Other State Department Archive Sites

The State Department web site below is a permanent electronic archive of information released online from January 1, 1997 to January 20, 2001. Please see www.state.gov for current material from the Department of State. Or visit http://2001-2009.state.gov for information from that period. Archive sites are not updated, so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.

Country Commercial Guides FY 2000: Botswana Report prepared by U.S. Embassy Gaborone, Botswana, released July 1999 Note*

CHAPTER IV.  MARKETING U.S. PRODUCTS AND SERVICES

75 to 80% of Botswana's imports come from South Africa. Not all these, however, are of South African origin, as some goods are re-exports of South African imports while others have undergone final processing within the country. Many U.S. goods marketed in Botswana enter as re-exports through South African agents and distributors. Locally-based wholesalers and retailers are increasingly looking to establish direct links with U.S. producers to avoid mark-ups (standard U.S. consumer goods often become prohibitively expensive luxury items by the time they reach Botswana) or to diversify their supply away from dominant South African brands. U.S. companies looking for assistance in finding a Botswana agent/distributor may wish to contact BOCCIM, the Botswana Confederation of Commerce, Industry and Manpower, an organization to which many local businesses belong. The Commercial Section at the U.S. Embassy, working through the U.S. Department of Commerce, also provides a wide variety of services including the Agent/Distributor Service for U.S. firms interested in exporting goods and services to Botswana (for contact information, see Appendix E). Direct marketing is also feasible, particularly to local companies seeking to import goods for a government tender.

There are a number of successful South African franchises in Botswana, including fast food, automobile repair, supermarkets and department stores. U.S. franchises and licensing agreements include DHL, Federal Express, Coca-Cola, Kentucky Fried Chicken, Avis, and Best Western. There is increasing government and private sector interest in U.S. franchises; however, small market size and limited domestic investment capital may preclude more expensive franchises.

Botswana entrepreneurs and the Government backed Botswana Development Corporation (BDC), welcome joint venture opportunities, particularly where the foreign partner will bring production expertise, product design, or marketing ties.

Company formation and registration is relatively simple. Legislation governing company formation is contained in the Companies Act of 1959, Cap 42.01, as amended, and distinguishes between external, public, and private companies, the latter being predominant. All companies are registered with the Registrar of Companies, who certifies that the company is incorporated. It is common practice to engage a local attorney or a company secretary to handle registration, which can be finished within two weeks. There are several locally based international accounting firms, which provide assistance to businesses establishing offices in the country. Primary documents required for registration are the new company's memorandum and articles of association. The Company Act requires that accounts be maintained in Botswana (although additional overseas accounts are permitted), that there is a resident auditor, and that certain reporting requirements are met.

The Industrial Development Act of 1988 requires that all foreign-owned manufacturing enterprises obtain a license from the Ministry of Commerce and Industry. U.S. companies are advised to consult with the Botswana Export Development and Investment Agency (BEDIA) which can assist with the process and which can ensure that their proposal does not include one of a small number of commercial enterprises reserved for citizens of Botswana.

Prices for most American consumer goods marketed directly or through local agents or distributors are acceptable due to the favorable exchange rate between the Botswana Pula and the U.S. Dollar. The current exchange rate is Pula 1 = $0.21. Service and after-sales support from foreign suppliers to Botswana companies have often been deficient. Thus, guaranteeing parts and service may be essential to marketing unfamiliar products.

Newspapers and radio are the most common advertising mediums. South African television broadcasts (SABC) are available via satellite and can provide a venue for products marketed region-wide. In addition the South African broadcaster BOP TV is received in Gaborone. GBC, the country's sole television station, is received in Gaborone and the nearby cities of Molepolole, Mochudi, Ramotswa and Mogoditshane and is increasingly an advertising medium of choice.

Major newspapers are as follows:

The Botswana Guardian,(Pula Printing and Publishing (Pty) Ltd.), P.O. Box 1641, Gaborone,
Tel: [267] 300-302
Fax: [267] 374-381

The Botswana Gazette, P.O. Box 1605, Gaborone,
Tel: [267] 372-283,
Fax: [267] 312-774

The Midweek Sun, P/Bag 00153, Gaborone,
Tel: [267] 300-302
Fax: [267] 374-381

The Reporter - Mmegi, Bag BR 50, Broadhurst, Gaborone,
Tel: [267] 374-784,
Fax: [267] 305-508

The Daily News, Department of Information and Broadcasting P/Bag 0060, Gaborone,
Tel: [267] 352-971,
Fax: [267] 352-541

The Advertiser, (Printing and Publishing Services), P/Bag 0081 Gaborone,
Tel: [267] 314-441,
Fax: [267] 312-001

Advertisers interested in wide, local language coverage may wish to contact Radio Botswana at Department of Information and Broadcasting, P/Bag 0060, Gaborone,
Tel: [267] 352-541
Fax: [267] 352-541

Those interested in local television advertising should contact GBC at P.O. Box 921, Gaborone,
Tel: [267] 357-654,
Fax: [267] 301-875,
E-Mail: gbctv@info.bw.

A few reputable marketing and advertising agencies also publish magazines which are widely circulated. These include Hello Botswana, Private Bag BR53, Gaborone, Botswana, Tel: [267] 374-134;
Fax: [267] 357-433.

The Government has approved licenses for two private radio stations and is launching a new government television station. All three are expected to come on line in 2000 and will offer additional advertising possibilities.

The Government of Botswana remains a major customer for U.S. goods and services. An autonomous Central Tender Board, located in the Ministry of Finance and Development Planning and consisting of senior officials from the Ministries of Commerce and Industry, Finance, Works, Transport and Communications, and Mineral Resources and Water Affairs, makes the final decision on all government tenders. Tenders are initially evaluated by a consultant and/or a technical review board, appointed by the concerned ministry which then makes a recommendation to the CTB. The CTB generally follows the recommendation, but can and has overruled it. The CTB normally bases awards on cost and technical merit, but is free to use other criteria it deems appropriate. A CTB decision is final and may be appealed only if there were procedural irregularities in the tender process. Lobbying the CTB or its members is strictly prohibited and will disqualify a bidder.

U.S. firms are encouraged to make contact with relevant Government ministries or parastatals to provide input at the drafting stage of tenders for major projects. A pre-bid trip to Botswana may improve the understanding of the precise needs of the client and allow the U.S. firm to tailor its proposals to those needs. While this may escalate bidding costs for U.S. firms due to transportation costs, the investment often proves useful. Alternatively, U.S. companies may wish to form partnerships with Gaborone or Johannesburg based firms. South African firms often have a strong advantage over their competitors due to knowledge and name recognition. The U.S. Embassy can assist in identifying appropriate local associates and making initial business contacts.

It is necessary for U.S. firms to study Botswana's market as well as its existing technology and standards before submitting bids for government tenders. U.S. firms often fail to undertake adequate research on acceptable and compatible technical conditions for the southern Africa region. The lowest offer, though attractive, may not be the leading criteria for awarding a tender. The U.S. Embassy has found the tendering process in Botswana to be generally fair and transparent.

The Government of Botswana addresses intellectual property rights through the Copyright Act and the recently enacted Industrial Property Act. The Copyright Act, which provides low penalties for violations, dates from 1965 and needs revision. The Ministry of Commerce and Industry is drafting new legislation which it plans to present by year's end. The new Broadcast Bill includes a clear provision for copyright protection of broadcast material. The Industrial Property Act of 1996 while current requires implementation regulations to bring it into full operation. The Ministry of Commerce and Industry has drafted such regulations and they are expected to be enacted by year's end.