Botswana Investment Boom: Top Sectors Set to Surge Through 2029 Revealed! (2025)

Table of Contents

• Botswana’s Macroeconomic Outlook: 2025–2029 Forecasts
• Legal and Regulatory Updates Impacting Investors
• Real Estate Hotspots: Cities and Regions to Watch
• Emerging Sectors: Technology, Green Energy, and Agribusiness
• Major Infrastructure Projects and Government Initiatives
• Foreign Direct Investment Trends and Incentives
• Taxation, Finance, and Banking Landscape
• Key Risks and Mitigation Strategies for Investors
• Case Studies: Recent Success Stories and Market Entrants
• Future Outlook: Botswana’s Global Position by 2029
• Sources & References

Botswana’s Macroeconomic Outlook: 2025–2029 Forecasts

Botswana’s macroeconomic environment in 2025 and the subsequent years presents a cautiously optimistic landscape for investors, underpinned by strong fiscal discipline, ongoing economic diversification efforts, and stable governance. According to projections from the Bank of Botswana, the country’s GDP growth is expected to average around 4% annually between 2025 and 2029. The mining sector, particularly diamonds, remains a backbone of the economy, but deliberate policies to foster growth in tourism, manufacturing, and financial services are beginning to yield results.

The government’s Vision 2036 agenda emphasizes macroeconomic stability, infrastructure development, and human capital investment. Recent updates to the Industrial Development Act and the Special Economic Zones (SEZ) framework provide incentives—such as tax holidays and streamlined licensing—for foreign and domestic investors in strategic sectors (Botswana Investment and Trade Centre). Between 2023 and 2025, multiple SEZs in Gaborone, Lobatse, and Francistown have attracted manufacturing and logistics projects, setting the stage for further growth in the late 2020s.

Inflation is projected to stabilize within the central bank’s 3–6% target range after a period of volatility in 2022–2023, aided by prudent monetary policy and improved food and fuel supply chains. The Bank of Botswana has signaled a cautious approach to interest rate adjustments, balancing inflation control with the need for credit expansion to spur private investment.

Foreign direct investment (FDI) inflows have shown resilience, growing by approximately 8% in 2024, with continued momentum expected. The government’s recent amendments to the Companies Act and the introduction of digital business registration platforms are intended to streamline business processes and improve ease of doing business (Companies and Intellectual Property Authority). These reforms, coupled with Botswana’s reputation for low corruption and political stability, reinforce its status as an attractive investment destination in Southern Africa.

Looking ahead to 2025–2029, Botswana’s macroeconomic outlook remains positive but hinges on the pace of diversification and global demand for diamonds. Risks include potential commodity price shocks and ongoing climate-related challenges, particularly water scarcity. Nevertheless, sustained government investment in infrastructure and a supportive regulatory environment are expected to underpin robust investor confidence and economic growth.

Legal and Regulatory Updates Impacting Investors

Botswana has maintained a stable legal and regulatory environment, making it an attractive destination for investors seeking predictability and transparency. In 2024 and into 2025, several legislative and policy developments have been enacted or proposed, reflecting the government’s commitment to economic diversification and investor protection.

A significant regulatory milestone was the launch and operationalization of the Botswana Investment and Trade Centre (BITC) One Stop Service Centre (OSSC), which streamlines licensing, business registration, and immigration processes for investors. The OSSC, active since 2023, continues to expand service delivery in 2025, reducing bureaucratic delays and enhancing ease of doing business Botswana Investment and Trade Centre.

The Companies (Amendment) Act, 2024, introduced digital registration and reporting requirements, aligning Botswana’s corporate governance framework with international best practices. This move supports transparency, anti-money laundering, and investor confidence, obligating companies to maintain up-to-date beneficial ownership information with the Companies and Intellectual Property Authority (CIPA) Companies and Intellectual Property Authority.

