Financial institutions helping the investor

BEDIA
The Botswana Export Development and Investment Authority (BEDIA) was established in 1977. Its function is to:

• Promote investment in Botswana with special emphasis on export industry
• Identify markets for products manufactured in Botswana
• Construct factory buildings

BEDIA promises "to take the foreign investor by the hand to clear all investment formalities". It provides professional services to potential investors both before and after investment. Its motto is "BEDIA takes good care of you".

The authority is the focal point for investors. It helps potential investors obtain clearances (residence permits, work permits, licences, factory space etc). It provides investment advice, identifies joint venture partners and organises visits and meetings between potential investors and Botswanan entrepreneurs. It can advise investors on the industries with the best investment opportunities. It helps investors sort out administrative problems. It also provides factory space in the best working environments.

BEDIA is a virtually autonomous organisation with its board of directors mostly comprising private sector representatives. Two representatives come from the Ministry of Commerce and Industry and the Ministry of Finance and Development Planning.

Contact: BEDIA,
PO Box 3122,
Gaborone,
Botswana
Tel: 581 931 Fax: 581 941
E-mail: bedia@bedia.bw
Website: www.bedia.co.bw

BDC
The Botswana Development Corporation (BDC) is the principal development finance institution in Botswana. It was established in 1970 as Botswana's main agency for the financing of commercial and industrial development. Its primary objective is to assist in the establishment and development of commercially viable businesses in Botswana.

Its services include the following:

• Equity participation
• Loan financing
• Guarantees
• Provision of factories or office space or commercial land at commercial rates

It helps local and foreign investors create and grow viable businesses that provide sustainable employment and bring added value to the economy. It can help with either export or import substitution industries with financing, infrastructure and equity participation. It usually confines its participation in new industry to a minor share.

The BDC encourages new investors to prepare initial proposals and a business plan and feasibility study, so that it can decide what type of assistance is required. The BDC gives advice on how to provide this information. It has made over 100 investments in subsidiary, associate and affiliate companies.

Contact: BDC,
Private Bag 160,
Gaborone, Botswana
Tel: 365 1300, 365 1401
Fax: 303 105, 304 193, 373 539
E-mail: bdc@bdc.bw
Website: www.bdc.bw

BIDPA
The Botswana Institute for Development Policy Analysis (BIDPA) is an autonomous, non-governmental research institute. It provides analysis and research on all aspects of the Botswana economy. Also consultancy services and advice to private firms, investors and international organisations. Plus technical and financial assistance in policy analysis.

It is an independent organisation whose board of trustees is chaired by the Governor of the Bank of Botswana, currently B. Gaolathe. Other organisations that can appoint board members are the Office of the President, the Ministry of Finance, the University of Botswana and the Confederation of Commerce Industry and Manpower (BOCCIM).

It maintains a library and produces regular publications such as the BIDPA Briefing, an economic newsletter, published about eight times a year on economic trends and policies. It specialises in macroeconomic forecasting and structural change and income levels, welfare and poverty.

Contact: BIDPA,
Tshomarelo House,
Broadhurst Mall,
Private Bag BR 29, Gaborone.
Telephone: 371 750
Fax: 371 748
E-mail: monnamen@bidpa.bw
Website: www.bidpa.bw

BOTEC
The Botswana Technology Centre (BOTEC) was founded in 1979 by the Botswana Government. Its major objectives are to seek solutions to technical problems and to support technology in national development. It provides assistance and advice on technology to private firms by appraising new projects and advising entrepreneurs on appropriate technology.

BOTEC has different units covering architecture, renewable energy, civil engineering and electronics.

Contact: Botswana Technology Centre (BOTEC),
Private Bag 0082, Gaborone
Telephone: 314 161
Fax: 374 677
E-mail: scitech@botec.bw
Website: www.botec.bw

Botswana Stock Exchange
The Botswana Stock Exchange was founded in 1989 and operates from its offices at 22 Khama Crescent in Gaborone. Its Chief Executive Officer is Dr Tebogo Matome. The Stock Exchange Committee is formed by six individuals elected by the stockbrokers and three appointed by the Ministry of Finance and Development Planning. The Chairman of the Committee is Mr L G Nchindo.

The purpose of the exchange is to provide a transparent, well-regulated and efficient market for trading in shares and bonds. Trading sessions are from 9am to 3pm Monday to Friday. At present 16 domestic companies are listed on the exchange. Seven more companies are dual listed, meaning they are also listed on other exchanges. Four bonds have been issued — three of which are for government parastatals. The major companies listed on the domestic market include Barclays Bank, First National Bank, Standard Chartered Bank, Botswana Insurance Holdings, Sechaba Breweries and the wholesaler Metsef. Most of these companies raised some capital on the exchange. Venture capital companies can apply for listings on the Venture Capital Board.

The Botswana Stock Exchange has provided a stable and safe environment for issues to raise capital. It has an excellent record in terms of having no broker defaults and strong controls to prevent failed trades.

The Exchange is an active member of the Regional Committee of SADC Stock Exchanges (COSSE) and the African Stock Exchanges Association (ASEA). COSSE has achieved harmonisation of listings throughout the SADC region. This allows cross border listings throughout the region.

As the government privatisation programme unrolls the BSE will provide a market for listings by parastatals.

Contact: Botswana Stock Exchange,
2nd Floor UN Place, Plot 22 Khama Crescent,
Gaborone
Tel: 374 078 305 190
Fax: 374 079
E-mail: bse@info.bw

International Financial Services Centre
The International Financial Services Centre (IFSC) was established by legislation passed in July 1999. This gives certified financial companies the advantages of a liberal tax system and the recent abolition of exchange controls. Certified companies are assured corporate tax at only 15%, exemption from withholding taxes, access to double taxation relief, and tax exemption for unit and investment trusts. The headquarters to the centre is not built yet.

The IFSC Certification Committee approves companies, which qualify to carry out approved financial operations. Once the company is approved it becomes an IFSC company entitled to carry out specific operations. These include: Banking, finance and stock broking in foreign currencies, insurance and accountancy firms, unit and investment trusts and investment advisers. Applications by foreign financial investors to set up in Botswana should be made through the IFSC division of the Botswana Development Corporation.

Contact: International Financial Services Centre, Private Bag 160, Gaborone
Telephone: 365 1385, 365 1406 Fax: 313 075
E-mail: info@ifsc.co.bw
Website: www.ifsc.co.bw

National Development Bank
The National Development Bank (NDB) was established in 1963. It is now run on a commercial basis and is a viable, self-sustaining development financial institution. Its main objective is to provide a range of financial services to various business sectors of the economy, while seeking to earn a satisfactory return on shareholders funds, in agriculture, commerce, real estate and manufacturing. It differs from the commercial banks in that it is aimed solely at the business community in particular small, medium and large-scale enterprises and projects. It also manages on an agency basis different government projects to support the development of the economy

Contact: National Development Bank, Development House, Queens Road, PO Box 225, Gaborone.
Tel: 352 801 Fax: 374 446

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