory approach. 
4.66.  The Insurance Industry Act stipulates that only locally registered companies can be licensed. 
According to the authorities, licensing requirements are the same for nationals and foreigners.
57 
Branches of foreign insurers are not permitted. The statute prohibits composite insurers and 
therefore insurance companies offer one class of business, which is either life or non-life. Licences for all companies transacting insurance business must be renewed on an annual basis.  
4.67.  Foreign-based reinsurers may only be used once NBFIRA grants permission if there is no 
local capacity to provide reinsurance. At pres ent (mid-2015) foreign-based life re-insurers are 
allowed to trade with Botswana licensed life insurers; however, in the case of non-life reinsurance – since in the past 5 years NBFIRA licensed 3 non-life reinsurers – all non-life (short term) 
insurance business written in Botswana needs to be placed with the domestically licensed 
re-insurers. 
4.68.  The Insurance Industry Act and its Regulati ons provide that all classes of insurance bought 
by Botswana residents or Botswana resident companies must be placed with Botswana licensed 
insurers. The only compulsory insurance in Botswana is the workers compensation insurance, which is regulated by the Workers Compensation Act. 
4.69.  The current (mid-2015) minimum capital requirement for insurers and re-insurers is 
P 2 million. However in the proposed Insurance In dustry Bill, an increase of the minimum capital 
requirement stands at P 5 million for non-life insurers and P 10 million for both life insurers and reinsurers and could be higher due to the currently adopted Risk Based Supervision Model, which 
dictates that the capital must be matched with the insurance risk being absorbed. 
4.70.  Botswana did not undertake any commitments on insurance services under the GATS. 
                                               
57 For details of the licensing requir ements for each type of insurance business please refer to the online 
information. Viewed at: http://www.nbfira.org.bw/services . WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.3.2  Telecommunications 
4.71.  Together with transport and postal servic es, telecom services contributed to 5.5% of GDP 
in 2014 (Table 1.1).  
4.72.  During the period under review, Botswana's telecom subsector continued to grow driven by 
the mobile telecom services (Table 4.8). The mobile penetration rate increased significantly as did 
the mobile broadband penetration rate. The fixed broadband penetration rate remained, however, very low hampered by, inter alia , computer and high bandwidth prices, low speed, and an energy 
shortage.
58 The fixed telephone penetration rate showed a modest increase.  
Table 4.8 Selected telecom indicators, 2009-14  
Indicator 2009  2010  2011  2012 2013 2014  
Penetration rate (per 100 inhabitants)       
Fixed-telephone subscriptions  7.0 7.0 7.5 8.0 8.6 8.4 
Mobile-cellular subscriptions  96.0 120.0 146.0 153.8 160.6 168.43 
Fixed-broadband subscriptions  0.5 0.6 0.8 0.9 1.0 1.64 
Mobile-broadband subscriptions .. .. .. .. 74.1 .. 
Households with a computer (%) .. .. .. .. 13.5 .. 
Households with Internet access (%) .. .. .. .. 10.6 .. 
Individuals using the Internet (%) 6.1 6.0 8.0 11.5 15.0 .. 
.. Not available. 
Source: ITU ICT Eye online information. Viewed at: http://www.itu.int/net4/itu-d/icteye/ . 
4.73.  Public telecom services are provided  by state-owned Botswana Telecommunications 
Corporation Ltd. (BTCL) and private operators Mascom Wireless Botswana and Orange Botswana. 
4.74.  All public telecom operators are authorized  to supply any type of basic telecom service, 
i.e. fixed-line, mobile, Internet, and data. However, BTCL remains the only provider of fixed-line 
services in Botswana as private operators do not offer this service.59 Mobile market shares are 
largely held by the private sector; BTCL mobile service (BeMobile) retains 14% of total mobile subscriptions.
60 
4.75.  During the review period, the authorities initiated the process to privatize state-owned 
Botswana Telecommunications Corporation (BTC). The first step towards privatization consisted in 
splitting BTC into two wholly state-owned companies. In 2012, the Botswana Telecommunications Corporation Ltd. (BTCL) was set up to supply public telecom services and Botswana Fibre Networks 
Ltd. (BoFiNet) to provide and operate Botswana's backbone infrastructure network. The 
Government plans to sell up to 49% of BTCL shares  through an initial public  offering (IPO); 44% of 
the shares may be bought by citizens of Botswana  (natural and legal persons), and 5% is retained 
for BTCL citizen employees. The IPO opening, which was scheduled for end-2014, was postponed 
to 2015. The launch is envisaged to take place in the second half of the 2015/16 financial year. BoFiNet remains wholly state-owned but it "will be partially privatized in due course".
61 
4.76.  The Department of Telecommunications and Po stal Services under the Ministry of Transport 
and Communications (MTC) is responsible for developing, implementing, and monitoring telecom 
policies and infrastructure development strategies.62 During the review period, policy objectives 
were aimed at deploying telecom services, in particular broadband access, into unserved and 
underserved areas. The authorities continued to apply the Rural Telecommunications 
Strategy 2006 which supplied network infrastructure to nearly 200 villages by 2011.63 According to 
                                               
58 Botswana Telecommunications Authority (2013); and Botswana Communications Regulatory Authority 
online information. Viewed at: http://www.bocra.org.bw/node/4 . 
59 Botswana Telecommunications Authority (2010). 
60 Botswana Telecommunications Authority (2013).  
61 MCT online information. Viewed at: http://w ww.mtc.gov.bw/index.php/projects; BTCL online 
information. Viewed at: http://www.btc.bw/index.php?pa ge=Privatization/privatization ; and BoFiNet online 
information. Viewed at: http://www.bofinet.co.bw/ . 
62 MTC online information. Viewed at: http://www.gov.bw/en/Ministries--Authorities/Ministries/Ministry-
of-Transport-and-Communications/Departments/Telecommunications/ .  
63 Botswana's 10th National Development Plan (NDP10). Viewed at: 
http://www.nationalplanningcycles.org/sites/defa ult/files/country_docs/Bo tswana/ndp_botswana.pdf . WT/TPR/S/324/Rev.1 • Botswana 
 
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  the authorities, the Universal Access and Service (UAS) Fund was set up in 2014 with a view to 
ensuring available, accessible, and affordable telecom services.64 Botswana also took specific steps 
to make broadband more accessible and affordable through the National Broadband Strategy 2014.
65 In addition substantially reduced bandwidth costs resulting from the deployment of 
two international submarine fibre optic cables in Botswana over the 2010-12 period have helped 
enhance broadband access.66 
4.77.  During the review period, there were substantial changes to the telecommunications legal 
and institutional frameworks. The Communication s Regulatory Authority Act 2012 repealed the 
Telecommunications Act 2003 and the Broadcasting Act 2004, providing for the convergence of the 
two regulatory regimes into a single piece of legislation. The 2012 Act also amended the Postal 
Services Act 2001.67 As at June 2015, the regulations to the Act have not been issued.  
4.78.  Under the 2012 Act, a new regulatory authority, the Botswana Communications Regulatory 
Authority (BOCRA), started operation in 2013. BOCRA replaced and assumed the responsibilities of the former telecom and broadcasting regulators, i.e. the Botswana Telecommunications Authority 
(BTA)
68 and the National Broadcasting Board (NBB).69 In addition to regulating telecom and 
broadcasting services, BOCRA is empowered to regulate postal services which had not been regulated prior to 2013.
70 Under the 2012 Act, BOCRA is in charge of licensing telecom operators 
and ensuring efficient use of frequency spectrum.71 
4.79.  Botswana maintains market access restrictions for the provision of fixed-line and mobile 
telecom services. During the review period, no ne w operator was licensed. Further liberalization 
was however planned by end-2009. BOCRA's decision not to license additional public telecom 
operators was based on a 2009 market study commissioned by the Authority, which concluded 
that there was "no strong evidence that furthe r operators would enhance the market" and there 
were "several reasons why further operators could damage the market".72 Value-added services 
and private network services are fully liberalized and any locally-incorporated companies may 
apply for a licence.73  
4.80.  Telecom operators require a licence from BOCRA to operate in Botswana.74 Licences are 
mainly granted through applications, but for major operators licences are awarded through 
tendering.75 If spectrum is required for the provision of telecom services, the corresponding licence 
must also be obtained from BOCRA. The Authority may restrict the number of licences due to, inter alia , limited spectrum frequencies.
76 During the period under review, no licences were issued 
based on an impact assessment that indicated that there was no need for other major operators to 
enter the market. However, new licences were issued for value-added providers.  
4.81.  The telecom licensing framework has remained unchanged so far but steps have been taken 
since 2014 to shift to a unified licensing framework (ULF).77 Unlike the current framework, ULF 
                                               
