ANNEX 1 
BOTSWANA 
 
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 61 
 
 
CONTENTS 
    Page 
I. THE ECONOMIC ENVIRONMENT 65 
(1) M AIN FEATURES  65 
(2) R ECENT ECONOMIC DEVELOPMENTS  67 
(3) T RADE PERFORMANCE  68 
(i) Trade in goods 68 (ii) Trade in services 71 
(4) I
NVESTMENT PATTERNS  72 
(5) O UTLOOK  72 
II. TRADE AND INVESTMENT REGIMES 74 
(1) G ENERAL  74 
(2) T RADE AGREEMENTS  75 
(3) I NVESTMENT FRAMEWORK  77 
(4) T RADE -RELATED TECHNICAL ASSISTANCE  79 
(i) Implementation of WTO Agreements 79 (ii) Trade negotiations 80 
(iii) Supply-side constraints and integratio n of trade into development strategies 80 
III. TRADE POLICIES AND PRACTICES BY MEASURE 82 
(1) I
NTRODUCTION  82 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  82 
(i) Registration 82 
(ii) Customs procedures 83 
(iii) Other duties, levies, and charges 83 (iv) Import prohibitions and licensing 85 
(v) Standards and other technical requirements 85 
(vi) Government procurement 88 (vii) Local-content requirements 90 
(viii) Other measures 91 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  91 
(i) Registration and taxes 91 
(ii) Export prohibitions, restrictions, and licensing 91 
(iii) Export subsidies, finance, and assistance 92 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  93 
(i) Incentives 93 
(ii) State-trading, state-owned enterprises, and privatization 94 
(iii) Competition policy and price controls 96 
(iv) Protection of intellectual property rights 96 
IV. TRADE POLICIES BY SECTOR 101 
(1) I NTRODUCTION  101 WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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    Page 
(2) A GRICULTURE AND RELATED ACTIVITIES  101 
(i) Main features 101 
(ii) Agricultural policy 102 (iii) Beef industry 104 
(3) M
INING   105 
(i) Diamonds 107 (ii) Other minerals 108 
(4) E
NERGY   108 
(i) Electricity 108 (ii) Petroleum and gas 110 
(5) M
ANUFACTURING  110 
(i) Overview 110 (ii) Main industries 111 
(6) S
ERVICES  112 
(i) Financial services 113 (ii) Telecommunications and postal services 116 
(iii) Transport 119 
(iv) Tourism 124 
REFERENCES   127 
APPENDIX TABLES  131 
 
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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CHARTS 
    P a g e  
I. ECONOMIC ENVIRONMENT  
I.1 Structure of exports and imports, 2001-07 69 
I.2 Direction of merchandise trade, 2001-07 70 
 
TABLES 
I. ECONOMIC ENVIRONMENT  
I.1 Selected socio-economi c indicators, 2002-08 65 
I.2 Balance of payments, 2002-08 71 
I.3 Foreign direct investment, 2000-07 72 
II. TRADE AND INVESTMENT REGIMES  II.1 Main trade-related legislation, 2009 75 
II.2 Notifications to the WTO, 2003-09 76 
II.3 Activities reserved for Botswana citizens or citizen-owned companies, 2009 77 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
III.1 State participation in parastat als and commercial enterprises, 2008 94 
III.2 Botswana's participation in intellectual property agreements, 2009 97 
IV. TRADE POLICIES BY SECTOR  
IV.1 Selected indicators of th e agriculture sector, 2004-08 102 
IV.2 Mineral production, 2003-08 106 
IV.3 Electricity tariffs, 2009 110 
IV.4 Financial soundness and prudential standards of licensed banks, 2003-08 114 IV.5 Selected telecom indicators, 2003-08 117 
IV.6 Cost of trading across borders, 2009 120 
IV.7 Rail traffic, 2003-08 122 IV.8 Air traffic, 2003-08 123 
IV.9 Selected tourism indicators, 2003-09 125 
APPENDIX TABLES 
I. ECONOMIC ENVIRONMENT  
AI.1 Structure of exports, 2001-07 133 
AI.2 Destination of exports, 2001-07 134 
AI.3 Structure of imports, 2001-07 135 
AI.4 Origin of imports, 2001-07 136 
IV. TRADE POLICIES BY SECTOR  
AIV.1 Agricultural production, imports, and exports, 2003-08 137SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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I. THE ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES  
1. Botswana ranks 56th in the global competitiveness rankings  of the World Economic Forum, 
second only to South Africa in sub-Saharan Africa.1  Botswana owes its competitiveness, inter alia , to 
sound macroeconomic policies; it is also rated as the country with the lowest rate of corruption in 
Africa.2  Development has been driven mainly by re venue from diamonds.  Mineral taxation has also 
enabled the Government to improve basic infrastruct ure, such as transportation, and social services, 
such as health and education.  Impressive ec onomic performance since independence has raised 
average GDP per head to over US$7,000, higher than most other sub-Saharan African countries 
(Table I.1);  however, income distribution is highly skewed.3   
Table I.1 
Selected socio-economic indicators, 2002-08 
(Per cent unless otherwise specified)  
 2002 2003 2004 2005 2006 2007 2008 
Miscellaneous        
Area ('000 km2) 566.7 566.7 566.7 566.7 566.7 566.7 566.7 
Population (million) 1.65 1. 67 1.69 1.71 1. 72 1.74 1.75 
Urban (%) 55.0 55.8 56.6 57.4 58.1 58.9 .. 
Life expectancy (year) 46.6 47.5 48.3 49.1 49.9 50.7 .. 
Bank of Botswana lending rate (end of 
period, %)  15.3 14.3 14.3 14.5 15.0 14.5 15.0 
Commercial and merchant bank prime 
lending rate (end of period, %) 16.2 16.4 15.8 16.0 16.5 16.0 16.5 
Nominal GDP (US$ million) 6,091.5 8, 086.8 10,048.2 10, 263.2 11,255.2 12, 335.9 13,360.9 
Real GDP (percentage change) 9.0 6.3 6.0 1.6 5.1 4.4 2.9 
Real GDP, excluding mining (percentage 
change)  7.2  6.0  8.9  1.4  3.2  9.0  7.2 
GDP per capita (US$) 3,691.8 4,833.7 5,938.6 6,008.9 6,543.7 7,105.9 7,613.0 
Annual inflation (percentage change of CPI) 8.0 9.2 7.0 8.6 11.6 7.1 12.6 
Unemployment rate (%) .. 23.8 .. .. .. .. .. 
Monetary sector (percentage change)   
Money supply (M2, end of period) -0.5 17.6 13.9 10.6 67.4 31.2 21.1 
Share of real GDP  
Agriculture 2.0 2.2 1.9 1.8 1.7 1.8 1.7 
Mining and energy 44.2 44.4 42.8 42.8 43.9 41.4 38.9 
of which:  mining  42.0 42.2 40.6 40.7 41.7 39.2 36.7 
Manufacturing sector 3.4 3.3 3.3 3.5 3.4 3.9 3.8 
Services 47.7 46.5 46.6 47.5 47.0 48.6 51.4 
Construction 5.8 4.7 4.9 4.5 4.4 4.8 4.8 
Trade, hotels, and restaurants 9.5 10.0 9.8 9.1 9.5 10.1 10.5 
Transport, post, and telecommunications 3.2 2.9 2.9 3.2 3.4 3.6 4.0 
Banks, insurance, and business services 10.0 9.5 9.3 10.0 10.2 10.6 11.8 
General government 15.6 15.8 16.1 16.6 15.6 15.6 16.3 
Social and personal services 3.5 3.5 3.7 4.0 3.9 3.9 4.1 
Indirect taxes less subsidies 2.7 3.6 5.4 4.4 4.0 4.4 4.1 
Table I.1 (cont'd) 
                                                      
1 World Economic Forum (2008). 
2 Transparency International (2008).  
3 The Gini coefficient (a measure of distribution of income ranging from 0 to a maximum of 100) is 
estimated at 63 for Botswana.  See IMF (2007). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 66 
 
 
 2002 2003 2004 2005 2006 2007 2008 
Public financea (percentage of GDP) 
Total revenue, including grants 37.1 40.5 38.1 42.5 41.7 37.8 .. 
Tax revenue 31.8 35.3 34.5 38.4 38.4 34.1 .. 
Non-tax revenue 5.1 5.0 2.9 3.9 2.6 2.9 .. 
Total expenditure 40.8 40.7 36.9 33.6 30.0 32.8 .. 
Recurrent expenditureb 30.1 32.3 29.2 27.0 24.3 24.5 .. 
Development expenditure 10.9 10.6 8.3 7.2 6.2 8.6 .. 
Net lending -0.2 -2.3 -0.6 -0.6 -0.4 -0.4 .. 
Government balance -3.6 -0.2 1.2 8.8 11.7 5.0 .. 
National account (percent of GDP) 
Gross domestic expenditure 80.1 87.2 90.4 85.2 76.8 79.8 87.0 
Final consumption expenditure 53.1 57.2 57.2 59.0 52.8 53.9 54.5 
Government final consumption 20.7 22.3 21.1 22.4 19.0 19.4 19.9 
Household final consumption  32.5 34.8 36.1 36.5 33.8 34.5 34.6 
Gross capital formation 27.0 30.0 33.2 26.3 24.0 25.9 32.4 
Net increase in inventories 2.4 4.0 8.3 1.8 2.4 1.9 9.1 
Gross fixed capital formation 24.5 26.0 24.8 24.5 21.6 24.0 23.4 
Total exports (goods and non-factor 
services) 46.6 45.4 44.2 51.2 47.0 47.6 46.2 
Total imports (goods and non-factor 
services) -35.4 -34.4 -36.9 -34.4 -30.7 -35.5 -38.8 
Net errors and omissions 8.8 1.9 2.3 -2.0 6.8 8.1 5.7 
External sector        
Exchange rate (pula per US$ period average) 6.33 4.95 4.69 5.11 5.84 6.14 6.83 
Real effective exchange rate index 
(September 2006 = 100) .. .. .. 99.8 99.9 98.9 103.4 
Real effective exchange rate index (pula per 
rand, September 2006 = 100) .. .. .. 92.8 97.4 95.7 108.6 
Current account balance (percentage of 
GDP) 3.2 5.7 3.5 15.2 17.2 14.3 7.0 
Gross international reserves (US$ million) 4,729.3 4,791.4 5,156.8 6,772.6 8,219.8 9,532.5 10,050.3 
Gross international reserves (months of 
imports – goods and non-factor services) 26.3 20.7 16.7 23.0 28.6 26.1 23.2 
External debtc (US$ million) 461.0 443. 4 423.9 428.4 367. 2 310.6 259.5 
External debt (percentage of GDP) 7.6 5.5 4.2 4.2 3.3 2.5 1.9 
External debt in percent of total exports 
(goods and non-factor services) 16.3 12.1 9.5 8.2 6.9 5.3 4.2 
.. Not available. 
a Fiscal year runs from 1 April to 31 March. 
b Includes Financial Assistance Policy (FAP) grants, and interest on public debt.   
c End of fiscal year (March).  
Source:  Bank of Botswana (2009), Financial statistics , March. Viewed at: h ttp://www.bankofbotswana.bw/ 
 files/attachments/a1985779930.xls;  IMF (2008), Botswana:  2007 Article IV Consultation-Staff Report; Public 
 Information Notice on the Executive Board Discussion; and Statement by the Execut ive Director for Botswana , 
 Country Report No. 08/58, February;  IMF (2007), Botswana:  Selected Issues  and Statistical Appendix , Country 
 Report No. 07/228, July;  and IMF online information, "International Financial Sta tistics".  Viewed at:  
 http://www.imfsta tistics.org/imf/. 
2. Under the National HIV/AIDS Strategic Fram ework 2003-09 considerable progress has been 
made in the prevention, treatment, and care of AIDS.4  According to the authorities, the national 
prevalence rate (old and new inf ections) has been reduced to 17.6% in 2008 and the rate of new 
infections to 2.9%.5  It is estimated that 90% of the infected needing treatment receive anti-retroviral 
                                                      
4 National Aids Co-ordinating Agency (undated). 
5  In 2007, Botswana's HIV prevalence rate among a dults (15-49 years) was estimated at 23.9%, the 
second highest rate in the world after Swaziland.  See UNAIDS (2008). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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drugs free of charge, which has contributed to reduc ing mortality to 10%.   The Government's goal is 
for an "AIDS-free generation" by 2016.  Combati ng HIV/AIDS has long-term repercussions in terms 
of productivity losses, and budgetary expenditures.  Government spending for health, food, and social 
welfare increased by 17.3% on average in 2001-06,  far exceeding annual growth of overall spending 
(8.7%), reflecting mainly increased expenditur es for various programmes to address HIV/AIDS.6    
(2) RECENT ECONOMIC DEVELOPMENTS  
3. Real GDP increased by an average of 4.4% per annum in 2003-08, ranging from 1.6% in 
2005 to 6.3% in 2003 (Table I.1).7  The volatility of national output was mainly due to the cyclical 
nature of the diamond industry, which contributes about 30% to GDP.8  Non-mining activities 
(accounting for about 60% of GDP) maintained strong growth, averaging almost 6% annually in  2003-08.  Unemployment remains high, though it declined from over 19.5% in 2001 to 17.5% in 
2005/06.
9  Formal employment increased by only 1.5% per year in 2003/04-2005/06, in part due to 
insufficient (labour-intensive) investment to generate significant employment growth.  
4. Following three successive budget deficits from 2001/02 to 2003/04, the government posted 
budget surpluses until 2007/08, which have been the norm in Botswana since independence 
(Table I.1).  However, as the result of the current  global financial crisis, a budget deficit of 14% of 
GDP is forecast for 2009/10.  A continuing concer n is the principal reliance on tax receipts from 
Botswana's diamonds.  Diversifica tion of its revenue base is therefore one of the Government's 
priorities.  A growing proportion of revenues has come from the SACU Common Revenue Pool, reflecting the increase of imports in the SACU re gion, and a more favourable  revenue-sharing formula 
introduced in 2004/05.  These rece ipts increased from P 2.2 billion in 2003/04 to P 7.8 billion in 
2007/08, representing over one quarter of total gove rnment revenues in 2007/08.  The Government 
has also diversified away from mineral income ta x revenues through the introduction of value-added 
tax in 2002, and improved tax collection.  Grants fr om external sources account for less than 2% of 
total government revenues.  Gove rnment expenditures are controlled over the medium term by the 
National Development Plan 9 (NDP 9) aimed at bala ncing the budget over the duration of the six-year 
plan (2003/04 to 2008/09). To stimulate grow th, the budget has been rebalanced towards capital 
investment (development expenditures), with an increase of development spending from 24% of the 
overall budget in 2004/05 to 30% in the 2008/09 budget. 
5. Monetary policy focuses on achieving a low, sust ainable, and predictable level of inflation 
over the medium-term, currently set at 3-6% per year.  Primary monetary policy instruments are the Central Bank's discount rate (ba nk rate) and open market operations, mainly through issues of Bank of 
Botswana Certificates (BoBCs), to influence intere st rates and absorb excess liquidity in the banking 
subsector.   As a result of relatively tight mone tary policy, annual inflation was brought down from a 
peak of 14.2% in April 2006 to below 7% in mid-200 7.  However, annual inflation increased to 12.6% 
in 2008 due to a sharp increase in prices, notably for food and fuel. 
                                                     
 
6 The HIV-related costs in the mining sector are es timated at 8.4% of annual labour costs; domestic 
HIV-related public expenditures were about US$200 million in 2007, the highest per-capita spending in the 
world by far (UNAIDS, 2008). 
7 The target was to achieve real GDP growth of 5.5% per annum over the duration of the National 
Development Plan 9 (NDP 9) from 2003/04 to 2008/09. 
8 In response to falling demand as the result of the global financial crisis, Debswana has announced a 
reduction of output to 15 million carats in 2009, down from 33.6 million carats in 2008.   
9 Bank of Botswana (2008).  In addition to the unemployed, in 2005/06, about 17% of the labour force 
was reported as "discouraged job seekers" (i.e. availabl e but not actively looking for jobs), most of them living 
in rural areas.    WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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6. The exchange rate policy is implemented by th e Central Bank on behalf of the Government 
with the objective of achieving stability of the real effective exchange rate (REER).  This policy is 
part of the economic diversification strategy to maintain the competitiveness of non-traditional 
exports, as well as other tradeable goods and services.10  To reverse an increase in the REER, the pula 
was devaluated by 7.5% in February 2004, and 12% in May 2005.11  Also in May 2005, Botswana 
switched from pegging the pula to the South African rand and the SDR, to a crawling band exchange 
rate mechanism based on a basket of currencies (c omprising the South African rand and the SDR).  
This change was made to ensure stability of the REER, while avoiding large discrete adjustments of 
the nominal exchange rates.  The REER appreciated by 4.5% in 2008, in particular against the South 
African rand, weakening Botswana's competitiveness (Table I.1).    
7. Structural reforms to improve the economy's productivity and competitiveness have been 
limited in recent years.  Botswana still has no competition law to regulate anti-competitive conduct 
(Chapter III(4)(iii)).  The Government adopted a Privatization Master Plan in June 2005 but 
privatizations of poorly performing parastatals,  such as Air Botswana, have been deferred 
(Chapter III(4)(ii)).  A number of goods and services remain subject to price controls, undermining an 
efficient functioning of Botswana's  market economy (Chapter III(4)(iii)).12    
8. Botswana has achieved substantial current account surpluses since 2003, with a peak of 
17.2% of GDP in 2006.  The underlying factors have been a burgeoning merchandise trade surplus 
driven by large diamond export earnings, favourable  international base metal prices (until mid-2008), 
as well as rising net transfers from the SACU.  Overall,  the balance of payments remains healthy with 
official foreign exchange reserves at US$9.1 billion at  the end of 2008, equivalent to about 23 months 
of import cover (goods and non-factor services).  Bots wana has a relatively modest level of external 
debt, at 1.9% of GDP (end of 2008), equi valent to about 4% of total exports.  
(3) TRADE PERFORMANCE  
(i) Trade in goods 
9. Botswana remains heavily depe ndent on exports of diamonds (i ncluding industrial diamonds), 
which accounted for 63.7% of total merchandi se exports in 2007, down from 78.3% in 2003 
(Table AI.1 and Chart I.1).  The value of other tr aditional exports – copper-nic kel, beef, and soda ash 
– has increased considerably in recent years, main ly as the result of favourable world market prices.13  
The main change in export patterns is the subs tantial increase of apparel exports (non-traditional 
exports), largely due to preferential access to the U. S. market; and the declining share of automotive 
products exports due to the relocation of car manuf acturers to South Africa (Chapter IV(5)(ii)).  
10. Botswana's merchandise exports remain concentrated in Europe, especially the 
United Kingdom14, and SACU members, notably South Africa.  Exports have become marginally 
more diversified geographically, with an increasing share of exports destined for America and Asia 
(Table AI.2 and Chart I.2). 
 
                                                      
10 Botswana also needed to avoid the so-called "Dutch disease" of a diamond-led exchange rate 
appreciation that would make non-mineral exports less co mpetitive and expand the non-traded sector relative to 
the traded sector, thereby hampering the economic restructuring needed to diversify production and exports. 
11 These devaluations contributed, respectively, an estimated 2 and 3-4 percentage points to annual 
inflation in 2004 and 2005. 
12 Administered prices constitute 10.9% of the CPI basket. 
13 Production volumes of copper-nickel matte have stagnated (Table IV.2). 
14 Botswana's rough diamonds are offered for sale mainly in London (Chapter IV(3)(i)). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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0%10%20%30%40%50%60%70%80%90%100%
2001 2002 2003 2004 2005 2006 2007
0%20%40%60%80%100%
2001 2002 2003 2004 2005 2006 2007Chart I.1
Structure of exports and imports, 2001-07
(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database; and IMF Staff Reports, various issues.Agriculture Other Diamonds Ores and other minerals Clothing
Food
Non-electrical machineryOther semi-manufacturesChemicals
FuelsTransport equipment
Electrical machines Iron and steelOther primary productsTextiles and clothing
Other
 WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%2001200220032004200520062007Chart I.2
Direction of merchandise trade, 2001-07
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%2001200220032004200520062007(a) Exports
(b) Imports
Source: WTO Secretariat calculations, based on UNSD, Comtrade database (SITC Rev.3).Zimbabwe Asia United Kingdom Norway South Africa
South Africa EU(25) America Asia OtherOther
Other Africa
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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11. Merchandise imports consist mainly of machiner y and transport equipment, fuels, and food 
and beverages, mainly from South Africa (Tables AI.3 and AI.4, and Chart I.1).  The import bill increased sharply in 2007 to a level last expe rienced in 2003, reflecting not only the surge in 
international commodity and fuel prices, but also investment in capital imports for major 
infrastructure and mining projects.  
(ii) Trade in services 
12. Botswana is a net importer of services, especially of transportation services (Table I.2).  The   
growing trade deficit in services is also due to an increase in imports of "other services", linked mainly to services for prospecting and mine developm ent;  tourism receipts have stagnated in recent 
years.   
Table I.2 
Balance of payments, 2002-08 
(US$ million) 
 2002 2003 2004 2005 2006 2007a 2008b 
A.  Current account  196.7 462. 2 349.7 1,559.9 1, 939.4 1,765.5 938.4 
Balance on goods and services 678.7 887.9 781.5 1,727.4 1,840.5 1,400.6 201.9 
Merchandise trade balance 707.5 897.2 831.9 1,757.5 1,904.3 1,580.4 440.8 
Exports f.o.b. 2,345.6 3,024.3 3,695.9 4,443.5 4,520.8 5,024.8 4,903.8 
Imports f.o.b. 1,638.1 2,127.2 2,864.0 2,686.0 2,616.5 3,444.4 4,462.9 
Services balance -28.8 -9.3 -50.4 -30.1 -63.8 -179.8 -238.9 
Transportation -166.6 -179.1 -208.1 -255.2 -240.8 -316.4 -378.2 
Travel 135.3 227.1 273.1 279.4 260.7 265.0 269.1 
Other services 2.5 -57.3 -115.4 -54.3 -83.7 -128.4 -129.8 
Income balance -698.2 -715.7 -958.0 -840.0 -772.6 -740.2 -275.8 
Compensation of employees -38.5 -55.1 -59.5 -59.9 -61.5 -78.3 -81.2 
Investment income -659.7 -660.6 -898.4 -780.1 -711.1 -661.8 -194.5 
Current transfers (net) 216.1 290.1 526.1 672.5 871.4 1,105.1 1,012.2 
Private -52.8 -75.6 70.3 70.6 107.5 86.0 56.7 
Government 269.0 365.7 455.8 601.8 763.9 1,019.1 955.5 
Capital and financial account (B+C) -216. 6 -356.3 -299.8 -84.0 -152.1 -147.3 1.5 
B. Capital account  0.6 22.5 31.8 67.4 24.4 80.4 102.9 
Private -5.9 -8.4 -8.4 -8.5 -8.2 -8.3 -9.6 
Government 6.5 30.9 40.1 75.9 32.6 88.7 112.5 
C.  Financial account  -217.2 -378.8 -331.6 -151.4 -176.5 -227.7 -101.4 
Direct investment 360.5 212.0 429.8 222.7 436.8 444.0 -3.1 
Abroad -42.9 -206.1 38.8 -55.9 -49.6 -50.6 -3.3 
In Botswana 403.4 418.0 391.1 278.6 486.4 494.6 0.3 
Portfolio investment -413.1 -520.5 -467.1 -422.7 -556.9 -413.1 271.5 
Other investment -164.6 -70.2 -294.3 48.5 -56.4 -258.5 -369.9 
D.  Net errors and omissions 73. 0 55.0 -118.9 -99. 1 -30.1 123.8 151.7 
Overall balance (total group A through D) 53.1 160.9 -69.0 1,376.7 1,757.2 1,741.9 1,091.6 
E.  Reconciliation/financi ng -53.1 -160.9 69. 0 -1,376.7 -1,757.2 -1,741.9 -1,091.6 
Change in the level of reserves 1,778.8 1,254.4 -103.0 -2,037.1 -2,289.9 -1,717.4 -1,478.5 
Valuation adjustments -1,831.8 -1,415.4 172.0 660.3 532.7 -24.5 386.9 
a Revised. 
b Provisional. 
Source:  Bank of Botswana (2009), Financial Statistics , March.  Viewed at:  http://www.bankofbotswana.bw/ 
 article.php?articleid=2269. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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(4) INVESTMENT PATTERNS  
13. The stock of foreign direct investment (FDI) was US$1.3 billion at the end of 2007 
(Table I.3).  Preliminary balance of payments da ta for 2008 show that the flow of FDI declined 
significantly in 2008 as a result of the global financial crisis (Table I.2).  There has been little foreign 
investment outside the mining and the finance sect ors.  Botswana has been successful in attracting 
foreign investment in financial services, which can be linked to, inter alia , the establishment of the 
offshore International Financial Services Centre (Chapter IV(6)(i)).  Most FDI is from Europe, 
especially Luxembourg, which is the seat of De B eers, the diamond company; and from South Africa.  
Botswana's stock of FDI abroad amounted to US$809 million at the end of 2007.   
Table I.3 
Foreign direct investment, 2000-07 
 2000 2001 2002 2003 2004 2005 2006 2007 
 (US$ million)  
Flow         
Direct investment in Bo tswana 57 31 405 420 392 281 489 495 
Direct investment abroad 2 381 43 207 -39 56 51 51 
Stock         
Direct investment in Botswa na 1,827 1,388 854 1,167 982 806 805 1,300 
Direct investment abroad 517 866 1,024 1,447 950 796 758 809 
 (percentage of GDP) 
Flow         
Direct investment in Botswana 1.2 0.6 8.0 5.7 4.6 3.1 5.5 5.0a 
Direct investment abroad 0.0 7.8 0.9 2.8 -0.5 0.6 0.6 0.5a 
Stock         
Direct investment in Botswana 37.4 28.3 16.9 15.9 11.6 9.0 9.1 13.1a 
Direct investment abroad 10.6 17.7 20.3 19.7 11.2 8.9 8.6 8.2a 
a Estimate. 
Source:   UNCTAD foreign direct investment  database.  Viewed at:  http://stats.unctad.org/FDI/TableViewer/ 
 ableView.aspx. 
14. In the FDI world rankings, Botswana fell from 46th place in 2003-05 to 66th place in 2005-07, 
although with an Inward FDI Performance Index of 1.5 (2005-07) it has attracted more FDI than would be expected by the size of its economy.  Ov erall, Botswana's appears to have slipped from 
being a "front-runner FDI performer with high FD I potential" in 2003-05 to "performing below its 
high FDI potential" in 2004-06.
15    
(5) OUTLOOK  
15. Botswana's economic performan ce relies heavily on its main driver of growth, diamonds.  
Such exports depend in turn on global economic pr ospects, especially in the major gem markets, 
e.g. the United States, which imports more than 50%  of Botswana's diamonds. In the current global 
financial and economic crisis, the short-term economic outlook is bleak; the IMF expects Botswana's 
                                                      
