Botswana looks to investment from China to develop economy
Editor’s Note:
Botswana is a landlocked country located in the southern African continent. In recent years, the country has been looking to China’s investment to boost its social and economic development. Global Times reporter Xing Xiaojing (GT) talked to Reginald Selelo (Selelo), chief operating officer of the Botswana Investment and Trade Center (BITC), to discuss the potential of Chinese investment in Botswana.
In 2017, bilateral trade reached $267 million. As of the end of 2017, Chinese companies had signed $10.16 billion worth of contracts in Botswana.
GT: Total Chinese investment in Africa has topped $6 billion. What would be Botswana’s comparative advantage?
Selelo: Botswana imposes no controls over the flow of foreign exchange and the country’s central bank since last year has cut the basic lending rate to a historic low of 5 percent. Companies in manufacturing industries are entitled to a 15 percent income tax rate, in contrast to a global average of 23.6 percent and an African average of 27.46 percent. The country’s safe society is another positive factor for foreign investors.
Also, English is widely spoken, meaning there are lower language barriers for Chinese investors. The flow of people is also smooth as Botswana has implemented a visa-on-arrival policy to global tourists. On the downside, there are no direct flights between China and Botswana, but we hope a Chinese carrier could fill the gap as we do not have the ability to open up long-haul flight route. BITC will also open an office in Shanghai soon to promote business opportunities in Botswana to Chinese investors.
GT: Which sector does the Botswana government want to develop with investments from Chinese companies?
Selelo: Chinese companies have already undertaken many infrastructure projects in Botswana such as building roads, hospitals, and schools. They are also investing in manufacturing and energy. We are interested in developing the high-tech sector and we have been in contact with Alibaba Group. We hope to develop digital infrastructure facilities such as mobile payments and e-commerce and with these tools create a better future for small and medium-sized companies.
We think it would be great if Alibaba chose to build a data center in Botswana. This would not only bring advanced ideas to our country but also allow more Chinese companies to become aware of Botswana, which is currently little-known among Chinese businesses.
Tourism and the diamond industry are also the “treasures” of Botswana and unfortunately most Chinese have never heard about it. Agriculture, textiles and mining are other sectors that present good opportunities for Chinese investors.