Botswana is encouraging Zimbabwean businesses to utilize its International Financial Services Centre (IFSC) to expand their investment portfolios and boost economic growth. Speaking at the Botswana IFSC business forum in Harare, Botswana’s ambassador to Zimbabwe, Sarah Sithabile Molosiwa, highlighted the advantages her country offers.
“Botswana provides economic and market stability, attracting foreign direct investment,” Molosiwa said. “We have a mature democracy, good governance, a stable political and macroeconomic environment, and an open economy with attractive tax regulations.”
Molosiwa urged Zimbabwean businesses to consider Botswana as an alternative destination for expansion, emphasizing Botswana’s strong regulatory frameworks and transparent institutions. She also encouraged leveraging the bilateral trade agreement and the double tax avoidance agreement to ease trade and investment between the two countries.
“The bilateral trade agreement between Botswana and Zimbabwe grants exemptions from customs duties and meets the minimum local content requirement of 25%. The double tax avoidance agreement signed in February 2028 provides a comparative advantage for companies to expand operations seamlessly,” Molosiwa added.
She expressed optimism about increasing the expansion of Zimbabwean businesses into Botswana and highlighted Botswana’s commitment to utilizing diplomatic resources to enhance trade and investment.
“Engage with the embassy to facilitate seamless entry into the Botswana market through the Botswana Investment and Trade Centre services. Today’s discussions will improve trade and investment relations between our countries,” Molosiwa stated.
Botswana IFSC Director Moshie Ratsebe emphasized Botswana’s sustained economic growth, well-managed macroeconomic environment, and strong balance sheet. These factors, he said, would greatly benefit Zimbabwe.
“Our monetary policy rate is 2.15%, making credit affordable. We import more than we export, especially in food, and believe Zimbabwe’s agricultural productivity can help us produce locally and feed our people,” Ratsebe said.
He noted that Botswana expects current account surpluses up to 2027. Activities allowed under the IFSC include banking, financial operations, investment advice, insurance, and accounting.
“To qualify as an IFSC company, one must incorporate in Botswana, have a physical presence, and offer services to limited parties,” Ratsebe explained. “We facilitate skills transfer and have a one-stop service center to assist investors. The certification process involves a committee that reviews applications and makes recommendations to the minister. We need a business plan, information on promoters, and an appreciation of job creation and upskilling.”
The service center offers incentives for investors and foreign direct investment, particularly in the finance and skills transfer sectors.
Botswana’s invitation to Zimbabwean businesses underscores the potential for mutual economic benefits. The combination of favorable trade agreements, tax advantages, and supportive infrastructure makes Botswana a compelling option for businesses looking to expand their operations.
Source: Newsday