15 According to UNCTAD, the Inward FDI Performance In dex is the ratio of a country's share in global 
FDI flows to its share in global GDP.  It indicates how a country has perfor med in attracting FDI relative to its 
economic size: a value below unity mean s it has attracted less FDI than exp ected by its size.  The Inward FDI 
Potential Index measures a country's potential for attracti ng FDI given its structural factors.  Despite obvious 
limitations, comparing these two indices may give a rough guide to whether countries are performing adequately 
given their (restricted set of) struct ural assets (UNCTAD online informati on, "FDI Indices".  Viewed at:  
http://www.unctad.org/Templates/Page.asp?intItemID=2468&lang=1). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 73 
 
 
real GDP to contract by 10.4% in 2009 but to rebound by 14.3% in 2010.16  Large investments in 
electricity generation are expected to lead to an increase in the growth rate of non-mineral GDP over 
the medium term.17   
16. The economy's longer term will outlook be in fluenced by economic strategies used to 
accelerate economic diversification, in anticipati on of a decline of diamond output expected after 
2015.  Diversification is likely to remain the central  theme of the new NDP 10, which is to cover the 
period until March 2016.18  The Government intends to further shift its focus from growth of 
government spending, to private-sector development as a stimulus to growth.  Its priorities remain 
investment in infrastructure, and in education and training, as well as improvements of the business 
environment.  The Government also plans to supp ort (electronic) services exports, to overcome some 
of the transport cost disadvantage linke d to Botswana's land-locked position. 
                                                      
16 IMF online information, "Botswana and the IMF" .  Viewed at:  http://w ww.imf.org/external/ 
country/BWA/index.htm. 
17 IMF (2007). 
18 The formal adoption of NDP 10 has been deferred until later in 2009 to allow for a reassessment in 
light of the global economic recession. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 74 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) GENERAL  
17. Botswana has been a member of SACU from its in ception, and thus for a long time most of its 
trade policy instruments (especially customs matters ) have been determined at the regional level 
(Main Report, Chapter II(2)).  There has been little ch ange in this position since the last Trade Policy 
Review (TPR) of SACU in 2003.   
18. Nevertheless, Botswana has its  own national policy initiatives in areas not yet harmonized at 
the regional level or not covered by the SACU Agreem ent.  Within this context, the formulation and 
implementation of trade policy reside with the Minist ry of Trade and Industry.  The detailed structure 
of the Ministry of Trade and Industry was described in the 2003 TPR report, and remains largely 
unchanged.19  In essence, the Ministry comprises the Trade Section, which is made up of the 
International Trade and Internal Trade Directorat es;  and the section for Industry and Cooperative 
Affairs, which is made up of the Registrar of Companies; Directorate of Industrial Affairs, and 
Cooperative Development Commissioner. 
19. Other institutions that also have important input into trade-related policies include the 
ministries responsible for finance; mineral resour ces; transport and communications; and agriculture; 
as well as the Bank of Botswana.  
20. The 2002 SACU Agreement provides for the establishment of a national body in each 
member country to be responsible for all SACU issu es (including tariff changes) at the national level, 
and for making recommendations to the Customs Union Commission (Main Report, Chapter II(2)(ii)).  
Botswana is currently drafting legislation establishing the national body;  the draft is expected to be 
finalized before the end of 2009. 
21. Botswana has a well-established consulta tive process for formulating trade policies.20  T h e  
highest level of this process is the High Level Co nsultative Council, chaired by the President, and 
comprising the Vice-President, Ministers, and pr ivate-sector representatives. The Government of 
Botswana also established a National Committee on Trade Policy and Negotiations in 2003, whose 
mandate is to provide a forum for stakeholders to  discuss and identify positions for Botswana's trade 
negotiations, and to coordinate  the formulation and implementation of trade policy for the 
implementation of the WTO obligations  and regional trade negotiations.  
22. Private-sector input in trade and industrial policy (including from small and medium-sized 
businesses) is channelled through the Botswana C onfederation of Commerce, Industry and Manpower 
(BOCCIM).  The BOCCIM reviews implementation of polic ies at the national level every three years.   
The Botswana Exporters and Manufacturers Associati on safeguards the interests of exporters;  it also 
provides specialized export services, including assistan ce in identifying foreign markets.  The workers 
are represented in the consultative process with  business and government through the Botswana 
Federation of Trade Unions.  There is also an i ndependent Botswana Institu te for Development Policy 
Analysis (BIDPA), created in 1995, to conduct pub lic policy research for the Government and other 
clients, including monitoring of economic performance.21  This process finally leads to the 
adoption/implementation of trade -related legal instruments at th e national level (Table II.1). 
                                                      
19 WTO (2003), Annex 1, p. 61.  
20 WTO (2003) Annex 1, pp. 61-63. 
21 See WTO (2003), Annex 1, pp. 61-62, for details.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 75 
 
 
Table II.1 
Main trade-related legislation, 2009 
Area Legislation  
Imports and exports  Customs and Excise Act, and 2001 amendmen ts and regulations;  Customs and Excise Act, Amendment, 
Act 31, 2004;  Customs and Excise Duty Regulations  S.I. 127, 2004;  S.I 88, 2005;  and S.I. 49, 2006 
Botswana Unified Revenue Act, 2004;  Trade Act,  2003; Trade Regulations, 2008;  Liquor Act, 2003;  
Export and Import of Rough Diamonds Regulations, 2004  
Registration procedures Companies Act, 2003 (Act  No. 32 of 2004);  Cooperative Societies Act, 1989 
Intellectual property Industrial Property Act CAP 68:03;  Copyright and Neighbouri ng Rights Act (CAP 68:02) 
Government procurement Public Procurement and Asset Disposal Act, 2001;  Public Pr ocurement and Asset Disposal Regulation, 
2006 
Price controls Control of Goods, Prices, and Other Charges Act (CAP 63:08) 
Standards Standards Act, 1995;  Standards (Import Inspec tion) Regulations, 2008;  Weights and Measures Act and 
Regulations, 2006 (CAP 46:06) 
Agriculture Botswana Agricu ltural Marketing Board Act, 1974 (CAP 74:06) ;  Branding of Cattle Act (CAP 36:02), 
Branding (Amendment) Regulations, 2004;  Livestock and Meat Industr ies Act (CAP 36:03), Grading of 
carcasses (Amendment) Regulations, 2004;  Hides a nd Skins Export Act (CAP 49:01), Hides and Skins 
(Amendment), Regulations, 2004;  Disease of Animal Act CAP 37:01 
Mining Mines and Minerals Act, 1999 
Electricity Botswana Power Corporations Act, 1971 
Services Banking Act, 1995;  Insurance Industry Ac t, 1987;  International Insurance Act, 2005;  
Telecommunications (Amendment) Bill, 2004;  Tourism Act, 1992; T ourism Regulations, 1996 
Foreign investment Botswana Export Develo pment and Investment Authority Act, 1997  
Source: WTO Secretariat;  and information provided by the Botswana authorities. 
23. Trade liberalization and investment promotion remain key elements of Botswana's trade 
policy framework and its development strategy .  The overall goal of broadening Botswana's 
manufacturing base for further diversification purpos es remains a key objective of the Government.  
Developing small and medium-sized enterprises is also a high priority.  The Government remains committed to creating a more enabling business envir onment to facilitate private sector growth, which 
it sees as essential to the economy's sustained and balanced development.  Botswana's overall trade 
policy will, therefore, lay the framework for divers ifying the production of goods and services for the 
local, regional, and international markets.  Trade policy, as supported by other national policies and 
strategies, is to ensure that supply-side constrai nts are addressed, propelling the private sector to 
diversify and expand its production a nd become more competitive.    
24. Botswana's four development planning objectiv es are:  economic growth, social justice, 
economic independence, and sustaina ble development.  Botswana's 9
th National Development Plan 
(NDP) aims to have Botswana as a developed economy  by 2016, built upon a sustainable, diversified, 
and competitive export-based economy.  The NDP recognizes the private sector as the engine of 
growth and the driver of the export-led growth that Botswana envisages.  The 10th NDP takes up most 
of the themes in the 9th NDP, and is due to commence before the end of 200922.  The Government 
aims to play a major role in creating a conducive environment for private-sector development by 
building institutional capacity, as well as ensuring infrastructural development.  
(2) TRADE AGREEMENTS  
25. Botswana is an original member of the WTO, and is committed to a fair trade regime based 
on multilaterally agreed principles.  Jointly with the other SACU members, Botswana notified the 
2002 SACU Agreement to the WTO in 2007 (Table II.2).  
                                                      
22 The 10th NDP covers the years 2009/10 to 2015/16. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 76 
 
 
Table II.2  
Notifications to the WTO, 2003-09  
WTO Agreement  Description of requirement  Periodicity  Most recent 
notification  Comment  
Agreement on Agriculture    
Articles 10 and 18.2 Export subsidies Annual  G/AG/N/BWA/7 
16 October 2008  No export subsidies during 
1997/98-07/08 
Article 5.7 Special safeguard provisions Annual G/AG/N/BWA/6 
17 October 2008 No special agricultural safeguards 
were invoked during 1997/98-
2007/08 
General Agreement on Tariffs and Trade     
Article XXIV:7(a) Territorial application - customs 
unions  Once WT/REG231/N/1 
28 June 2007 Notification of SACU to WTO 
Article XXIV: 7(a) Territorial application - free-trade 
areas Once WT/REG256/N/1 
3 November 2008 Notification of SACU-EFTA 
agreement 
Agreement on Technical Barriers to Trade     
Article 15.2 Review of measures for 
implementation and administration 
of the Agreement Once G/TBT/2/Add.97 
30 October 2007 Measures to ensure 
implementation and 
administration of the TBT 
Agreement in place 
Article 10.6 Information about any technical 
regulations adopted or proposed Once G/TBT/N/BWA/1 
13 November 2008  Compliance standards for 
importation of specified products 
Source:  WTO documents.  
26. Botswana is a member of the Southern A frican Development Community (SADC) and is 
currently implementing the SADC Protocol on Trade.23  Botswana is also a member of the  
African Union (Main Report, Chapter II(3)(ii)).   
27. Botswana has very few bilateral trade agreem ents.  One of these is an agreement with 
Zimbabwe, signed in 1988, which pr ovides for reciprocal duty-free entry of goods and is currently 
under review with a view to improving its rules of  origin and thereby facilitating more trade.  
Botswana also has a trade agreement with Malawi  dating back to 1956:  it has occasionally imported 
sugar from Malawi under this agreement, but much of this trade is now conducted under the SADC 
trade protocol.  
28. Botswana is eligible for GSP treatment fro m Australia, Canada, EC, Japan, New Zealand, 
Norway, Switzerland, and the United States.  This  treatment provides preferential access to these 
markets (at zero or reduced tariffs) for eligible Botswanan products, subject to rules of origin.  
Product coverage and rules of orig in vary between countries.   
29. Botswana has been a beneficiary of the U.S.  African Growth and Opportunity Act (AGOA) 
from inception (Main Report, Chapter II(3)(v)), but b ecame eligible for enhan ced access afforded to 
"lesser developed beneficiary sub-Saharan Afri can countries" from 6 August 2002. Botswana's 
exports under AGOA are mainly textiles, apparel, and a small amount of furniture. The Government 
of Botswana has recognized the need to address th e current inability to effectively capitalize on the 
preferential market access and the need to increase the competitiven ess of its products in the U.S. 
market. 
30. Botswana is currently negotiating an Econom ic Partnership Agreement (EPA) with the 
European Communities under the SADC Group, whic h comprises the SACU members plus Angola 
                                                      
23 Botswana ratified the SADC Trade Protocol on 7 January 1998 and the SADC Amendment Protocol 
on 1 December 2000 (signed on 10 November 2000). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 77 
 
 
and Mozambique. This would be a reciprocal agr eement that would allow duty-free and quota-free 
access for Botswana products into the EC market.24 
(3) INVESTMENT FRAMEWORK  
31. Botswana generally maintains an open foreign in vestment regime.  However, under its policy 
of citizen empowerment, a few manufacturing activities and services are reserved for Botswana 
citizens or companies owned by citizens of Botswana  (Table II.3).  The mining subsector is open to 
foreign investment, with the exception of small-scale projects.     
Table II.3 
Activities reserved for Botswana citizens or citizen-owned companies, 2009 
Legislation Reserved activities 
Industrial Development 
(Amendment) Regulations, 2008a Manufacture of school uniforms;  manufacture of sc hool furniture;  manufacture of burglar bars;  
manufacture of protective clothing;  milling of sor ghum;  manufacture of cement bricks and baked 
earth (mud) bricks;  baking of br ead and confectionery;  manufacture of peanut butter;  bottling of 
water;  production of traditional sour milk;  pack aging;  manufacture of floor polish;  manufacture 
of traditional leather products;  manufacture of traditional crafts;  signage, including electronic 
signage;  fencing materials, excl uding gum poles;  manufacture of candles;  ice making;  and meat 
processing  
Trade Act, 2003b Auctioneers;  bookshops;  boutiques;  car washes ;  cleaning services;  curio shops;  department 
stores;  distributors;  dry cleaning;  fresh produ ce;  funeral parlours;  furniture shops;  general 
clothing;  general dealers;  hair dressers;  hardwa re;  hire services;  laundromats;  motor dealers;  
petrol filling stations;  restaurants;   supermarkets/chain stores;  take-away  restaurants;  wholesale;  
and workshops  
Liquor Act, 2003b Liquor bars/clubs (other than bars linked to hotel  establishments);  bottle stores;  liquor depots;  
discotheques/night clubs;  and liquor distribution/wholesaling  
Mines and Minerals Act,  1999 Small-scale miningc 
a Small-scale manufacturing reserved for Botswana citizens or companies wholly owned by Botswana citizens.  
b Reserved for Botswana citizens or companie s wholly owned by Botswana citizens.  Jo int ventures in the reserved activities are  
 permitted with up to 49% foreign participa tion (or otherwise subject to approval by th e Minister of Indust ry and Trade) in 
 "medium business enterprises" with less than 100 employees  and annual sales between P 1. 5 million and P 5 million.   
c Small-scale mining means the intentional mining of minerals other than diamonds in opera tions involving the mining and 
 processing of less than 50,000 tonnes of raw ore per annum and in which the overall investment in fixed assets does not exceed  
 P 1 million. 
Source: WTO Secretariat.  
32. Botswana does not have a stand-alone foreign in vestment law, but relies on sectoral laws to 
implement its investment policy.  Because of th e size of the domestic market, the Government is 
targeting investment in export-oriented industri es, including textiles and garments, leather goods, 
information technology, minerals, diamond cutti ng and polishing, glass products, automobiles, 
electrical goods, and printing and publishing.25  FDI is also encouraged in the energy subsector, 
financial services, tourism, and healthcare.   
33. Botswana's model Bilateral Investment Tr eaty (BIT) provides for non-discriminatory 
treatment of foreign investors. The Citizen Entr epreneurial Development Agency (CEDA) was set up 
to provide financial assistance schemes to build c itizens' enterprises, and operates a Venture Capital 
Fund for joint ventures between citizens and foreigne rs.  Foreign investors are encouraged, but not 
compelled, to establish joint ventures.  The Expor t Credit and Guarantee Insurance Company (BECI) 
                                                      
24 See Main Report, Chapter II(3)(iv). 
25 As part of the economic diversification strategy, the Government is planning to establish the 
"Botswana Innovation Hub" at an expected cost of P 1 billion for infrastructure and incentives.  The project is 
aimed at attracting domestic and foreign investors in mineral technology, sustainable energy, biotechnology, and 
information and communications technology.  The infr astructure development is to be managed by the 
Botswana Development Corporation. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 78 
 
 
offers export credit to Botswana companies, rega rdless of whether citizen owned or foreign owned.  
There is no minimum required investment level,  including from foreigners.  However financial 
institutions, such as the Botswana Development Corporation or the National Development Bank, 
require a minimum contribution from the investor of 25% of the total project cost.  
34. Investment is promoted and facilitated by th e Botswana Export Development and Investment 
Authority (BEDIA). BEDIA operates a "one-stop-shop" designed to assist investors with                 pre-investment services, such as obtaining land, bu ildings, work and residency permits, licences, and 
grants, and satisfying other regulatory requirements.  Investment projects are subject to a Preliminary 
Environmental Impact Assessment to be submitted to the Department of Environmental Affairs.  
Investments in offshore financial services are prom oted by the Botswana International Financial 
Services Centre (Chapter IV(6)(i)). 
35. The new Companies Act, which ente red into force in July 2007, inter alia , introduced 
simplified procedures for company registration;  th is has reduced registration time from twelve weeks 
to five working days.
26  Business licences for manufacturing are issued by the Industrial Licensing 
Authority, under the authority of the Ministry of Trade and Industry, which considers applications on 
a weekly  basis;  decisions are communicated to appli cants within a week.  The licences must be 
renewed every year.  The Registrar of Companies and Intellectual Property, within the Ministry of Trade and Industry, maintains a register of registered entities.   
36. Freehold land can be purchased by both citizens and non-citizens.  A transfer duty applies to 
property sales:  for citizens, no duty is charged on freehold land valued at P 200,000 or less;  a 5% 
duty is charged on any amount in excess of this thr eshold.  Non-citizens, including companies with 
less than majority local ownership, pay 5% duty on the total value of freehold land.  State-owned land 
can be leased, for 50 years for business purposes and 99 y ears for residential use, subject to renewable 
options.  Tribal (communal) land can be leased for 50 years for commercial, agricultural, and 
industrial use.  A shortage of serviced industria l land has been identifie d as a major investment 
constraint in Botswana. 
37. Work permits for foreign personnel are subject to  a local labour availability market test (i.e. 
that there are no suitable national candidates) and submission of a satisfactory training programme for 
"localizing" each position.  The fees for work pe rmits were increased in 2005 to P 600 for employees, 
and P 1,000 for self-employed applicants.  
38. The corporate tax rate, at 15% for registered manufacturing companies and 25% for other 
companies, is one of the lowest in the region.  The Minister of Finance and Development Planning 
may also grant tax relief for certain bus inesses under Development Approval Orders 
(Chapter III(4)(i)).  Profits, dividends, and capital can be readily repatriated.  There are no restrictions 
on portfolio investment, and the Botswana Stoc k Exchange allows dual company listings.   
39. Botswana's Constitution prohibits nationalization of private property.  Domestic law assures 
the right to establish, acquire, and dispose of bus iness interests, and guarantees the right to private 
ownership.    
                                                     
 
26 The Act governs companies oper ating in Botswana, both through the Botswana International 
Financial Services Centre (IFSC) and those with domestic operations.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 79 
 
 
40. Botswana is currently ranked 8th in sub-Saharan Africa and 38th globally (out of 
141 countries) in terms of ease of starting a business; a major improvement on its 52nd position 
world-wide in 2008.27 
41. Botswana is a member of the International Cent re for the Settlement of Investment Disputes 
and the World Bank's Multilateral Investment Guaran tee Agency.  Botswana also signed a bilateral 
investment treaty in 1997 with the Overseas Privat e Investment Corporation (OPIC), which provides 
guarantees for U.S. private investors.  Botswana has investment promotion and protection treaties 
with Belgium and Luxembourg, China, Germany, Gh ana, Malaysia, Mauritius, and Switzerland.  It 
has double taxation agreements with France, Indi a, Mauritius, Namibia, Russia, South Africa, 
Sweden, the United Kingdom, and Zimbabwe.     
(4) TRADE -RELATED TECHNICAL ASSISTANCE  
42. Trade-related technical assistance (TRTA) has a critical role in enabling Botswana to derive 
benefits from open trade policies, as well as in its participation in the multilateral trading system.  
Botswana needs technical assistance in the following  areas:  (i) implementation of WTO agreements 
(and in deriving benefits from such implementati on);  (ii) building of human and institutional 
capacity, including for trade negotiations;  (iii) supply- side constraints;  and (iv) the integration of 
trade into overall development strategies.  
43. Botswana's submission of TRTA needs to the WTO for 2008-09 outlined the following areas:  
(i) agriculture and notifications relating thereto;  (ii) non-agricultural market  access (NAMA) issues;  
(iii) rules of origin;  (iv) scheduling of commitmen ts in services;  and (v) development of skills in 
trade negotiation techniques. 
44. The delivery of technical assistance, including for capacity building, to Botswana and other 
SACU countries has the potential, if properly coordi nated, to strengthen the integration of SACU 
countries into the multilateral trading system, as well as their evolution into common trade policy formulation at the regional level. 
(i) Implementation of WTO Agreements  
45. Botswana intends to implement legislation on anti-dumping, safeguards, and countervailing 
measures, although in view of the 2002 SACU Agreemen t this must, ultimately, be coordinated at the 
SACU level.  Enhancing Botswana's capacity to  develop such rules-based trade measures may 
contribute to stable and predictable trade policies. 
46. The last SACU TPR noted that as other trade barriers are progressively reduced, standards, 
technical regulations, and sanitary and phytosan itary (SPS) measures are likely to emerge as 
constraints on exports.  Given the relative importance to Botswana of agricultural exports – notably of 
bovine meat and products – compliance with SPS requirements is a particular challenge.  The 
Government has underlined the need for training in relation to equivalence, transparency, and 
pest-risk analysis.  The shortage of trained pe rsonnel and "hard infrastructure" in relation to SPS 
remains a challenge. 
                                                     
 
27 World Bank online information, "Doing Business:  Explore Economies:  Botswana".  Viewed at: 
http://www.doingbusiness.org/ExploreEconomies/?economyid=27 [27 March 2009]. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 80 
 
 
47. Botswana benefited from the establishment of an SPS Enquiry Point under the Joint 
Integrated Technical Assistance Programme (JITAP).28 
48. Capacity building is also needed for the deve lopment of enforcement capacity on intellectual 
property rights. 
49. On customs-related matters, in addition to regular WTO technical assistance, Botswana has 
also benefited from technical assistance from the Wo rld Customs Organisation (WCO).  However, the 
Government still needs much more capacity-bui lding assistance in customs reforms and trade 
facilitation.  In this regard, Botswana would like to  use its relatively well developed road linkages and 
central position in the SACU region to become a regional transit hub. 
(ii) Trade negotiations 
50. Botswana is involved in trade negotiations at a nu mber of levels, including with the EC in the 
context of the EPAs (as part of the SADC) (Mai n Report, Chapter II(3)(iv)), SADC, SACU, and the 
Doha Development Agenda (DDA) negotiations.  This multifaceted, and sometimes overlapping, 
negotiating agenda entails an urge nt need to develop and coordina te negotiating positions on various 
fronts.   
51. Since negotiations can be used as a means of strengthening and "locking-in" domestic 
reforms, capacity building should focus on formulat ing negotiating positions and strategies that are 
based on the domestic reform process.29  In relation to the DDA negotiations, the Government has 
continuously highlighted trade in services as bei ng a key area for technical assistance, including for 
institutional capacity building.  This is in view of th e fact that trade in servi ces has been identified as 
having a key role in Botswana's economic diversification.    
52. Botswana, like many other small developing c ountries, faces considerable challenges in 
dealing with the volume of work involved in the WTO work programme, especially in light of the 
DDA negotiations.   
(iii) Supply-side constraints and integration of  trade into development strategies 
53. Botswana suffers from a range of supply-side cons traints.  Its main challenge with respect to 
trade is its landlocked position.  In addition, since the country is fairly large (though sparsely 
populated), its main port access is a considerable  distance from the production/consumption centres.  
Nevertheless, it has a relatively good internal road  network, which guarantees quick transit for goods 
to and from the ports. 
54. Botswana still faces the challenge of diversif ying away from heavy dependence on diamonds.  
This is particularly relevant in view of the significantly reduced demand as a result of the global 
financial crisis.30  Botswana, therefore, needs assistance in identifying measures to diversify the 
economy, but without introducing inefficiency.   
55. Botswana's participation in international trad e and its trade reforms have been significant 
factors in promoting economic growth and alleviati ng poverty.  It is also assisted by its periodic 
                                                      
28 The JITAP expired on 31 December 2007. 
29 WTO (2003), Annex 1. 
30 At the time of preparing this Report, all four Botswana diamond mines had been closed for a few 
months due to poor demand, with two of them on course to be closed permanently, resulting in the loss of several thousand jobs, and likely to have a multiplier effect on vertically connected sectors of the economy. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 81 
 
 
national development plans in which policy prior ities are set out, although some trade-related policy 
issues are considered on a sectoral basis.  While inte r-ministerial coordination exists in relation to the 
formulation of trade policy, greater collaboration between ministries and departments on integrating 
trade into the overall architecture of development po licy would be beneficial.  Botswana would also 
benefit from a more systematic analysis of trade policy options geared towards poverty reduction.   
56. The Botswana Trade and Poverty Programme with the UK Department for International 
Development (DFID) has been  finalized, and Botswana has bene fited through DFID funding for 
capacity building in trade and development pol icy, and supported poverty programmes. The 
programme has benefited both the public and private sectors.  
57. Challenges identified at the national level ma y be addressed through priority areas for AFT 
intervention to improve the country's capacity to benefit from trade expansion.  These priorities fall 
within six broad thematic areas:  infrastructure and institutional development;  capacity building for 
the private sector and government officials;  expor t diversification;  regional integration;  trade 
facilitation;  and trade policy analysis and negotiations. 
58. Botswana, like most other countries in the sub-region, is currently faced with many 
challenges such as HIV/AIDS , lack of capacity, and an undiversified economy, and as such is still in 
need of aid dedicated to trade to, inter alia , build infrastructure for trade facilitation purposes.  This 
will help Botswana to achieve greater integration into the global economy.  Botswana has benefited 
from a range of trade-related technical assistance activities;  the commitment of development partners has materialised in various activities in support of trade development, including capacity-building 
activities in various trade disciplines, and trade f acilitation initiatives.  Nonetheless, the volume of aid 
available to it is not commensurate with its needs.   
 
 WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 82 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
59. Botswana applies SACU common external tariffs and excise duties, related exemptions and 
rebates, as well as any contingency trade remedies.  Under SACU's provisions for infant industry 
protection, Botswana imposes additional duties on impor ts of ultra-heat-treated milk from all sources, 
it also levies additional duties on flour imports deemed to constitute unfair competition.   
60. Botswana's Customs is using UNCTAD's Automated System for Customs Data (ASYCUDA) 
with a risk-based inspection system.  It has also introduced a post-clearance audit system as a trade 
facilitation measure.  Internal taxes on imports and domestic goods and servi ces consist mainly of 
value-added tax, fuel and alcohol levies, a nd a copyright levy introduced in 2009.   
61. Botswana has applied seasonal or temporary qua ntitative restrictions on imports of dairy 
products, poultry products, grains and some vegetables, to protect domestic producers.  Technical 
regulations and standards are ba sed on international norms, includi ng those of Botswana's major 
trading partners, especially South Africa.  Exports  of cattle are taxed, and the Botswana Meat 
Commission has a statutory monopoly on beef exports.  The textiles and automotive industries have 
access to import duty credit schemes that are linke d to export performance; the schemes are designed 
to promote exports to non-SACU markets.         
62. Botswana applies price preference and reser vation schemes in public procurement.  The 
privatization process has slowed in recent years.  A competition law is pending, while price controls 
are maintained on certain goods (petroleum products, water, electricity) and services.   Botswana has 
taken steps to strengthen its intellectual property regime, notably in the area of copyright.   
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
63. Under the SACU Agreement, Botswana, Lesot ho, Namibia, and Swaziland apply import 
duties and related measures set by South Africa in consultation with BLNS countries.  In practice, 
ordinary customs duties, excise duties, tariff exemptions and concessions , valuation methods, non-
preferential rules of origin, and contingency trade re medies are, so far, the only trade policy measures 
harmonized throughout SACU (Main Report, Chapter III).   
(i) Registration  
64. Trading licences are issued by the Ministry of  Trade and Industry for non-liquor products 
under the Trade Act, 2003 and for liquor products under the Liquor Act, 2003.  Under both acts, a 
number of activities are reserved for citizens of Bots wana or companies wholly owned by citizens of 
Botswana (Table II.3).31  According to the authorities, importer/exporter licences and "specialized 
dealer's" licences were phased out in May 2008, si nce such licences were abused by traders for 
business in the reserved activities, due to lack of appropriate definition of licences.  Importers and 
exporters have since been requi red to obtain distributor licences, on condition of holding a valid 
contract with the supplier.  The Trade Act and th e Liquor Act are under review to improve procedures 
for obtaining business licences.  
                                                      
31 Joint ventures in the reserved activities are permitted with up to 49% foreign participation (or 
otherwise subject to approval by the Minister of Industry and Trade) in "medium business enterprises" with less 
than 100 employees and annual sales between P 1.5 million and P 5 million.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 83 
 
 
(ii) Customs procedures 
65. The Botswana United Revenue Service (BURS) is, inter alia , responsible for assessing and 
collecting customs and excise duties, value-added tax, and fuel levies.  It also collects flour levies, 
alcohol levies, road-user charges, and road-safety levies on behalf of other government authorities.  
All importers (and exporters) with an  annual turnover of at least P 20,0 00 are required to register with 
the Customs and Excise Division of BURS, and are given a Trader Identification Number (TIN).  Clearing agents are mandatory for commercial imports.
32    
66. The principal documents required for custom s clearance are the customs declaration, 
commercial invoice, bill of lading (or air waybill), certificate of origin (for goods covered by 
preferential trade agreements), and packing list. De pending on the nature of the product, a technical 
conformity/health/veterinary certificate and/or an  import permit (licence) may be required.   
67. Customs procedures have been computerized using UNCTAD's ASYCUDA, enabling traders 
to submit customs declarations electronically (Direct Trader Input) using the single administrative document (SAD).  Imported goods 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. This system has helped Customs to increase interception of illegal consignments.
33  Customs 
performs inspections on behalf of, inter alia , the Departments for Animal Health and Protection;  
Water Affairs;  Wildlife and National Parks;  and th e Botswana Police Service.  BURS is planning to 
undertake a time-release study in 2009/10 to assess clearance procedures at port of entry and the 
average time between arrival of goods and their release.    
68. Botswana does not apply pre-shipment insp ection.  To facilitate trade, BURS has 
implemented a post-clearance audit system to verify  import and export declarations:  9% of total 
processed declarations (656,478) were audited in 2006/07.  Botswana and Namibia are planning to 
establish a one-stop border post at the Mamuno-Tran s Kalahari border post to reduce transit times 
(Chapter IV(6)(iii)(a)).   
69. The customs legislation (the Customs and Excise Duty Act (CAP 50:01) of 1970) was last 
amended in 2003, to update and align it with th e South African Customs and Excise Act. Goods 
infringing intellectual property rights may be placed under embargo, destroyed or otherwise disposed 
of. Administrative decisions by Customs can be a ppealed in Court within three months of the 
decision. 
70. According to World Bank analyses, Botswana  does not perform well on a global scale, in 
terms of the ease of trading acro ss borders: it is currently ranked 148th among 181 economies 
(Lesotho 141st;  South Africa 147th;  Namibia 149th;  and Swaziland 154th).34  This analysis compares 
the costs and procedures involved in importing and exporting a standardized cargo of goods by ocean 
transport. 
(iii) Other duties, levies, and charges 
71. Botswana exercises its right under the SACU Ag reement to levy additional duties in specific 
cases to protect infant industries;  temporary protection may be provided for a maximum of eight years.   Since 2007, the dairy industry has received pr otection through additional duties imposed on 
                                                     
 
32 All clearing agents are required to register with BURS, irrespective of annual turnover.   
33 Botswana United Revenu e Service (undated). 
34 World Bank (2009). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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imports of ultra-heat-treated (UHT) milk; Botswana  imports over half of its fresh milk requirements.35  
Since April 2008, the additional duty has been levied  at a rate of 40%; the revenues are deposited in 
the Common Revenue Pool.   
72. A 15% flour levy is collected on imports of bread flour from all sources with the objective of 
protecting the domestic milling industry from unfai r competition;  Botswana does not have an 
institutional framework to address unfair competition.  The flour levy is not shared in the SACU 
Common Revenue Pool.36  
73. Road-user charges and road-safety levies are im posed at the border on foreign-registered 
vehicles for the purpose of providing revenue for the maintenance of roads, and for road safety 
campaigns (Chapter IV(6)(iii)(a)).  Receipts from road-user charges amounted to P 48.8 million in 
2006/07.   
74. Botswana has notified the WTO Committee on Agri culture that it did not apply the special 
agricultural safeguard in the period 1997/98 to 2007/08.37 
(a) Tariff and tax exemptions 
75. Botswana provides tariff exemptions and concessions on imported inputs used for 
manufacturing (or exporting) goods.  All schemes a pplied by Botswana are harmonized within SACU 
(Main Report, Chapter III).  Goods imported under su ch schemes must be taken directly from the port 
of entry to a customs bonded warehouse. Commercial importers (and exporters) may apply to Botswana United Revenue Service for a licence to operate a bonded warehouse. 
(b) Internal taxes 
76. Botswana applies VAT on domestic and impor ted goods and services, including from SACU 
members.  The standard rate is 10%.  Zero-rated items include staple foods (millet grain and meal, 
wheat, maize cobs, flour, sugar, maize meal, sorghum meal, and Setswana beans);  fuel (petrol, diesel, 
paraffin);  and fertilizers, pesticides, farming tr actors, and transport services.  Goods and services 
exported from Botswana are also zero-rated.  The ma in VAT-exempt items are fi nancial, educational, 
and medical services;  long-term residential letti ng (including provision of hostel accommodation on a 
non-profit basis);  leasing or renting of land for erecting a dwelling;  and prescription drugs.   
77. The business threshold for VAT registration is an  annual turnover above P250,000.  The base 
for levying VAT on imports differs slightly between SACU and non-SACU countries.  For 
non-SACU countries, VAT is levied on  the import's landed duty-paid price, i.e. f.o.b. price and import 
duties, plus the value of any services relati ng to the good, such as commission, packaging, 
transportation, and insurance. Impor ts from SACU members are levied on the greater of their f.o.b. 
price plus freight and insurance costs (i.e. lande d duty-free price), and their transaction value.  
Botswana has a bond guarantee system for the deferred payment of VAT and customs duties.
38  
Goods held in bonded warehouses are not subject to VAT until they are cleared for use.    
78. Imports and domestic sales of pe troleum products are subject to a levy (fuel levy) at the rate 
of P 0.04 per litre.   
                                                      
35 WTO document WT/REG/231/3, 12 December 2008, page 6.  
36 Botswana United Revenu e Service (undated). 
37 WTO document G/AG/N/BWA/6, dated 17 October 2008. 
38 BIDPA and World Bank (2006), p. 97. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 85 
 
 
79. In 2008, an alcohol levy was introduced at the rate of 30% on imported and locally 
manufactured liquor.  The levy is remitted by BU RS to a special fund designed to promote activities 
to combat alcohol abuse and its effects.    
80. On 1 April 2009, Botswana introduced a copyright levy on imported and locally 
manufactured carrier media (section (4)(iv)). 
(iv) Import prohibitions and licensing  
81. There have been few changes to Botswana's import licensing regime since 2003.  Import 
permits are generally required for imports of industrial products from outside SACU, except from 
Malawi and Zimbabwe.  Permits are issued by th e Ministry of Trade and Industry (Department of 
International Trade).   
82. Prior to obtaining an import permit, imports of  agricultural products, plants, livestock, and 
soil from all sources require approval from the Ministry  of Agriculture for sanitary and phytosanitary 
reasons.  Imports of vege tables, dairy products, meat and meat products, and poultry require an import 
permit on food security grounds.  Poultry imports are permitted only when there is a shortfall of poultry products in the domestic market.  Import re strictions have also been imposed on grains from 
time to time to protect local producers.  Imports of  some vegetables and da iry products are seasonally 
banned when it is determined that domestic supplie s are adequate.  Milk imports, including from 
SACU, are subject to import quotas established on a quarterly basis by a Milk Importation Committee 
comprising producers and processors.    
83. Imports of firearms and ammunition require a permit for security reasons.  Import licences are 
also required for boats (issued by the Department of Water Affairs), and for imports of second-hand 
goods, such as motor vehicles and clothing.  The Ministry of Environment, Wildlife, and Tourism licenses imports of endangered species covered by  the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora (CITES).   
84. Import prohibitions apply to goods such as narcotic drugs, obscene material, and 
environmentally hazardous products, such as toxic or radio-active waste, mainly to protect health, 
safety, and morality.   
(v) Standards and other technical requirements 
(a) Technical barriers to trade 
85. The Botswana Bureau of Standards (BOBS), established in 1997 (Standards Act No. 16, 
1995), is responsible for preparing and promoti ng technical regulations and standards on goods, 
services, and processes.  The Bureau, headed by a 12-member Standards Council, is a member of the 
International Organization for Standardization (IS O) and participates in regional standardization 
initiatives, including SADC Cooperation in Standardi zation (SADCSTAN).  It also functions as the 
national notification authority and national enquiry point under the WTO TBT Agreement.
39   
86. Botswana has accepted the Code of Good Pr actice for the Preparation, Adoption and 
Application of Standards contained in Annex 3 of  the WTO TBT Agreement.  Standards are based on 
international norms (e.g. ISO or International Elect rotechnical Commission) and those of Botswana's 
major trading partners, especially South Africa.  They are developed in six stages:  proposal, drafting, technical committee review, public comment, approval, and publication.  Standardization projects are 
                                                     
 
39 WTO document G/TBT/2/Add.97, 30 October 2007. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 86 
 
 
initiated through requests from interested parti es (including technical committee members, 
government departments, consumers, manufacturers, BOBS, individuals).  The Bureau of Standards 
evaluates the requests and makes recommendations to  the Standards Council for priority areas, on the 
basis of which the Council approves annual work programmes.  Draft standards are reviewed by 
technical committees and circulated for public comme nt.  Accepted comments are incorporated and 
draft standards are sent to the Standards Council fo r approval.  The public has a two-month period to 
comment on draft standards.  In the case of a techni cal regulation, the public notice must contain full 
details of the "mandatory standard"; it does not beco me effective until the date specified in the notice, 
which must not be less than two months after the date of publication (Sec tion 19 of the Standards 
Act).  In principle, all product standards that affe ct health, safety, and the environment are mandatory, 
such as on dairy products, animal feeds, and electri cal appliances.  Botswa na has seven technical 
regulations (mandatory standards), which are revise d periodically.  Violations of mandatory standards 
are liable to a fine of P 5,000 and imprisonment of three years (Section 14 of the Standards Act).   
87. The Standards (Import Inspection) Regulations  of 2008, implemented since 1 April 2009, 
require a pre-arrival compliance certificate from th e Bureau of Standards for imports of designated 
products.40  The certificate is issued by the Bureau of Standards or a recognized certifying body to 
attest compliance with a Botswana or foreign t echnical regulation recognized by the Bureau of 
Standards (Article 6).  Imports that  are not covered by a certificate issued by the relevant authority in 
the exporting country are sampled at the border to determine compliance;  non-compliant imports are 
re-exported at the expense of the im porters, or otherwise disposed of.41   
88. Botswana's conformity testing infrastructure is limited:  there are three accredited laboratories 
in Botswana.  The Bureau of Standards is in the process of equipping its laboratories with adequate 
testing facilities;  it relies on private laboratories to test products.  Botswana recognizes foreign test results from accredited testing laboratories.   
89. Botswana  has not signed any mutual recogniti on agreements, but is collaborating with SADC 
countries to develop a regional body for accreditati on of conformity assessment facilities (SADCAS), 
which would allow mutual recognition among all me mbers.  The Botswana National Accreditation 
Focal Point (BNAFP) was launched in August 2007 as a link to SADCAS, to facilitate the elimination 
of technical barriers to trade among SADC member s, in the region and with other regional blocs.
42  
Under Article 28 of 2002 SACU Agreement, Botswana  and other members have agreed to strive to 
harmonize product standards and technical regul ations (Main Report, Chapter II(2)(v)).  
(b) Sanitary and phytosanitary (SPS) measures 
90. The Ministry of Health is responsible for f ood safety, and is advised by the National Food 
Control Board.  The Board, established under the Food Control Act of 1993, comprises government officials from a number of ministries, including the Ministries of Health, and Agriculture.   
                                                     
 
40 WTO document G/TBT/N/BWA/1, 13 November 2008;  and Botswana Standards online 
information, "Standards (Import Inspection) Regulations  of 2008". Viewed at:  http://www.bobstandards.bw/ 
web_en/news/articles/Import_Inspection_Regulation_2007.pdf.  The products subject to pre-arrival compliance certification include cattle and chicken feed, milk, sorg hum, pulses, peanut butter, canned fish; electrical  
appliances; plastic bags; cement, and pre-packaged consumer goods.  
41 Imported goods covered by a mutual recognition agreement and inspected by the exporting country's 
recognized certifying body would not be subject to inspection at the border (Article 4).  
42 Trade Law Centre for Southern Africa online information, "Botswana launches accreditation body", 
8 August 2008.  Viewed at http ://www.icoh2009.co.za/cgi-bin/giga.c gi?cmd=cause_dir_news_item&cause_id 
=1694&news_id=43367&cat_id=1090.  SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 87 
 
 
91. The Ministry of Agriculture (through the Departments of Crop Production and Veterinary 
Services) is responsible for the implementation of veterinary and phytosanitary measures.  The 
Ministry is also the national enquiry point, and notification authority on SPS matters.  However, the 
last notification submitted by Botswana unde r the SPS Agreement dates back to 1997.43  
92. Foot-and-mouth disease (FMD) is endemic in northern Botswana.  The virus is carried by 
wild buffalos roaming freely in the northern game re serves and national parks;  for this reason, it is 
considered that complete freedom from FM D is practically impossible in Botswana.44  Outbreaks of 
FMD are considered a national disaster.  There were no outbreaks between  1980 and 2001 but since 
2002 outbreaks have occurred every year, except in 2004.   The last outbreak occurred in the district of 
Ghanzi on 23 October 2008, leading to the temporary suspension of meat exports.45   
93. Disease prevention and control is based on the Diseases of Animals Act of 1977 (as 
amended), under which FMD is a notifiable disease requiring any person who suspects or has reason 
to suspect the disease to report it immediately.  Botswana has moved from a control policy of 
destruction of the affected herds (applied until 20 02) to a policy based on strict border controls, 
quarantine, vaccination in high-risk areas, and region alization.  The policy has been shaped by OIE 
recommendations and standards.  A bout two thirds of the country is FMD-free without vaccination; 
elsewhere, bovine animals are vaccinated against FMD.   As part of the disease control strategy, the 
country is divided into fenced-off control zones.  The Government also maintains quarantine points 
for animal movements (Chapter IV(2)(iii)).   
94. The use of hormonal growth promoters in livestock and of animal protein in livestock feed are 
prohibited.  Residues of antibiotics, heavy metals, and pesticides in meat and milk are monitored to 
ensure they do not exceed maximum allowable levels.  
95. Measures to prevent the introduction and spread  of pests and plant diseases are governed by 
the Plant Diseases and Pests Act of 1959 (as amended) .  A permit is required for imports of plants.  
Imported plants and plant products are subject to inspection at approved ports of entry and may be 
destroyed if necessary, and premises may be quarantined.46 
96. The Plant Diseases and Pest Act has been supe rseded by the Plant Protection Act of 2007, 
which entered into force on 1 April 2009. Under the new Act, a National Plant Protection Organisation (NPPO) is to be established who se main functions include implementing the 
International Plant Protection Convention and inte rnational phytosanitary standards;  issuing 
phytosanitary and import certificates;  inspecting a nd certifying consignments for export; establishing 
auditing and traceability procedures;  and notifyi ng phytosanitary measures in accordance with 
international obligations.  While Bo tswana is not yet a signatory to the International Plant Protection 
Convention, instruments of adherence were su bmitted to the FAO in April 2009.      
                                                     
 
43 WTO document G/SPS/N/BWA/3, 29 October 1997. 
44 Mapitse (2008).   
45 Following Botswana's measures to control the spread of FMD in the Ghanzi district, the EC 
authorized imports from parts of Botswana of de-boned and matured fresh meat of bovine, ovine, and caprine animals, and farmed and wild game (hooved animals);  these regions are listed in Part 1 of Annex II to EC 
Council Decision 79/542/EEC (G/SPS/N/ EEC/308/Add.2 of 3 December 2008).  
46 Four airports, eleven land road crossings, two points of entry by rail, and two by water have been 
approved. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 88 
 
 
97. Botswana is also in the process of adopting a regulatory framework for biotechnology 
products, including genetically modified organisms.  Overall, Botswana's SPS regime has insufficient 
capacity to provide adequate plant protection services.47  
(vi) Government procurement 
98. Botswana's procurement policy is driven by the objective of ensuring competition, fairness, 
value for money, efficiency, transparency, and acc ountability in the management of tenders.  At the 
same time, the policy seeks to assist the economic empowerment of Botswana citizens through reservation and preference schemes.  Botswana is not a member nor observer of the WTO Plurilateral Agreement on Government Procurement.  
99. Public procurement by central government entities is governed by the Public Procurement and 
Asset Disposal Act of 2001, and the Public Procur ement and Asset Disposal Regulations of 2006.   
The law applies to the procurement of works, services, and supplies.
48  As part of efforts to curb 
corruption in public procurement, the Local Author ities Procurement and Asset and Disposal Bill was 
passed in July 2008;  this authorizes the Ministry of Local Government to monitor the procurement by 
local authorities.49   
100. Since 2003, public procurement at central govern ment level has been managed by the Public 
Procurement and Asset Disposal Board (PPADB), an independent seven-member body appointed by  
the Minister of Finance and Development Planning.50  PPADP has a pre-eminent role in Botswana:  
its Board awards tenders for infrastructure projects and services that are financed by the Government's 
development budget; the development budget totalled P 7.2 billion in 2007/08.  The PPADP also has 
a role in the privatization of state- owned enterprises (see section (4)(ii)).  
101. The procuring entities under the supervision of PPADB are the District Administrative 
Tender Committees (DATCs), Ministerial Tender Committees (MTCs), and a Special Procurement and Asset Disposal Committee; ad hoc committees may also be established.  As of 1 April 2008, the 
tendering thresholds were P 500,000 for DATCs a nd P 5 million for MTCs.  The PPADB is required 
to examine, at least once a year, the business practices and compliance of each procuring entity.  The 
PPADB is audited by the Auditor General, and its performance is reviewed by an independent 
advisory body appointed by the Minister.  A firs t version of an operations  manual was published in 
July 2008 to assist procurement staff and to estab lish a standardized national approach to public 
procurement activities.
51  The specification of brands in gove rnment tenders is not permitted.   
102. The following procurement methods are used at central government level:  (i) open domestic 
bidding;  (ii) open international bidding;  (iii) restri cted domestic bidding;  (iv) restricted international 
domestic bidding;  (v) quotation proposal procurem ent; (vi) micro procurement;  and (vii) direct 
procurement.   The appropriate tender method in each case is selected by PPADB.  
                                                      
47 NEPAD/FAO (2005). 
48 Parastatal entities and local authorities are outside th e scope of the Act.  However, contracts awarded 
by such entities that are funded by government contributions are subject to the applicable procurement provisions.  The Act is currently under review to, inter alia , relax restrictions on retroactive approvals in case of 
emergencies and to include provisions for dealing with poorly performing contractors and service suppliers.  
49 Mmegi Online , "House passes Local Authority Bill", 31 July 2008.  Viewed at:  
http://www.mmegi.bw/index.php?sid=1&ai d=17&dir=2008/July/Thursday31.  
50 The PPADB is required to present an annual performance report to the Minister of Finance and 
Development Planning, for submission to the National Assembly.   
51 Finnigan (2008). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 89 
 
 
103. Under open domestic tenders, par ticipation of foreign companies registered in Botswana is 
permitted but reservation/preferences schemes may appl y.  Open international bidding must be used 
for contracts above P 50 million.  Tenders exce eding a value of P 100,000 are published in the 
Botswana  Government Gazette , in local newspapers and on th e Government's central website.52  
Pre-qualification is used under open bidding procedur es to obtain a short-list of bidders with proven 
capability and the resources to perform the contract  satisfactorily. The pre-qualification period is 
advertised and open to all bidders for at least 14 days.  The PPADB publishe s pre-qualification lists 
and newly registered contractors.  The minimum bidding periods are:  six weeks for open international bidding, four weeks for open domestic bidding, and two weeks for a selective tendering.  
Standardized bidding packages are availabl e for works, supplies, and services.    
104. Under restricted domestic tenders, bids are solicited from a limited number of potential 
suppliers. 
 Restricted domestic bidding is used where th e supplies, works or services are available 
only from a limited number of providers;  or wher e there is insufficient time for an open bidding 
procedure due to an emergency situa tion or other exceptional circumstances.   The quotation proposal 
method requires that bids are sought from at least five suppliers;  this is used when there is 
insufficient time for an open or restricted bidding pr ocedure due to an emergency situation, or other 
exceptional circumstances.  In micro procurement (up to a threshold of P 20,000), the supplier is 
selected without competition;  under this procedure,  there is no bidding documentation, written bid, or 
signed contract.  In direct procurement, the supplie r is selected without compet ition, e.g. where there 
is insufficient time for other procurement methods due  to an emergency situation; the supplies, works 
or services are available from only one provider; an  existing procurement contract is extended; 
additional supplies, works or services are required to  be compatible with existing ones; or it is 
advantageous or necessary to purchase from the original supplier to ensure continuity.53   
105. Bid evaluation, which is the responsibility of the procuring entities, 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 method are used; for supplies, the least-cost method, and for 
services, any of the above methods may be used.  Following the bid evaluation, procuring entity 
makes a recommendation to PPADB for adjudication and approval based on an assessment of cost 
and technical merit, and citizen pa rticipation considerations (reserv ation and preference schemes).  
Award decisions by PPADB  are published in the Government Daily News  and on the PPADB 
website, and distributed to District Commissioners' offices country-wide.   
106. The Independent Complaints Review Committee,  established in November 2004, deals with 
complaints against tender awards and other grievances by bidders.  Administrative decisions may subsequently be challenged before the High C ourt.  Numerous PPADB decisions have been 
challenged in court.
54   
107. Botswana has reservation and price preference schemes in place that have the effect of 
discriminating between domestic and fo reign-owned goods, services or suppliers.55  
Botswana-citizen-owned companies benefit from a pri ce preference margin over foreign companies in 
                                                      
52 Under restricted bidding and direct procurement, selected bidders are invited without public 
advertisement.  
53 Finnigan (2008). 
54 Transparency International (2007). 
55 In accordance with the Public Procurement and Disposal Act (CAP.42:08), "the Government may 
from time to time introduce reserved and preferential procurement and asset disposal schemes, which shall be consistent with its external obligations and its stable, market oriented, macro-economic framework" (Article 66). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 90 
 
 
the range of 2-5%.56  Price preferences may also be capped to meet the dual objectives of citizen 
empowerment and of value-for-money in governme nt procurement (for example, for information 
technology and consulting services, the ma ximum preference allowed is P 100,000).57  No reservation 
or preference is permitted in open internationa l bidding for contracts over P 50 million.   
108. The Local Procurement Programme (LPP) was renewed in August 2004 and expanded by a 
Presidential Directive on the Use of Locally Manufactured Goods and Services.58  The Directive 
instructs the central government, local authorities, and parastatals to procure 30% of annual public 
purchases of goods and services from locally registered manufacturers and service providers.59  The 
programme applies to tenders of up to P 300,000.  Eligible firms, local or foreign, must register 
annually with the Ministry of Trade and Industry (D epartment of Industrial Affairs):  the registration 
list is used by procuring entities as a source of in formation on the availability of locally produced 
goods and services.  The firms must be properly licensed, and their products must meet the Botswana Bureau of Standards and other requirements.   
109. Issues of concern with regard to the LPP ar e the lack of quality certification of many goods 
and services, and the limited availability or high price of locally manufactured goods and services; 
some local suppliers may end up importing finished goods, while service providers may subcontract 
to foreign service providers.
60  
110. Reservation and price preference schemes are also implemented by the Ministry of Works and 
Transport for locally manufactured building and co nstruction products; by the Ministry of Finance 
and Development Planning for citizen-owned c onsultancy companies and information technology 
providers; and by the Ministry of Health for citizen-owned companies manufacturing and/or 
supplying medicines, laboratory reagents, medical equipment, and related medical supplies.61   
(vii) Local-content requirements 
111. Local-content requirements are an important el ement of Botswana's government procurement 
policy.  As part of a "Buy Botswana" campaign,  a task force (comprising the Government, the 
Botswana Confederation of Commerce, Industry,  and Manpower (BOCCIM), and the private sector) 
has been established with the aim of opening outlets for local suppliers.   
                                                      