64 According to the authorities, pu blic telecom operators are charge d a 1% levy on gross revenue to 
fund UAS projects. 
65 BOCRA online information. Viewed at: http://www.bocra.org.bw/national-broadband-strategy . 
66 The East African Submarine System (EASSy) connec ts Sudan to South Africa; and the West Africa 
Cable System (WACS) connects South Africa to the United Kingdom. Bots wana's access point to EASSy is in 
South Africa and to WACS in Namibia. Under WACS, an ad ditional transmission link has been commissioned to 
provide direct international voice services between Botswana and the United Kingdom (MTC online information. Viewed at: http://www.mtc.g ov.bw/index.php/projects). 
67 Botswana Telecommunications Authority (2013). 
68 BOCRA is used throughout this section for consis tency purposes, although decisions were taken by 
BTA. 
69 The state-owned broadcasters (Botswana Television, Radio Botswana 1, and Radio Botswana 2) are 
not subject to licensing and regulation by BOCRA but all other broadcasters are.  
70 Botswana Telecommunications Authority (2013); and Botswana Communications Regulatory Authority 
and World Bank (2014).  
71 Communications Regulatory Authority Act 2012, article 47. 
72 Analysys (2009); and Botswana Telecommunications Authority (2012). 
73 Botswana Telecommunications Authority (2007). 
74 Communications Regulatory Authority Act 2012, article 39. 
75 Communications Regulatory Authority Act 2012, article 41. 
76 Communications Regulatory Authority Act 2012, article 44. 
77 Botswana Communications Regulatory Authority (2014).  WT/TPR/S/324/Rev.1 • Botswana 
 
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  would distinguish between network facilities providers and services providers (Table 4.9).78 As at 
March 2015, the ULF had not been implemented.  
Table 4.9 Telecom licensing framework  
Licences Duration 
(years) Number of 
licensees 
Licensing framework (as of 2007) 
Public telecom operator (PTO) licences to provide basic telecom services 
(fixed-line, mobile, Internet, and data)  15  3 
Value-added network services (VANS) licences 15  65 
Private network licences 5  32 
Unified licensing framework (proposed) 
Network facilities provider (NFP) li cences to own and operate network 
infrastructure n.a. n.a. 
Applications service provider (ASP) licences to provide services to end users n.a. n.a. 
Contents service provider (CSP) li cences for broadcasting only  n.a. n.a. 
n.a. Not applicable. 
Source: Botswana Communications Regulatory Authority and World Bank (2014), Review of the ICT 
Regulatory Framework in Botswana , June. Viewed at: 
http://www.bocra.org.bw/sites/default/files/documents/A%20Review%20of%20the%20Regulatory
%20Framework%20in%20Botswana.pdf . 
4.82.  Tariffs charged by public telecom operators are regulated by BOCRA; tariffs on value-added 
services are set by the operators. According to the authorities, BOCRA's administrative decisions 
on tariffs may be appealed to the Ministry of Transport and Communications.79 Tariffs must be 
determined based on a cost model and pricing fr amework set by the Authority. In consultation 
with telecom stakeholders, BOCRA set up a revised framework in 2011. Under the revised framework, wholesale tariffs, except fixed term ination rates, were reduced annually over the 
2011-14 period.
80  
4.83.  Reduction in wholesale prices has led to a reduction in retail prices for the benefit of 
consumers.81 Retail prices for mobile services in Botswana are reported, however, to remain 
expensive compared with neighbours in the Southern African region.82 
4.84.  Interconnection agreements are negotiated by the public telecom operators, subject to 
BOCRA's approval. BOCRA may settle disputes between the parties to an interconnection agreement. The Authority's decisions may however be appealed to the High Court.
83 
4.85.  There is no portability scheme for fixed-line and mobile telecom services in Botswana. An 
impact assessment on mobile number portability commi ssioned by BOCRA in 2013 indicated that 
"there would be no economic justification for requiring mobile number portability". According to 
BOCRA, customers have multiple active SIM cards across providers rendering portability less 
attractive.84  
4.86.  BOCRA is responsible for dealing with disputes between public telecom operators and 
investigating consumers' complaints.85 BOCRA has signed a memorandum of understanding with 
                                               
78 Botswana Communications Regulatory Authority and World Bank (2014); and ITU document 1/251-E, 
21 July 2009. Viewed at: https://www.itu.int/ITU-
D/treg/Events/Seminars/GSR/GSR09/doc/STudyGroup_draftreportQ10.pdf .  
79 According to the authorities, duri ng the period under review no decisions made by BOCRA on tariffs 
have been appealed to the MTC. 
80 For further details, see BOCRA Regulatory Directive No. 1 of 2011. Viewed at: 
http://www.bocra.org.bw/sites/default/files/documents/Regulatory_Directive_No_1_FINAL_2011.pdf ; and 
BOCRA online information. Viewed at: http://www.bocra.org.bw/bta-directs-public-telecommunications-
operators-reduce-prices .  
81 BOCRA online information. Viewed at: http://www.bocra.org.bw/tariffs . 
82 Botswana Communications Regulatory Authority and World Bank (2014).  
83 BOCRA's Interconnection Guidelines. Viewed at: 
http://www.bocra.org.bw/sites/default/files/documents/INTERCONNECTION_GUIDELINES.pdf .  
84 Botswana Telecommunications Authority (2013).  
85 Communications Regulatory Authority Act 2012, articles 78-82. WT/TPR/S/324/Rev.1 • Botswana 
 
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  the Botswana Competition Authority to ensure appropriate collaboration on issues that may impact 
both of their jurisdictions.86  
4.87.  There are no specific incentive schemes for telecom operators in Botswana. They may, 
however, apply for tax relief under the Development Approval Order (section 3.3.1).87 
4.88.  Botswana did not undertake any commitments on telecom services under the GATS.  
4.3.3  Transport services 4.89.  The transport sector together with postal services and telecom services contributed by 5.5% 
to GDP in 2014 (Table 1.1). 
4.90.  The Ministry of Transport and Communication s' main function is to drive the development 
and utilization of ICTs and integrated transport services. The Ministry formulates the relevant transport policies and coordinates their implementa tion. In 2011, the Ministry drafted the National 
Integrated Transport Policy, which outlined the measures that should be taken to develop a 
modern integrated transport sector in Botswana. The policy has not been released yet. In addition, the Ministry established the Transport Hub in 2008, to develop Botswana as a transport hub within 
the SADC region. The goal is to transform the transport and logistics industry into a major growth 
sector to stimulate the economic diversification of the country. 
4.3.3.1  Road transport 
4.91.  The Roads Department of the Ministry of  Transport and Communications is in charge of 
implementing the Public Roads Act, which is currently under review to incorporate current international standards and practices on road infrastructure and development.  
4.92.  Road transport is the major mode of surface travel in Botswana, amounting for about 93% 
of the total volume of passenger transport. The railway, a single line, which runs from South to 
North on the eastern side of the country, together with air transport, are responsible for about 7% 
of passenger transportation.
88 In 2014, the Roads Department's road net asset value is P 25 billion 
dwarfing other modes of transport such as air and rail in the country. 
4.93.  The road infrastructure has a total length of 6,400 kilometres of paved roads. Botswana's 
major highway is part of the 1,800-kilometre long Trans-Kalahari (Trans-Kgalagadi) highway, 
which serves as a link to the Maputo and Walvis Bay Economic Corridors. Due to its geographical 
location, Botswana's roads are put under strenuous conditions acting as the central nerve of transit traffic between the different SADC countries. Road maintenance is financed by road user charges 
and the fuel levy. High maintenance costs and the prohibition of cabotage raise road transport 
costs. Cabotage is not allowed in any of the SACU countries; because of this restrictive rule, trucks 
are forced to return empty, as they are not allo wed to pick up goods for onward delivery, causing 
freight rates to increase.
89  
4.94.  Botswana does not regulate entry of freigh t transport operators, except for setting safety 
standards. There are no limitations on foreign equi ty participation, and the State does not have a 
stake in transport companies. Freight rates are market-determined. 
4.95.  Botswana has bilateral road transport agr eements with Namibia, South Africa, Zambia and 
Zimbabwe. The Bilateral Agreements between Botswana, Namibia & South Africa were signed under the SACU umbrella. Individually Botswana has signed agreements with Zambia and Zimbabwe. The main purpose of these agreements is to ensure the harmonization of transport 
regulations to ensure the free flow of goods and passengers.  
                                               
