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Tuesday, November 16, 2021

Why International Investors Should Consider Investing In Botswana

When it comes to making investments around the world, international investors are usually looking for their next location. Finding untapped potential where competitors aren’t active and your investments could help bring local projects to fruition is what can set some investment locations apart from others.

If you’re interested in investing in Sub-Saharan Africa this year, then you should add Botswana to your list of possible countries. We’ve got some initial details to peak your interest around Botswana that might have you looking for opportunities there sooner rather than later.

Key facts Around Botswana

Botswana, or the Republic of Botswana as it’s officially known, is a landlocked country within Southern Africa. Around 70% is covered by the Kalahari Desert, with its capital city of Gaborone residing in the southeast. It’s also home to the Orapa Mine, which is one of the ten largest diamond mines in the world when looking at the value and quality of resources produced each year.

Its neighbors consist of Namibia and Zimbabwe, both of which are good hubs of activity inside Southern Africa as well. Since gaining independence in 1966, Botswana has invested heavily into its infrastructure in line with its National Development Plan and has an outstanding record of political stability.

Why invest in Botswana?

Investing in Botswana puts you in a prime position to capitalize on opportunities arising in Sub-Saharan Africa. Although the country has a relatively small population of around 2.4 million, it represents a High Net Worth Market within the region. Its per capita GDP has been on a steady rise from US$70 from when it gained independence, to reaching levels of US$7,970 in 2019.

It sits at 87th out of 190 countries from around the world for ease of doing business, which is a similar position to Namibia. This puts it in the upper 50% of countries for business ease, a position that could be advantageous for a savvy investor.

When considering Heritage’s economic freedom index, Botswana is currently ranked 3rd among 47 different countries within the region, just behind Mauritius and Rwanda. This shows the strong position within the Sub-Saharan Africa region in which Botswana sits.

Global credit agencies Standard & Poor and Moody’s Investor Services have given Botswana a rating of BBB+ and A3, respectively. These ratings are indicators that Botswana is firmly seated within the investment grade for countries, so long as you are able to cleverly navigate the market and understand the potential risks. Botswana is also a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and other agreements that ensure maximum security for investors.

How to make the right investments in Botswana 

If Botswana is completely detached from any of the markets where you currently have investments, then you may require support to get the maximum amount of value from the money you’re putting into Botswana.

Working alongside a global consultancy in Botswana that has the right local knowledge which can help you to leverage upcoming opportunities. These consultancies are adept at navigating the investment landscape on a micro level, as well as helping you to understand how that translates to the global macro investment level. 

This support is what can transform your investment activity in Botswana from average to excellent, so make sure to consider all your possible avenues before adding investments in Botswana into your portfolio.

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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