56 The price preferences are:  5% for fully Botswana-citizen-owned entities;  3% for an entity that is   
51-99% Botswana-citizen-owned; otherwise 2% (Tenderscan online information, "Tendering in Botswana". 
Viewed at:  http://www.tenderscan.c o.za/Procurement/Botswana.aspx). 
57 Tenderscan online information, "Tendering in Bots wana".  Viewed at:  http://www.tenderscan.co.za/ 
Procurement/Botswana.aspx. 
58 The programme covers, inter alia , business services, communicati on services (t elecommunication 
services, audiovisual services),  and financial services (all insurance and insu rance-related services);           
health-related and social services (hos pital services, other human health serv ices, social services);  tourism and 
travel-related services;  and transport services. 
59 Ministry of Trade and Industry online information, "Guidelines on  the use of locally manufactured 
goods and services".  Viewed  at:  http://www.mti. gov.bw/index.php?option=com_rubberdoc&view= 
category&id=41%3Aindustrial-affairs&Itemid=9.   
60 Ministry of Trade and Industry (undated). 
61 Ministry of Trade and Industry online information, "Guidelines on  the use of locally manufactured 
goods and services". Viewed at: http://www.mti.gov.bw/index.php?option=com_rubberdoc&view= category&id=41%3Aindustrial-affairs&Itemid=9.  SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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(viii) Other measures 
112. Botswana has no official countertrade or off set arrangements, or agreements designed to 
influence the quantity or value of goods and service s exported to Botswana.  Botswana has no trade 
sanctions in force.  
113. Botswana maintains strategic reserve stocks in  grains and petroleum products.  The Botswana 
Agricultural Marketing Board holds grain reserves, which are estimated to cover 240 days of domestic 
consumption of sorghum, and 75 days of maize (C hapter IV(2)(ii)).  Under the Government's Oil 
Storage Development Programme, strategic fuel storage facilities, constructed at Gaborone and 
Francistown, maintain stocks equivalent to 90 days of national consumption.   
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and taxes  
114. The same registration procedures apply to importe rs and exporters (secti on (2)(ii) above).  An 
export declaration is require d for all commercial exports. 
115. The Cattle Export and Slaughter Levy Act 10 of  2005 provides for the imposition of a levy 
per head of cattle exported from Botswana or sl aughtered at the Botswana Meat Corporation, 
municipal abattoirs, private abattoirs, and butchers.  The levy rate is currently P 10 per animal;  a fine 
of P 300 per head, a term of two months impr isonment or both are imposed for exporting or 
attempting to export cattle without paying the levy (Chapter IV(2)(iii)).    
(ii) Export prohibitions, restrictions, and licensing 
116. Licences are required for all exports, including to other SACU members, for food security, 
sanitary and phytosanitary, and statistical reasons , and under international conventions to which 
Botswana is a signatory.  Under the Control of Livestock Industry Act of 1941 (as amended), exports 
of livestock and animal products are subject to a permit issued by the Director of the Veterinary Service.  In addition, exports of wild animals or  their products (trophy or meat) require a permit from 
the Department of Wildlife and National Parks.    
117. Exports of rough diamonds have been affected  by the terms of commercial agreements 
governing the sale of diamonds by Debswana (curre ntly Botswana's only diamond producer, in which 
the Government holds a 50% stake with De Beer s) to the London-based Diamond Trading Company 
(DTC), an international cartel operated by De Beer s, through which virtually Debswana's entire output 
is distributed (Chapter IV(3)(i)).   
118. Botswana is a founding member of the Unite d Nations' Kimberley Process Certification 
Scheme (KPCS), launched on 1 January 2003.
62  T h i s  r e q u i r e s ,  inter alia , all rough diamonds 
exported from Botswana to have a valid Kimberle y Process Certificate issu ed by the competent 
authority (all imports must also have a valid certificate issued by the exporting country).63  Under a 
peer review conducted in 2004, Botswana was judge d a "role model" in implementing the Kimberley 
                                                      
62 See also the decision (waiver) by the Genera l Council on the Kimberley Process Certification 
Scheme for Rough Diamonds (WTO docu ment WT/L/676, 19 December 2006). 
63 The Kimberley Process governs production and trade in rough diamonds only (HS codes 7102.10, 
7102.21, and 7102.31);  polished diamonds do not require a Kimberley Process certificate.  WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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Process.64  Kimberley Process Certificates are issued by the Ministry of Minerals, Energy, and Water 
Resources (Mineral Affairs Division).    
119. Exports of unprocessed (uncut) semi-precious st ones are prohibited to ensure processing in 
Botswana.     
(iii) Export subsidies, finance, and assistance 
120. Under the 1969 and 2002 SACU agreements, SACU  members agreed to harmonize their duty 
and tax concessions on imports (Main Report, Chapter III(3)(v)), but competition among governments 
in the region to provide incentives for investment and exports remains fierce.   The Government of 
Botswana is in the process of developing special economic zones.   
121. Furthermore, Botswana operates two industr y-specific import duty credit schemes linked to 
export performance, which are designed to promote exports to non-SACU markets (the Duty Credit 
Certificate scheme for textiles and clothing, and the Motor Industry Development Programme (MIDP) 
for the automobile industry (Main Report, Chapter III).   
122. Duty drawback is available on capital equipm ent and manufactured inputs used for exports 
outside of SACU.  Claims must be made within six months of the da te of export and are settled within 
three months.  
123. Unlike South Africa and other SADC countri es, Botswana does not provide concessional 
trade finance or credit, but it offers export credit insurance.65  The parastatal Botswana Export Credit 
Insurance and Guarantee Company (BECI) provides expor t credit insurance for exporters of local or 
foreign ownership.  The company was established in 1996 as a wholly owned subsidiary of the 
Botswana Development Corporation, and is a me mber of the Prague Club of the Berne Union.66  
BECI offers insurance against non- payment by foreign buyers resu lting from commercial risk (default 
and insolvency) and political risk (transfer delays, stri kes, war or import restrictions that prevent entry 
in the buying country).67  It covers up to 85% of commercial ri sks and up to 90% of political risks.  
Goods and services are eligible.  Exports cove red in 2007-08 included mainly steel, paper bags, 
tobacco, construction material, leather, textiles,  agricultural products, and motor parts.  The 
Government has reinsured political risks since 1997 (Political Risk Reinsurance Act 1997), while 
commercial risks are reinsured by th e private reinsurance market.   
124. Export promotion is mainly the responsibilit y of the Botswana Export Development and 
Investment Authority (BEDIA), established in 1998.  It arranges participation of manufacturing 
enterprises in regional and international exhibitions , and facilitates buyer-seller contacts.  It also 
conducts overseas market research aimed at finding export markets for Botswana-made products.  In 
2007, BEDIA launched an export development progr amme aimed at improving exporters' marketing 
                                                      
64 "Botswana offers some excellent examples of best practice, in particular its internal controls from 
mine to first export. Security and audit requirements at the mines through to export at the international airport are first-class" (Kimberley Process online informat ion, "Documents:  Review  Visits". Viewed at:  
http://www.kimberleyprocess.com/doc uments/review_visits_en.html). 
65 BIDPA and World Bank (2006), p. 64. 
66 Prague Club members are involved in insuring or guaranteeing export credit transactions and in 
underwriting political risk, but do not yet meet the entrance requirements for the Berne Union.   
67 BECI also provides domestic credit insuran ce against the risk of non-payment (default and 
insolvency) by domestic buyers.  SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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and promotion skills, targeted, in particular, at the apparel, handicraft, leather and products, and 
agricultural products (mainly beef) subsectors.68    
125. Botswana notified the WTO Committee on Agriculture  that it did not provide any agricultural 
export subsidies during the financial years 1997/98 to 2007/08.69 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
126. Botswana has one of lowest corporate tax rates in the region.70  The standard company tax 
rate is 25%;  manufacturing companies registered in  Botswana approved by the Minister of Finance 
and Development Planning, and offshor e financial services companies are subject to a reduced rate of 
15%.  The taxation regimes for large diamond proj ects may be negotiated on a case-by-case basis and 
the tax agreements are subject to ratification by Parliament (Chapter IV(3)(i))).  Botswana does not 
provide special tax incentives for companies th at export, except offshore financial services 
companies.   
127. The Minister of Finance and Development Planning may also authorize Development 
Approval Orders granting tax relief, such as tax ho lidays for 5-10 years, and/or education training 
grants for specific projects.  Su ch projects must benefit the economy or contribute to the economic 
advancement of citizens.  Applications are assessed on a case-by-case b asis according to the 
applicants' job-creation prospects, training plans for citizens, plans to localize non-citizen positions, 
citizen participation in management, citizens' equ ity, investment location, effects on other economic 
activities, and effects on reducing consumer prices.  The instrument to attr act investment through 
Development Approval Orders has been used sparingly.   
128. The Government funds a number of assistance schemes to promote the economic 
empowerment of Botswana's citizens.  The Citi zen Entrepreneurial Development Agency (CEDA), 
established in 2001, provides, inter alia , training, mentoring, and concessional loans to citizen-owned 
businesses.  The CEDA was allocated P 15.6  million in the 2007/08 Budget. 
129. The CEDA Credit Guarantee Scheme was estab lished to address the difficulties of small, 
micro, and medium enterprises (SMMEs) with limited securities in obtaining bank loans.  
Participating loans institutions are guaranteed 75% of  the net loss on loans provided to SMMEs;  the 
loan threshold is P 4 million.  CEDA provides concessi onal loans at 5% interest rate for loans up to 
P 500,000 and at 7.5% for loans up to P 4 milli on (with repayment periods up to 15 years).   
130. In 2003, CEDA established a Venture Capital Fund to provide equity to citizen-owned 
enterprises and joint ventures between  citizens and foreign investors.71  In 2007, CEDA started 
operating the Young Farmers' Fund, which provid es subsidized loans and training to young 
agricultural producers (Chapter IV(2)(ii)).   
                                                      
68 BEDIA online information, "Apply for Export Development Programme". Viewed at:  
http://www.bedia.co.bw/ar ticle.php?lang=&id_mnu=78;  and BIDPA and World Bank (2006), p. 63. 
69 WTO document G/AG/N/BWA/7, 16 October 2008. 
70 BIDPA and World Bank (2006), p. 24. 
71 The fund was capitalized with P 200 million, which have been fully committ ed to 18 projects in 
agriculture, manufacturing, construction, mining, and services.    WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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(ii) State-trading, state-owned enterprises, and privatization 
131. Botswana notified the WTO in 1997 that it had no state-trading enterprises within the 
meaning of Article XVII:4(a) of the GATT 1994.72  However, the Botswana  Meat Commission has a 
statutory monopoly on beef exports (Chapter IV(2)(iii)).73  The monopoly of the Botswana 
Agricultural Marketing Board over imports and expor ts of staple food products (designated grains, 
oilseeds, and pulses) was eliminated in 1991 and trade was opened to competition from the private sector (Chapter IV(2)(ii)).  Debwana, the diamond mining company, holds a de facto  monopoly over 
exports of rough diamonds (Chapter IV(3)(i)).  
132. Botswana has a number of state-owned enterp rises (parastatals) (Table III.1), including 
de facto or de jure  monopolies that provide public utilities, e.g. electricity, certain 
telecommunications, and other services, such as air and rail transport.
74  Many private firms have 
indirect state ownership through equity investme nts by the commercially run Botswana Development 
Corporation.75     
Table III.1 
State participation in parastatal s and commercial enterprises, 2008 
 State equity participation, 2008a Main activities Privatization scenario 
 (P million) (%)   
Non-financial enterprises      
Air Botswana 35.0 100 Air transpor t services Planned management 
contract, then divestiture 
Banyana Pty Ltd.  100 Commercial cattle ranch Planned divestiture 
BCL 5,027.7 .. Copper/nickel mining (commercial 
joint venture) n.a. 
Botswana Agricultural 
Marketing Board 30.5 100 Import/export, marketing, and 
storage of selected agricultural products;  and sale of agricultural 
services and inputs  Planned divestiture 
Botswana Housing Corporation 250. 2 100 Property development None 
Botswana Meat Commission 0.2 100 Cattle abattoir;  canning and 
tanning;  beef export;  and transport  Planned outsourcing of non-
core services 
Botswana Postal Services 38.4 100 Post al services Planned restructuring 
Botswana Power Corporation 145.6 100 El ectricity generation, transmission, 
and distribution Planned restructuring 
Botswana Railways 696.5 100 Rail transpor t services Planned restructuring 
Botswana Telecommunications 
Corporation 21.0 100 Telecommunications services Planned divestiture 
Botswana Vaccine Institute 8. 3 100 Production and marketing of 
vaccines Completed corporatization 
and partial divestiture 
Debswana 542.1 50 Diamond mi ning (commercial joint 
venture) n.a. 
DTC Botswana .. 50 Diamond sor ting, valuation, cutting, 
and polishing (commercial joint 
venture) n.a. 
Soda Ash Botswana Ltd. 65.8 .. Commercial mining company n.a. 
Table III.1 (cont'd)
                                                      
72 WTO document G/STR/N/1/BWA, 7 February 1997 
73 Ministry of Finance and Development Planning (2005), p. 33.   
74 A parastatal in Botswana is a public entity created by the State (by act of Parliament) to achieve a 
specific social or economic goa l determined by Government. 
75 The Corporation is the largest state-owned entity and provides long-term loans and guarantees.  It is 
involved in various activities, including property develo pment and hostelry.  Its board comprises representatives 
of the public and private sectors. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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 State equity participation, 2008a Main activities Privatization scenario 
 (P million) (%)   
Tati Nickel Mining Co. .. 15 Copper/nickel mining (commercial 
joint venture) n.a. 
Water Utilities Corporation 752.7 100 Provision of water to urban cen tres  Planned restructuring 
Financial services      
Botswana Building Society .. 100 Prope rty finance Planned divestiture 
Botswana Development 
Corporation 535.2 100 Development finan ce Planned restructuring 
Botswana Motor Vehicles 
Accidents Fund .. 100 Insurance services None  
Botswana Savings Bank 19.7 100 Banking services Planned restructuring 
Government Employees Motor 
Vehicle and Residential Property Advance Scheme .. 100 Loan guarantee fund Planned management 
contract 
Guaranteed Lo ans Insurance 
Fund .. 100 Insurance fund Completed management 
contract 
National Development Bank 77.7 100 Development finan ce Planned divestiture 
.. Not available. 
n.a. Not applicable.  
a As at end of March.  
Source:  Bank of Botswana (2009), Annual Report 2008 ;  and information provided by the Botswana authorities. 
133. The government announced a privatization policy in 2000, with the aim of, inter alia ,  
promoting competition, improving efficiency and productivity of enterprises, and relieving the 
financial and administrative burden of the St ate in providing services and investments in 
infrastructure.76  A key element of the policy is the promoti on of citizen participat ion in the ownership 
of national assets.  Foreign participation in privati zation is encouraged and any restrictions on foreign 
ownership are to be decided on a case-by-case basis.  Where ownership of privatized companies is 
limited to Botswana citizens, foreign particip ation would be through management contracts and 
franchising.  Concessions such as build-operate-t ransfer (BOT) or build-own-operate-transfer 
(BOOT) would be considered in cases where fore ign expertise and technology are needed.  The 
Government would also consider retaining a "golden share" to counter any perceived risk of foreign 
control of privatized enterprises.   
134. Botswana Privatisation Asset Holdings, a state-owned company, was established to hold 
portions of the assets of privatized entities that ar e reserved for later sale to Botswana citizens and 
citizen-owned companies.   The autonomous Public Enterprises Eval uation and Privatization Agency 
(PEEPA) was established to oversee privatization and monitor the performance of public enterprises.  
It reports to the Minister of Finance and Developm ent Planning and has prepared a master plan and 
identified priorities for privatization.77  Privatization methods include commercialization, 
corporatization, management contracts, franchisi ng, leases, concessions, joint ventures, and stock 
market flotation.  The bidding process would be  managed by the Public Procurement and Asset 
Disposal Board (PPADB) (section (2)(vi)).    
135. There has been little privatization in Botswana.  Priority candidates for privatization through 
divestiture include Air Botswana, the Botswana  Telecommunications Corporation, the National 
Development Bank and the Botswana Vaccine Institu te (Table III.1).  The privatization of Air 
Botswana has been suspended and the Government has decided to recapitalize the company, to create 
                                                      
76 Ministry of Finance and Development Planning (2000).   
77 Ministry of Finance and Development Planning (2005).   WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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a viable national carrier (Chapter IV(6)(iii)(c));  privatization of Botswana Telecommunications 
Corporation is ongoing;  and privatization of Nationa l Development Bank is at the planning stage.  
The Government has partially divested the State's st ake in the Botswana Vaccine Institute, through the 
sale of preference shares, but intends to maintain a majority stake because it considers the production 
of vaccines for the livestock industry to be of a strategic nature.78  
(iii) Competition policy and price controls 
136. Under the SACU Agreement of 2002 (Article 40 and 41), members are encouraged to develop 
competition policies.  The need for competition rules has long been recognized in Botswana, 
especially in a post-privatization environment where a public utility is transferred to the private sector.  
In 2005, Parliament approved a competition po licy framework as a basis for a competition law.79  The 
Competition Bill was approved by Cabinet, in April 2009, to be submitted for a pproval by Parliament.  
The act would prohibit, inter alia , anti-competitive practices, unless wa rranted by public interest 
(when welfare gains to society outweigh the cost s of anti-competitive behaviour).  A Competition 
Authority would be established to oversee implementa tion of the law.  All sector-specific regulatory 
bodies, such as the Botswana Telecommunications Authority or professional associations, would be 
covered by the new competition law but not infrastru ctural facilities of public utilities, nor intellectual 
property matters.  Sector-specific competition rul es exist, for example in the telecommunications 
subsector (Chapter IV(6)(ii)). 
137. In the absence of a general competition law, th e Ministry of Trade and Industry (Department 
of Trade and Consumer Affairs) is mandated to protect consumers against unfair business practices on 
the basis of the Consumer Protection Act of 1998.80  The Department's role is confined to education, 
investigation, mediation, and negotia tion on behalf of consumers;  c onsumer matters that are related, 
for example, to the Food Control Act, Public Health  Act, Hire Purchase Act, Standards Act, or Trade 
Act, are the responsibility of specialized regulatory agencies.  
138. Price controls are currently applied by the Government at the reta il level and on profit 
margins for petroleum products (Control of Goods, Prices, and Other Charges Act).  All petroleum 
products are imported, mainly from South Africa, and the Government believes that price controls are 
necessary due to the limited number of suppliers.  The Petroleum Management Unit, responsible for 
the price controls, has been transferred from the Mi nistry of Trade and Industry to the Ministry of 
Minerals, Energy, and Water Resources.  Other goods and services subject to administered prices (as of 8 January 2007) include water;  electricity;  trai n, certain bus, and taxi fares;  certain mail and 
parcel delivery;  and telephone inst allation and certain telephone tariffs. 
(iv) Protection of intellectual property rights 
139. Botswana has taken steps to stre ngthen its intellectual property re gime, notably in the area of 
copyright.  Since its last TPR in 2003, it has b ecome a party to a number of WIPO-administered 
intellectual property conventions (Table III.2).  Bo tswana is a member of the World Intellectual 
Property Organization (WIPO), and a founding member  of the African Regional Intellectual Property 
Organization.  The Office of the Registrar of Co mpanies and Intellectual Property (a Department  
within the Ministry of Trade and Industry) is res ponsible for administering intellectual property laws.  
The Office of the Registrar houses the nationa l IPR enquiry point, which was established in 
                                                     
 
78 The Government has also decided to outsource the management of the Government Employees 
Motor Vehicle, and the Residential Advance Scheme (GEMVAS) to the private sector.  
79 Ministry of Trade and Industry (2005). 
80 Unfair business practices are defined as deceptive methods, such as false or misleading information. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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September 2006.  However, Botswana has not yet notified to the WTO any contact point under the 
TRIPS Agreement.81   
Table III.2 
Botswana's participation in in tellectual property agreements, 2009  
 Date of membership 
Intellectual property protection agreementsa  
Paris Convention for the Protection of Industrial Property in the 1967 Act of Stockholm (Paris Union) 15 April 1998 
Berne Convention for the Protection of Literary and Artistic Works in the Act of Paris of 24 July 1971 15 April 1998 
WIPO Copyright Treaty (Geneva, 1996) 27 January 2005 
WIPO Performances and Phonograms Treaty (Geneva, 1996) 27 January 2005 
Global protection agreementsb  
Patent Cooperation Treaty (Washington 1970, as amen ded in 1979 and modified in 1984) 30 October 2003 
Hague Agreement for the International Registra tion of Industrial Designs (1999) 5 December 2006 
Madrid Agreement concerning the International Re gistration of Marks in the 1969 Act of Stockholm 
(Madrid Union) 5 December 2006 
a Treaties that define internationally agreed basic sta ndards of intellectual property protection in each country. 
b Treaties that ensure that one international registration or  filing will have effect in an y of the signatory states.  
Source:  WIPO online information.  Viewed at:  http://www.wipo.int.  
(a) Copyright 
140. The Copyright and Neighbouring Rights Act (C AP 68:02), implemented since 2007, protects 
literary, artistic and musical works embodied in films, sound recordings, broadcasts and published 
editions, by providing exclusive rights to the owner as required by the Berne Convention.  Computer programs, databases or compilations of data are pr otected as literary works.  Performers also have 
exclusive rights to broadcast or communicate to the public, to make fixa tions and reproductions.  
Copyright is protected for the life of the author plus 50 years.  Performers and producers of sound 
recordings receive the same protection.  Rental ri ghts are recognized, and specified according to the 
type of work, such as for phonograms, computer pr ograms, databases, and cinematographic works.  
Exemptions or limitations to exclusive rights include reproduction and im portation for personal 
purposes.   
141. The Copyright Society of Botswana (a non-pr ofit organization) was established in June 2008 
to develop rules and regulations to  ensure protection of right-holders  and to set royalties in accordance 
with international standards.  Royalties will be paya ble at a rate of 15% for non-residents for the use 
of, or rights to, copyrights, patent s, trademarks, and secret formulas. 
142. A copyright levy was introduced on 1 April 2009 on imported and locally manufactured blank 
sound and audiovisual carriers, compact discs, and equi pment capable of being used to copy protected 
materials.
82  The levy of 1-2% of the sales price is designated to compensate right-holders for 
unauthorized copying of their works, as well as for training and public awareness campaigns.   
Furthermore, all sound and audiovisual recordings on sale in Botswana must have an anti-piracy 
device (i.e. a tamper-proof sticker or hologram) affi xed to it, to enable consumers to distinguish 
between genuine and fake products.  It  is sold to the owner of the copyright or persons authorized by 
the owner of the copyright work to sell, rent, lend or otherwise distribute the work.83 
                                                      
81 WTO document IP/N/3/Rev.10, 16 May 2008. 
82 Copyright and Neighbouring Rights Act, as amended in November 2005. 
83 The security device is sold by the copyright office at the Registrar of Companies at P 0.30 per unit. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 98 
 
 
143. The right holder (including the licensee) may seek civil remedies and criminal sanctions 
against infringements in Botswana's courts.  Relief may take the form of inj unctions restraining illegal 
activity and impounding or destruction of illegal works.   Imports of unauthoriz ed reproductions of any 
works relating to copyright are unlawful under the copyright legislation, which requires customs 
officials to use their powers under the Customs and Excise Duty Act to prohibit or destroy illegal 
imports.84  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 first o ffence, and of up to ten years and 
from P 30,000 to P 5 million for subsequent convictions.   
(b) Industrial property rights 
144. Industrial Property Law No. 14 of 1996, l ast amended in 1997 (Industrial property 
(Amendment) Act No. 19)85, provides protection for patents, trade marks, industrial designs, and 
utility models.  Any decision of the intellectual propert y Registrar or the Minister can be appealed to 
the High Court. 
Patents 
145. Patents cover inventions, whethe r products or processes, provided they are new, involve an 
inventive step, and have an industrial application.   Patent protection is for 20 years from the filing 
date.86  The legislation provides for exclusions from pa tentability, including discoveries;  scientific 
theories and mathematical methods;  literary, dramat ic, musical or artistic work;  schemes or methods 
of doing business;  computer programs;  and surgical or diagnostic methods for treatment of humans or animals.  Patent holders have exclusive right s over making, selling and importing products, which 
are enforceable in the courts.  There are specific limited exceptions to exclusive rights, such as 
experimental acts relating to a patented invention and right of prior use done in good faith.  Patent 
applications are received by the Registrar;  fore ign applicants are required to submit applications 
through a local agent.  Applications are examin ed by the African Regional Intellectual Property 
Organization and granted by the intellectual property Re gistrar in Botswana.  The cost of international 
application through the Patent Corporation Tr eaty is estimated at about US$1,600-1,800.
87 
146. The Government may authorize compulsory non-exclusive licences (without the holder's 
consent), predominantly for domestic supply, when deem ed to be in the public interest or to remedy 
anti-competitive behaviour by the right holder, su bject to payment of "equitable remuneration".  
Public interest covers national security, nutrition, he alth or the development of other vital sectors.  
Compulsory licences may also be issu ed if the patent has been insuffi ciently used in Botswana, or is 
not being "supplied on reasonable terms", as determin ed by the High Court.  Legal action is only 
possible where the applicant has taken "all reasona ble steps" and failed to acquire the licence "on 
reasonable terms", and after four years from the date of filing of the patent application or three years 
from when the patent was granted, whichever expired last.88  Imports are considered as "working a 
patent"; compulsory licences cannot be granted where the product is being imported, since the 
                                                      
