When Botswana’s government launched the Special Economic Zones Authority (SEZA) in 2018, the goal was clear: unlock economic diversification, attract foreign direct investment, and create jobs beyond the mining sector. Today, that vision is fast becoming a reality.

“Botswana has a beautiful story to tell,” said SEZA CEO Tapiwa Masie. “But we are now moving to a phase where we want to diversify. We cannot rely on diamonds only. We need to create jobs, innovate, and find other opportunities for the country.”

Established under an act of Parliament, SEZA operates as a parastatal under the Ministry of Trade and Entrepreneurship. Its mandate is to establish, develop, manage, and regulate special economic zones (SEZs) across the country. The authority’s dual role—both developer and regulator—has allowed it to shape investor-ready environments with regulatory certainty and tailored incentives.

Strategic Infrastructure with a Sectoral Focus

SEZA currently oversees nine zones, each with a defined sectoral orientation, from agriculture to mineral beneficiation to logistics. The most advanced is the Sir Seretse Khama International Airport Special Economic Zone (SSKIA SEZ), launched in October 2024. The zone now offers 92 fully serviced plots and has already secured six investors ready to begin construction.

“Investors just need to come and build,” said Masie. “We’ve put in the infrastructure, roads, water, sewer, fiber. Everything is ready.”

To further catalyze industrial activity, SEZA is constructing four advanced factory shells in the SSKIA SEZ for businesses seeking immediate plug-and-play operations. A similar intervention was made in Pandamatenga, Botswana’s agricultural heartland, where SEZA increased grain storage capacity by 60,000 metric tons through the construction of 12 modern steel silos.

“We heard from farmers that they could produce more, but lacked storage,” said Masie. “Now, with this capacity, we can unlock agri-processing potential.”

A Business-Ready Regulatory Framework

One of SEZA’s first milestones was securing cabinet approval for a suite of investor-friendly incentives in 2019. These include a reduced corporate tax of 5% for the first 10 years of operation—unmatched in the region—and a permanent 10% rate thereafter. By contrast, the national corporate tax rate is 22%, with 15% for manufacturing. The SEZs also provide investors with an exemption on the payment of transfer duty on the transfer of land and immovable property within the zones.

To support this, Botswana amended its income tax and transfer duty laws to harmonize with the SEZ regime. “We want to offer a seamless product,” explained Masie. “Investors deal with one authority—SEZA—for land, permits, environmental and building approvals. Everything.”

Flexibility for Investors

While many SEZs are publicly led, SEZA has also introduced investor-driven models, including private sector-led zones and single-factory SEZs. These allow eligible businesses to operate outside traditional zones while enjoying full SEZ benefits.

To date, SEZA has licensed six single-factory SEZs, spanning sectors like automotive, citrus, solar energy, and battery-grade manganese processing. “Some investors need to be closer to the raw materials they need for their operations or require more land space than what is available in the SEZs. So, we are able to designate an area as a SEZ where there is good justification for doing so,” said Masie.

SEZA’s investment focus aligns with Botswana’s comparative advantages. These include mineral beneficiation and manufacturing, agri-processing, beef and leather products, renewable energy, and logistics.

“Botswana’s salt, for example, is high-quality and valuable in industrial processes,” said Masie, referencing the new private-sector-led SEZ in Sowa, anchored by the Botash mine. Meanwhile, zones in Selebi-Phikwe and Francistown are positioned for steel, gold, and emerald beneficiation, while Lobatse will become a “meat and leather city,” with full carcass utilization and leather product manufacturing.

A Gateway to Africa and Beyond

Botswana’s macroeconomic stability, democratic institutions, and robust credit rating make it a safe bet for long-term investment. The country’s participation in trade agreements like the African Continental Free Trade Area (AfCFTA), AGOA, and SACU-US further strengthens its export credentials.

“Many investors are attracted by AGOA. They see Botswana as a springboard into the U.S. and African markets,” said Masie.

SEZA also works closely with the Botswana Investment and Trade Centre (BITC) and the Botswana Stock Exchange to present a unified value proposition to global markets.

As foreign direct investment rebounds post-COVID, SEZA is positioning Botswana as a preferred gateway to the continent. “We’re ready to roll out the red carpet for investors,” Masie said. “We have the land, the incentives, the skills, and the peace that investors are looking for.”