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Investment Policy Review - Botswana

image of Investment Policy Review - Botswana

Foreign Direct Investment (FDI) has been the driving force in moving the economy of Botswana from that of a least developed country status to one of a middle-income country. The country aims to continue this rapid growth while at the same time diversifying its economy. This paper reveals how the government plans to develop national business development through citizen empowerment, while at the same continuing to seize opportunities to attract FDI. The following topics are covered in this report: Botswana's track record in attracting FDI, the investment framework for FDI in Botswana, the impact of FDI on Botswana's national development objectives, and proposed recommendations and conclusions with regard to FDI policy in that country.

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Foreign direct investment: Trends and impact

Botswana has been open to foreign direct investment (FDI) since independence. This path – not often taken by others – produced results unmatched by any economy of similar size and level of development. Thanks to its success, for more than a decade Botswana has not had to depend on external capital inflows. But FDI is still needed for the other components that investment brings: technology, skills and access to export markets. The challenge is to enhance the contributions of FDI with complementary policies to build local capabilities and develop domestic enterprise.

English

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