86 ITU (2014).  
87 Botswana Investment and Trade Cent re online information. Viewed at: 
http://www.bitc.co.bw/incentives-investors .  
88 Information provided by the authorities. 
89 According to the authorities, at present there are no plans to liberalize cabotage. However, the SADC 
Protocol on Transport, Communications and Meteorolog y is advocating for the abolishment of cabotage. WT/TPR/S/324/Rev.1 • Botswana 
 
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  4.3.3.2  Rail transport 
4.96.  Botswana has a single railway line of some nearly 900 kilometres that transverses Botswana 
from Ramatlabama in the South to Ramokgwebana in the North. It forms a direct link between South Africa and the countries lying in the North (i.e. Angola, the Democratic Republic of the 
Congo, Mozambique, Za mbia and Zimbabwe).
90 Since 2009 when Botswana Railways (BR), the 
state-owned company that operates the railway system, discontinued its passenger train service, the railway system has been used solely to transport commodities such as copper, soda ash and 
salt, coal and fuel.
91 
4.97.  During the period under review, rail-borne traffic has remained stable. However, the role of 
commercial railway transport is being challenged through competition from the upgraded road network for freight transport, and by other regional railways, which compete mainly in transit 
traffic, traditionally one of BR's core activities. Transit traffic has undergone substantial 
fluctuations during 2007/08-2013/14 (Table 4.10). As traffic volumes had become uneconomical, 
BR adopted a five-year strategic plan in September 2006, which sought to transform BR from a 
conventional rail transporter to a logistics and commercial transport service provider. The Plan was 
reviewed in 2012, when the 2012-17 Strategic Plan, which aims at promoting growth, efficiency and effectiveness, was issued. There are further opportunities for the sector to grow as mineral 
explorations continue and plans to further exploit various mineral deposits in certain parts of the 
country (mainly coal) materialize. In this regard , the possibility of building a rail link, the 
Trans-Kgalagadi Railway, to transport coal to the Atlantic coast is being considered. 
Table 4.10 Rail traffic, 2007/08–2013/14 
('000 tonnes, unless otherwise specified and financial year) 
 2007/08 2008/09  2009/10  2010/11  2011/12 2012/13 2013/14  
Passengers        
Total ('000) 354 386 .. .. .. .. .. 
Revenue (P'000) 10,261 9,695 .. .. .. .. .. 
Cargo        
Total imports  863 967 1,058 1,091 1,075 992 841 
Total exports  545 564 500 550 538 578 616 
Local traffic  317 328 287 317 314 341 278 
Transit traffic 18 131 40 89 58 53 121 
Total traffic 1,743 1,990 1,885 2,047 1,985 1,964 1,856 
Total revenue 
(P'000) 221.1 213.8  204.9  235.7  260.9 290.6 312.5  
.. Not available. 
Source: Botswana Railways.  
4.98.  Railway services are regulated by the Ra ilways Act of 1987, last amended in 2004. These 
services are operated by Botswana Railways (BR), a parastatal, which holds the statutory 
monopoly.92 The construction of private railway sidings (e.g. low speed tracks for loading) requires 
approval from BR (Section 13 of the Railways Act). Tariffs for goods and passenger traffic are set by BR, and require ministerial approval (Secti on 18 of the Railways Act). Discount rates are 
periodically negotiated with major customers. The amended Railways Act allows BR to participate 
in joint ventures and establish subsidiaries. The BR subsidiary, BR Properties (Pty) Ltd., was founded in 2008 to allow, inter alia , the commercial use of railway property, to supplement 
operating revenue. BR is earmarked for privatization. 
4.99.  At present, Botswana has four dry port fac ilities (three at the time of the previous Review). 
These are: the Gaborone Container Terminal (G abcon (Pty) Ltd.), the Francistown Container 
Terminal (Francon) and Palapye Container Terminal (Palcon), which serve as container terminals 
for locally based importers and ex porters. Since 2009, another dry po rt facility was developed, at 
                                               
90 Online information. Viewed at http://www.botswanarail ways.co.bw/timeline . 
91 Online information. Viewed at: http://www.botswanarailways.co.bw/timeline  and 
http://www.botswanarai lways.co.bw/node/28 . 
92 Chapter 70:01, Botswana Railways Act of 1986 (as amended in 2004). Viewed at: 
http://209.85.135.104/search?q=cache :bjWbHUT3U_kJ:www.laws.gov.bw/Do cs/Principal/Volume11/Chapter7
0/PR-VOL-XI-CHP-70-01%2520BOTSWANA%2520RAILWAYS.pdf+Chapter+70:01+ Botswana&hl=en&ct=clnk&cd=1&gl=ch.  WT/TPR/S/324/Rev.1 • Botswana 
 
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  Walvis Bay in Namibia (under a lease agreement between the governments of Botswana and 
Namibia), to serve as an alternative to the ports of Durban and Cape Town, in order to facilitate trade as transportation costs would be reduced.  
4.3.3.3  Air transport 
4.100.  Air transport is of utmost importance for a vast, landlocked economy like Botswana's, 
notably to facilitate business travel, international tourist arrivals and trade in goods. Due to the strategic role of air transport services to the ec onomy, Botswana started liberalizing the sector in 
2009; however, liberalization has not led to major changes. Air Botswana continues to hold the 
monopoly for certain services and more importantly there are no direct long-haul international flights; all long-haul passengers into the country have to connect through South Africa, Kenya, Namibia, Zambia or Zimbabwe. Nevertheless, despite the lack of change, the number of 
passengers using air transport since 2008 has increased (Table 4.11). There is further potential for 
the sector to grow, as Botswana continues to develop the tourism and agriculture sectors as part of its drive to diversify the economy. This would entail not only an increase in passenger arrivals 
but also an increase in cargo shipments as perishable agricultural products and high-value 
products such as diamonds need to be transported by air.
93 At present these sectors rely on their 
own private carriers to transport their merchandise.94  
Table 4.11 Air traffic, 2008-14 
 2008 2009  2010  2011  2012 2013 2014  
Aircraft movements        
International  19,442 18,986 18,122 20,826 17,832 18,914 19,222 
Scheduled        
Non-scheduled        
Domestic 74,048 79,600 55,158 69,909 62,254 67,589 64,063 
Total  93,490 98,586 73,280 90,735 80,086 86,503 83,285 
Passengers         
Departures        
International  171,202 195,284 185,024 208,682 202,317 206,306 209,720 
Domestic 176,525 180,141 175,682 186,653 178,497 187,258 169,988 
A r r i v a l s         
International  167,772 192,183 184,232 204,416 195,536 200,307 207,708 
Domestic 174,898 180,455 177,805 186,941 181,787 190,505 172,305 
Total 690,397 748,063 722,743 786,692 758,137 784,376 755,721 
Source: CAAB (Air Transport) (2014). 
4.101.  The regulatory framework for civil aviation  in Botswana is set out in the Civil Aviation 
Authority Act, 2004, amended by  the Civil Aviation Act, 2011.95 The legislation established the 
parastatal Civil Aviation Authority of Botswana (CAAB). The Authority started operating in 2009 as 
a statutory corporation under the Ministry of Transport and Communications (MTC). Under the Act, CAAB is responsible for the regulation of air tran sport, providing air navigation services, managing 
airports and advising the Government on all aspects of civil aviation.
96  
4.102.  Air Botswana's domestic monopoly on public transport of passengers, cargo, and mail on 
all scheduled routes was dismantled in 2009.97 However, Air Botswana is Botswana's only 
designated operator and has the exclusive right to operate international services on routes from 
Gaborone, Maun and Kasane to Johannesburg; cabotage remains prohibited, except on certain negotiated routes according to the authorities. Once Air Botswana's monopoly was dismantled, all 
eligible carriers were allowed to enter the market to provide domestic and international scheduled 
                                               
93 According to the authorities, ther e is no information regarding exports and imports that arrive by air. 
94 For instance the Department of Crop Production  and Forestry, Debswana Diamond Company and Soda 
Ash Botswana have their own private oper ators. Online inform ation. Viewed at: http://www.caab.co.bw/caab-
content.php?cid=133 . 
95 Other pieces of legislation that regulate air transport services include the Civil Aviation Authority 
(Amendment) Act, 2008; the Aviation Security Act, 1993  [Chapter 71:02] and the Civil Aviation Regulation 
(Reform) Act, 2003 [Chapter 71:03]. For the full list please refer to the CAAB. Online information. Viewed at: http://www.caab.co.bw/caab-content.php?cid=506 . 
96 Most of these functions were fo rmerly being handled by the former  Department of Civil Aviation 
(DCA). 
97 Cabinet Decision of 9 February 2009. WT/TPR/S/324/Rev.1 • Botswana 
 
