This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/22/2019

Overview
 

Botswana has a reasonably developed telecommunications system, although slow internet and high data costs remain a business constraint.  The semi-privatized Botswana Telecommunications Corporation (BTC) provides landline services and competes with cellular consortiums Mascom Wireless (an affiliate of South Africa’s MTN which is about to sell its shares), and Orange for cellular service.  The cellular market is performing well with especially strong penetration and coverage.  Botswana has one of the highest cell phone penetration rates in Africa.

Internet usage is on the rise and is now used by some 65% of the population according to the Global Information Technology Report, which ranked Botswana 101 out of 139 in its Networked Readiness Index.  This will change in the medium term as internet access via mobile devices expands.  The government divested BTC of its fiber-optic assets and gave them to another SOE, Botswana Fiber Network (BoFiNet) with the hope that BTC would be forced to compete for broadband access along with other private companies and lower prices for consumers.  Botswana Communications Regulatory Authority (BOCRA) has been engaging the major public operators to reduce tariffs of telecommunications and internet services at both wholesale and retail level to reflect the underlying costs of providing the services, but prices are still considered expensive compared to the region.

DSL service provided by BTC is expensive, though reasonably reliable.  Dedicated bandwidth, essential for some businesses, is expensive but the Government is trying to lower costs.  There are no restrictions on the provision of voice over internet protocol by value-added network service providers.  The Ministry of Information, Science, and Technology has the authority to issue licenses for telecom services including mobile telephones, data communications, payphones, sale of telecommunications equipment, and internet services.  No restrictions apply to foreign partnerships in mobile services.

The government has invested $38 million into the development of the West Africa Cable System, an undersea cable connecting southern and western African countries to the United Kingdom via Portugal.  BoFiNet also continues to extend their fiber backbone to cover other areas in the country. 

 

Sub-Sector Best Prospects

Communications services, including internet service provision, telecommunications equipment, and software are the best sub-sector prospects.
 

Opportunities

U.S. exports of telecommunication equipment to Botswana have increased significantly over the last several years due to a $20 million investment from a satellite communications provider.  This figure does not reflect those U.S. products exported to South Africa and imported to Botswana by South African distributors. MTN has publicly announced that it will be selling its stake in Mascom Wireless. The transaction is still yet to take place.
 

Web Resources

Botswana Telecommunications Corporation: www.btc.bw
BTC Tenders Page: www.btc.bw/tenders.html
Botswana Telecommunications Authority: www.bta.org.bw
Ministry of Communications, Science, and Technology: www.gov.bw
Ministry of Investment, Trade, and Industry: www.mti.gov.bw
Department of Customs and Excise: www.finance.gov.bw/customs

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