Services to Investors
Botswana’ Investment Promotion
A focal point for prospective investors and existing manufacturing enterprises, Botswana Export Development and Investment Authority (BEDIA) was set up in 1998. This professional organisation is responsible for promoting investment into Botswana with special emphasis on export-oriented manufacture; identifying market outlets for products manufactured in Botswana; and constructing factory buildings for investors. The Authority assists potential investors to obtain the various clearances (residence permits, work permits, licences, factory space, etc.). It also assists existing manufacturing enterprises to sort out any administrative matters they may be confronted with. BEDIA is an autonomous organisation with its own Board of Directors, comprising mostly private sector representatives, including the Chairman. Government is represented on the Board by two officials from the Ministries of Trade and Industry, and Finance and Development Planning.
BEDIA plays a major role in the industrialisation process of Botswana and the diversification of the industrial base. It organises outward investment promotion missions to main capital-exporting countries to attract investors into Botswana; inward investment missions of potential investors to familiarise them with the investment climate in the country; and meetings between potential investors and local business people, especially where foreign investors are looking for local partners. BEDIA also encourages local business people to invest in manufacturing, and promotes collaboration with their foreign counterparts in developing entrepreneurial skills in the country. Such collaboration also facilitates a smooth transfer of know-how and modern production techniques.
In the area of export promotion, the Authority sponsors participation of manufacturing enterprises in exhibitions at regional and international levels. It also conducts market surveys, and contacts promotion missions to enable Botswana entrepreneurs to discuss business transactions face-to-face with importers in other countries. Lastly, BEDIA provides factory buildings with a good working environment to maximise productivity. It also maintains a database of factory shells which are readily available in the private sector. In short, BEDIA provides a first class service to the manufacturing sector. BEDIA is a friend of the investor. The motto of the Authority is “BEDIA takes good care of you”, and it does.
More information can be found at their website.
External Link: www.bedia.co.bw
The CEDA Venture Capital Fund
A Venture Capital Fund was established under the Citizen Entrepreneurship Development Agency (CEDA) in order to facilitate funding of projects that could be both locally and foreign owned.
This, the CEDA Venture Capital Fund (CEDA – VCF), provides risk capital to financially viable start ups, expanding businesses owned by citizens and joint ventures between citizens and foreigners in all sectors of the economy. The CEDA-VCF helps to relieve the equity capital constraint, which affects most citizen investors. The CEDA-VCF will usually not be involved in the day-to-day management of the business, but will seek to add value to a growing business by giving direction to the business venture it has invested in through regular contact and discussions with management.
External Link: www.ceda.co.bw
Botswana has ratified a World Bank Convention, which in 1985 established the Multilateral Investment Guarantee Agency (MIGA). MIGA offers protection against inconvertibility or transfer of currency, expropriation, breach of contract, war, and civil disturbance. It is financed by capital subscriptions by participating countries and by premiums from investors for the type of protection desired. In addition, Botswana’s own national laws and good governance guarantee investors’ protection.