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  air services on a competitive basis.98 Eligible carriers must be licenced under the Civil Aviation 
(Licensing of Air Services) Regulations. Licences may be obtained by a statutory corporation in Botswana or a company incorporated under the Companies Act; the company's principal place of business must be Botswana and the company needs to be majority owned by citizens of Botswana. 
Air Botswana continues to be the only scheduled air operator. According to the authorities, no 
carrier has entered the market yet as applications are undergoing inspection. There are, in contrast, 14 non-scheduled air operators (air charter operators).  
4.103.  Fares and rates in the domestic market for scheduled services are set by the market. The 
CAAB monitors market behaviour by air carriers and has the authority to intervene in case of anti-competitive practices. The CAAB has a MOU with the Competition Authority to collaborate in issues regarding competition policy. 
4.104.  The Government, through the CAAB, remains responsible for designating carriers to 
operate scheduled services under bilateral air services agreements, and for negotiating new or revised bilateral air services agreements to open  up new markets. The CAAB is authorized to 
license the designated carriers and oversee the ad ministration of fares, rates, and capacity, 
according to the provisions of the applicable bilateral air services agreement. As at 2014, Botswana had 28 bilateral air services agreements in force, and in 2013 and in 2014 Botswana 
initialled six other agreements with: China, Iceland, Kuwait, Nigeria, Saudi Arabia, the Seychelles 
and Swaziland (Table A4.1) According to the authorities, several of the bilateral agreements provide for multiple destinations and points of entry for passenger and cargo services between the two contracting countries, the removal of restrictio ns on capacity and frequency, and fifth freedom 
traffic rights.
99  
4.105.  To operate non-scheduled flights into Bots wana foreign air carriers must have a temporary 
air service permit (TASP), which is provided by the CAAB.100 At present there are 
14 non-scheduled operators allowed to service Botswana.  
4.106.  Botswana has 6 state-owned international airports and 19 airfields in major villages 
throughout the country, as well as 52 private airfields mainly catering to tourists. Upgrading of 
facilities at the four major airports is ongoing with both Sir Seretse Khama and Francistown either 
complete or near completion; while at the other two major airports in Maun and Kasane completion is at various stages, but the runways have been completed. Ground handling services are currently provided by the national carrier, Ai r Botswana, even though competition is allowed. 
Private aerodromes must be licensed on an annual ba sis; the four types of licences depend on the 
type of aircraft used.
101  
4.3.4  Tourism 
4.107.  Under Botswana's long-term development plan, tourism has been identified as a key 
subsector to help achieve economic diversification.102 The subsector is also critical to promote 
exports and to attract FDI.103 During 2006-10 (the latest year for which official data was 
available), tourism contributed by 3.7% to GDP, it  employed 8.4% of the working population and it 
was the third most important source of foreig n exchange after diamonds and copper-nickel.104 
However, during 2010-12 receipts from international tourism have declined.105 Thereafter, despite 
                                               
98 Cabinet Decision of 9 February 2009. 
99 The fifth freedom is the right of an airline from one country to land in a second country, pick up 
passengers and carry them to a third country. 
100 TASP's requirements include: airc raft registration; type of aircraft ; intended route and destination; 
nature of the trip; and name of pilot in command. 
101 Online information. Viewed at: http://www.caab.co.bw/c aab-content.php?cid=104 . 
102 Botswana's 10th National Development Plan (NDP10). Viewed at: 
http://www.nationalplanningcycles.org/sites/defa ult/files/country_docs/Bo tswana/ndp_botswana.pdf .  
103 Ministry of Trade and Industry (2010a).  
104 Information provided by the authorities and WTO document WT/TPR/S/222/Rev.1, 
14 December 2009. 
105 According to the UNWTO, international tourism receipts declined from US$80 million in 2010 to 
US$30 million in 2012 (latest data available) (UNWTO, 2015). WT/TPR/S/324/Rev.1 • Botswana 
 
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  the sector's potential, due to the lack of data it was not possible to make an assessment of the 
sector's contribution to the economy.106 
4.108.  The Department of Tourism (DoT) and the Botswana Tourism Organization (Botswana 
Tourism), in the Ministry of Environment, W ildlife, and Tourism (MEWT), are responsible for 
tourism development. DoT is in charge of formulating the tourism policy and regulating tourism 
activities.107 Botswana Tourism, a parastatal, which replaced the Botswana Tourism Board, started 
operations in 2010.108 It is responsible for marketing and promoting tourism products, promoting 
investment opportunities in the sector, and gr ading and certifying accommodation facilities.109  
4.109.  The Tourism Policy of 1990 is still in force but is under review to better adjust it to recent 
developments, competitiveness, and key challenges in the subsector.110 The Policy focuses on 
sustainable tourism development to increase so cial and economic welfare. The Policy's main 
objectives are, inter alia , to increase foreign exchange earnings and government revenues, and 
develop rural areas.111 The Tourism Master Plan 2000 was developed to set up guidelines to attain 
the Policy's objectives. The Plan also recommend s switching from a "low-volume, high-value" 
strategy to a "high-volume, mixed-price" strategy.112 In addition, to ensure the sustainable 
tourism development, the National Ecotourism Strategy 2002 was launched.113 
4.110.  The tourism sector is regulated by the Tourism Act of 2009, the Tourism Regulations 
(Amendment) of 2013, and the Tourism (Reservation of Tourist Enterprises for Citizens) 
Regulations of 2011. These pieces of legislation repealed the Tourism Act 1992, the Tourism Regulations 1996, and other subsidiary legislation (i.e. Tourism (Licensing) Order 1996).  
4.111.  The main changes introduced by the 2009 Act relate to market access and licensing 
procedures, in particular the number of tourism-related activities subject to licensing and the 
duration of the licences.  
4.112.  The Act provides for restrictions to be imposed on market access in order to promote the 
participation of citizens of Botswana and 100% Botswana-owned companies.
114 As at mid-2015, 
six tourism-related activities are reserved for nationals: accommodation in guesthouses (except corporate guesthouses) and campsites and caravan sites, mobile safari activities, motor-boat 
activities, transport services, and mekoro  (canoe) activities.
115 Since 2009, cross-border supply of 
road transport services for tourists has been allo wed. However, authorized foreign-based operators 
are not allowed to conduct their own safari tours into Botswana's national parks and game 
                                               
106 According to the World Bank: "…statistics for tourist arrivals have not been updated since 2009 (data 
from tourist entry/departure forms)…" and "…tourism statistics are expected to be available by mid-2014." Viewed at: https://www.wavespartnership.org/s ites/waves/files/doc uments/WAVES%20Policy%20Note%20Botswana.pdf . 
107 Department of Tourism online information. Viewed at: 
http://www.mewt.gov.bw/DOT/article.php?id_mnu=8.  
108 The Botswana Tourism Board Act 2004 repealed by  the Botswana Tourism Organization Act 2009.  
109 Botswana Tourism Organization on line information. Viewed at: 
http://www.botswanatourism.co.bw/about-bto ; and Botswana Tourism Organization (2013). 
110 Botswana's 10th National Development Plan (NDP10). Viewed at: 
http://www.nationalplanningcycles.org/sites/defa ult/files/country_docs/Bo tswana/ndp_botswana.pdf . 
111 Government Paper No. 2 of 1990, 20 December 1990; and Ministry of Commerce and Industry 
(2000). 
112 The "low-volume, high-value" strategy sought to  preserve the environment by avoiding excessive 
numbers of tourists to enter protected areas, setting high prices and hence targeting wealthier visitors. However, the strategy was considered to be restrictive. The "high-volume, mixed-price"  strategy is aimed at 
attracting more tourists and offering a wider range of affordable tourism products (Ministry of Commerce and 
Industry, 2000); and Botswana's 10
th National Development Plan (NDP10). Viewed at: 
http://www.nationalplanningcycles.org/sites/defa ult/files/country_docs/Bo tswana/ndp_botswana.pdf ). 
113 National Ecotourism Strategy 2002. Viewed at: 
http://www.ub.bw/ip/documents/2002_Botswan a%20National%20Ecotourism%20Strategy.pdf ; and Ministry of 
Environment, Wildlife, and Tourism (2010). 
114 The Tourism Act 2009, article 23. 
115 Botswana Investment and Trade Cent re online information. Viewed at: 
http://www.bitc.co.bw/tourism-licence .  WT/TPR/S/324/Rev.1 • Botswana 
 