In the financial sector, the Bank of Botswana has updated prudential regulations to strengthen banking sector resilience against external shocks and ensure compliance with global anti-money laundering standards. The revised regulatory framework, effective from January 2025, requires enhanced disclosure, stricter capital adequacy ratios, and improved risk management by financial institutions Bank of Botswana.

To further attract foreign direct investment (FDI), the Botswana government has reaffirmed its non-expropriation policy and equal treatment of domestic and foreign investors in the Botswana Investment Policy. The policy, updated in late 2024, underscores legal guarantees on repatriation of profits, access to arbitration, and protection of intellectual property.

Ongoing reforms in the land tenure system are also relevant, especially for real estate and agricultural investors. The Ministry of Lands and Water Affairs is digitizing land records and simplifying lease transfer procedures, with full implementation anticipated by the end of 2025 Ministry of Lands and Water Affairs.

Looking ahead, Botswana’s legal and regulatory outlook remains investor-friendly, with continued emphasis on transparency, digital transformation, and alignment with international standards. These updates are expected to bolster investor confidence and facilitate increased FDI inflows in the coming years.

Real Estate Hotspots: Cities and Regions to Watch

Botswana’s real estate market continues to present attractive investment opportunities in 2025, driven by urbanization, infrastructure projects, and economic diversification. The capital, Gaborone, remains the nation’s primary real estate hotspot, but other cities and regions are emerging as promising destinations for investors.

Gaborone stands out due to its robust commercial and residential demand. The city hosts government institutions, multinational headquarters, and a growing number of shopping centers and mixed-use developments. The ongoing Government of Botswana infrastructure upgrades—such as road expansions and the Gaborone Central Business District (CBD) revitalization—have enhanced property values and investor confidence. Notably, the demand for modern office space and middle-income housing is expected to remain strong through 2025 and beyond, underpinned by population growth and continued economic activity.

Francistown, Botswana’s second-largest city, is gaining traction as a logistics and commercial hub. Its strategic position near the Zimbabwean border and along major transport corridors has stimulated new industrial and warehousing projects. The Botswana Investment and Trade Centre highlights Francistown’s potential, emphasizing ongoing efforts to attract manufacturing and agro-processing investments. This is likely to spur demand for industrial and residential properties in the coming years.

Maun, known as the gateway to the Okavango Delta, is experiencing a real estate boom fueled by tourism and luxury hospitality developments. The recent relaxation of land tenure laws for tourism projects by the Ministry of Lands and Water Affairs has encouraged both local and international investors to develop hotels, lodges, and eco-friendly housing. Maun’s growth trajectory is expected to remain positive, especially as Botswana continues to promote high-value, low-impact tourism.

In the Greater Palapye and Selebi-Phikwe region, government incentives for industrial diversification and special economic zones are attracting attention. The Selebi-Phikwe Economic Diversification Unit is actively courting investors for warehousing, logistics, and affordable housing, responding to the area’s strategic transport links and energy infrastructure improvements.

Overall, Botswana’s urban centers and emerging regions offer varied opportunities for real estate investors in 2025. Government policy reforms, infrastructure investment, and economic diversification are expected to maintain upward momentum in these hotspots over the next several years.

Emerging Sectors: Technology, Green Energy, and Agribusiness

Botswana is strategically positioning itself as a regional hub for innovation, sustainability, and diversified economic growth, with technology, green energy, and agribusiness emerging as focal sectors for investment in 2025 and the coming years. The government’s ambitious Ministry of Communications, Knowledge and Technology agenda is accelerating digital transformation, with the Botswana Innovation Hub (BIH) acting as a catalyst for tech-driven entrepreneurship and foreign direct investment in information and communications technology (ICT). In 2024, the BIH expanded its Science and Technology Park, attracting fintech, healthtech, and agritech startups, while facilitating partnerships with global tech leaders.

Supporting this momentum, Botswana’s National Digital and Innovation Policy (2021-2026) offers incentives for ICT investments, such as tax breaks and streamlined licensing. The country’s reliable regulatory environment and infrastructure upgrades, including the rollout of high-capacity fiber optics and the Botswana Satellite Project, reinforce its tech sector’s investment appeal.

