Since the tall request for automobiles, household and universal unique hardware producers have arranged to grow their fabricating offices in Botswana. Moreover, the Botswanian government prioritizes the car division as an important source of income and empowers outside coordinate ventures (FDIs) into the segment.

As a result, Botswana's car industry is growing, and the nation is one of the foremost affluent in Southern Africa, with a shining future. Botswana's automotive industry has a long history. Botswana is one of the most famous regions. It takes place near South Africa, the continent's largest car exporter and manufacturer, and near its largest car advertisers.

As a result, Botswana delivers goods faster than major competitors in Asia, Europe, and North America. In addition, Botswana has a track record of effectively supplying parts promotions in South Africa, with parts trade increasing tenfold over the past two decades.

Unlike some local competitors, employee-employer relations are amicable. It is significantly an advantage for parts manufacturing as it enables a timely and uninterrupted supply of parts to major South African car manufacturers. As Botswana is a member of its SACU, its exporters have duty-free access to the South African market. Manufacturing investors can access some of the region's most favorable manufacturing tax regimes.

Latest Success Stories

Thailand, the US, Romania, the Philippines, and Germany were the countries that imported the most ignition wiring sets into South Africa in 2008. The South African market started getting supplies from Botswana of ignition wiring sets in 2009, and it now holds a 50% share of the country's import market for ignition wiring sets.

Opportunities in the country's Automotive Sector

Botswana acknowledges the relatively small size of its market, but future demand, SADC particularly, offers numerous chances for investors looking to enter the region's market of components and automotive.

Important changes include:

  • The provision of replacement parts for vehicles used in major projects
  • Parts and components provision to South Africa's automotive industry, like agricultural and coal projects. 
  • Growth of the component manufacturing sectors already exists where there are batteries and ignition wire sets.
  • Services for R&D in the automobile industry, including terrain testing and extreme weather.
  • The expansion of after-sales services in a commercial and private cars. 
  • The growth of automobile maintenance service offerings at cross-border and regional.
  • The creation of facilities for the training and development of auto technicians and mechanics

Investments Incentives

The several incentives provided are:

  • No limits on company ownership
  • No restrictions on foreign exchange
  • Remittance of dividends and profit payments
  • Duty-free imports of machinery and equipment related to manufacturing.  
  • Duty exemption on raw materials for goods leaving SACU
  • Flexible tax regime with individual and corporate tax rates of 22% and 25%, respectively, and a 15% corporate tax rate for manufacturing and IFSC registered companies (lowest tax rate in the SADC region)
  • Negotiable tax exemption for up to 10 years.
  • A 200% deduction for training expenses

Beyond incentives, Botswana offers investors a favorable and welcoming operating environment as one of the most stable nations. In addition, Botswana has an advantage over its neighbors due to a high level of security and a strong emphasis on following the right rules and laws.