84 The customs legislation also allows for exports of counterfeit goods to be suspended.  
85 WTO document IP/N/1/BWA/1, 19 February 2002.  The WTO Council for TRIPS reviewed 
Botswana's intellectual property legislation in 2001.  
86 Utility model certificates are granted to protect new and industrially applicable inventions for seven 
years from the date of filing.  
87 Excluding translation costs, if necessary (Hah n & Hahn Inc. online information, "Botswana:  
Information on the filing of patents, designs and trademar ks in Botswana".  Viewed at:  http://www.hahn.co.za/ 
patent-botswana.htm#trademark). 
88 The legislation does not define what is "reasonable";  this is determined in each case by the courts. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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legislation allows a licence to be granted only wh ere the market is not being supplied on reasonable 
terms.  To date, no compulsory licences have been issued by Botswana.   
147. The proposed Industrial Property (Amendment) Bill,  2009 is to cover the matter of parallel 
importation; it will also cover importation of patented  products by the Government or third parties in 
relation to generic pharmaceutical products.  
148. Remedies available to the right holder include damages or profits derived from the 
infringement, injunctions restraining the illegal activit y, and destruction of illegal works.  Criminal 
penalties comprise fines of between P 2 million and P 5 million and/or imprisonment of six months to 
two years. 
Trade marks 
149. Botswana's industrial property legislation (CAP 68:03) protects trade marks and services 
marks.  A mark is defined as covering any visible si gn 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.  The determination whether a mark is well known depends on the extent of 
advertisement featuring of the mark, and the degree of popular awareness of the mark among 
consumers through submission of surveys and statements by customers.  
150. Foreign applicants are required to submit applicat ions to the Registrar through a local agent.   
Applications are published for a three-month opposition period; it takes five months to register a trade 
mark in Botswana.  Once granted, trade marks are protected for ten years, and are renewable 
indefinitely every ten years, provided the mark h as been used for a minimum of three years from the 
time of registration.  Botswana applies (but has not signed) the Nice Agreement concerning the 
International Classification of Goods and Servi ces for the purposes of the Registration of Marks 
(Geneva 1977/1979).   
151. The registered owner of a trade mark may take  court action against unauthorized use.  Civil 
remedies include damages or profits derived from the infringement, injunctions against illegal use, 
and destruction of infringing products.  Criminal pe nalties also apply to illegal use of trade marks in 
accordance with Section 76(6) of the Industrial Property Act.   
Industrial designs  
152. The legislation extends protection of industria l designs in line with the Locarno Agreement 
Establishing an International Classification for Indu strial Designs, although Botswana has not signed 
the convention.  Textile designs are covered.  International registration of an industrial design may be 
requested at WIPO or the Registrar in Botswana.  The registered owner of a design has exclusive 
rights of use, including importation.  There are no provisions for issuing compulsory licences.  
Registered industrial designs are protected for 15 years (5 years initially, renewable twice).  The 
owner of a registered design may seek civil remedies  for illegal use by way of damages, or profits 
derived from infringements, injunctions against illega l activity, and destruction of infringing products.  
Other industrial property rights 
153. Botswana has not yet developed legislation on geographical indications, layout designs 
(topographies) of integrated circuits or protection of undisclosed information, including trade secrets.   WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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154. The current Industrial Property Act provides no sp ecific protection for micro-organisms,    
non-essentially-biological or microbiological processes.   However, the proposed amendment bill 
excludes plants, animals, and essentially biological processes from patentability. A sui generis  system 
of protection for new plant varieties is bei ng developed by the Ministry of Agriculture. 
(c) Enforcement of intellectual property rights 
155. Imports of illegal products are regulated by the customs legislation;  those infringing trade 
marks or patents may be suspended pending legal acti on.  Such legal action takes place in Botswana's 
ordinary civil courts, and may i nvolve criminal prosecution and dama ges, injunctions, and destruction 
of illegal works.  Courts may order interlocutory or temporary injunctions pending final judgement.   
In order to obtain evidence, the High Court may also in struct its legal officer to enter the premises of 
the alleged infringer to seize the offending material a nd equipment (the "Anton Piller Order").  Only 
the police have ex officio powers under the copyright and industrial property legislation. 
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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IV. TRADE POLICIES BY SECTOR 
(1) INTRODUCTION  
156. Agriculture contributes less than 2% to Botswana's  GDP;  the main activity is cattle raising.  
Productivity in the beef industry is low, and has suffered from outbreaks of foot-and-mouth disease.  
Agriculture is also one of the most heavily prot ected subsectors in the economy.  Botswana is a 
net-food importer of staple foods.  The arable se ctor has received subs tantial government support 
through tariff protection, import quotas (for so me products) and input subsidies.     
157. Botswana has a small manufacturing sector (about  4% of GDP in 2008) and the degree of 
diversification is low.  Food and beverages, tex tiles and clothing, and automotive parts are the main 
industries.  In the diamond subsector, a policy of lo cal beneficiation is aimed at stimulating diamond-
related downstream activities.  Botswa na is highly dependent on imports of energy, mainly electricity 
and petroleum products.  Large electricity-genera ting projects are under development in response to 
power shortage in the SADC region.   
158. Botswana has a relatively open and stable ba nking subsector, which so far has not been 
seriously affected by the global financial crisis.  An International Financial Services Centre was 
established in 2003, to promote cross-border financ ial services, notably insurance services.  An 
international insurance law was a dopted in 2005.  The regulatory framework for financial services has 
been consolidated through the establishment of the Non-Bank Financial Institutions Regulatory 
Authority, which brings the supervision of all non-bank financial institu tions and services under one 
regulatory authority. Botswana has pursued a polic y of further liberalization of telecommunications 
services and promotion of effective competition in th e subsector, resulting in reform of the licensing 
regime in 2007. 
159. Botswana has further developed its transport infrastructure.  However, restrictive transport 
rules remain a considerable constraint to competitiv eness, including tourism.  Tourism, which has an 
important role in the economy, is highly concentr ated in the Chobe National Park and the Okavango 
Delta.  Botswana has revoked a reservation of cer tain tourism services for its citizens and 
citizen-owned companies since it may not have been consistent with its GATS commitments.  
(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Main features  
160. The contribution of agriculture to Botswana's GDP  is less than 2%, which is small by regional 
standards (Table IV.1).   The backbone of the rura l economy is the beef industry (section (iii) below).  
Botswana's potential for arable agriculture is limite d due to its semi-arid climate and erratic rainfall 
(two thirds of its territory is covered by the Kalahari Desert).  The main food crops are sorghum, 
maize, millet, and beans, mostly  for subsistence or local sale. 
161. Botswana is a net food importer (Table AIV.1).89  The country imports about 80-90% of its 
cereal requirements, 44% of fruits and vegetables, 67% of fresh milk, and almost all other dairy 
products, mostly from South Africa.90  Manufacturers of UHT milk ha ve received "infant industry" 
                                                      
89 Botswana is listed as a Net Food-Importing Developing Country under the Marrakesh Ministerial 
Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed 
and Net Food-Importing Developing Countries (WTO document G/AG/5/Rev.8, 22 March 2005).  
90 BOPA Daily News , "Ministry increased food reserv es", 6 August 2008. Viewed at: 
http://www.gov.bw/cgi-bin/news.cgi?d=20080806. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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protection since 2007 (Chapter III(2)(iii)).  Botswana  is a net exporter of beef, and has become 
self-sufficient in poultry meat and table eggs, albe it under conditions that restrict import competition. 
Table IV.1 
Selected indicators of th e agriculture sector, 2004-08 
 2004/05 2005/06 2006/07 2007/08 
Agricultural GDP at current prices (P million)  899.9 1,027.9 1,325. 0 1,488.8 
Agricultural GDP as share of total GDP, current prices (%) 1.8 1.8 1.9 1.9 
Growth rate of agricultural GDP at c onstant prices (%) -5.5 14.2 11.8 -4.4 
Government expenditure for ag riculture, forestry, and fishi ng (P million) 536. 8 791.8 721.2 843.4 
Government expenditure (agriculture, forest ry, and fishing), as a share of:     
Total government expenditures (%) 3.1 4.5 3.7 3.4 
Agricultural GDP, current prices (%) 59.7 77.0 60.5 56.6 
Imports of food, beverage s, and tobacco (P million)a 2,244 2,488 3,335 4,182 
Beef exports (P million)a 309.9 363.2 592.3 530.3 
a  Data are for calendar years 2005, 2006, 2007, and 2008. 
Source:   Bank of Botswana (2009), Annual Report 2008 . 
162. Botswana has a dualistic agriculture sector.  Commercial farmers tend to be established on 
freehold land (about 6% of the total land area) or  leasehold land (23%).  In traditional farming 
systems, there are individually managed hol dings, and livestock grazing on communal land (about 
71% of the total land area).  Leasehold land can be leased from the State for 50 years (renewable).   Obtaining freehold and leasehold la nd requires Government authorization, while access to tribal land 
requires approval from the District Land Board.
91 
163. Natural forests and bush continue  to be overexploited as a source of fuel wood for domestic 
heating and cooking.  Forest decline is also caused  by wildfires, unsustainable harvesting practices, 
and clearing for infrastructure development, mining,  and agriculture.  To address the problem, the 
forestry legislation (the Forest Act of 1968) is  being reviewed, and tree plantation programmes are 
being implemented.  The draft National Forest Policy of 2007 is aimed, inter alia , at paving the way 
for the necessary legislation to regulate harvesting and trade in forest resources; a key element is 
community participation in the manage ment of forest and woodland resources.92 
(ii) Agricultural policy 
164. Food security is a one of the Government's  major policy objectives, together with 
intensification and diversification of agricultu ral production, increasing employment opportunities, 
and conserving natural resources.  The Governme nt has used a range of measures, including 
quantitative restrictions, to promote the development of some subsectors (grains, poultry, dairy, and 
horticulture).  These measures also apply to im ports from other SACU members.  Tariffs on 
agriculture, hunting, forestry, and fishing (ISIC definition) average 3.7%; tariffs on agricultural 
products average 10.1%, and range up  to 96% (WTO definition) (Main Report, Tables III.1 and III.4).   
165. Government support to agriculture is substantia l, especially compared with agricultural GDP 
(Table IV.1).  Support to agricultural producers in cludes drought relief (feed and seed subsidies), free 
water and irrigation services93, and price support.  Implementation costs for SPS measures, including 
cattle traceability, vaccination, extension and tr aining services, and fencing, are borne by the 
                                                      
91 Burgess (undated). 
92 BOPA Daily News , "Forests policy to improve lives", 16 August 2007.  Viewed at:  
http://www.gov.bw/cgi-bin/news.cgi?d=20070816. 
93 FAO (2005), p. 49.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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Government (Chapter III(2)(v)(b)).94  The last notification on dom estic support, submitted by the 
Government to the WTO Committee on Agriculture, dates from 1997.95 
166. Despite high levels of government support to the sector, most development programmes and 
projects to achieve agricultural policy objectives have had limited success.96  According to the 
authorities, contributing factors include inadequate  extension services, slow adoption of modern 
technology, and lack of inputs and machinery.  The Arable Land Development Programme (ALDEP) 
was terminated because it failed to have  a positive impact on national food security.97  In its place, the 
Integrated Support Programme for Arable Agricu ltural Development (ISPAAD) was launched in 
2008;  it provides subsidized services and inputs to  farmers, such as ploughing and planting services, 
seeds, fertilizer, seasonal loans, and fencing.98  ISPAAD aims, inter alia , to increase national grain 
production, to commercialize agriculture through me chanization, and to promote food security.   
167. The National Master Plan for Arable Agricu lture and Dairy Development (NAMPAADD),  
launched in 2003, envisages a shift from a "welfare-o riented" approach towards a "business-oriented" 
approach, with less focus on subsidies and bette r targeting of farmers and support services.  
NAMPAAD involves the establishment of pilot demons tration and training farms for rainfed farming 
(at Ramatlabama); horticulture (in Dikabeya near  Palapye); use of waste water for irrigation 
(Glen Valley in Gaborone);  and dairy farming (Sunny Side near Lobatse).99  The objective is to 
attract more farmers to commercial farming and in crease productivity and output of milk, cereals, and 
fruits and vegetables. 
168. The Young Farmers Fund was established in Febr uary 2007 by the Citizen Entrepreneurial 
Development Agency (CEDA) with a starting capital of P50 million.  The fund seeks to draw young 
people to arable and pastoral farming (Botswana has a College of Agriculture at Gaborone) and to 
combat high unemployment among the youth.  The fund provides access to concessional loans, and 
entrepreneurial training (Chapter III(4)(i)).100  CEDA also provides working capital for farmers in 
arable agriculture, at 5% interest for up to 12 months (Arable Seasonal Loans, Ipelege).  Under the 
Agricultural Credit Guarantee Scheme (ACGS), th e Government provides credit guarantees, in the 
event of a drought, for input loans to small and medi um-sized farmers in arable rainfed agriculture.   
169. The Botswana Agricultural Marketing Board (B AMB), a parastatal, was established in 1974 
to market the main staple foods and to manage Botswana's grain reserves for food security purposes.  
BAMB handles grains (sorghum, maize, and millets),  oilseeds (sunflower seeds, and groundnuts) and 
pulses/beans (cowpeas, beans, and peas).  It is re quired by law to purchase all designated (scheduled) 
products offered to it from local producers, and en sure that adequate supplies exist for sale to 
consumers at "reasonable" prices.  As the buyer of  last resort, BAMB is authorized to establish 
minimum guaranteed producer prices and receives g overnment funds to stabilize producer prices and 
                                                      
94 Mapitse (2008).   
95 WTO document G/AG/N/BWA/5, 15 April 1997. 
96 Ministry of Agriculture (undated). 
97 ALDEP provided poor farmers in rain-fed agricultu re with animal draft power, fencing, water 
catchment tanks, and fertilizer. 
98 Botswana Gazette , "ALDEP Replaced With ISPAAD", 8 August 2008.  Viewed at:  
http://www.gazettebw.com/business/ aldep-replaced-with-ispaad.html. 
99 Other ongoing programmes include the Emergency Plant Protection Programme;  the Livestock 
Management Infrastructure Development Project (LIMID);  the Livestock Water Development Programme; and 
the Services to Livestock Owners in Communal Areas Programme.  
100 Citizens between 18 and 35 (or wholly citizen-owned companies engaged in agriculture with a 
director aged 18-35) are eligible under the fund.  Loans of up to P 150,000 are subject to 5% interest over five 
years; loans above P 150,000 attract 7.5%  interest with a repayment period of up to seven years.  Loans are for a 
maximum of P 2 million.  In 2007, 78 projects worth P 29.1 million were approved. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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incomes (Stabilisation Fund).101  The producer prices set by the marketing board are based on import 
parity prices, using the prices of the South African Futures Exchange as a benchmark.   
170. The marketing board no longer holds a monopol y over imports and exports of designated 
products.  Private traders are authorized to impor t grains in competition with BAMB, subject to a 
permit for imports from all origins, including othe r SACU members.  Import permits are granted on 
request by the Ministry of Agricu lture.  However, import restrictions are imposed from time to time, 
to protect local producers.102 
171. In response to the global food crisis, the st rategic grain reserve for national food security 
purposes was increased in 2008 from 10,000 tonnes to 70,000 tonnes (comprising 30,000 tonnes of 
sorghum, 30,000 tonnes of maize, and 10,000 tonnes of beans), estimated to cover Botswana's 
sorghum and maize needs for eight months and 2.5 m onths, respectively.  Furthermore, the marketing 
board acts as a one-stop shop for agricultural services  (packaging, processing, and marketing of local 
produce), and inputs (fertilizers, seeds, pesticid es, and packaging materials);  it is among the 
parastatals earmarked for privatization. 
(iii) Beef industry   
172. Cattle production is the main activity, by far, in Botswana's agriculture.103  However, the 
cattle and beef industry is bedset by low productivity.   It is also one of the most heavily protected 
subsectors in the economy.  A study on the long-te rm viability of the subsector, commissioned by the 
Government, has identified areas for reform, includi ng the incentive structure, the land tenure system, 
liberalization of markets, and the export m onopoly of the Botswana Meat Commission (BMC).104  
Tariffs for meat products average 17.4% rangi ng up to 43.7% (Main Report, Table AIII.2)  
173. The national cattle herd has declined to a bout 2.5 million head, well below its peak of 
3 million animals in the early 1980s.  The main breed s are the native Tswana and Tuli breeds but the 
national herd is highly cross-bred with other Afri can, Asian (e.g. Brahman), and European breeds to 
improve cattle productivity.  The great majority of  cattle is raised in traditional communal systems 
under extensive grazing systems; less than 30% of the national herd is raised in commercial systems.  
The Ministry of Agriculture plans to promote f eedlot production, with the aim of increasing the low 
through-put (slaughter numbers) of the BMC.  However, a viable feedlot system would require, inter 
alia, considerable investment in livestock tr ansport and increased feed production/imports.105  
174. The main actors in the livestock and meat  marketing system are the BMC, municipal 
abattoirs, private slaughterhouses, and local butcher s.  The BMC abattoirs are required by law to 
accept all cattle sent by farmers, even underweight cattle, which results in inefficiencies in the 
slaughter process.  BMC has significant excess capacity because of low slaughter rates/weights.  It has 
regained profitability in recent years (2005-08) following restructuring, but it also relied on substantial government support in 2006.
106  
                                                      
101 BOPA Daily News , "Ministry increased fo od reserves", 6 August 2008.  Viewed at:  
http://www.gov.bw/cgi-bin/news.cgi?d=20080806. 
102  Botswana Agricultural Marketing Board (undated). 
103 Cattle production is estimated at 70-80% of agricultural GDP (Botswana Export Development and 
Investment Authority, undated, p. 15). 
104 Republic of Botswana (2007). 
105 Botswana Export Development and Investment Authority (undated). 
106 BOPA Daily News , "BMC records P17m operating profit", 18 April 2008. Viewed at: 
http://www.gov.bw/cgi-bin/news.cgi?d=20080418.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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175. The BMC continues to hold a statutory export monopoly for meat, canned meat, and live 
cattle under the Botswana Meat Commission Act of 1966.  The Act is being reviewed with the aim of, 
inter alia , removing BMC's single buyer status of cattle destined for beef export.  The BMC is also 
required to maintain a "stabilization reserve" to stabilize cattle prices paid to producers, and a 
"development reserve" for capital expenditures.     
176. BMC's pricing system has been adjusted toward s export parity pricing based on South African 
prices (South African Red Meat Abbatoirs Associat ion prices), which are published weekly.  In the 
past, the beef grading system favoured grass-fe d (lean tender meat) over grain-fed cattle from 
feedlots.  In 2006, the BMC introduced a new prime grade paid at export parity price, aimed at 
stimulating feedlot production.107  Export parity pricing was extended to most grades in 2007.108   
177. The beef industry is highly export-oriented (a round 85% of beef production) but is a minor 
player on the world market (less than 1% worl d-market share).  Beef exports amounted to 
18,955 tonnes in 2008 (Table AIV.1), of whic h 12,921 were boneless beef and veal.  The 
United Kingdom is the main export market, followed by South Africa, and Norway.     
178. The beef industry has not capitalized on substan tial preferential access in the EC market: on 
average, only 60-75% of Botswana's annual tariff quota allocation (of 18,916 tonnes) under the        
Beef Protocol of the Cotonou Agreement were fille d.  Under the interim (EPA) agreement between 
Botswana and the EC, shipments to the EC benefit fro m increased preferences in the form of         
duty- and quota-free access.   
179. Beef exports are highly dependent on the c ontrol of foot-and-mouth disease (FMD).   
Botswana's FMD control policy is based on strict bo rder controls, quarantine, vaccination in high-risk 
areas, and zoning of areas (regionalization) with di fferent risk levels (Chapter III(2)(v)).  Cattle 
vaccination is subsidized.  Botswana has an FMD co ntingency plan for stakeholders involved in the 
control of the disease; and an Animal and Animal Pr oducts Movement Protocol for extension officers 
and the general public (sus pended during FMD outbreaks).109  According to the BMC, the economic 
threat of FMD is increasing.  Several disease-cont rol zones were lost for export in recent years 
because of outbreaks of FMD.110 
180. The Botswana Vaccine Institute (BVI) produ ces vaccines for various diseases and serves as a 
regional reference laboratory for Southern African types of FMD.  Currently about 80% of its vaccines are exported.
111  The institute is a candidate for privatization (Chapter III(4)(ii)).  
181. Botswana has implemented the Livestock Identification and Traceback System (LITS) since 
2000;  this has helped to improve cattle data collect ion and to meet beef export-market requirements. 
The system has been mandatory since April 2005. 
(3) MINING  
182. The mining sector is the backbone of the economy.  Botswana is the world's largest producer 
(in value) and exporter of diamonds, which contribut e about 30% to GDP.  Foreign direct investment 
                                                      
107 BOPA Daily News , "MoA reviews production-affecting laws", 14 March 2007.  Viewed at:  
http://www.gov.bw/cgi-bin/news.cgi?d=20070314. 
108 Botswana Meat Commission (2008), p. 10. 
109 Mapitse (2008). 
110 Botswana Meat Commission (2008), p. 10. 
111 BOPA Daily News , "FMD major constraint for farmers", 22 June 2007.  Viewed at: 
http://www.gov.bw/cgi-bin/news.cgi?d=20070622. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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in Botswana is concentrated in the capital-intensive  mining sector (57% of the FDI stock at the end of 
2007).112  Most investment is by Debswana Diamond Company Pty Ltd. (Debswana), a 50:50 joint 
venture of De Beers and the Government of Bots wana.  Botswana also produces nickel, copper, and 
cobalt (in matte), coal, soda ash, salt, and small am ounts of gold (Table IV.2).  Most minerals are 
exported.   
Table IV.2 
Mineral production, 2003-08 
 2003 2004 2005 2006 2007 2008 
Diamonds       
Production ('000 carats) 30,371 31,037 31,900 34,293 33,639 32,595 
Exports (US$ million) 2,387.7 2, 815.4 3,324.6 3,412. 9 3,359.2 3,271.6 
Copper-nickel matte        
Production (tonnes) 51,983 44,140 50,386 52,206 49,475 52,422 
Value (P '000) 1,052,264 1,222,951 1,675,786 3,799,393 5,090,841 3,596,049 
Exports (US$ million) 143. 9 340.7 460.8 650. 3 904.7 790.4 
Soda ash       
Production (tonnes) 234,520 264,695 263,692 238,942 279,625 263,566 
Value (P '000) 173,780 218,375 217,545 234,163 349,810 329,721 
Exports (US$ million) 46. 5 53.5 64.7 79. 9 77.3 74.4 
Salt       
Production (tonnes) 229,432 216,745 181,432 206,033 165,710 170,994 
Value (P '000) 47,264 45,950 38,464 55,423 51,537 53,179 
Exports (US$ million) .. .. .. .. .. .. 
Coal       
Production (tonnes) 822,780 910,968 894,739 897,396 828,164 909,511 
Value (P '000) 25,919 28,695 28,185 48,309 44,582 45,959 
Exports (US$ million) .. .. .. .. .. .. 
G o l d        
Production (kg) .. .. .. 2,613 2,656 3,176 
Value (P '000) .. .. .. 288,673 359,964 567,655 
Exports (US$ million) .. .. 35.5 34.5 38.1 54.6 
.. Not available. 
Source:  Bank of Botswana (2009), Annual Report 2008 .  
183. The Ministry of Minerals, Energy, and Water Resources is responsible for mineral policy.  
The main objectives are to encourage prospecti ng and new mine development;  to increase local 
value-added by diversifying into cutting and polis hing of diamonds; and the creation of employment 
and training opportunities. 
184. The legal framework for mining operations is based on the Mines and Minerals Act of 1999, 
which provides, inter alia , for prospecting licences, retention licences, mining licences, and mineral 
permits for small-scale mining operations.113  Retention licences allow prospectors to defer mining of 
uneconomic deposits for up to six years.  Except fo r diamonds, the legislation provides for automatic 
progression from exploration to mining.  Mining licences are issued only to Botswana-registered 
companies.  Licence applicants must show proof  of technical competence and access to adequate 
financial resources. 
                                                      
112 Bank of Botswana (2009), p. 87. 
113 Annual licence fees are:  prospecting – P 5.00 per km2, a minimum of P 500 for industrial minerals 
and P 1,000 for all other minerals;  retention licences – P 5,000 per km2 for the first year, in creasing annually by 
P 5,000 per km2 for the second and subsequent years; mining licences or mineral permits – P 100 per km2. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
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185. The tax regime and level of state participa tion in diamond mining are subject to negotiation 
between the Government and the investor.  N on-diamond mining companies are subject to the 
standard tax rate of 25%.  The legislated royalti es are 10% of the gross market value for precious 
stones, petroleum, and natural gas; 5% for precious metals;  and 3% for all other minerals.  Mineral 
revenues, the main source of government receipt s, rose from P 8,163 billion (58% of total tax 
revenue) in 2003/04 to P 12,334 billion (43%) in 2007/08.114  The main revenue components are 
dividends (77% in 2007/08) and royalties (21%) from diamond mining.115   
186. Tariffs on imports of mining a nd quarrying products average 0.8%, ranging from zero to 10% 
(Main Report, Table AIII.2).   
(i) Diamonds 
187. Debswana is the world's largest diamond mining co mpany (by value).  It is Botswana's largest 
private-sector employer (6,500 in 2006) and provides about 70% of the country's export revenues and 
50% of tax revenues.  It is part of the family of companies of De Beers S.A.116  Debswana operates 
four diamond mines, all open-pit mines, at Orapa, Letlhakane, Jwaneng, and Damtshaa.   Debswana's 
mining licences were renewed in August 2004 for a further 25 years.  There are no legislated 
restrictions prohibiting other companies fro m mining and marketing diamonds. The company 
Diamond Ex Botswana is to start production near  Lerala (targeting a production of 330,000 carat per 
year).  Other companies are exploring for diamonds.    
188. Historically, Debswana's entire output of diam onds was sold through De Beers' marketing 
arm, the Diamond Trading Company (DTC), an international cartel based in London.117  Diamonds 
are sold in parcels at DTC's "sights" or sales w eeks held ten times a year, to a hand-picked group of 
clients (sightholders).    
189. In 2006, DTC Botswana was established as a 50:50 joint venture between De Beers and 
Botswana, with the objective, inter alia , of making diamonds available for sale in Botswana for local 
manufacturing.  This is part of De Beers' local "ben efication" strategy to generate greater benefits in 
diamond-producing countries through  the development of downstream activities in the diamond 
industry, ranging from sorting and valuing diamonds , cutting and polishing, to the manufacture of 
jewellery.118  In addition, it is hoped that DTC Botswana will stimulate ancillary activities, such as 
banking, security and IT.  As of November 2007,  16 diamond manufacturing companies (sightholders 
of DTC Botswana) had been licensed in Botswana.  DTC Botswana expects to sell diamonds worth at 
least US$500 million by 2010 to local sightholders .  Though Botswana has not yet adopted a 
competition law, the structure and some of the prac tices of the diamond trade, such as exclusive sales, 
and pricing arrangements, may not be conducive to a competitive market place.  
190. The global economic crisis has begun to affect diamond production in Botswana.   
International diamond sales depend heavily on demand in the United States, where about 50% of the world's diamonds and purchased.  De Beers is known fo r managing the supply of diamonds to align it 
with demand, including export quotas, stockpiling of  diamonds, and mine closures.  Moreover, it 
                                                     
