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Sarkaritel.com News and Features
Botswana to open trade
facilitation office in New Delhi
New Delhi, December 08, 2006
Botswana is keen to attract Indian investment in minerals,
especially diamonds, copper and coal beneficiation. To
facilitate this, it opened its High Commission in India in
April and plans to shortly set up an office of the Botswana
Export Development and Investment Authority (BEDIA), said
Botswana President, Festus Mogae. He was a speaking at a
business luncheon meeting organized jointly by the CII, FICCI
and Assocham.
The President, who met Prime Minister Manmohan Singh, said,
“We are willing to negotiate a free trade agreement between
India and the South African Customs Union (SACU) to overcome
the protective tariffs that exist within SACU.”
Botswana and India, he said, have agreed on a
double-taxation avoidance treaty and are negotiating an
investment protection agreement. These are just some of the
investment-boosting measure the two countries are talking
about. “We want to attract Indian investment in technology as
well as its business acumen especially in the small and medium
enterprises sector.”
The President said his country offered an attractive
investment climate. The corporate tax rates are low, at 15
percent for manufacturing and 25 percent for non-manufacturing
industries. There is a negotiable tax holiday of up to 10
years. Botswana has a high credit rating, a transparent
governance process, continuity of policy, rule of law and
respects the sanctity of contracts.
Mr. Mogae assured Indian investors that other issues such
delays in giving licenses and other hindrances would be sorted
out shortly. The Botswana High Commission and BEDIA offices
would facilitate this process.
Indian industry spokesmen at the meeting echoed the
President’s sentiments on investing in Botswana. They felt the
country’s strategy to diversify its industrial base will make
it an attractive destination for Indian business. Member of
CII’s Africa Committee K K Kapila lauded the President’s
announcement to set up an office of BEDIA in India.
“Bilateral trade is extremely low but can be increased
because India is the hub of the diamond cutting and polishing
industry,” he said. In addition, CII suggests an integrated
skills development programme for people from Botswana and will
reciprocate the initiatives made by the country.
Botswana figures in the Government of India’s scheme of
things as well under its Focus Africa programme, said Chairman
of Assocham’s Afro-Asia Committee K K Jajodia. Botswana is an
influential player in southern Africa and expediting the FTA
between India and SACU will remove obstacles to Indian
investment there. Indians have sizeable business presence in
Botswana, owning a third of the trading houses in the country.
Reiterating Botswana’s regional importance, as member of
SACU, Member of FICCI’s Africa Committee L H Dabi said
Botswana is the world’s largest supplier of rough diamonds to
the world market, and India is the world’s main processor of
diamonds. “This sector opens vast opportunities for both
countries to increase trade and investment through joint
ventures all along the diamond chain.”
Other promising sectors are pharmaceuticals, banking and
finance, agricultural products and equipment, water management
systems, energy, textiles, automobiles and tourism, Mr. Dabi
said.
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