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  reserves but may hand over to a local operator.116 Foreign nationals may work as tourist guides in 
Botswana outside the protected areas. 
4.113.  Tourism operators must be licensed by the Tourism Industry Licensing Committee, a 
six-member committee appointed by MEWT from the public and private sectors.117 Under the 
Tourism Act of 2009, there are ten tourism-related activities subject to licensing (six more than 
under the repealed act).118 In addition, provisional licences may be granted for a three-month 
period to allow applicants to fully meet the licensing eligibility criteria. Licensing procedures may 
take up to 30 days from the time the applicatio n is received by the Committee; appeals against 
the Committee's decisions may be brought to MEWT. Licence fees, which vary according to activity, are payable upon approval of the licence and thereafter annually; mekoro  (canoe) 
activities are exempt.
119 The duration of licences has been incr eased from one year to an indefinite 
term, except for foreign-based operators (one year, renewable).120 The Tourism Act also provides 
for the transfer, suspension, and revocation of licences. A licence may be revoked if, inter alia , 
licensing and grading requirements are not met (see below).121  
4.114.  At end-2014, some 1,000 licences had been issued, up from 690 in 2009; around 40% of 
total licences were granted to foreigners (including joint ventures).122 Licences were granted to, 
inter alia , 327 hotels and similar accommodation faci lities, 256 lodges and camps and 131 travel 
agents.123 At end-2014, 223 tour operators were licensed in Botswana; 24 of which were 
foreign-based operators.124  
4.115.  The Botswana Tourism Organization Quality Services Committee is responsible for grading 
all licensed tourist accommodation facilities. Grad ing is compulsory and minimum requirements are 
set by Botswana Bureau of Standards.125 Decisions on grading made by the Committee may be 
appealed to the Minister of MEWT.126 In 2014, there were 392 graded accommodation facilities in 
Botswana, mainly one-star hotels.127  
4.116.  In addition, during the period under revi ew, Botswana Tourism introduced an Ecotourism 
Certification System to encourage eco-friendly tourism products and services. Participation in the eco-certification programme is voluntary.
128 Since 2009, 22 enterprises have been eco-certified.129 
4.117.  Hotels and other accommodation facilities for tourists, including houseboats, contribute a 
P 10 fee (per guest per day) to the Tourism Industry Training Fund.130  
4.118.  There are no specific incentive schemes for tourism-related activities in Botswana. 
Investors may apply for tax relief und er the Development Approval Order.131 
                                               
116 Schedule to the Tourism Act 2009. 
117 The Tourism Act 2009, article 4. Application forms are available online at: 
http://www.mewt.gov.bw/DOT/article.php?id_mnu=224. 
118 Activities are listed in the Schedule to the Tourism Act 2009. 
119 Licence fees for foreign-based operators are US$2,000 (or pula equivalent). Fees for the remaining 
tourism activities range from P 500 to P 1,500 (for more details on these fees please refer to: the Fifth Schedule of the Tourism Regulations, 2010). 
120 The Tourism Act 2009, articles 17-18 and 27; Tourism Regulations 2010, Fifth Schedule; and 
Government of Botswana at Your Serv ice online information. Viewed at: 
http://1govportal.imexsystems.net/en-gb/Citizens-Residents/Employment/Pages/Tourism-
%E2%80%9CA%E2%80%9D-Licen ce-%E2%80%93-Tourist-Accommodation-Operation.aspx . 
121 The Tourism Act 2009, article 22.  
122 Department of Tourism online information. Viewed at: 
http://www.mewt.gov.bw/DOT/article.php?id_mnu=20.  
123 No information was available on the number of gu ides that were licensed in Botswana during the 
period under review. 
124 Foreign-based operators originated in Germany, Namibia, South Africa, the United Kingdom and 
Zimbabwe (information provided by the authorities). 
125 Botswana Bureau of Standards' (BOBS) Hotels and Related Establishments Grading Requirements. 
126 Botswana Tourism online information. Viewed at: http://www.botswanatourism.co.bw/grading-
standards ; http://www.botswanatourism.co.bw/grading-criteria ; http://www.botswanatourism.co.bw/grading-
process ; and http://www.botswanatourism.co.bw/s tar-grading-appl ication-process .  
127 Information provided by the authorities. 
128 Botswana Tourism online information. Viewed at: http://www.botswanatourism.co.bw/eco-
certification-system .  
129 Botswana Tourism Organization (2013). 
130 The Tourism Regulations 2010, article 13. WT/TPR/S/324/Rev.1 • Botswana 
 