 
114 Bank of Botswana (2009), p. S-95. 
115 Department of Mines (2008). 
116 De Beers SA is owned by Anglo American (45%), Central Holdings (40% – representing the 
Oppenheimer family), and Botswana (15%);  its head office is in Luxembourg.   
117 According to De Beers, the syndicate markets ab out 40% of the world's su pply of rough diamonds. 
De Beers' sales of rough diamon ds amounted to US$5.9 billion in 2008 (See De Beers, undated). 
118 Diamond sorting and valuation have traditionally been carried out by the Botswana Diamond 
Valuation Company, a subsidiary of Debswana; these functions have been transferred to DTC Botswana. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
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would appear that the supply management is facilitated through the United Nations' Kimberley 
Process International Certification System, aimed at  regulating international trade in rough diamonds 
(Chapter III(3)(ii).  Temporary closures of all Debswa na mines took effect from end-February to    
mid-April 2009, except for the Damtshaa Mine and th e Orapa No. 2, which may remain closed for the 
remainder of 2009.  Nonetheless, De Beers maintain s that the long-term market fundamentals remain 
promising for diamond producers, as global demand is expected to grow, while known reserves of 
diamonds are shrinking.119  
(ii) Other minerals 
191. Nickel and copper production has performed well in recent years, largely on account of 
buoyant prices for base metals on the international ma rkets.  However, international commodity prices 
collapsed in the forth quarter of 2008, adver sely affecting Botswana's mineral exports.   
192. The Government has a stake in  the two copper-nickel mining companies (BCL Ltd. and Tati 
Nickel Mining Company Ltd.).120  BCL mines and smelts copper-nickel matte for refining in Norway, 
Zimbabwe, and other countries.  It is the second larg est private-sector employer with a labour force of 
over 5,000;  it also accounts for about 20% of elec tricity usage in Botswana.  The BCL mine has 
survived on government emergency funding for several  years.  Tati Nickel exploits copper and nickel 
at Phoenix and Selkirk.  The BCL mine and Tati Nickel are projected to operate until 2013. 
193. The Botswana Ash company (a joint venture 50%  owned by the Government) mines soda ash 
and salt at Sua Pan.  Its future depends heav ily on exports to South Africa, which face strong 
competition from U.S. exports.  The Government is  exploring opportunities for further processing the 
salt and soda ash resources, for example, by establishi ng a local glass works.  Botswana has large coal 
deposits, which are exploited at Morupule by Morupul a Colliery Ltd. (a subsidiary of Debswana), 
mainly for domestic electricity generation.  A coal  washing plant is under construction to enhance the 
calorific value and efficiency of coal, for use as charco al feedstock in the alloy and plastic industries.   
(4) ENERGY  
194. Botswana has limited energy resources and is  dependent on imports, mainly electricity and 
petroleum products.  Households also rely on fuel wood as a source of energy.   Energy policy 
objectives are to promote alternative sources of ener gy in an environmentally friendly and sustainable 
way, such as clean (washed) coal, gas (methane from  coal beds), electricity, and solar power.  The 
Ministry of Minerals, Energy and Water Resour ces (Energy Affairs Division) formulates and 
coordinates national energy policies.  The Mini stries of Local Government and Education Skills 
Development are responsible for the off-grid power supply in rural areas, as well as installation and 
maintenance of solar-energy equipmen t in government institutions.   
(i) Electricity 
195. The state-owned national electricity utility, Botswana Power Corpor ation (BPC), operates 
under the oversight of the Ministry of Minerals, Energy and Water Resources.  It has a monopoly over 
generation, transmission, distribution, and impor tation of electricity under the Botswana Power 
Corporations Act of 1971.  The Electricity Supp ly Act was amended in February 2008 to allow, inter 
alia, the participation of independent power producer s (IPPs) in Botswana's electricity industry. 
                                                      
119 De Beers (undated). 
120 The state of Botswana is the majority sharehol der of BCL, and holds a 15% stake in Tati Nickel 
Mining Company; 85% is owned by Norilsk Nickel, Russia's largest mining company. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 109 
 
 
196. The BPC is a member of the Southern African Power Pool (SAPP), which is made up of the 
power utilities of 12 SADC member countries.  IPPs and independent transmission companies are also 
permitted to join the SAPP.  One of SAPP's obj ectives is to develop an inter-connected and 
competitive electricity market for Southern Africa.   The first step towards a regional electricity 
exchange was the establishm ent of STEM in 2001, whereby electric ity contracts are traded daily for 
delivery the following day.   However, the trade volume has declined  in recent years, to about 200 GW 
annually during 2006-07.  The SAPP is in the process of establishing a day-ahead market (DAM) trading platform to operate as an organized electric ity exchange for spot and forward deliveries.  The 
main challenge for the SAPP lies in tight electricity  supplies in the SADC region, which has already 
led to temporary power shortages in So uth Africa, as well as Botswana.    
197. More than 80% of Botswana's electricity is imported, mostly under long-term supply 
contracts.  In January 2008, the BPC renewed a five-year power purchase agreement with Eskom of 
South Africa:  annual deliveries are reduced from 410 MW so far, to 350 MW during 2008-09;  250 MW in 2010, and 150 MW annually during 2011-12.   BPC also has supply agreements with 
utilities in Mozambique.  In addition, some imports  are sourced from the Short-Term Energy Market 
(STEM) of the Southern African Power Pool (SAPP).  Imports of electrical energy are duty-free 
(Main Report, Table AIII.2). 
198. Less than 20% of domestic electricity requirements are met from BPC's Morupule power 
station, which is fired mainly with (low-quality) do mestic coal but also imported coal.  Its capacity is 
120 MW, compared with national peak demand of 530 MW.  No new electricity generation projects 
were commissioned in Botswana during 2004-06, but additional generation capacity of 600 MW is 
expected to come on-stream by 2010 from the expanded Morupule power station (Morupole Power 
Station Generation Expansion project at an  estimated cost of US$1.2 billion).   
199. The Mmamabula Energy Project is designed as an  export-oriented power station to provide 
some 1,200 MW.  The investor, Canada's CIC Energy Corp., is to start operations in 2013 as an IPP.  BPC is to absorb some portion of electricity prod uction, while the main share is to be supplied to 
Eskom's nearest power station at some 90 km away (minimizing the cost of linking up with South 
Africa's transmission network). The project integrates  an industrial complex, consisting of a new coal 
mine at the Mmamabula coal field, and a coal-to- hydrocarbons plant, which will convert some of the 
coal to fuels and petrochemicals.    
200. The Government regulates electricity tariffs.  Under the BPC Act, the corporation is required 
to conduct its business on a sound commercial basis.  The Minister must approve increases. The 
average selling price was P 31.73 per kWh in 2008, compared with P 28.7 per kWh in 2007 and P 26.3 per kWh in 2006.  Tariffs were last increased in April 2008 by 14% for commercial users and 9% for consumers (Table IV.3). Cross-subsidi es exist between urban and rural consumers.   
201. The mining industry, the largest consumer of electricity, accounts for 31% of consumption, 
followed by households (29%), commercial users (26%), and the Government (14%).  The rural 
electrification programme, targeting 14 villages per y ear, is part of the Government's programme to 
alleviate poverty; access to electricity in rural areas is estimated at 52% (as of October 2008). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 110 
 
 
Table IV.3 
Electricity tariffsa, 2009  
 Fixed charge 
(P/month) Energy charge 
(P/kWh) Demand chargeb 
(P/kW/month) 
Domestic consumers 11.11 0.4000 - 
Small business 29.74 0.4579 - 
Medium business 29.74 0.2348 56.21 
Large business 29.74  0.2117 52.91 
Government  29.74  0.5935 - 
Water pumping  29.74  0.4669 - 
- Nil.  
a Effective from 1 April 2008. 
b The demand charge is calculated on the basis of the actual demand or 90% of the peak demand recorded in the previous 
 12 months, whichever is greater.   
Source: Botswana Power Corporation (undated), "Public Noti ce:  Electricity tariff increase".  Viewed at:  
 http://www.bpc.bw/BPCTariffincreasead.pdf [1 April 2009]. 
(ii) Petroleum and gas 
202. All petroleum products are imported via railway  from South Africa (Botswana is not linked 
up with any oil pipeline).121  The Government maintains strategic reserve stocks of petroleum 
products, aimed at covering at least 23 days of consumption;  there are plans to increase reserves to 
60 days of consumption by 2020.  Importation, st orage, and distribution of petroleum products are 
carried out by the private sector.  Petroleum products are used mainly for transport, mining, electricity generators, and cooking.  Tariffs on petroleu m products average 3.8% ranging up to 20% 
(Main Report, Table AIII.2). 
203. The Ministry of Minerals, Energy and Water R esources, in conjunction with the Ministry of  
Trade and Industry, controls reta il prices of petrol, diesel, and para ffin, along with profit margins 
(Control of Goods Prices and Other Charges Act).  Domestic retail prices are based on the imported cost plus local taxes and levies, and the industr y and dealer margins (Chapter III(2)(iii)(b)).  The 
Government believes that such controls are ne eded to safeguard consumers against unscrupulous 
pricing by the limited number of suppliers.   
(5) M
ANUFACTURING  
(i) Overview 
204. Botswana has a relatively small manufacturing sect or (3.8% of GDP in 2008, Table I.1).  The 
degree of diversification is low;  the food and beverages, textiles and clothing, and automobile 
industries dominate the sector.    
205. The current Industrial Development Policy, dating from 1998, signalled a shift from import 
substitution objectives to an export-led growth strategy.122  Over the last decade investors have 
favoured export-oriented industries, such as textile s and clothing, because of the small size of the 
domestic market.123  In line with its objective of economic diversification towards non-mining 
activities, the Government has pursued the goal of  expanding the industrial base and developing local 
entrepreneurship.  Key priorities are productivity enhancement through education, training, and 
                                                      
121 Currently there is no industrial use of natural gas in Botswana.   
122 Republic of Botswana (1998).  
123 Botswana Export Development and Investment Authority (undated), p. 50. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 111 
 
 
modern technology, so as to expand efficient expor t industries.  The Government is also seeking to 
stimulate local entrepreneurship through reserved manufacturing activities (Table II.3) and reservation 
schemes under its government procurement policy (Chapter III(2)(vi)).  
206. The Ministry of Trade and Industry (Departmen t of Industrial Affairs) is responsible for 
industrial policy.  The interests of the private sector  and parastatals are represented by the Botswana 
Confederation of Commerce, Industry and Manpower  (BOCCIM) and the Botswana Exporters and 
Manufacturing Association (BEMA).   
207. Botswana has high unemployment (17.5% in 2005 /06), reflecting in part its dependence on 
mining (capital-intensive) and beef (land-intensive).  To create more employment opportunities, the 
Industrial Development Policy puts emphasis on the support of small, medium, and micro enterprises 
(SMMEs).  The Local Enterprise Authority (LEA), funded by the Government, provides training and advisory services to SMME's, including on gove rnment procurement opportunities.  Support for 
entrepreneurial development is also provided by th e Ministry of Industry and Trade (Department of 
Industrial Affairs) and the Citizen Entrepreneurial Development Agency (CEDA) (Chapter III(4)(i)).   
208. The main financing institution fo r industrial development (but also for agriculture, commerce, 
and tourism) is the Botswana Development Cor poration, followed by the National Development 
Bank, and CEDA.
124     
209. Overall, Botswana's economy lacks significant technological capabilities.  The mandate of the 
government-funded Botswana Technolog y Centre (BOTEC) is to fost er industrial and scientific 
development through research and technology innovation in collabora tion with the private sector.  
The Rural Industries Promotion Company (RIPCO) promotes industrial development and 
employment in rural areas by assisting in the di ssemination of technology.  The Botswana National 
Productivity Centre (BNPC) acts as facilitator of  productivity/quality know-how and methods. 
210. Tariffs on manufactured goods average 8.5%;  ad valorem  duties generally range up to 96% 
(Main Report, Table AIII.2).    
(ii) Main industries 
(a) Textiles industry 
211. The textiles industry has developed through pr eferential access in overseas markets, with 
substantial subsidies and other incentives.  In Augus t 2001, Botswana became eligible for the benefits 
of the U.S. AGOA initiative, which has greatly benefited the apparel industry.125  Nine Botswana 
firms exported to the United States in 2007, mos tly knitwear, T-shirt, pants, tracksuits, and 
sportswear.  Total textiles exports increased from US$34.5 million in 2000 to US$263.4 million in 
2007 (mainly knitted and crocheted fabrics, and apparel).    
212. The industry has been struggling with a l ack of competitiveness due to low productivity.126  
The main subsidy, the Financial Assistan ce Policy (FAP), was eliminated in 2001.127  The Duty Credit 
                                                      
124 The National Development Bank finances projects for up to 15 years.  Interest rates range from the 
prime rate minus 2% margin, to the prime rate plus 4% margin (fixed or floating). 
125 As a result of the AGOA Acceler ation Act of July 2004, duty-f ree and quota-fre e treatment is 
accorded to virtually all products ex ported by beneficiary sub-Saharan co untries to the United States until 
30 September 2015, subject to strict rules of origin.  
126 BIDPA and World Bank (2006). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 112 
 
 
Certificate Scheme, introduced in  1993, was aimed at encouraging exports of textiles and clothing 
(Annex 4, Chapter IV(3)(ii)).  Only a few firm s currently take advantage of this scheme.  
213. While Botswana is a net exporter of textiles,  its imports are significant (US$95.4 million in 
2007, mainly fabrics and apparel).  Tariffs on te xtiles and clothing are amongst the highest in 
manufactured products, ranging up to 34.5% for clothing and 19.4% for textiles (Main Report, 
Table AIII.2).     
214.  In May 2008, "specialised dealer's" licences were  abolished, to ensure that foreign traders do 
not engage in commercial activities reserved for c itizens of Botswana, such as trade in clothing 
(Chapter III(2)(i)).  It appears that the decision was ta rgeted at small-scale foreign traders engaging in 
the clothing trade.  According to the authoriti es, these traders are now granted a grace period of 
24 months to rearrange their activities.   
(b) Automobile industry 
215. In the 1990s, the Government began assisting th e development of an automobile industry, 
with the objective of broadening the manufactur ing base and increasing Botswana's technological 
capabilities.  The industry evolved behind high levels  of tariff protection in the SACU market, and 
with the help of subsidy programmes: the Motor Industry Development Programme, and the               
now-terminated Financial Assistance Programme (Annex 4, Chapter IV(3 )(i)).  However, Botswana's  
motor-vehicle industry experienced a set back in  2000 when Hyundai motor plant, which assembled 
imported semi-knocked down (SKD) kits, mainly for export to South Africa, closed.  Two automotive 
companies remain in business (Harness Manufactur ing Botswana, and Twana Bus Builders).   
216. Botswana is a net-importer of automotive vehi cles (imports of US$433.3 million and exports 
of US$22.7 million in 2007).  Exports of vehicl es (including accessories and parts), which had 
increased strongly during 1996-00, fell sharply when the Hyundai assembly plant was shut down.  
Exports recovered somewhat until 2005, as Volvo established in Botswana.  In July 2005, Volvo 
relocated to South Africa, resulting in a drop in exports (Table AI.1).   
217. Import tariffs on motor vehicles average 12.5% (Main Report, Table AIII.2).  Imported 
second-hand cars, amongst other products, may be f aced with stricter import inspection rules under 
the Standards (Import Inspection) Regulations, implemented as of 1 April 2009 (Chapter III(2)(v)).128   
(6) SERVICES  
218. Services (including construction) accounted fo r 51.4% of Botswana's GDP in 2008 (in 
constant prices), compared with 46.5% in 2003 (Table  I.1).  Botswana lacks an explicit trade in 
services policy or detailed plan to develop trade in  services, although some ministries have sectoral 
policies.  However, Vision 2016 identified some sp ecific services sectors to be promoted: tourism;  
transport; information services; a nd banking and financial services.129    
219. Botswana has made minimal commitments on services under the General Agreement on 
Trade in Services (GATS).  The commitments c over some 19 service subsectors, mainly a few 
                                                                                                                                                                     
127 Under the FAP, the Government granted, inter alia , subsidies to investors for wages, training, and 
fixed assets for a period of five years.  
128 Trade Law Centre of Southern Africa online information, "Botswana to implement anti-dumping 
regulation", 11 March 2009.  Viewed at: http://www. tralac.org/cgi%2Dbin/giga.cgi?cmd=cause_dir_news_ 
item&news_id=62413&cause_id=1694. 
129 Presidential Task Group for a Long Term Vision for Botswana (1997). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 113 
 
 
professional business services; computer and related services; research and development; real estate 
services;  courier services; and tourism and travel-related services.130  It has generally made no 
commitments on cross-border trade, requiring in so me instances that the service be supplied through 
commercial presence by a supplier who meets all reside ncy requirements (e.g. real estate services).   
Botswana did not participate in the extended GA TS negotiations on basic telecommunications (Fourth 
Protocol), nor on financial services (Fifth Protocol ).  In the DDA negotiations, Botswana has not so 
far tabled a services offer. 
(i) Financial services 
220. Botswana has a relatively open and stable  banking subsector.  The Government has 
established an International Financial Services Ce ntre with the aim of promoting cross-border 
financial services, notably insurance services.  An international insurance law was adopted in 2005, 
which is one of the first of its ki nd in Africa.  Private institutions do minate the financia l industry.  The 
main parastatals are the Botswana Developmen t Corporation (the main development finance 
institution), the Botswana Savings Bank, the Botswana Building Society, and the National 
Development Bank.    
221. Botswana's regulatory framework for financia l services has been consolidated.   The 
Non-Bank Financial Institutions Re gulatory Authority Act of 2006 br ings the supervision of all 
non-bank financial institutions and services, incl uding those registered under the International 
Financial Services Centre (IFSC), under one regulator y authority.  The new authority, established in 
April 2008, also fills a gap in Botswana's superv isory infrastructure, in areas where prudential 
supervision has been weak or in effective, such as asset fund ma nagement, investment advisory 
services or money lending.131  Commercial, merchant banks, as well as banks accredited by the IFSC, 
continue to be prudentially regul ated by the Bank of Botswana.132        
(a) Banking 
222. Botswana had seven commercial banks and on e merchant/investment bank at the end of 
2008.133  The top four commercial banks (Barclays Ba nk of Botswana, Standard Chartered Bank of 
Botswana, Stanbic Bank of Botswa na, and First National Bank of Bo tswana) account for about 95% 
of total bank assets.   Botswana's banking subsector has been highly profitable, with average returns 
on equity of around 40% in recent years.  The spr ead between (prime) lending and savings rates has 
been within the range of 8.5-10% in recent years.  Despite the subsector's high level of profitability 
and rapid growth, it remains relatively small for th e size of the economy:  total assets of commercial 
banks amounted to P 43.8 billion at end 2008, equal to about half of GDP.134  The customer base is 
small, with viable commercial banking limited main ly to the urban areas and larger villages.   
                                                      
130 WTO document GATS/SC/109, 30 August 1995.  Botswana has not scheduled any MFN 
exemptions. 
131 An overview of the legal and regulatory framework of Botswana's financial services can be found in 
Bank of Botswana (2008), p. 137. 
132 Botswana has, inter alia , adopted the Proceeds of Serious Crime Act, and the Corruption and 
Economic Crime Act, and is a signatory of several in ternational conventions to combat money laundering and 
financing of terrorism.   
133 The African Banking Corporation sp ecializes in structured trade finance, treasury operations, and 
investment banking (Bank of Botswana, 2008). 
134 Bank of Botswana (2009). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 114 
 
 
223. The Bank of Botswana is in the process of implementing the Basel II Capital Requirements 
Directive.  Table IV.4 shows selected prudential indicators of the performance of Botswana's banks 
compared to international standards.  Botswa na does not yet have a deposit insurance scheme. 
Table IV.4 
Financial soundness and prudential st andards of licensed banks, 2003-08a 
(Per cent) 
Financial soundness indicators 2003 2004 2005 2006 Range 
 Prudential
standards     2007 2008 
Capital adequacy ≥ 15 19 17 17 17 15.2-36.9 15.8-32.5 
Liquid asset ratio ≥ 10 26 30 38 57 22.0-63.0 30.7-56.2 
Profitability (return on assets) Po sitive 4 4 4 4 0. 6-4.6 1.0-8.1 
Profitability (return on equity) Po sitive 42 45 53 57 6. 2-66.0 12. 9-57.2 
Asset quality (non-performing loans/total 
loans) ≥ 2.5  5 5 5 6 2.2-27.1 2.3-17.9 
Intermediation (advances/deposits) ≥ 50 70 71 67 45 32.3-81.2 37.0-77.1 
a The figures are generated from the quart erly returns submitted by banks;  they re present the average for all registered 
 banks.  
Source:  Bank of Botswana (2009), Annual Report 2008 . 
224. Five types of financial institutions are li censed under the Banking Act of 1995:  commercial 
banks, discount houses, credit institutions, invest ment/merchant banks, and representative offices 
(branches of foreign banks);  each is subject to a restricted set of activities (without discrimination 
between domestic and foreign ser vice providers).  Banks may not undertake non-bank financial 
activities, either directly or indirectly.  Minimum capital requirements for commercial/investment banks are P 5 million, or 8% of the risk-weighted  assets/other risk-weighted exposures of the bank, 
whichever is greater (Banking Regulations of 1995).    
225. Entry of foreign banks is largely unrestricted:  all banks have substantia l foreign ownership.  
The aim is to facilitate the entry of new banks in order to promote competition and efficiency within 
the subsector, and to stimulate the process of fi nancial intermediation.  The licensing decision 
depends on whether a prospective new bank is suffi ciently capitalized, and h as access to the necessary 
skills and resources to ensure a sound banking operati on.  Licensing of foreign subsidiaries is subject 
to prior approval from the supervisory authority in the bank's home country but the Bank of Botswana 
does not impose reciprocity requirements.
135   
226. There are no limitations regarding market acce ss, such as on the number of foreign banks, 
maximum foreign equity participation, or the num ber of foreign nationals that can be employed 
(though the Employment of Non-citizens Act require s a valid work permit for non-citizens).  Foreign 
banks must operate as locally incorporated subsid iaries, while foreign bank branches are not permitted 
to engage in traditional financial intermediation.136  For prudential reasons, foreign and domestic 
banks are restricted to holding equity not exceeding 25% in non-financial firms.    
227. The Botswana International Financial Services Ce ntre (IFSC), a subsidiary of the state-owned 
Botswana Development Corporation, was establish ed in 2003 to develop cross-border financial 
                                                      
135 Domestic banks are prohibited from establishing  subsidiaries, branches or representative offices 
outside Botswana, without the prior written approval of the Bank of Botswana (Section 9 of the Banking Act 1995).   
136 Activities are restricted to advertising, marketing,  and promotion on behalf of the parent bank, and 
agency services facilitating transactions between domestic entities and the foreign parent bank.   SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 115 
 
 
services.  The services must be provided for client s outside Botswana and in foreign currencies.137  
Incentives for companies operating within the IFSC in clude a corporate tax rate of 15% guaranteed 
until 2020, exemption from domestic capital gains and withholding taxes; tax exemption for collective 
investment undertakings; and access to Botswana's ne twork of double taxation treaties.  Applicants 
are screened by the Bank of Botswana:  at end 2008, 45 IFSC companies with a total capital of 
P 4.1 billion had been licensed by the Central Ba nk;  three IFSC companies provide cross-border 
banking services.  
(b) Insurance and other financial services 
228. The insurance subsector comprises 15 insurers ( life and non-life), many of which are wholly 
foreign owned (mainly South African) and three of wh ich are joint ventures with local companies.  In 
addition, there are 35 registered insurance brokerage  firms, 114 corporate agents (the majority of 
which are foreign owned), and 616 individual agents.138  Botswana Insurance Holding Limited (via 
Botswana Life Insurance Limited and Botswana Insurance Fund Management Limited) dominates the 
market segments of life insurance and asset mana gement.  Total assets of the insurance industry 
amounted to approximately P 12.3 billion at e nd-December 2007 (compared with P 9.4 billion one 
year earlier).  
229. Domestic insurance services are governed by the Insurance Industry Act of 1987, while 
offshore insurance services are subj ect to the International Insurance Act of 2005. Supervision and 
licensing of insurance companies have been tr ansferred from the Ministry of Finance and 
Development Planning to the Non-Bank Financia l Institutions Regulatory Authority.    
230. According to the Insurance Industry Act, only resi dent registered insurers and officers can be 
licensed.139  Branches of foreign insurers are not permi tted.  Companies are prohibited from offering 
both general (short term) and life (long term) insurance.   Foreign re-insurers are allowed to trade with 
Botswana registered insurers (under modes 1 and 2)  without establishing locally.  However, residents 
(including companies, but not insurers) require th e regulator's written approval to buy insurance from 
overseas companies.  Most reinsurance is placed overseas.  The minimum capital requirement for 
insurers and re-insurers is P 2 million.  Insuranc e premiums are market-driven; the regulator has 
authority to intervene but has not done so during the last decade.  Insurers are required to seek 
clearance from the regulator to invest insurance funds abroad.    
231. Licences for offshore insurance ser vices, including re-insurance, are renewable annually.   
The premiums of international (re) insurers are not subject to approval by the regulator.  
232. The Government operates an Employees Motor Vehicle Advance Scheme, and a Local 
Authorities Self Insurance Fund.  Third-party motor vehicle injury is covered by the Motor Vehicles 
Accident (MVA) fund, which is funded, inter alia , through fuel levies (Chapter III(2)(iii)(b)).  A 
portion, currently P 0.095 per litre, of petrol sold  is transferred to the MVA fund, to compensate 
victims of motor vehicle accidents.  Currently, onl y compulsory insurance in Botswana is workers 
compensation insurance. 
                                                      
137 Offshore financial services include: banking and financing operations transacted in foreign 
currency;  broking and trading of securities denominated in foreign currency; investment advice;  management 
and custodial functions in relation to collective investment schemes; insurance and related activities; registrar 
and transfer agency services;  exploitation of intell ectual property;  development and supply of computer 
software for use in the provision of the above services;  and accounting and financial ad ministration activities.    
138 te Velde and Cali (2007), p. 63;  and Ministry of Finance and Development Planning (2008).   
139 According to the Act, the insurance industry co mprises insurers, re-insurers, brokers, agents, 
insurance surveyors, and risk mana gers, loss assessors, loss adjusters,  and claim settlement agents.   WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 116 
 
