Botswana Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

Trade relations with Botswana are governed by the Agreement on Economic Cooperation between the EU and the Southern African Development Community EU-SADC EPA, which has been in force since 2016. The EU-SADC EPA abolishes the vast majority of customs tariffs between the EU and Botswana and thus has an increasing influence on the volume of mutual trade trade exchanges, the trade balance is significantly positive on the side of Botswana. In 2021, Botswanan firms exported approximately €billion worth of goods to EU countries, while in the same year, EU countries imported €63million worth of goods to Botswana. The reason for the negative balance on the EU side is mainly the import of mineral raw materials from Botswana.

  • Allcountrylist: Overview of major industries in Botswana, including mining, construction, transportation, tourism, and foreign trade.
2017 2018 2019 2020 2021
Exports from the EU (million EUR) 234 290.6 407.5 446.9 633.7
Imports into the EU (million EUR) 1,333.50 1,247.80 912.2 980.5 1,077.6
Balance with the EU (million EUR) 1,099.5 957.2 504.8 533.6 443.9

Source: European Commission

Trade relations with the Czech Republic

Mutual trade between the Czech Republic and Botswana is far from reaching its potential. The turnover of trade exchange in 2021 amounted to CZK 2million. Compared to other EU countries, the Czech Republic does not import a significant amount of minerals and Botswana’s manufacturing sector from Botswana, which is the main reason for the positive trade balance on the Czech side.

2017 2018 2019 2020 2021
Exports from the Czech Republic (million CZK) 248.3 25.3 13.5 18.6 20.6
Import to the Czech Republic (million CZK) 16.2 11.6 7.9 7 0.5
Balance with the Czech Republic (million CZK) 232.1 13.7 5.6 11.6 20.1

Source: CZSO

Trade relations with countries outside the EU

With the exception of the most affected year 2020 due to pandemics, the trade exchange between Botswana and non-EU countries enjoys an upward trend. The negative trade balance of non-EU countries is mainly due to the import of mineral resources from Botswana.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) 4,832.6 5,310.8 4,063.9 3 195.1 5,299.3
Imports to countries outside the EU (million EUR) 3,202.4 4,133.0 4,668.8 4,545.6 5,844.2
Balance with non-EU countries (million EUR) 1,630.2 1 177.8 -604.9 -1,350.5 -544.9

Source: EIU, Eurostat

Foreign direct investment

After a dramatic drop in the volume of foreign direct investment (FDI) in 2020, which was most affected by the pandemic, there was a 77% increase in global FDI in 2021, to approximately 1.65 trillion. USD, which is even more than it was before the pandemic. The largest increase in FDI was recorded by developed countries, to which more than 777 billion USD went in 2021. Although the increase in the volume of FDI also affected developing countries, as there was an increase of more than 30% compared to 2020, Africa still ranks last among world regions as an FDI destination.

According to the latest report of the United Nations Conference on Trade and Development (UNCTAD), which regularly monitors world trends in the field of FDI, there was a decline of approximately 15% in FDI in Botswana in 2020. Most FDI in Botswana is traditionally directed to the mining industry, as Botswana is the largest producer of diamonds in the world. However, investments in insurance, banking and ICT are becoming more important. Most FDI in Botswana comes from neighboring South Africa, followed by the EU, Canada and Zimbabwe. The Botswana government is trying to maximize FDI support and Botswana’s business environment can be considered stable with liberal tax and economic policies. On the other hand, barriers to FDI in Botswana include high production prices, lack of skilled labor, a generally small domestic market and landlocked location. The Botswana Investment and Trade Centre, an agency of the Ministry of Industry and Trade, serves in Botswana to support investors and FDI.

ZÚ Pretoria does not register any foreign direct investments by Czech companies in Botswana.

FTAs and treaties

Treaties with the EU

As a member country of the Southern African Development Community (SADC), Botswana is part of the Economic Partnership Agreement between the European Union and SADC (the so-called EU-SADC EPA), which entered into force in 2016, and which eliminated the vast majority of tariffs. This agreement contributed to an increase in mutual trade. The country is a signatory of the so-called Cotonou Agreement, which covers trade, development and political cooperation between the European Union and the countries of Africa, the Caribbean and the Pacific. In April 2021, negotiators from the EU and the Organization of African, Caribbean and Pacific States initialed a future agreement to replace the Cotonou Agreement.

Contracts with the Czech Republic

Treaty between the Government of the Czech Republic and the Government of the Republic of Botswana on the avoidance of double taxation and the prevention of tax evasion in the field of income taxes

Agreement between the government of the Czechoslovak Socialist Republic and the government of the Republic of Botswana on scientific and technical cooperation

More information can be found in the State Department’s list of applicable international treaties.

Developmental cooperation

Botswana ranks among the recipients of international development aid. The country is a signatory of the so-called Cotonou Agreement, which covers trade, development and political cooperation between the European Union and the countries of Africa, the Caribbean and the Pacific. In April 2021, negotiators from the EU and the Organization of African, Caribbean and Pacific States initialed a future agreement to replace the Cotonou Agreement. The ongoing development programs will thus continue.

In addition to the bilateral development cooperation program implemented with the funds of the European Development Fund (EDF), Botswana also uses programs that are implemented through private companies and non-profit organizations. Under the EDF, a total of €28 million has been allocated to Botswana for the period 2014 to 2020 in the areas of supporting education, civil society and public sector reforms. An overview of development programs implemented in Botswana is available on the European Commission’s website. The European Investment Bank (EIB) focuses on supporting projects in the field of infrastructure, water management and energy in Botswana. Information about EIB investment actions and other projects in Botswana is published on the website of the Delegation of the European Union in Gaborone.

Prospective fields of study (MOP)

The map of global industry opportunities prepared by the Ministry of Foreign Affairs in cooperation with the Ministry of Industry and Trade and PaulTrade does not process the market in Botswana.

Botswana Trade