Botswana is positioning itself as a hub for targeted investment through its Special Economic Zones (SEZs), created to accelerate industrialisation, diversify the economy, and attract both domestic and foreign capital.
These zones are overseen by the Special Economic Zones Authority (SEZA), established under the SEZ Act of 2015, which became operational in 2018, according to Devex.
What Makes SEZs Special in Botswana?
One-Stop Facilitation
SEZs are designed to provide efficiency and investor support. Investors benefit from streamlined procedures and coordinated infrastructure access through SEZA’s one-stop service model. A UNIDO presentation highlights how SEZA offers prebuilt industrial facilities, long-term land leases, and fast-tracked permits, creating a simplified environment for investment.
Competitive Incentives
Tax incentives in SEZs are among the most attractive in the region. According to UNCTAD’s Investment Policy Monitor, companies licensed in SEZs pay a corporate tax rate of only 5 percent for the first 10 years, rising to 10 percent thereafter. Investors also benefit from VAT exemptions on raw materials, duty-free imports of specialised machinery, and exemptions from withholding taxes on dividends for foreign shareholders.
Strategic Locations and Industry Focus
Botswana’s SEZs are strategically situated to maximise regional trade opportunities and are tailored to specific industries. As outlined by SEZA, the zones include:
- Airport City SEZ in Gaborone, focused on diamond beneficiation, logistics, and pharmaceuticals.
- Fairgrounds SEZ, positioned as a hub for financial services, fintech, and business process outsourcing.
- Lobatse SEZ, specialising in beef and leather processing.
- Tuli Block SEZ, focused on horticulture and agro-processing.
- Pandamatenga SEZ, targeting integrated farming and food processing.
- Francistown SEZ, designed for mining supplies and logistics.
- Palapye SEZ, integrating coal beneficiation and renewable energy.
Each zone is linked to major road, rail, or air infrastructure, giving investors efficient access to Southern African Development Community (SADC) markets.
Development Momentum
The Airport City SEZ demonstrates the potential scale of these initiatives. Figures from the Economic Policy Review show that more than P4.2 billion has already been invested in the zone by companies such as Benjamite Holdings, Universal Builders, Pure DC, and Syndicate Bio. Over 1,000 jobs are expected to be created, underlining the catalytic impact of SEZ development.
How Moore Botswana Can Assist
At Moore Botswana, we provide the expertise and insight needed to unlock the opportunities within Botswana’s SEZs:
- Advisory: Feasibility analysis, operational planning, and ESG integration to ensure alignment with both investor goals and national development objectives.
- Tax: Structuring investments to fully benefit from SEZ tax advantages, customs exemptions, and cross-border compliance requirements.
With Moore Botswana, your SEZ project will be structured for long-term success, ensuring it is operationally efficient, tax-optimised, and sustainability-aligned.