 
233. Prudential supervision of operators at the Bo tswana Stock Exchange (BSE), established in 
1995, has been transferred to the Non-Bank Financia l Institutions Regulatory Authority.  There are 
four broking firms registered with the BSE (Cap ital Securities, Motswedi Securities, Stockbrokers 
Botswana, and African Alliance Botswana Secu rities) and 31 listed companies (20 local and 
11 foreign).  Equity capitalization stood at US$ 41.8 billion at the end of 2008.140  Listed companies 
represent a wide range of economic sectors, incl uding banking, manufacturing, wholesale/retail, 
medical services, property, security services, mining, tourism, and information technology.  Dual listings are permitted.  The Central Securities Depos itory Company of Botswana Ltd., established in 
2008, acts as the securities depository of the BSE.
141 
234. The Botswana Stock Exchange Act of 1994 is cu rrently under review, to be replaced with a 
Securities Act, to align the legislative framework with international best practice.  A pan-African 
commodities exchange (the Multi Commodities Exchange  for Africa) was established at the IFSC in 
2007; it trades in the major commodities produced in Africa.  
(ii) Telecommunications and postal services 
(a) Telecommunications 
235. Liberalization of the telecommunications mark et began in 1996 following the adoption of the 
Telecommunications Policy of 1995 and enactment of the Telecommunications Act (Act No. 15 of 
1996), which abolished the de jure  monopoly of Botswana Telecomm unications Corporation (BTC) 
in some segments of the market and establis hed the independent regulator, the Botswana 
Telecommunications Authority (BTA).  The Governme nt plans to consolidate the legal framework for 
telecommunications, broadcasting, postal services, comput er technologies, and all other ICT            
subsectors (Communications Authority Bill).  The BT A would be merged into a new regulatory body, 
the Botswana Communications Regulatory Authority.   
236. In 2006, the Ministry of Communications , Science and Technology (Department of 
Telecommunications and Postal Services) issued a policy directive aimed at the further liberalizing 
the telecommunications market and promoting effective competition in the subsector, resulting in reforms of the licensing regime, and the tariff structure.   
237. In 2007, the BTA introduced a new licensing framework providing for service-neutral and 
technology-neutral public telecommunications ope rator (PTO) licences, and value added network 
services (VANS) licences.  Under the old licensing  regime, operators were required to route their 
international (internet and data) traffic through the BTC gateway; the policy directive on further 
liberalization allowed PTOs to establish their own gateways.   
238. PTO licences were issued to BTC in March 2007,  to Orange Botswana in April 2008, and to 
Mascom Wireless in June 2008.  The BTC remains to date the only licensed  provider of fixed-line 
voice services, including international calls.  BT C operates commercially and manages the public 
network under a performance contract with the Government.  BTC must run any new telecommunications services as a subsidiary or associated entity to allo w sufficient accounting 
separation from its fixed-line operations (BTC  Act and 1996 amendments).  BOTSNET, a BTC 
subsidiary, for example, is competing in the market  for internet services.  The Government has also 
announced its intention to privatize the BTC, but  no date has been fixed (BTC Transition Bill). 
                                                     
 
140 BSE online information. View ed at: http://www.bse.co.bw/. 
141 The company is regulated under the BSE Act, the Non-Bank Financial Institutions Regulatory 
Authority Act, and the National Clearing and Settlement Systems Act No. 5 of 2003. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 117 
 
 
239. In 2008, BTC launched cellular phone services, thus becoming the third mobile service 
operator in the country, in competition with Or ange Botswana, and M ascom Wireless.  The 
penetration rate of mobile cellular subscribers ha s increased significantly in recent years (78% in 
2008), and is among the highest in Africa (Table IV.5).    
Table IV.5 
Selected telecom indicators, 2003-08 
 2003 2004 2005 2006 2007 2008 
Main telephone lines per 100 inhab itants 7.42 7.45 7.73 7.50 7.28 7.47 
Cellular subscribers per 100 inhabitants 25.1 29.5 31.9 46.8 61.2 77.97 
Mobile cellular coverage of popul ation (%) 99.0 99.0 99.0 99.0 99.0 .. 
Residential telephone monthly subscrip tion fee (P) 16.0 25.0 35.0 35.0 60.0 .. 
Business telephone monthly subscription fee (P) 19.0 39.9 59.8 59.8 125.0 .. 
Three-minute local call (peak rate) (P) 0.11 0.51 0.78 0.78 1.02 .. 
Three-minute local call (off-peak rate) (P) 0.08 0.30 0.60 0.60 0.78 .. 
Cellular three-minute local call (peak rate) (P) 3.90 5.40 5.40 1.14 .. .. 
Cellular three-minute local call (off-peak rate) (P) 1.65 0.75 0.60 0.72 .. .. 
Fixed broadband internet subscribers - - 1,600 1,800 3,540 .. 
Estimated internet users 60,000 60,000 60,000 80,000 100,000 80,000 
International internet bandwidth  (Mbps) 23.0 26.0 30.0 30.0 81.0 .. 
Internet users per 100 inhabitants 3.39 3.39 3.40 4.55 5.31 4.20 
- Nil.  
.. Not available. 
Note: Year beginning 1 April. 
Source:  ITU (2009), World Telecommunication/ICT Indicators Database 2008 , 12th Edition;  and ITU online information, 
 "ICT Statistics Database".  Vi ewed at:  http://www.itu.int/ITU-D/ic teye/Indicators/Indicators.aspx# 
 [24 June 2009].  
240. Tariffs for fixed and mobile telephony require approval from the regulator.142  Tariffs must be 
based on a costing and pricing model developed by the BTA with operators in 2004.  BTC was 
requested to rebalance its tariffs in 2007 because Botswana's telephone tariffs  were relatively high 
compared with other countries.  The rebalancing involved three elements:  an increase of monthly 
subscription fees, a tariff increase for local calls (which were cross-subsidized),  and a tariff reduction for international calls.  Tariffs for fixed-line interna tional calls per minute are, for example:        
P 1.70-2.10 (approx. US$0.24-0.30) to South Africa;  P 2.70 (approx. US$0.39) to the 
United Kingdom;  and P 2.20 (approx. US$0.32) to the United States.
143   
241. Licences for data services (data licence) and fo r internet services (ISP licence) were merged 
with the new value added network services (VANS) licence in 2007.  The VANS licence covers all 
value-added telecommunications services, including in ternet services and voice-over internet protocol 
(VoIP) services.  The prohibition of VoIP services by value-added network service providers was 
lifted in August 2006, allowing internet service pr oviders to compete in the voice telephony market 
segment.  As of December 2008, 43 VANS licences had been issued.  Tariffs for value-added services 
are not regulated.   
242. Internet use is very limited in Botswana;  it is slow, and expensive.  Broadband penetration 
was only 0.19% in 2007 (Table IV.5).  Internet services development has been delayed by the 
                                                      
142 Charging tariffs that are not in accordance w ith the applicable tariff structure or charging 
unreasonable prices for telecom equipment is prohibited (section 48 of Telecommunications Act).   
143 BTC online information, "New Tariffs Approved by BTC".  Viewed at: http://www.btc.bw/doc/ 
btc_rates.pdf.  The tariffs are post-paid and VAT inclusive. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 118 
 
 
effective monopoly of BTC on long-distance bandwi dth, with prices substantially above world 
standards, and ISPs not being allowed to offer VoIP services until 2006.  A connectivity agreement 
signed between BTC and British Telecommunications  South Africa in 2007 has reduced internet 
prices in Botswana, and allowed for a higher gr ade of service and reduction of communication 
transfer and reception delays.  Overall, tariffs for telecom services are perceived to be a major constraint to the development of Botswana as a hub in certain activities (e.g. tourism). 
243. In line with the National ICT Policy ( Maitlamo ), a key government priority is the 
development of a broadband infrastructure and capacity.
144  The Trans-Kalahari Fibre Optic Project, a 
2,000 km backbone infrastructure project, was comple ted in 2008 but Botswana is not yet connected 
to any international fibre-optic cable systems.145   
244. The Private Telecommunications Network Licen ce (PTNL) did not change under the new 
licensing regime. Private network operators  providing services for internal private 
telecommunications and unconnected to other public ne tworks continue to be granted a PTNL;  as of 
December 2008, 25 PTN licences had been granted. 
245. The Botswana Telecommunications Authority is an independent parastatal, whose main 
functions are licensing, tariff approval, monitori ng competition, other regulatory issues (numbering, 
interconnection etc.), policy advice to the Govern ment, and dispute resolution.  Administrative 
decisions by BTA regarding tariffs may be appealed  to the Ministry; all other BTA rulings may be 
appealed to the High Court.  All service providers , including BTC, must be licensed by the BTA, 
which has almost complete freedom in deciding th e number of licences and associated conditions.     
The BTA is financially independent. About 80% of  its revenue (P 61.1 million in 2008) is from 
licence fees set at 3% of operators' net annual turnover;   most other revenue is from radio licence fees.   
246. Botswana's interconnection regime aims to facilitate entry of service providers and a 
competitive market by guaranteeing their interconnection to the public network at "fair and 
reasonable" cost.  Interconnection charges are to be  agreed between the parties and to be submitted to 
the BTA for approval; they are fixed by the BTA only if in dispute.   
247. In the absence of a general competition law,  the Telecommunications Act provides for 
competition rules in the telecom subsector.  The BTA is authorized to ensure that telecommunications 
services are provided on a "competitive and non-discriminatory basis" (section 48 of the Telecommunications Act).  Certain anti-competitive practices (including coll usion between providers; 
forming price-fixing cartels; and using a dominant mark et position to restrict, prevent or defer another 
provider from entering the market or to eliminate a competitor) are prohibited and subject to a fine of 
between P 10,000 and P 5 million.  
248. Universal services in rural ar eas are subsidized.  All operators may tender to supply and 
operate infrastructure, with a subsidy, in th e rural areas under the Rural Telecommunications 
Programme.  A draft Universal Access and Service Po licy, which is under consideration, proposes the 
                                                     
 
144 The National ICT Policy Maitlamo , meaning commitment, has three overall objectives : the creation 
of an enabling environm ent for the growth of an ICT industry; the provision of un iversal service and access to 
information and communication facilities; and the transformation of Botswana into a regional ICT hub. 
145 The Government participates in two projects to  develop the undersea infrastructure that would 
ensure connectivity of Botswana's broadband infrastructure with the rest of the world (West Africa Festoon 
Fibre System (WAFS) and Eastern A frica Submarine Cable System (EAS Sy)).  The country is currently 
connected through an earth satellite station with Intelsat  and the ISDN network, which links Botswana to Europe 
and the United States. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 119 
 
 
establishment of a Universal Service Fund.146  Under the time-line for achieving universal service 
(100% household penetrati on for postal, telecoms, and broadcasting)  full coverage of all main urban 
cities and towns above 20,000 inhabitants is planne d for the end of 2010;  for villages with over 
2,000 inhabitants – by end 2012;  over 500 inhabitants – by end 2015;  and for villages with over 
250 inhabitants by the end of 2020.  Targets under the Connecting Communities Programme include 
high-speed internet access for all communities of  over 2,000 inhabitants by 2016, and 100 fully 
functioning access centres by the end of 2012.  
249. Botswana is a member of the International Telecommunications Union (ITU), the Southern 
Africa Telecommunications Association (SATA), the Southern African Transport and 
Communications Commission (SATCC), and the Co mmonwealth Telecommunications Organization 
(CTO).  The BTA is a member of the Communicati ons Regulators Association of Southern Africa 
(CRASA).     
(b) Postal services  
250. The public postal operator, Botswana Post, was established as a Government commercial 
organization with the exclusive privilege of esta blishing and operating postal services in the country 
pursuant to the Botswana Postal Services Act, 1989;   a Board of Management was charged with the 
overall management and control of the Post.147  The provision of posta l services has since been 
partially liberalized. So far there is no regulatory authority for the subsector, resulting in development 
of a "grey" market with unregulated service provi ders.  The Government has commissioned a Postal 
Sector Policy to provide a framework for regulat ing the postal market and options for future 
development.148 
251. Botswana Post is the de facto  provider of universal postal servi ces through its 119 post offices 
and 78 postal agencies (the latter being run by V illage Development Committe es with the assistance 
of Botswana Post).  These services comprise letters, parcels, and postal and money orders, as defined 
in the International Convention of the Universal Postal Union.149  In addition, Botswana Post provides 
internet and e-mail access service, stationery sales,  express mail services, philatelic services, and third 
party services (e.g. payouts).  
252. Botswana Post's tariffs for Universal Postal Services and other services are subject to 
approval by Parliament. The unregulated commercial operators are free to charge commercial rates for their services.  
253. There is a competitive market for courier services, which Botswana has committed to 
liberalize under the GATS.  Over 30 courier and express mail companies operate in this market 
segment, including Botswana Couriers (a 100% ow ned subsidiary of Botswana Post) and global 
express mail providers DHL, FedEx, and TNT Worldwide.   
(iii) Transport 
254. Botswana is a net importer of transport servi ces, which is a reflection of its landlocked 
position (Table I.2).  Historically, transport costs have been relatively high (Table IV.6).     
                                                     
 
146 The services are to cover fixed and mobile telephony, internet, data, radio and television 
broadcasting, and print media. 
147 The feasibility of privatization of Botswana Post is to be established after the development of a new 
postal policy, and postal reform. 
148 Hans Kok Business Consult BV (2007).   
149 Botswana is a member of Universal Post al Union and the African Postal Union.  WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 120 
 
 
Table IV.6 
Cost of trading across borders, 2009 
 Botswana Lesotho Namibia South Africa Swaziland 
Time for exports (days) 31 44 29 30 21 
Cost to export (US$ per container), of which:   2,508 1,549 1,686 1,445 2,184 
Inland transportation and handling (US$) 2,000 900 800 814 1,486 
Time for imports (days) 42 49 24 35 33 
Cost to import (US$ per container), of which:   3,064 1,715 1,813 1,721 2,249 
Inland transportation and handling (US$) 2,200 900 857 900 1,486 
Note: The cost estimates are for exporting and im porting a 20 foot containe r by ocean transport. 
Source:  World Bank online information, "Doing Business:   Trading Across Borders".  Viewed at:  
 http://www.doingbusiness.org/ExploreTopic s/TradingAcrossBorders/ [25 March 2009]. 
255. The Ministry of Works and Transport has establis hed an office to coordinate the development 
of Botswana into a regional transport hub through, inter alia , investment projects and regional 
harmonization initiatives.  Joint ventures are encour aged between the public and private sectors in 
infrastructure ownership, financi ng, construction, and maintenance.  The Government has not yet 
released its Integrated Transport Policy, which h as been developed by the Ministry of Works and 
Transport since 2006.    
(a) Road transport 
256. Road transport is the main mode of transport by far.  The road infrastructure is reasonably 
good with a total length of 8,900 kilometres, r oughly unchanged since 2002.  Botswana's major 
highway is part of the 1,800-kilometre l ong Trans-Kalahari (Tra ns-Kgalagadi) highway150, which 
serves as a link to the Maputo and Walvis Bay Economic Corridors. The Ghanzi-Sehithwa road 
project completed an asphalt ring-road around the c ountry, and facilitates the exploration of tourist 
areas and access to neighbouring countries.  The vast majority of tourists (more than 95%) arrive by 
road.151  Botswana and Namibia are in the proce ss of establishing a one-stop border post at the 
Mamuno-Trans Kalahari border post;  this is expected  to reduce transit times by 3-5 hours on a       
one-way trip. 
257. Road transport costs are high;  one reason is Botswana's prohibition of cabotage (none of the 
SACU countries allows cabotage).  There are significa nt imbalances in the direction of regional trade, 
reflecting, for example, Botswana's merchandise trad e deficit with South Africa.  The traffic at the 
Botswana-Namibian border, for example, is  estimated at 60% west-bound and 40% east-bound.152  
Because of the restrictive cabotage rules, trucks are forced to return empty, because they are not 
permitted to pick up goods for onward delivery.    
258. The Government does not regulate entry of fre ight transport operators, except for setting 
safety standards.  There are no limitations on foreign equity participation, and the State does not have 
a stake in transport companies.  Freight rates ar e market-determined, albeit under restrictive cabotage 
rules. 
259. The Department of Road Transportation and Safe ty (DRTS) within the Ministry of Works and 
Transport acts as a road transport authority.  A ll commercial vehicles operating in Botswana must 
have an annual (BA) permit (Road Transport Permits Act).  Single Trip (BS) permits and Transit 
Single Trip (TS) permits are available for vehicles registered in neighbouring countries.  Botswana 
                                                      
150 There are 595 kilometres of the Trans-Kalahari highway in Botswana. 
151 World Travel and Tourism Council (2008). 
152 USAID (2008). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 121 
 
 
levies road user charges (permit fees) only on foreign transport and passenger vehicles (including 
transit), which are to be paid at the border.    
260. Road maintenance is financed by, inter alia , road user charges, the fuel levy, vehicle and 
driving licences, and transport permits.  A system of toll roads is under consideration (Toll Road 
Study).  A road safety levy of P20 is payable by both domestic and foreign-registered vehicles to 
finance road safety projects, such as vehicles testing stations. 
261. All passenger-transport vehicles require a route-specific (P) permit.  Taxis also require a 
permit; their area of operation is not  defined, only their location.  The Government controls passenger 
bus fares and, in the case of long-distance services, prescribes time schedules.  Government subsidies, 
limited to two return trips per week per customer, ar e paid on a performance basis to bus operators to 
encourage operators to provide rural services.  For passenger transport, the Government restricts the 
entry of new operators, which must be citizen-owned companies, to safeguard the interests of existing 
firms and to avoid "unhealthy competition" in the thin transport market.    
262. Botswana has bilateral and trilateral road tran sport agreements with Namibia, South Africa, 
Zambia, and Zimbabwe.153   
(b) Rail transport 
263. Botswana's main railway line connecting South Africa with Zimbabwe was built at the end of 
the 19th century, largely as part of Cecil Rhodes' vision of a Cape to Cairo Railway.  The route length 
of railways is nearly 900 kilometres, comprising 650 km of main line, and 250 km of branch lines 
(serving the copper-nickel mines in Selebi-Phikwe, the coal mines in Morupule, and the soda ash 
plant at Sua Pan).  Spoornet of South Africa (now Transnet Freight Rail) is the monopoly provider of 
services for Botswana's soda ash industry.  The textiles industry also relies on rail transport for 
imports of raw materials.  The reintroduction in 2006 of the train service between Francistown in 
Botswana and Bulawayo in Zimbabwe has helped to promote bilateral trade and tourism, and to 
alleviate congestion at the border.   
264. The parastatal Botswana Railways (BR) holds a statutory monopoly for operating railway 
services in the country, under the Botswana Ra ilways Act, 1986, last amended in 2004.154  T h e  
construction of private railways sidings (low speed  tracks for loading, etc.) requires approval from BR 
(Section 13).  Tariffs for goods and passenger traffic are set by BR, and require ministerial approval 
(Section 18).  Discount rates are periodically  negotiated with major customers.   
265. Botswana has a limited market for rail-borne traffic due to the manufacturing sector's small 
share in the economy;  there is also competition fo r transit traffic (traditionally a BR core activity) 
from the road transport sector and other regional ra ilways.  The completion in 1999 of the Beitbridge 
– Bulawayo Railway Transit between South Africa a nd Zimbabwe led to a diversion of North-South 
bound traffic and has greatly dimini shed BR's transit freight traffic from a peak of 1.2 million tonnes 
in 1998 (Table IV.7). 
266. As traffic volumes had become uneconomical, BR  adopted a five-year strategic plan in 
September 2006, which seeks to transform BR from a conventional rail transporter to a logistics and 
                                                      
153 Ministry of Works and Transport online informa tion.  Viewed at:  http://www.transport.gov.bw/ 
files/attachments/strategic_plan.pdf. 
154 Chapter 70:01, Botswana Railways Act.  Viewed at:  http://209.85.135.104/search?q= 
cache:bjWbHUT3U_kJ:www.laws.gov .bw/Docs/Principal/Volume11/ Chapter70/PR-VOL-XI-CHP-70-
01%2520BOTSWANA%2520RAILWAYS.pdf+Chapter+70:01+Botswana&hl=en&ct=clnk&cd=1&gl=ch.   WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 122 
 
 
commercial transport service provider.  The amended Railways Act allows BR to participate in joint 
ventures and establish subsidiaries.  The BR subs idiary, BR Properties (Pty) Ltd., was founded in 
2008 to allow, inter alia , the commercial use of railway propert y, to supplement operating revenue.  
BR is earmarked for privatization. 
Table IV.7 
Rail traffic, 2003-08 
('000 tonnes, unless otherwise specified) 
 2003 2004 2005 2006 2007 2008 
Passengers       
Total ('000) 572.0 406.2 382.6 426.9 382.8 386 
Revenue (P'000) 8,930.0 8,419.0 8,891.0 10,175.0 10,392.0 16,937 
Cargo       
Total imports  964.9 1,010.0 795.7 745.3 872.5 967 
Total exports  435.1 485.0 570.3 510.5 533.8 564 
Local traffic  356.6 345.8 323.9 343.0 342.8 328 
Transit traffic 239.2 133.2 107.1 113.8 1.7 131 
Total traffic 1,995.8 1,974.0 1,797.0 1,712.6 1,750.8 1,990 
Total revenue (P'000) 119.9 118.8 146.8 505.8 133.0 221.1 
Source: Central Statistics Office (2008), Transport Statistics 2007 , December.  Viewed at: http://www.cso.gov.bw/ 
 images/stories/Transport/transport% 20stats%20brief%2007.pdf;  and information provided by the Botswana 
 authorities.   
267. Botswana has three dry port facilities:  the Ga borone Container Terminal (Gabcon Pt. Ltd.)155, 
and the Francistown Container Terminal (Francon), which serve as container terminals for locally based importers and exporters, and Phikwe Dry Port.  The development of another dry port facility is 
under way, at Walvis Bay in Namibia (under a lease agreement between the governments of 
Botswana and Namibia), to serve as an alternativ e to the ports of Durban and Cape Town, and to 
make Botswana's exports more competitive.  A rail  link to the Atlantic co ast, the Trans-Kgalagadi 
Railway, to be used mainly for coal transportati on, is also being considered (feasibility studies under 
way).  The role of commercial railway transpor t is being challenged through competition from the 
upgraded road network for freight transport.   
(c) Air transport 
268. Air transport is vital for a landlocked economy like Botswana, notably to facilitate business 
travel, and for international tourist arrivals, beca use of the remoteness of many of its tourist 
attractions.  Botswana's airspace is among the bus iest in Africa in terms of over-flight traffic 
(Table IV.8). 
269. While the strategic role of air transport ser vices has been recognized by the Government, the 
capacity of the national carrier to adequately fulfil th at role is a source of some concern. Air Botswana 
has been providing limited and unreliable service:  there are no direct long-haul international flights; 
all long-haul passengers into the country have  to connect through South Africa, Namibia or 
Zimbabwe.
156  Air travel costs are high, not least because of Botswana's restrictive access policies.   
                                                      
155 Gabcon is a joint venture between Botswana Railways and Spoornet of South Africa (now Transnet 
Freight Rail) 
156 Air Botswana serves the routes of Gaborone-Johannesburg, Gaborone-Harare, and 
Maun-Johannesburg.  South African Airways runs regular scheduled international flights to and from Gaborone, linking it with Johannesburg and Cape Town;  and Air Namibia operates a flight between Maun and Windhoek. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 123 
 
 
Table IV.8 
Air traffic, 2003-08 
  2003 2004 2005 2006 2007 2008 
Aircraft movements            
International  17,332 18,875 20,391 20,473 19,445 19,446 
Domestic 44,794 49,474 52,391 55,917 56,962 66,373 
Total  62,126 68,349 72,782 76,390 76,407 85,819 
Passengers        
Departures            
International  123,708 135,596 144,914 143,433 155,664 .. 
Domestic 118,241 130,935 129,920 139,528 148,655 .. 
Arrivals            
International  121,292 135,064 148,048 142,598 155,087 .. 
Domestic 119,499 132,089 129,294 141,499 150,309 .. 
Total 482,740 533,684 552,176 567,058 609,715 690,105a 
.. Not available. 
a International passengers arrivals and de partures totalled 338,655.  Domestic arri vals and departures totalled 351,450 passeng ers.   
Source: Central Statistics Office (2008), Transport Statistics 2007 , December.  Viewed at: http://www.cso.gov.bw/ 
 images/stories/Transport/transport% 20stats%20brief%2007.pdf;  and information provided by the Botswana 
 authorities.  
270. The regulatory framework for civil aviation in Botswana is set out in the Civil Aviation 
Authority Act, 2004.  The legislation established the parastatal Civil Aviation Authority of Botswana 
(CAAB).  The independent regulatory authority is, inter alia , responsible for the management of 
Botswana's airport and air navigation services infrastructure and facilities, and licensing.  The CAAB Board was constituted in March 2006.  Under th e Cabinet Decision of 9 February 2009,  Air 
Botswana will no longer have a domestic monopoly on public transport of passengers, cargo, and mail 
on all scheduled routes.  It will retain an exclus ive right to operate international services only on 
routes from Gaborone and Maun, to Johannesburg (Oliv er Tambo International Airport).  Cabotage is 
prohibited.   
271. Under the new regulatory regime being put in place by the CAAB, there will be open market 
entry for all eligible carriers.  The CAAB will rely  on competition to discipline fares and rates in the 
domestic market for scheduled services.  The CAAB will nonetheless monitor market behaviour by air carriers and will retain authority to in tervene in case of an ti-competitive practices. 
272. In international markets, the Government will remain 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 ma rkets to Botswana and foreign carriers.  The 
Government has indicated a willingness to designate  other Botswana carriers, in addition to Air 
Botswana, on routes other than Gaborone/Maun to  Johannesburg.  The CAAB would license the 
designated carriers and would oversee the administrati on of fares, rates, and capacity, according to the 
provisions of the applicable bilateral air services agreement. 
273. Botswana has bilateral air services agreements  with South Africa, Tanzania, Zambia, and 
Zimbabwe.  The agreement with Zambia provides fo r multiple destinations and points of entry for 
passenger and cargo services between the two countries,  the removal of restrictions on capacity and 
frequency, and fifth freedom traffic rights.
157   The agreement with South Africa still has a restricted 
number of routes but, with the amendments made in 2004, provides for an unlimited number of air 
carriers to be designated by both sides. 
                                                      
