focus africa
Focus : Africa
Helping Indian companies do business with Africa
INDIA
INDIA
Africa
AFRICA
INDIA : India’s Trade with the African Region notched US$ 38.96 Billion in the year 2009-10 (DGCI&S provisional figures) constituting 8.37% share in India’s total trade. Trade with the region has grown at a CAGR of 18.10% from US$ 4.48 Billion in 1996-97.
AFRICA : 54 Countries, 1 billion people, US$ 1.01 Billion of trade. Imports worth US$ 468 billion include Mineral Fuels, Oils, Machinery, Vehicles including Boats, Ships, Aircrafts, Electronics & Electricals, Iron & Steel & Articles thereof, Cereals, Plastics, Pharmaceuticals, etc.

Top 20 product groups imported by select African countries ............. [More].
Investment Opportunities : Botswana

Over the last 24 years, Botswana has consistently been one of the world’s best performing economies. This success can be attributed to high quality mineral, tourism and agriculture resources, modern transport and communication infrastructure etc.

Strategically located at the heart of Southern Africa, the country Botswana offers unique business opportunities in the Mining, Jewellery, Automotive, Textile and Apparels, Pharmaceuticals and other sectors which is particularly to export oriented manufacturers.

The graph below shows the FDI inflow and outflow in the past 6 years. The FDI inflow dipped in the year 2005 but has recouped by 2007 to USD 495 Million.

w
FDI  Values in Million
Inflow
1999
 36.7
2000
 57.3
2001
 30.8
2002
 404.6
2003
 419.5
2004
 391.5
2005
 281.3
2006
 488.8
2007
 494.9
2008
 -3.7

Tourism :

As the country has high dependence on mining and the increasing pressure on employment creation, tourism is particularly suited for sector which could help in economic diversification. Industry participants, both in Botswana and abroad, agree that:

  • The country’s unique and abundant natural resources provide it with an immediate advantage in the tourism sector.
  • The sector is based on personal service and is employment intensive.
  • Basic hospitality skills are not difficult to acquire and with pro-active training the local workforce could become actively involved in the industry since tourism provides career and employment opportunities across the spectrum, from semi-skilled to highly skilled management levels.
  • Barriers to entry are relatively low and emerging tourism entrepreneurs require limited capital to enter the industry.
  • Should the industry be managed effectively, economic leakages could be contained and most tourism products and services could be supplied locally.
  • The benefits of tourism could be spread widely at a variety of geographical locations, with the result that foreign tourist expenditure accrues directly to a multitude of local service providers rather than being captured by a limited number of producers through a rigid distribution chain, as is the case in mining and often in manufacturing.

Mines & Energy :

For far too long the economy of Botswana has been dependent on Diamond Mining, and there is a huge potential in the mining of other mineral resource. The government of Botswana is encouraging investment in this area. The government has passed a Mines and Mineral Act which encourages investors to invest in the exploration of other mineral resources of Botswana.Then there is always an opportunity for the investors to invest in the Diamond mining in Botswana. There are huge diamond reserves present and so with them the opportunity also lies.Botswana currently has a relatively limited primary energy resource and  therefore it largely relies on imports. There is substantial potential in renewable energy sources like solar, which is the most abundant in the country.A large potential lies in the energy sector through the supply of related products, solar panels, energy generating equipment and applicators etc.

Health :

The health sector of Botswana is the prime area for investment as the country is committed to providing Quality health professionals and pharmaceuticals nationwide. Botswana spends a lot of money every year to provide free health care to its citizens. It imports both raw materials and pharmaceutical medicaments thereby increasing the investment opportunities.One of the major challenges for Botswana in the health sector is HIV (Aids). HIV/AIDS has the potential to be a severe burden on the private sector in Botswana. Botswana has one of the highest rates of HIV infection in the world. Huge investment opportunity is present in the health sector.

Automotive Components :

Swedish motor company Volvo assembles Scania Trucks and Volvo Buses in Botswana and export to neighboring countries, and opportunities exist to produce components and supply these assembly parts.The LOMO and AGOA agreements ensure that businesses operating from Botswana can operate duty and quota free in some of the most attractive markets in Europe and North America.

Textiles & Fabrics :

Botswana has no Foreign Exchange controls and offers you free repatriation of profits and dividend thus it has an investment climate cut out as a manufacturer of high end quality apparels. This is ideal for the apparel industry as the industry rely on imported raw materials.The Botswana-SACU membership allows duty free and quota free shipments of apparels to the largest market in the region, South Africa.

For Further Reference

 bNational Customs  

bBotswana Export Development & Investment Authority

 bDoing Business With Botswana, The World Bank Group