Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.
Last Published: 7/22/2019

  • Due to the country’s small population and low supply of skilled workers, Botswana does not have enough experienced managers and technical experts to help run many of the companies that would otherwise invest in the country.

 

  • Foreign and local business managers noted continued difficulty obtaining work permits for foreign skilled workers and managers in 2017.  This has caused many skilled workers to leave Botswana, and has chilled the appetite for foreign direct investment for many prospective businesses.  In recognition of this concern, Botswana amended (May 2017) the immigration law to open up work visas and residence permits for foreigners.  President Masisi has committed to improving this situation.

 

  • A free trade agreement between the 15 SADC member states and the simplification of laws, regulations, and procedures would reposition Botswana as a transportation and logistics hub, the center of a 277 million person free trade zone.  However, the slow pace of negotiations within the SADC region has delayed trade liberalization.

 

  • Market challenges include regulatory constraints in certain sectors which have little or no relationship to the protection of the public interest, excessive red tape relating to licenses and permits, limited access to finance, the high cost of internet, poor customer service, and low worker productivity.  The government’s increasing number of SOEs and market holdings crowd the private sector.  The GOB has implemented new programs to address each of these areas in line with IMF recommendations, but results have not yet materialized.  Privatization plans for several SOEs have stalled.

 

  • Local preferences for public procurement arise from numerous sources and are increasing.  According to law 35 service sectors are restricted to Botswana citizens.  The trade ministry has historically granted exceptions for large foreign-owned chain stores but since 2016 it has only granted approval in cases where they reached a localization agreement with the applicant company.

 

  • U.S. companies report difficulties navigating procurement requirements without a partner or presence in Botswana.  GOB procurement tenders are at times designed based on the goods and services available in the market, which disadvantages competitors that are not located in Botswana.  High-value tenders are also frequently broken up into smaller tenders, rendering it cost prohibitive at times for companies based outside of the country to compete.  Common usage of hard copy tender announcements and short deadlines for bid submissions also present advantages to locally-based companies.

 

  • At the GOB’s urging, some private companies in Botswana also use local preferences in procurement.

 

  • Business decisions are generally slow in Botswana sometimes taking months or even years and risk tolerance is low.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.