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  5  APPENDIX TABLES 
Table A1.1 Merchandise exports by dest ination, including re-exports, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 4,951 3,456 4,693 5,882 5,971 7,573 7,916 
 (% of total) 
 America 1.0 1.7 1.2 1.1 1.2 1.7 7.0 
 United States 1.0 1.3 1.2 1.1 1.2 1.4 2.9 
 Other America 0.0 0.3 0.0 0.0 0.0 0.4 4.1 
 Canada 0.0 0.3 0.0 0.0 0.0 0.4 4.1 
 Europe 64.1 69.6 71.9 71.5 71.9 69.0 34.5 
 EU(28) 59.1 58.9 61.0 65.2 65.2 62.6 28.1 
 Belgium 2.5 3.2 3.3 2.7 4.3 12.9 25.8 
 Finland 0.0 0.9 1.4 0.0 0.0 0.2 1.0 
 United Kingdom 55.5 53.1 55.5 62.4 60.7 49.0 0.9 
 The Netherlands 0.1 0.0 0.1 0.0 0.0 0.2 0.2 
 Greece 0.3 0.5 0.1 0.0 0.0 0.0 0.1 
 EFTA 5.0 10.7 10.8 6.3 6.7 6.4 6.4 
 Switzerland 1.0 0.9 1.5 1.5 1.7 1.9 3.6 
 Norway 4.0 9.8 9.3 4.8 5.0 4.5 2.8 
 Other Europe 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Africa 25.5 22.0 18.8 18.9 18.2 15.6 21.4 
 South Africa 18.3 14.7 12.9 13.5 13.1 10.6 11.8 
 Namibia 1.1 0.5 0.4 0.5 1.9 2.4 7.4 
 Zimbabwe 4.4 4.5 3.8 2.9 1.9 1.7 1.4 
 Zambia 0.9 1.5 1.1 1.3 0.8 0.6 0.6 
 Mozambique 0.0 0.2 0.1 0.0 0.1 0.1 0.1 
 Middle East 3.1 3.3 5.3 5.4 5.7 7.2 13.1 
 Israel 3.1 3.2 5.3 5.2 5.4 6.1 8.4 
 United Arab Emirates 0.0 0.0 0.1 0.2 0.3 1.1 4.7 
 Asia 6.3 3.5 2.7 3.1 3.0 6.5 24.1 
 China 4.8 2.3 0.9 0.8 0.8 0.8 0.8 
 Japan 0.1 0.0 0.0 0.0 0.0 0.0 0.1 
 Six East Asian Traders 0.9 1.0 0.9 1.0 1.1 2.3 7.9 
 Singapore 0.0 0.0 0.0 0.0 0.0 0.9 4.4 
 Hong Kong, China 0.0 0.1 0.1 0.2 0.3 0.8 3.0 
 Thailand 0.7 0.8 0.8 0.8 0.8 0.6 0.5 
 Other Asia 0.6 0.2 0.9 1.3 1.2 3.4 15.3 
 India 0.4 0.1 0.9 1.3 1.1 3.0 14.9 
 Viet Nam 0.0 0.0 0.0 0.0 0.0 0.3 0.4 
 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A1.2 Merchandise imports by origin, 2008-14  
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,211 4,728 5,657 7,272 8,025 7,434 7,831 
 (% of total) 
 America 1.6 2.4 1.5 2.3 2.0 5.6 11.5 
 United States 1.3 2.2 1.3 2.2 2.0 2.6 1.4 
 Other America 0.3 0.2 0.1 0.1 0.1 3.1 10.1 
 Canada 0.2 0.2 0.1 0.1 0.1 3.0 10.0 
 Europe 11.5 12.0 13.4 13.5 20.5 14.3 6.9 
 EU(28) 11.3 11.9 13.3 13.2 20.0 14.2 6.6 
 Belgium 1.9 1.1 0.9 1.2 1.3 5.1 4.0 
 Germany 0.9 1.2 0.7 0.7 0.7 0.5 1.0 
 United Kingdom 6.0 6.1 9.3 9.9 16.8 7.3 0.8 
 Sweden 0.5 0.6 0.2 0.3 0.5 0.2 0.2 
 The Netherlands 0.2 0.4 0.5 0.2 0.1 0.2 0.2 
 France 0.5 1.4 0.3 0.2 0.2 0.2 0.2 
 EFTA 0.2 0.1 0.1 0.2 0.5 0.1 0.2 
 Switzerland 0.2 0.1 0.1 0.2 0.5 0.1 0.2 
 Other Europe 0.0 0.0 0.1 0.1 0.0 0.0 0.1 
 Commonwealth of Independent States (CIS) 0.0 0.0 0.1 0.0 0.0 0.3 0.1 
 Africa 79.1 78.2 75.3 68.5 69.9 74.1 76.4 
 South Africa 77.3 76.1 72.8 65.7 62.8 65.8 63.2 
 Namibia 0.6 0.6 1.2 0.8 5.7 6.9 12.1 
 Zambia 0.1 0.2 0.3 0.3 0.3 0.3 0.4 
 Zimbabwe 0.9 0.8 0.7 0.7 0.5 0.5 0.3 
 Mozambique 0.0 0.1 0.2 0.5 0.3 0.0 0.2 
 Middle East 1.9 1.4 2.0 1.5 1.7 1.6 1.7 
 Israel 1.6 1.2 1.9 1.4 1.5 1.4 1.5 
 United Arab Emirates 0.2 0.1 0.1 0.1 0.2 0.3 0.2 
 Asia 5.8 6.1 7.7 14.2 5.8 4.0 3.4 
 China 2.9 3.3 4.9 10.9 2.8 1.4 1.1 
 Japan 0.7 0.6 0.7 0.8 0.9 0.7 0.5 
 Six East Asian Traders 1.3 1.2 1.2 0.8 0.6 0.7 0.6 
 Singapore 0.3 0.2 0.3 0.2 0.2 0.2 0.2 
 Hong Kong, China 0.4 0.4 0.3 0.2 0.2 0.3 0.2 
 Korea, Republic of 0.1 0.1 0.1 0.2 0.1 0.1 0.1 
 Other Asia 1.0 0.9 0.9 1.6 1.6 1.2 1.2 
 India 0.8 0.6 0.7 1.4 1.4 0.9 1.0 
 Australia 0.1 0.2 0.1 0.2 0.2 0.2 0.1 
 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source: UNSD Comtrade database. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A1.3 Merchandise exports by produc t group, including re-exports, 2008-14  
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 4,951 3,456 4,693 5,882 5,971 7,573 7,916 
 (% of total) 
Total primary products 22.4 21.2 19.9 11.1 11.3 12.0 9.5 
 Agriculture 3.1 5.2 5.2 2.4 2.2 2.4 2.1 
 Food 2.8 5.0 5.0 2.2 2.0 2.3 2.0 
  0112 Bovine meat, frozen 0.7 1.4 1.3 0.5 0.8 1.0 0.8 
  0111 Bovine meat, fresh, chilled 1.2 1.9 2.1 0.3 0.3 0.5 0.6 
  0622 Sugar confectionery, not containing 
cocoa 0.2 0.4 0.5 0.4 0.3 0.2 0.2 
 Agricultural raw material 0.3 0.2 0.2 0.2 0.2 0.1 0.1 
 Mining 19.3 16.0 14.7 8.7 9.1 9.6 7.5 
 Ores and other minerals 18.9 15.7 14.3 8.3 8.5 9.2 7.0 
  2842 Nickel mattes, sinters, etc. 13.7 12.3 10.9 6.0 5.6 5.5 4.2 
  2831 Copper ores and concentrates 3.0 2.2 0.9 1.3 1.6 1.7 1.7 
  2771 Industrial diamonds, sorted, whether or 
not worked 0.2 0.1 0.3 0.3 0.4 1.1 0.5 
  2783 Sodium chloride, etc. 0.4 0.5 0.4 0.3 0.3 0.3 0.4 
 Non-ferrous metals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Fuels 0.3 0.3 0.4 0.4 0.6 0.4 0.5 
  3212 Other coal, whether or pulverized, not 
agglomerated 0.2 0.1 0.2 0.1 0.1 0.1 0.2 
Manufactures 74.7 76.3 78.5 87.2 87.1 86.9 89.4 
 Iron and steel 0.2 0.2 0.1 0.1 0.1 0.1 0.2 
 Chemicals 1.0 1.7 2.1 1.4 1.3 1.0 1.0 
  5237 Carbonates, percarbonates 0.3 0.8 1.5 0.7 0.6 0.5 0.5 
  5816 Other tubes, pipes and hoses 0.0 0.0 0.0 0.0 0.0 0.1 0.2 
 Other semi-manufactures 63.9 63.5 68.7 76.0 79.6 82.3 84.9 
  6672 Diamonds (excl. industrial, sorted) not 
mounted/set 63.0 62.6 68.0 75.4 79.0 81.8 84.4 
  6911 Iron or steel structures, tubes and the 
like, for use in  structures 0.1 0.0 0.0 0.1 0.1 0.1 0.1 
 Machinery and transport equipment 3.8 4.7 3.9 4.8 4.3 2.7 2.5 
 Power generating machines 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
 Other non-electrical machinery 1.1 0.7 0.6 1.0 0.8 0.7 0.6 
  7239 Parts n.e.s., of machinery of 723 and 
744.3 0.2 0.1 0.0 0.2 0.1 0.1 0.1 
  Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 Office machines & telecommunication equipment 0.2 0.4 0.3 0.1 0.2 0.1 0.1 
 Other electrical machines 0.8 1.0 1.2 1.1 1.0 0.7 0.6 
  7731 Insulated wire, cable etc.; optical fibre 
cables 0.0 0.5 0.8 0.8 0.8 0.5 0.4 
 Automotive products 1.2 1.7 1.3 1.8 1.4 0.8 0.6 
  7812 Motor vehicles for the transport of 
persons, n.e.s. 0.2 0.2 0.2 0.6 0.7 0.3 0.2 
  7821 Goods vehicles 0.4 0.6 0.3 0.6 0.3 0.2 0.2 
 Other transport equipment 0.4 0.8 0.5 0.7 0.8 0.3 0.4 
  7131 Aircraft internal combustion piston 
engines and parts 0.1 0.1 0.0 0.0 0.0 0.1 0.2 
  7929 Parts, n.e.s., (excl. tyres, engines, 
electrical parts) of 792 0.0 0.1 0.0 0.0 0.1 0.0 0.2 
 Textiles 0.3 0.6 0.3 0.4 0.4 0.3 0.3 
 Clothing 5.2 5.2 3.1 4.0 1.0 0.2 0.2 
 Other consumer goods 0.3 0.4 0.4 0.5 0.4 0.3 0.3 
Other 2.9 2.5 1.6 1.7 1.6 1.1 1.0 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A1.4 Merchandise imports by product group, 2008-14  
(US$ million and %)  
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 5,211 4,728 5,657 7,272 8,025 7,434 7,831 
 (% of total) 
Total primary products 31.8 29.2 29.8 28.4 26.6 29.3 25.4 
 Agriculture 12.8 14.0 13.2 11.2 9.7 10.6 9.3 
 Food 12.0 13.1 12.4 10.5 9.0 10.1 8.9 
  0449 Other maize, unmilled 0.1 0.2 0.1 0.2 0.2 0.6 0.6 
  0612 Other beet, cane and chemically pure 
sucrose, solid form 0.5 0.6 0.6 0.5 0.6 0.6 0.5 
  0412 Other wheat (including spelt) and 
meslin, unmilled 0.4 0.6 0.5 0.3 0.1 0.4 0.5 
 Agricultural raw material 0.8 0.9 0.8 0.7 0.7 0.6 0.5 
 Mining 19.0 15.3 16.6 17.2 16.9 18.6 16.1 
 Ores and other minerals 1.8 1.6 1.5 0.4 0.4 1.1 0.3 
 Non-ferrous metals 0.4 0.5 0.5 0.5 0.3 0.3 0.3 
 Fuels 16.9 13.2 14.6 16.4 16.1 17.2 15.5 
  3510 Electric energy 1.3 1.5 1.6 3.1 2.9 3.2 1.9 
Manufactures 67.0 69.5 68.4 70.4 71.7 69.1 73.3 
 Iron and steel 2.8 2.4 2.5 2.4 1.6 1.9 1.4 
 Chemicals 7.4 8.5 8.0 6.7 6.3 6.8 6.2 
  5429 Medicaments, n.e.s. 1.6 2.1 1.9 1.6 1.4 1.4 1.1 
  5621 Mineral or chemical fertilizers, 
nitrogenous 0.2 0.1 0.3 0.2 0.4 0.6 0.5 
  5541 Soap 0.6 0.7 0.6 0.5 0.5 0.5 0.4 
 Other semi-manufactures 19.5 18.5 22.5 21.7 34.2 34.1 40.0 
  6672 Diamonds (excl. industrial, sorted) not 
mounted/set 8.9 7.8 11.7 11.8 26.9 27.2 33.9 
  6612 Portland cement and similar hydraulic 
cements 1.2 1.6 1.6 1.1 0.9 0.9 0.8 
  6255 Other pneumatic tyres 0.5 0.3 0.3 0.4 0.5 0.5 0.5 
 Machinery and transport equipment 28.3 29.5 26.4 31.8 22.8 19.7 19.2 
 Power generating machines 0.8 0.9 2.3 5.3 1.5 0.7 0.6 
 Other non-electrical machinery 9.0 7.6 7.5 9.7 6.8 6.2 5.7 
  7239 Parts n.e.s., of machinery of 723 and 
744.3 0.7 0.4 0.5 0.9 1.2 0.9 0.9 
  7232 Mechanical shovels, etc., self-propelled 1.2 0.6 0.5 0.9 1.0 0.3 0.5 
  7283 Other mineral working machines 1.3 0.8 0.9 1.1 0.5 0.7 0.5 
  Agricultural machinery and tractors 0.3 0.4 0.4 0.3 0.3 0.4 0.4 
 Office machines & telecommunication 
equipment 3.5 4.6 3.1 2.5 2.6 2.3 2.6 
  7643 Radio or television transmission 
apparatus 0.6 1.2 0.5 0.4 0.4 0.4 0.7 
 Other electrical machines 3.8 3.7 3.7 4.8 2.8 2.2 2.3 
  7731 Insulated wire, cable etc.; optical fibre 
cables 1.1 0.9 0.8 1.2 0.8 0.4 0.6 
  7725 Switches, relays, fuses etc. for a 
voltage not exceeding 1000 V 0.5 0.5 0.5 0.5 0.4 0.4 0.4 
 Automotive products 9.9 9.3 8.4 8.6 7.7 7.1 6.7 
  7821 Goods vehicles 3.7 3.2 2.6 3.2 2.9 2.9 2.7 
  7812 Motor vehicles for the transport of 
persons, n.e.s. 3.5 3.2 3.2 2.6 2.8 2.5 2.4 
  7843 Other motor vehicle parts and 
accessories of 722, 781 to 783 1.1 1.5 1.4 1.2 1.0 0.9 0.8 
 Other transport equipment 1.3 3.4 1.4 0.9 1.4 1.2 1.2 
 Textiles 1.1 1.0 0.9 0.8 0.7 0.8 0.7 
 Clothing 2.1 2.5 2.1 1.9 1.5 1.4 1.4 
 Other consumer goods 5.8 7.1 6.0 5.1 4.4 4.5 4.3 
Other 1.2 1.2 1.7 1.2 1.7 1.6 1.4 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A2.1 Notifications to the WTO, 1 October 2009–30 June 2015  
Agreement  Requirement Most recent notification 
Agriculture   
Art. 18.2 ( ES:1) Export subsidy  G/AG/N/BWA/22, 09.12.2014 
G/AG/N/BWA/17, 13.02.2014 
G/AG/N/BWA/14, 28.08.2012 
G/AG/N/BWA/11, 06.03.2012 
G/AG/N/BWA/9, 14.07.2010 
Art. 18.2 (DS:1) Domestic support G/AG/N/BWA/20, 09.12.2014 
G/AG/N/BWA/19, 14.02.2014 
G/AG/N/BWA/16, 15.01.2013 
G/AG/N/BWA/13, 27.03.2012 G/AG/N/BWA/10, 08.04.2011 
Art. 18.2 (MA:5) Special safeguard G/AG/N/BWA/21, 09.12.2014 
G/AG/N/BWA/18, 13.02.2014 
G/AG/N/BWA/15, 28.08.2012 
G/AG/N/BWA/12, 06.03.2012 
G/AG/N/BWA/8, 14.07.2010 
Anti-dumping   
GATT 1994 Art. VI Art. 16.5 Competent authority G/ADP/N/193/BWA/Corr.1, 
17.09.2010 
G/ADP/N/193/BWA, 19.04.2010 
Countervailing measures   
SCM Art. 25.11 Semi-annual G/SCM/N/250/Add.1, 10.04.2013 
G/SCM/N/250, 20.12.2012 
G/SCM/N/228/Add.1, 19.10.2011 
G/SCM/N/228, 29.06.2011 
G/SCM/N/219/Add.1, 26.04.2011 
G/SCM/N/219, 05.01.2011 
SCM Art. 25.12 Competent authority G/SCM/N/202/BWA/Corr.1, 
26.04.2011 G/SCM/N/202/BWA, 25.01.2010 
Intellectual property   
TRIPS Art. 63.2 Legislation IP/N/1/BWA/C/2, 29.07.2013 
IP/N/1/BWA/C/3, 29.07.2013 IP/N/1/BWA/I/3, 29.07.2013 IP/N/1/BWA/I/4, 29.07.2013 IP/N/1/BWA/2, 18.07.2013 
TRIPS Art. 69 Contact point IP/N/3/BWA/2, 5.06.2015 
 
