Mr Stephen Karangizi - JCIC ExpertThe European Union-funded project, coordinated by the Ministry of Trade and Industry (MTI), aims to enhance Botswana’s business and trade-related laws to improve the ease of doing business and attract investment. The project focuses on two main areas: a comprehensive review of domestic business-related legislation and an analysis of the investment treaty regime. Key findings highlight specific issues in current laws that require reform, particularly in investment facilitation and corporate compliance.
The study also underscores the importance of creating an optimal institutional framework to foster a conducive business environment and facilitate investment and trade.
The review of investment-related laws reveals that Botswana’s commitment to international agreements, such as the ICSID Convention and various Bilateral Investment Treaties (BITs), needs alignment with national laws to balance investment promotion and sustainable development. The analysis suggests that Botswana should adopt a more accessible online publication of laws and regulations and implement a comprehensive Investor Services Framework (CISF) similar to successful models like Rwanda’s. Furthermore, the study recommends fast-tracking the enactment of the Investment Facilitation Law to elucidate the Botswana investment regime upfront and thus attract more foreign direct investment (FDI).
In terms of business-related laws, the report calls for amendments to several Acts, including the Trade Act, the Economic Inclusion Act, the Registration of Business Names Act, and the Companies Act, to streamline corporate compliance procedures, clarify trade restrictions, and create a more flexible business environment. The report also highlights the need for a regulatory sandbox to support emerging technologies and innovations, providing a controlled environment for testing new solutions in sectors like fintech, telecommunications, and the green economy.
The action plan for 2024-2027 outlines priority recommendations for various ministries to implement within six to twelve months. Key recommendations include enacting the Investment Facilitation Law, simplifying licensing processes for Special Economic Zones (SEZs), and fast-tracking the Public-Private Partnership (PPP) Bill. Additionally, the plan emphasises the importance of developing an inclusive banking sector, promoting economic diversification, enhancing SME growth, and improving infrastructure. By addressing these areas, Botswana can drive sustainable growth, increase private sector participation, and enhance the overall business and investment climate.
