Mr Mmoloki Phalantwa - Chief Commercial Officer - MTI-DBSA recent validation meeting held in Gaborone in July, 2024 marked a significant step towards establishing a comprehensive investment law for Botswana. Led by JCIC Expert, Professor N. Jansen Calamita from the National University of Singapore. The discussion centred on the report outlining the functions, prior reform efforts, and recommendations for an effective investment law.
Investment laws serve multiple functions that are crucial for fostering a conducive environment for foreign investments. These include governing the admission and approval of new foreign investments, conferring and administering investment incentives, facilitating
investment, guaranteeing legal protection for investments, managing investor-state disputes, specifying investor obligations and responsibilities, and monitoring and overseeing investment activities. These functions are designed to create a predictable and secure investment climate, thereby attracting more foreign investments.
One of the core functions highlighted was the governing of the admission and approval of new foreign investments. This involves establishing a framework that empowers an investment agency to oversee the admission process, ensuring that it aligns with national interests. Similarly, the administration of investment incentives is a common feature in many developing countries, aiming to attract investments through tax reliefs and other benefits.
The need for a law that aligns with Botswana’s national development plans and regional commitments is emphasized, stating it should attract foreign investments through clear and transparent rules, effective facilitation and protection mechanisms. Additionally, it must address environmental and social obligations, including labor rights and gender equality, and provide robust dispute resolution mechanisms. Creating transparent and accountable institutions with cross-government coordination is crucial for effective implementation. Regular reviews and updates of the law will ensure its relevance and effectiveness in promoting sustainable economic development.
The presentation underscored the importance of merging existing laws to create a unified legal framework. This approach would incorporate the Botswana Investment and Trade Center Act and the Special Economic Zones Act, aiming for a cohesive strategy to facilitate investment.
In conclusion, the validation meeting highlighted the critical aspects that Botswana's investment law should address. The recommendations and discussions from this meeting will play a pivotal role in shaping the final investment law, ensuring it meets the country's economic objectives and aligns with international best practices.