Subsidies   
SCM Art. 25.1 – Art. XVI:1 Subsidies G/SCM/N/95/BWA; 
G/SCM/N/123/BWA; 
G/SCM/N/155/BWA; 
G/SCM/N/186/WA; 
G/SCM/N/220/BWA; 
G/SCM/N/253/BWA, 27.09.2013 
Technical barriers to trade   
TBT Art. 2.9.2 Proposed technical regulation G/TBT/N/BWA/37, 27.11.2013 
G/TBT/N/BWA/2, 11.05.2012 
Trade facilitation   
TFA (WT/L/911) Category A commitments under 
Agreement on Trade Facilitation WT/PCTF/N/BWA/1, 03.10.2014 
Source: WTO documents. WT/TPR/S/324/Rev.1 • Botswana 
 
- 133 - 
 
  Table A3.1 Botswana bound tariffs   
 
 
TLa MFN applied tariff rates (%) Bound tariff rates 
As specified AVEsb 
Botswana South Africa  2014 2015 
Ch 04: Dairy products      
04011007 0.0   20.0 96.0 
04011009 0.0   20.0 96.0 
04011090 0.0   20.0 96.0 
04012007 0.0   20.0 96.0 
04012009 0.0   20.0 96.0 
04012090 0.0   20.0 96.0 
04014007 0.0   20.0 96.0 
04014009 0.0   20.0 96.0 
04014090 0.0   20.0 96.0 
04015007 0.0   20.0 96.0 
04015009 0.0   20.0 96.0 
04015090 0.0   20.0 96.0 
04021010 450c/kg with a 
maximum of 96% 12.8 10.4 20.0 96.0 
04021090 450c/kg with a 
maximum of 96% 12.5 10.8 20.0 96.0 
04022110 450c/kg with a 
maximum of 96% 11.0 9.2 20.0 96.0 
04022190 450c/kg with a 
maximum of 96% 11.5 10.6 20.0 96.0 
04022900 450c/kg with a 
maximum of 96% 15.5 17.5 20.0 96.0 
04029100 450c/kg with a 
maximum of 96% 14.0 24.0 20.0 96.0 
04029910 450c/kg with a 
maximum of 96% 9.0 96.0c 20.0 96.0 
04029990 450c/kg with a 
maximum of 96% 9.0 96.0c 20.0 96.0 
04031000 0.0   20.0 96.0 
04039010 450c/kg with a 
maximum of 96% 88.0 14.0 20.0 96.0 
04039020 450c/kg with a 
maximum of 96% 1.8 1.8 20.0 96.0 
04039090 450c/kg with a 
maximum of 96% 12.6 10.5 20.0 96.0 
04041000 450c/kg with a 
maximum of 96% 16.1 13.6 20.0 96.0 
04049010 450c/kg with a 
maximum of 96% 9.6 3.9 20.0 96.0 
04049090 450c/kg with a 
maximum of 96% 10.3 8.9 20.0 96.0 
04051000 500c/kg with a 
maximum of 79% 14.3 10.4 20.0 79.0 
ex 04052000d 500c/kg with a 
maximum of 79% 25.3 5.9 20 79.0 
ex 04052000d 500c/kg with a 
maximum of 79% 25.3 5.9 37 79.0 
04059000 500c/kg with a 
maximum of 79% 7.1 10.9 20.0 79.0 
04061000 500c/kg with a 
maximum of 95% 11.7 8.7 20.0 95.0 
04062000 500c/kg with a 
maximum of 95% 6.4 6.8 20.0 95.0 
04063000 500c/kg with a 
maximum of 95% 11.4 9.3 20.0 95.0 
04064000 500c/kg with a 
maximum of 95% 6.0 4.9 20.0 95.0 WT/TPR/S/324/Rev.1 • Botswana 
 