157 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. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 124 
 
 
274. Air Botswana operates a dedicated cargo servi ce between Gaborone and Johannesburg. Cargo 
prices are market determined.  Volumes are small (about 1,100 tonnes in 2007) since there has been 
little demand for air cargo services.  The Government is exploring the possibility of developing an air 
cargo hub for perishables in the SADC region, to serve, for example, horticultural projects in 
Botswana (Pandamatenga).  The cold-store facilities at  the international airport in Gaborone are small.  
Ground handling services are provided by Air Botswana on all scheduled routes (except in Harare), 
and on a contract basis for charter flights.  The na tional airline also has its own charter service, while 
private operators service tourist areas. 
275. Air Botswana has been making losses since 2004/05.  In 2008, it was recapitalized by the 
Government (P 103.1 million) to finance, inter alia , overhaul/replacement of aircraft and to retain 
pilots.  There have been several unsuccessful atte mpts to privatize Air Botswana since 2000.  The 
possibility of running the national carrier by a mana gement firm on a contract basis, or a franchise, 
has been considered by the Public Enterp rise Evaluation and Privatization Agency.   
276. Foreign air carriers must have a temporary air service permit (TASP) to operate 
non-scheduled flights into Botswana. Qualified aircra ft maintenance engineers must obtain an Aircraft 
Maintenance Engineer's Licence (AMEL) in order to release Botswana-registered aircraft for service.  
Private aerodromes must be licensed;  the four types of licences depend on the type of aircraft used (Air Navigation Regulations).
158   
277. Botswana has 6 state-owned international ai rports and 19 airfields in major villages 
throughout the country, as well as 52 private airfields mainly catering for tourists.  Upgrading of 
facilities at the four major airports is scheduled for completion ahead of the football World Cup in 
South Africa in 2010:  Sir Seretse Kharma (Ga borone), Francistown, Kasane, and Maun are being 
improved and/or expanded to enable  them to receive larger aircraft;  and the construction of 
Serowe/Palapye and Ghanzi airfields continues. 
(iv) Tourism 
278. Tourism is estimated to contribute about 5% to  GDP and is Botswana's third-largest foreign 
exchange earner after diamonds and copper-nickel (Table IV.9).159  The Ministry of Environment, 
Wildlife, and Tourism (the Department of Tourism)  is responsible for polic y formulation and oversees 
development of the tourism industry.  Botswana's tourism policy seeks to address, inter alia , issues of 
sustainable use of natural resources for tourism, and of increasing benefits for the local population.  The Botswana National Ecotourism Strategy of  2002 seeks to realize the potential for greater 
community-based involvement in tourism.
160  The Tourism Policy of 1990 is currently under review. 
279. Botswana has been targeting wealthier visitors  (low volume, high value), largely due to the 
sensitivity of the ecosystems of the Okavango Delta  and Chobe River systems.  These game parks 
accounted for 95% of all national park entries and 91% of park revenues in 2006.161  A tourism 
diversification strategy is being put in place in or der to open up other geographical areas for tourism. 
                                                      
158 Department of Civil Aviation online information.  Viewed at:  http://www.dca.gov.bw/index.php? 
sectid=230&parent=207. 
159 Tourism receipts were US$546 million in 2007 , compared with US$537 million in 2006 (World 
Tourism Organization, 2008).   
160 See Botswana Tourism Board (undated). 
161 World Travel and Tourism Council (2008). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 125 
 
 
Table IV.9 
Selected tourism indicators, 2003-09 
 2003 2004 2005 2006 2007 2008 2009a 
Licensed tourism enterprises 
(number)        
Category A (accommodation 
other than camps and lodges) 128 143 145 145 159 170 171 
Category B (camps and lodges) 194 210 204 220 225 230 232 
Category C (mobile opera tions) 140 143 135 149 164 158 158 
Category D (travel agencies) 43 46 38 46 51 50 50 
Total  505 542 522 560 599 608 611 
Tourist arrivals 1,405,985 1,522,847 1,675,132b 1,842,645b 1,990,056b 2,131,149b .. 
Expenditure (P million) 1,815 1,642 2,433 2,858 3,283 4,098 .. 
Rooms (number) 3,589 4,050 4,795 4,832 4,832 4,966 .. 
Room occupancy (%) 30.5 35.5 41.5 54.4 50.3 .. .. 
Beds (number) 6,646 7,800 8,040 8,612 8,509 8,716 .. 
Average length of stay (number of 
nights) 2.0 2.7 2.5 2.1 1.8 .. .. 
..  Not available.   
a As end of March.   
b Estimates.  
Source:  Information provided by the Botswana authorities. 
280. Tourist arrivals are overwhelmingly by road from other southern African countries, notably 
South Africa and Zimbabwe.  Overseas tourists were mainly from the EC (in particular the United Kingdom) and the United States.  The high co st of passenger air travel to Botswana and the 
lack of direct international flights negatively affect  tourism, which is also hampered by impediments 
such as multiple visa requirements in the Botswana, Zambia, Zimbabwe triangle. 
281. The Botswana Tourism Board (BTB), estab lished in 2006, is responsible for, inter alia , 
investment promotion, product de velopment, and grading of tour ism facilities (Botswana Tourism 
Board Act, 2004).  Grading standards are developed by the Botswana Bureau of Standards (BOS) and 
are reviewed every five years through a BOS techni cal committee, which consists mainly of industry 
members.  Annual grading fees are in the range of P 3,000 (one-star hotels) to P 5,000 (five-star 
hotels).  Restaurants are not graded. 
282. Licensing of "tourist enterprises"
162 is governed by the Tourism Act of 1992, and the Tourism 
Regulations of 1996.  Licences are granted by the Tourism Industry Licensing Board, a five-member board appointed by the Minister of the Environment, Wildlife and Tourism.  Hotels are subject to minimum licensing (i.e. comfort) requirements;  annual hotel licence fees are P 200 for guest houses and P 1,000 for hotels. A training levy of P 2 per paying guest per day is payable by all licensed tourist enterprises, to finance the Tourism Industr y Training Fund for skills improvement of tourism 
employees.
163    
                                                      
162 Tourist enterprises comprise, inter alia , hotels, camps, lodges, guest tour operators (including tour 
guides), and travel agents.  The Tourism (Licensing) Order of 1996 exempts wholly citizen-owned tourist 
enterprises with five bedrooms or less, from the licensing requirement. 
163 Finance (Tourism Industry Training Fund) Order of 1996. WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 126 
 
 
283. Botswana has made full GATS commitments on market access under modes 1 and 3 with 
respect to hotels and restaurants, including catering (CPC 641-643)164, and travel agencies and tour 
operators.  The commitments under CPC 641 cover, inter alia , camping and caravan site services, and 
would appear to cover guest houses.165  The Tourism (Reservation of Tourism Enterprises for 
Citizens) Revocation Regulation No. 86 of 2007 rescinded the reservation of certain tourist 
enterprises for citizens of Botswana or companies wholly owned by citizens of Botswana, since the 
reservation may not have been consistent with GATS commitments.166      
284. Tourism activities are largely private-sector driven .  Access to appropriate sites is critical to 
the establishment of new private-sector tourism en terprises.  State lands are leased to tourism 
organizations and individuals for 15 years, subject to  reviews of the land's use every five years, with 
the option to renewing the lease at th e end of the 15-year period.  Tribal lands are allocated typically 
on 50-year leases.  Some freehold allocations also exist.  
                                                      
164 With regard to mode 3, "the service should  be supplied through commercial presence" (WTO 
document GATS/SC/109, 30 August 1995).   
165 United Nations (1991). 
166 These covered camp sites including caravan sites,  guest houses, mekoro operations (safaris in 
dug-out canoes), mobile safaris, moto rboat safaris, and transportation. SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 127 
 
 
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Botswana United Revenue Service (undated), Annual Report 2007 , Gaborone. 
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Postal_Policy.pdf.   
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VetScience_Working%20Paper%203.pdf.   
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Development (NAMPAADD) Implementation Guidelines, Gaborone. 
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31 December 2006 , Gaborone.   
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services .  Viewed at:  http://www.globalexpo.co. bw/typo3conf/ext/naw_securedl/secure.php?u= 
0&file=fileadmin/downloads/Presentation%20U LMGS.pdf&t=1226410509&hash=b4565eefe05aa26
7f631ad9c5c4ea4cc [25 November 2008]. 
National Aids Co-ordinating Agency (undated), National HIV/AIDS Strategic Framework 2003-2009 . 
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20Framework_2003-2009.pdf. 
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Prosperity for All , Gaborone. 
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te Velde, D. and M. Cali (2007), Assessment of Botswana's Services Sector , Study for the 
BTPP/BIDPA, Overseas Development Institute .  Viewed at:  http://www.odi.org.uk/IEDG/ 
publications/assess_botswana_services_final_report.pdf. 
Transparency International (2007), National Integrity System:  Country Study Report:  Final Report:  
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UNAIDS (2008), 2008 Report on the Global Aids Epidemic . Viewed at: 
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United Nations (1991), Provisional Central Product Classification , Statistical Papers, Series M, 
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USAID (2008), Feasibility Study for Establishment of On e-Stop Border Post on the Trans Kalahari 
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World Economic Forum (2008), The Global Competitiveness Report 2008-09 .  Viewed at: 
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WTO (2003), Trade Policy Review:  SACU , Geneva.  
  
 
     
  
 
 APPENDIX TABLES 
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 133 
 
 
Table AI.1  
Structure of exports, 2001-07  
(US$ million and per cent)  
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 2,532.9 2,745.1 3, 801.6 3,510.8 4,430. 6 4,506.2 5,072.5 
                
  (per cent) 
        
Total 100 100 100 100 100 100 100 
                
Total primary products 9.2 8.8 13.2 14.0 14.3 19.6 26.5 
   Agriculture 3.6 3.9 2.5 2.8 2.7 2.8 3.0 
      Food 3.2 3.5 2.4 2.5 2.6 2.7 2.8 
         0111  Bovine meat, fresh, chilled 1.5 1.6 1.1 0.8 0.9 1.0 1.2 
         0112  Bovine meat, frozen 1.0 0.8 0.6 0.6 0.7 0.8 1.0 
      Agricultural raw material 0.5 0.3 0.1 0.3 0.2 0.2 0.2 
   Mining 5.6 4.9 10.8 11.2 11.5 16.8 23.5 
      Ores and other minerals 5.5 4.7 10.7 11.1 11.4 16.6 23.2 
         2842  Nickel mattes, sinters, etc. 0.0 0.0 0.0 0.0 0.0 0.0 15.5 
         2831  Copper ores and concentrates 0.0 0.0 0.0 0.5 0.0 1.3 3.3 
         2832  Copper mattes; cement copper (precipitated copper) 4.1 3.6 10.0 9.6 10.3 13.7 2.5 
         2771  Industrial diamonds, sorted, whether or not worked 1.1 0.8 0.6 0.5 0.5 1.2 1.2 
         2841  Nickel ores and concentrates 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
      Non-ferrous metals 0.0 0.2 0.0 0.1 0.1 0.0 0.0 
      Fuels 0.1 0.0 0.0 0.0 0.1 0.1 0.2 
Manufactures 90.6 90.9 86.4 85.6 84.8 79.3 73.1 
   Iron and steel 0.1 0.0 0.0 0.1 0.1 0.2 0.1 
   Chemicals 1.3 1.3 0.4 1.1 0.8 0.8 0.8 
         5237  Carbonates, percarbonates 0.9 0.8 0.0 0.6 0.5 0.4 0.3 
   Other semi-manufactures 84.2 80.6 78.5 75.7 74.9 72.9 63.0 
         6672  Diamonds (excl. industrial, sorted) not mounted/set 83.8 79.7 77.7 75.1 74.4 72.4 62.5 
   Machinery and transport equipment 2.9 6.3 5.2 5.0 3.7 1.7 1.8 
      Power generating machines 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
      Other non-electrical machinery 0.5 1.1 0.4 0.6 0.5 0.4 0.3 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
      Office machines and telecommunication equipment 0.2 0.2 0.1 0.2 0.2 0.2 0.2 
      Other electrical machines 0.1 0.9 0.8 0.4 0.3 0.2 0.5 
         7725  Switc hes, relays, fuses etc. for a voltage not exceeding 
 1,000 V 0.0 0.0 0.0 0.2 0.2 0.1 0.4 
      Automotive products 2.0 3.7 3.6 3.4 2.5 0.7 0.5 
      Other transport equipment 0.2 0.5 0.2 0.4 0.2 0.1 0.2 
   Textiles 0.3 0.3 0.3 0.4 0.4 0.3 0.3 
   Clothing 1.0 1.6 1.5 2.9 4.6 3.1 6.7 
         8453  Jerseys, pullovers, cardigans, etc., knitted/crocheted 0.2 0.6 0.7 1.0 1.7 0.7 2.5 
         8447  Blouses/shirts, women's/girls', knitted/crocheted 0.0 0.0 0.0 0.1 0.1 0.3 1.0 
         8454  T-shirts, singlets and other vests, knitted or crocheted 0.3 0.3 0.1 0.5 0.5 0.5 0.8 
         8426  Trousers, br eeches, etc., wome n's/girls', not 
 knitted/crocheted 0.0 0.0 0.0 0.2 0.5 0.3 0.5 
         8427  Blouses/shirts, women's/girls', not knitted/crocheted 0.0 0.0 0.1 0.1 0.7 0.2 0.4 
         8414  Trousers, bib and brace overalls, breeches and shorts 0.2 0.2 0.1 0.2 0.5 0.2 0.4 
         8442  Suits, ensembles, jackets, dresses, etc. 0.1 0.1 0.2 0.2 0.1 0.3 0.2 
   Other consumer goods 0.8 0.7 0.5 0.4 0.4 0.3 0.4 
Other 0.2 0.4 0.4 0.4 0.9 1.1 0.5 
         9310  Special transactions and commodities not classified by 
 type 0.2 0.3 0.4 0.3 0.3 0.3 0.4 
   Gold 0.0 0.1 0.0 0.1 0.6 0.8 0.3 
         9710  Gold, non-monetary (excl. gold ores and concentrates) 0.0 0.1 0.0 0.1 0.6 0.8 0.3 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 134 
 
 
Table AI.2  
Destination of exports, 2001-07  
(US$ million and per cent)  
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 2,532.9 2,745.1 3,801.6 3,510. 8 4,430.6 4, 506.2 5,072.5 
                
  (per cent) 
                
  America 0.3 0.9 0.8 4.0 2.3 1.9 2.6 
    United States 0.2 0.7 0.4 1.6 2.2 1.9 1.0 
    Other America 0.1 0.2 0.4 2.4 0.0 0.0 1.7 
      Canada 0.1 0.2 0.3 1.0 0.0 0.0 1.6 
                
  Europe 89.1 85.7 88.2 82.0 83.5 83.7 76.3 
    EC(25) 86.7 83.6 80.7 76.4 77.1 74.3 67.7 
      United Kingdom 85.8 81.4 79.1 74.5 75.6 72.3 65.0 
      Germany 0.3 0.4 0.5 0.4 0.7 0.4 1.1 
      Belgium 0.0 0.2 0.0 0.3 0.2 0.5 1.1 
      Greece 0.1 0. 3 0.2 0.1 0. 1 0.2 0.2 
      France 0.1 0.2 0.0 0.2 0.1 0.1 0.1 
      Netherlands 0.0 0.1 0.0 0.0 0.0 0.1 0.1 
      Italy 0.3 0.1 0.1 0.1 0.0 0.0 0.0 
      Portugal 0.0 0.8 0.8 0.3 0.2 0.1 0.0 
    EFTA 2.4 2.1 7.5 5.6 5.9 9.4 8.5 
      Norway 2.4 2.1 7.5 5.6 5.9 9.4 8.1 
      Switzerland 0.0 0.0 0.0 0.0 0.0 0.0 0.4 
    Other Europe 0.0 0.0 0.0 0.0 0.5 0.0 0.1 
                
  Commonwealth of Independent States  (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
                
  Africa 9.7 12.6 10.4 13.5 13.7 13.0 18.0 
      South Africa 6.4 9.1 7.5 9.3 8.8 6.4 10.2 
      Zimbabwe 2.6 2.7 2.5 3.7 4.2 5.6 7.3 
      Zambia 0.3 0.3 0.1 0.1 0.3 0.4 0.2 
      Namibia 0.0 0.1 0.1 0.1 0.3 0.3 0.2 
      D.R. Congo 0.1 0.1 0.0 0.0 0.0 0.1 0.0 
      Angola 0.0 0.0 0.0 0.0 0.0 0.1 0.0 
      Swaziland 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
                
  Middle East 0.8 0.8 0.6 0.4 0.3 0.9 0.9 
      Israel 0.8 0.8 0.6 0.4 0.2 0.9 0.9 
                
  Asia 0.0 0.1 0.0 0.1 0.2 0.4 2.1 
    China 0.0 0.0 0.0 0.0 0.0 0.1 1.9 
    Japan 0.0 0.0 0.0 0.0 0.0 0.0 0.1 
    Six East Asian traders 0.0 0.0 0.0 0.0 0.2 0.1 0.1 
      Thailand 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
    Other Asia 0.0 0.1 0.0 0.0 0.1 0.1 0.0 
                
  Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 135 
 
 
Table AI.3  
Structure of imports, 2001-07  
(US$ million and per cent)  
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,810.8 3,373.8 3, 964.0 3,235.3 3,162. 3 3,053.3 3,986.9 
                
 (per cent) 
                
Total primary products 23.4 24.3 20.2 28.0 31.2 35.3 31.8 
   Agriculture 14.7 16.8 14.7 15.1 14.7 14.5 14.0 
      Food 13.9 16.0 13.9 14.4 13.8 13.7 13.1 
         0221  Milk and cream, not   
  concentrated/sweetened 0.6 0.7 0.5 0.9 1.0 0.9 0.7 
         1222  Cigarettes containing tobacco 0.5 0.5 0.3 0.7 0.6 0.6 0.7 
      Agricultural raw material 0.8 0.8 0.8 0.8 0.9 0.8 0.9 
   Mining 8.7 7.4 5.5 12.8 16.5 20.8 17.8 
      Ores and other minerals 1.8 0.9 0.9 0.9 2.5 3.2 1.8 
         2841  Nickel ores and concentrates 0.6 0.4 0.6 0.2 1.9 2.0 0.9 
         2771  Industrial diamonds, sorted, whether or 
 not worked 0.9 0.2 0.0 0.4 0.3 1.0 0.7 
      Non-ferrous metals 0.2 0.6 0.2 0.3 0.4 0.4 0.5 
      Fuels 6.7 6.0 4.5 11.7 13.6 17.2 15.6 
         3510  Electric energy 0.4 0.2 1.0 0.9 1.1 1.4 1.3 
Manufactures 71.0 70.7 74.9 65.9 65.0 62.9 67.2 
   Iron and steel 2.2 2.1 2.3 2.5 2.3 2.4 2.5 
   Chemicals 7.2 7.5 9.0 8.8 9.3 10.1 9.2 
         5429 Medicaments, n.e.s. 1.5 1.6 2.2 1.9 2.3 2.7 2.5 
   Other semi-manufactures 13.9 13.0 12.9 13.0 12.4 12.5 14.5 
         6911  Iron or steel structures, tubes and the like, 
 for use in structures 1.4 1.1 1.2 1.3 0.8 1.1 1.4 
         6612 Portland cement and similar hydraulic 
 cements 1.5 1.2 0.7 1.5 1.4 1.2 1.3 
         6924 Reservoirs, tanks, vats of iron, steel or 
 aluminium, <= 300 litres 0.9 1.0 1.4 1.0 0.9 0.8 0.8 
   Machinery and transport equipment 32.0 33.7 32.9 30.1 29.8 26.5 30.2 
      Power generating machines 0.5 0.4 0.5 0.8 0.7 0.5 0.6 
      Other non-electrical machinery 9.4 8.1 8.9 7.4 7.4 7.5 9.0 
         7283  Other mineral working machines 0.7 0.7 0.5 0.5 0.7 0.8 1.1 
         7232  Mechanical shovels, etc., self-propelled 0.6 0.8 1.3 0.5 0.8 0.6 1.1 
      Office machines and telecommunication equipment 5.2 6.1 6.6 5.1 4.8 4.4 4.6 
         7643  Radio or television transmission apparatus 1.8 1.7 1.5 1.4 1.7 1.0 0.8 
      Other electrical machines 4.2 3.6 3.6 3.4 3.4 3.6 4.0 
         7731  Insulated wire, cable etc.;  optical fibre 
 cables 0.8 0.7 0.6 0.6 0.7 0.9 1.3 
      Automotive products 10.9 13.2 11.8 11.6 9.9 8.9 10.6 
         7821  Goods vehicles 4.4 5.9 3.1 3.9 3.6 3.1 4.0 
         7812  Motor vehicles for the transport of 
 persons, n.e.s. 4.0 5.1 5.5 4.6 3.6 3.3 3.5 
      Other transport equipment 1.8 2.3 1.5 1.7 3.7 1.6 1.4 
   Textiles 1.8 1.7 1.6 1.4 1. 5 1.4 1.4 
   Clothing 1.9 2.0 2.6 2.5 2.4 2.6 2.4 
   Other consumer goods 12.1 10.8 13.7 7.5 7.2 7.4 7.0 
Other 5.5 5.0 4.8 6.2 3.8 1.8 1.0 
         9310  Special transactions and commodities not 
 classified by type 4.3 3.6 3.8 4.0 3.3 1.3 15.0 
   Gold 0.3 0.1 0.0 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). WT/TPR/S/222/BWA/Rev.1 Trade Policy Review 
Page 136 
 
 
Table AI.4 
Origin of imports, 2001-07 
(US$ million and per cent)  
  2001 2002 2003 2004 2005 2006 2007 
Total (US$ million) 1,810.8 3,373.8 3,964.0 3,235. 3 3,162.3 3, 053.3 3,986.9 
                
  (per cent) 
                
  America 2.1 1.7 1.3 1.8 1.8 1.3 1.4 
    United States 1.8 1.4 0.8 1.4 1.3 0.9 1.2 
    Other America 0.4 0.3 0.5 0.4 0.6 0.4 0.2 
                
  Europe 11.9 10.6 10.0 9.2 7.0 4.3 6.1 
    EC(25) 11.5 10.1 9.1 7.5 6.8 4.1 6.0 
      Belgium 0.2 0.1 0.1 0.7 0.1 0.7 1.6 
      United Kingdom 4.4 3.4 2.9 1.4 1.3 1.1 1.4 
      Germany 0.5 0.7 0.7 0.3 0.9 0.7 0.8 
      Sweden 2.8 2.4 3.4 3.1 3.1 0.3 0.6 
      Portugal 0.9 0.6 0.0 0.2 0.1 0.1 0.4 
      France 1.1 1.9 1.1 1.2 0.3 0.2 0.2 
      Italy 0.9 0.2 0.1 0.2 0.1 0.2 0.2 
      Netherlands 0.0 0.2 0.2 0.1 0.3 0.2 0.2 
    EFTA 0.4 0.3 0.8 1.6 0.2 0.2 0.2 
    Other Europe 0.0 0.2 0.1 0.0 0.1 0.0 0.0 
                
  Commonwealth of Independent States  (CIS) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
                
  Africa 81.4 84.3 86.2 85.5 86.7 88.8 85.9 
      South Africa 77.5 79.9 84.8 83.2 84.1 85.8 83.5 
      Zimbabwe 3.2 2.0 0.6 1.6 1.5 1.6 1.3 
      Namibia 0.3 0.4 0.2 0.4 0.5 0.6 0.6 
      Zambia 0.1 0.8 0.1 0.0 0.2 0.2 0.3 
                
  Middle East 2.0 1.3 0.3 0.8 0.6 0.8 1.3 
      Israel 2.0 1.2 0.1 0.5 0.4 0.6 1.1 
      United Arab Emirates 0.0 0.1 0.2 0.2 0.2 0.1 0.2 
                
  Asia 2.5 2.0 2.1 2.8 3.9 4.8 5.3 
    China 0.4 0.5 0.6 0.6 1.1 1.2 1.8 
    Japan 0.3 0.2 0.3 0.7 0.7 0.6 0.7 
    Six East Asian traders 1.2 0.8 0.8 0.9 1.2 2.1 1.7 
      Hong Kong, China 0.1 0.2 0.3 0.3 0.4 0.6 0.5 
      Thailand 0.0 0.0 0.0 0.0 0.1 0.5 0.4 
      Singapore 0.3 0.1 0.1 0.2 0.3 0.6 0.4 
      Chinese Taipei 0.5 0.2 0.1 0.1 0.1 0.2 0.3 
    Other Asia 0.6 0.6 0.4 0.7 0.9 0.9 1.1 
      India 0.3 0.3 0.2 0.5 0.7 0.7 0.7 
      Australia 0.2 0.2 0.1 0.2 0.1 0.2 0.4 
                
  Other 0.1 0.0 0.0 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UNS D, Comtrade database (SITC Rev.3 data). 
 SACU-Botswana WT/TPR/S/222/BWA/Rev.1 
 Page 137 
 
 
Table AIV.1 
Agricultural production, imports, and exports, 2003-08 
(Tonnes) 
 2003 2004 2005 2006 2007 2008 
Production        
Beans  2,009 3,463 1,126 3,790 196 1,819 
Beef .. 25,688 23,343 27,985 33,913 22,964 
Horticulture 13,406 15,874 18,180 30,763 38,100 35,315 
Maize 1,633 7,536 2,586 10,467 657 10,596 
Sorghum/millet 23,596 14, 453 21,323 25,833 25,978 32,394 
Wheat .. .. .. .. .. .. 
Imports        
Beans 4,949 4,858 3,985 4,882 2,618 5,732 
Beef 1,185 1,502 1,845 1,254 2,422 1,681 
Horticulture  40,481 66,720 67,701 63,128 52,900 57,567 
Maize 141,000 112,591 92,353 173,355 128,438 127,281 
Sorghum/millet 38,000 18, 679 14,239 14,168 47,811 33,208 
Wheat 93,909 75,000 60,767 75,330 96,332 105,054 
Exports        
Beans  185 197 445 232 35 87 
Beef 14,654 16,200 20,358 21,209 31,035 18,955 
Horticulture .. .. .. .. .. .. 
Maize 0 0 0 0 0 0 
Sorghum/millet 0 0 0 0 0 0 
Wheat 0 0 0 0 0 0 
.. Not available.  
Source:  Information provided by th e Botswana authorities.