Business Opportunities in Botswana in 2024

Despite high inflation, sustained economic growth and better per capita purchasing power are driving diverse business opportunities in Botswana in 2024.

The Botswana Investment and Trade Centre (BITC) is actively promoting business opportunities in a variety of sectors.

Business opportunities identified by the Botswana Investment & Trade Centre

Here’s a round-up of some of the key markets and industries ripe for Batswana entrepreneurs.

Botswana business opportunities in manufacturing

In manufacturing, there are business opportunities across all sectors.

Botswana is a major soda ash producer and exporter. This opens downstream opportunities in glass manufacturing and other chemical products, such as pool additives.

The country also produces raw hides and skins. The meat industry alone produces 200,000 to 300,000 hides per year. This creates emerging markets for tanneries and leather goods.

Examples of business opportunities in this sector include:

• glass bottle production
• automotive parts
• pharmaceutical companies
• detergent production
• leather goods.

Botswana business opportunities in agriculture

The processing of cattle hides, provision of recycled grey water for irrigation, and rollout of agricultural finance and insurance products and services are some of the areas with opportunities for new business in the agriculture sector.

The agricultural sector itself is operating below capacity. The production of small stock, pork, fruit, vegetables and honey are potentially lucrative business initiatives.

Examples of business opportunities in this sector include:

• fruit and vegetable production
• irrigation products and services
• dairy farming
• horticulture services
• poly tunnels and greenhouses.

Business opportunities for Batswana in transport and logistics

Botswana holds a strategic position in the Southern African Development Community (SADC), a region with more than 250 million people. This creates many opportunities in transport, logistics and freight services.

Manufacturing and maintenance services for passenger and heavy-haul railways including IT support are core opportunities in the transport and logistics sector.

Examples of business opportunities in this sector include:

• distribution services
• warehouse management
• storage and self-storage
• maintenance for transport infrastructure
• cold chain transport.

Business opportunities in mining in Botswana

Botswana’s untapped semi-bituminous coal resources are estimated at 212,868 million tonnes. The country ranks well on BMI’s Mining Risk/Reward Index.

The beneficiation of copper, nickel, coal and diamonds, together with mining transport and logistics, offer opportunities for business-savvy Batswana with the expertise and funding to exploit the market.

Examples of business opportunities in this sector include:

• prospecting
• new mining projects
• security and insurance for mining operations
• diamond trading
• jewellery manufacturing
• brokerages and certification services.

Energy-related business opportunities in Botswana

Climbing electricity costs make renewable-energy solutions a lucrative business option in Botswana in 2024.

Renewable energy production, with an emphasis on solar projects, offers huge potential.

Government recently approved three licences for independent power providers (IPPs) to sell electricity into the grid or export it in a private capacity. Botswana may also play a role in exporting power to other countries in the region.

Examples of business opportunities in this sector include:

• off-grid power systems
• battery back-up systems
• wind turbines.

Other top businesses to start in Botswana

Several niche markets, many of which require local investment and support, are emerging from the rapidly expanding eco-tourism sector in Botswana. These include game fishing, mountain bike (MTB) trails, hiking tours and 4×4 trails.

Digital marketing, responsive web design and IT support are required to reach Botswana’s increasingly connected consumer base.

In keeping with these needs, business opportunities in Botswana in 2024 include:

• app development
• web design and development
• online content writing and editing
• digital marketing and search engine optimisation
• video production, editing and voice-overs
• online language translation.

Upwardly-mobile Batswana are spending more on hosting weddings, conferences, fundraisers, fashion shows and sporting events. There’s growing demand for event management companies to plan, organise and execute events.

Along with considering current trends – like the growth in demand for eco-tourism and digital marketing – it’s worth remembering some of the basics that people always want.

For example, build a business that does things well (and at appropriate prices) in the food or transport sectors and you’re likely to attract customers. Often, it pays to start small.

Favourable tax regime for businesses in Botswana

In addition to a fertile economic environment, a regular corporate tax rate of 22% is well below the 27.5% average tax rate for Africa (in 2020).

International Financial Services Centre (IFSC) registered companies, manufacturing companies and businesses registered in the Botswana Innovation Hub qualify for a reduced 15% corporate tax rate.

IFSC-accredited companies are also exempt from capital gains tax (CGT) and withholding tax (WHT).

In Botswana, there is a 100% duty rebate on importation of machinery and raw materials. Botswana also enjoys operational double taxation avoidance agreements with South Africa, United Kingdom, Sweden, France, Mauritius, Namibia, Zimbabwe and Russia.

Getting business funding in Botswana

Both the public and private sector offer funding solutions for Botswana businesses. Options range from debt finance and venture capital to government funding and commercial bank loans.

Due to strict qualifying criteria and stringent repayment terms, unsecured bank loans and government financing may not be suitable for start-ups or entrepreneurs.

At Lamna Botswana, we can help entrepreneurs invest in business opportunities in Botswana with fast, discreet loans against the value of a wide range of assets.

An asset-based loan from Lamna Botswana is a quick, easy and secure way to raise the funds required to start a business.

For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.