- 134 - 
 
   
 
TLa MFN applied tariff rates (%) Bound tariff rates 
As specified AVEsb 
Botswana South Africa  2014 2015 
04069011 500c/kg with a 
maximum of 95% 95.0c 95.0c 20.0 95.0 
04069012 500c/kg with a 
maximum of 95% 11.3 9.7 20.0 95.0 
04069021 500c/kg with a 
maximum of 95% 2.1 1.6 20.0 95.0 
04069022 500c/kg with a 
maximum of 95% 11.3 7.7 20.0 95.0 
04069091 500c/kg with a 
maximum of 95% 3.7 3.2 20.0 95.0 
04069099 500c/kg with a 
maximum of 95% 6.6 5.3 20.0 95.0 
HS 1001: Wheat      
10011100 0.0   20.0 21.0 
10011900 0.0   20.0 21.0 
10019100 15.7c/kg 1.4 .. 20.0 72.0 
10019900 15.7c/kg 5.5 5.3 20.0 72.0 
HS 1005: Maize      
10051000 0.0   20.0 50.0 
10059010 0.0   20.0 50.0 
10059090 0.0   20.0 50.0 
HS 1006: Rice      
10061000 0.0   20.0 0.0 
10062000 0.0   20.0 0.0 
10063000 0.0   20.0 0.0 
10064000 0.0   20.0 0.0 
HS 1202: Oil seeds: 
groundnuts      
12023000 10.0   20.0 70.0 
12024100 10.0   20.0 70.0 
12024200 10.0   20.0 70.0 
HS 1206: Oils seeds: 
sunflower seeds      
12060000 9.4   20.0 47.0 
HS 5201: Cotton, raw      
52010010 0.0   20.0 60.0 
52010020 160c/kg 9.7 8.5 20.0 60.0 
52010090 15.0   20.0 60.0 
HS 28: Soda ash      
28362000 5.5   20.0 5.5 
HS 8701: Small 
tractors      
87011000 0.0   20.0 10.0 
.. Not available. 
a Based on the SACU applied tariff schedule (HS 2012 nomenclature). 
b Ad valorem  equivalents (AVEs) were estimated based on 2013 and 2014 South African import data 
at the 8-digit tariff line level. 
c No AVEs were estimated due to  no imports. In the case of  the mixed duty rates, the ad valorem  part 
is used. 
d In the Uruguay Round, Botswana bound tariff line HS040500 at 20% and tariff line HS210690 was 
bound at 37% by South Africa; a bound rate adopte d by Botswana. When doing the transposition of 
HS92 (nomenclature used in Uruguay Round negotiat ions) to HS96 these two lines became part of 
HS040520. As a result, in the case of Botswana, tariff line HS040520 has two different bound rates: HS04052010 and HS04052090 with bound duties of 20% and of 37% respectively. In the case of 
South Africa, during the transposition of its schedule to HS 2002, it chose the highest rate (from 37% and 79%), hence South Africa  has only one bound rate for tariff line HS040520 which is 79%. 
Source: WTO Secretariat calculations based on tari ff information from the South African Revenue Service 
(SARS); and WTO, CTS database. WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A3.2 Reservation and price preferen ce schemes for citizens of Botswana, 2015  
Activity Threshold Preference 
A. Consultants and information technology (IT) providers (designers)  
Building construction consultancy 
services Projects up to value of P 75 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 75 million Price preference of up to 
P 240,000a 
Civil works consultancy Projects up to value of P 48 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 48 million Price preference of up to 
P 960,000 
Electrical and mechanical consultancy 
services Projects up to value of P 4.8 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 4.8 million Price preference of up to 
P 96,000a 
Water engineering services Projects up to va lue of P 24 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 24 million Price preference of up to 
P 480,000a 
Water exploration services Projects of value up to P 1.21 million Reserved for 100% citizen-
owned consultancies 
Project of value more than 
P 1.21 million Price preference of up to 
P 120,000a 
Information technology suppliers of 
consultancy services Projects of value up to P 3 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 3 mil lion Price preference of up to 
P 72,000a 
Information technology suppliers of 
hardware/software Projects up to value of P 3 million Reserved for 100% citizen-
owned consultancies 
Projects above value of P 3 million Price preference of up to 
P 72,000a 
Accountancy related services Projects of value up to P 1.2 million Reserved for 100% citizen-
owned consultancies 
Projects of more than P 1.2 mill ion Price preference of up to 
P 120,000a 
Other consultants (e.g. economic, 
marketing, etc.) Projects of value up to P 720,000 Reserved for 100% citizen-
owned consultancies 
Projects of more than P 720,000 Price preference of up to 
P 72,000a 
B. Construction companies (contractors)  
Building construction works Projects up to value of P 7.2million 100% reservation for 
Batswana only. 
Projects of more than P 7.2 million 30% of projects is reserved 
for 100% citizen-owned 
contractors. 
Price preference of up to 
maximum of P 720,000b. 
Electrical and mechanical works Projects up to value of P 960,000  100% reservation for 
Batswana only. 
Projects of more than P 960,000  30% of projects is reserved 
for 100% citizen-owned contractors. Price preference of up to maximum of P 48,000
b. 
Civil engineering works Projects up to value of P 20 million 100% reservation for 
Batswana only. 
Projects of more than P 20 million 30% of projects is reserved 
for 100% citizen-owned 
contractors. 
Price preference of up to a 
maximum of P 900,000b. 
Water engineering and drilling Projects up to value of P 800,000  100% reservation for 
Batswana only. 
Projects of more than P 800,000 30% of projects is reserved 
for 100% citizen-owned contractors. Price preference of up to maximum of P 150,000
b. WT/TPR/S/324/Rev.1 • Botswana 
 
- 136 - 
 
  Activity Threshold Preference 
Roads ancillary works and fencing of 
buildings n.a. Fully reserved for 100% 
citizen-owned contractors. 
C. Manufacturing and supplying medicines, laboratory reagents and medical equipment 
Manufacturing of non-essential 
medicines  Less than P 10 million  Reservation of 100%c 
Supply of essential and vital 
medicines and laboratory reagents, supplies and medical equipment  Less than P 10 million Reservation of 15%
c 
Supply of non-essential medicines 
provided that they are not 
manufactured in Botswana Less than P 10 million Reservation of 100%c 
Supply of non-essential laboratory 
reagents and supplies and minor medical equipment and consumables/accessories provided 
that they are not manufactured in 
Botswana Less than P 10 million Reservation of 100%
c 
n.a. Not applicable. 
a Used in conjunction with price preference sche me. The percentage points awarded varies from 10% 
for 100% citizen-owned association/consortia to 3% for minority-owned companies. 
b Used in conjunction with price preference sche me. The percentage points  awarded varies from 6% 
for 100% citizen-owned joint ventures to 2.5% for minority-owned companies. 
c The reservation will only apply if the unit price quoted by citizen companies is not 15% higher than 
the unit price quoted by the lowest acceptable international company. Price preferences are also 
available. 
Source: Government of Botswana (2012), The Citizen Economic Empowerment Policy (CEE Policy), 
Government Paper No. 1 of 2012 .  WT/TPR/S/324/Rev.1 • Botswana 
 
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  Table A4.1 Botswana bilateral air services agreements, 2014   
Country Signed Not signed/ 
Operating with MoU Year 
Angola   X 2010  
Belgium X  1988 
China  X 2014 
Egypt   X 2010 
Ethiopia  X  2013 
France   X 1990 
Germany   X 1988 
Kenya  X  2000 
Kuwait  X  2014 
Malawi  X  1968 
Mauritius X  2012 
Mozambique  X 2012 
Namibia  X  1990 
The Netherlands   X 1989 
Pakistan   X 1989 
Qatar  X  2013 
Iceland  X  2013 
Rwanda  X 2012 
Seychelles  X 2014 
Saudi Arabia  X 2014 
Singapore   X 2010 
South Africa   X 2011 
Swaziland  X 2014 
Tanzania  X 2003 
Turkey X  2013 
United Arab Emirates  X  2011 
United Kingdom  X  1990a 
United States of America X  2014 
Zambia  X  2006a 
Zimbabwe X  2003 
a Re-negotiated in 2014. 
Source: Information provided by the authorities.