In green energy, Botswana is leveraging its abundant solar resources to reduce reliance on coal-based power and achieve its 2036 Vision for a low-carbon economy. The government, through the Botswana Power Corporation (BPC), has launched utility-scale solar photovoltaic (PV) projects and incentivized independent power producers (IPPs) via the newly revised Renewable Energy Strategy. As of 2025, over 100 MW in solar projects are in the pipeline, with tenders designed to attract foreign investors and technology transfer. The Public Procurement and Asset Disposal Board (PPADB) ensures transparency and competitive bidding for green energy contracts.

Agribusiness is another high-potential sector, bolstered by Botswana’s drive for food security and export diversification. The Botswana Agricultural Marketing Board (BAMB) and the Ministry of Agriculture are facilitating investment in horticulture, livestock, and agro-processing by offering land leases, subsidies, and market access initiatives. The Botswana Investment and Trade Centre (BITC) provides one-stop investor support, and the 2023 amendment to the Agricultural Resources Conservation Act encourages sustainable practices and modern irrigation.

Looking ahead, Botswana’s stable governance, pro-investment reforms, and commitment to sustainable development signal robust opportunities for both domestic and international investors in technology, green energy, and agribusiness through 2025 and beyond.

Major Infrastructure Projects and Government Initiatives

Botswana’s government continues to prioritize infrastructure development as a catalyst for economic growth and investment attractiveness. In 2025, several major projects and policy initiatives are shaping the landscape for investors, with a focus on transport, energy, water, and digital infrastructure.

The Government of Botswana is advancing the National Development Plan 12 (NDP 12), launched in 2023, which outlines infrastructure as a strategic pillar for the country’s diversification and competitiveness. Key areas include the upgrading of road networks—such as the ongoing Kazungula Bridge and related corridors—to facilitate regional trade and access to neighboring markets. The Ministry of Transport and Public Works is overseeing highway upgrades and expansions expected to be completed or advanced by 2026.

Energy infrastructure is another focal point. The government, in partnership with Botswana Power Corporation, is expanding renewable energy capacity, including the 100 MW solar photovoltaic projects scheduled for commissioning in 2025. The Electricity Supply (Amendment) Act of 2023 has liberalized the energy sector, allowing independent power producers greater market access and stimulating private investment in both solar and coal-fired generation projects.

Water security remains a national priority. The Water Utilities Corporation is managing the North-South Carrier (NSC) water pipeline expansion, which is critical for urban and industrial growth. Phase 2.2 of the NSC, due for major progress by 2026, is supported by international financing and will enhance water reliability for Gaborone and surrounding regions.

In digital infrastructure, the government’s SmartBotswana initiative is driving public-private partnerships to expand broadband access and data center capacity nationwide. The 2024 Electronic Communications and Transactions Act has created a supportive legal environment for digital investments, clarifying data protection and e-commerce regulations and attracting technology firms and investors.

Botswana’s Special Economic Zones Authority (SEZA) continues to develop industrial parks with incentives for investors, such as tax holidays, customs duty exemptions, and streamlined licensing. The Lobatse and Francistown SEZs are attracting manufacturing and agro-processing investments, with new infrastructure coming online in 2025 and beyond.

With these major infrastructure projects and supportive policies, Botswana is positioned to offer improved logistics, reliable utilities, and a stable regulatory environment for investors through 2025 and the following years.

Foreign Direct Investment Trends and Incentives

Botswana has sustained its reputation as one of Africa’s most stable and investor-friendly destinations, with foreign direct investment (FDI) playing a central role in the country’s economic development strategy. In 2025, Botswana continues to leverage its political stability, sound macroeconomic policies, and transparent regulatory environment to attract international investors.

According to the Statistics Botswana, FDI inflows have shown resilience post-pandemic, particularly in sectors such as mining, energy, financial services, and tourism. Botswana’s mining industry, anchored by diamonds, remains the primary recipient of FDI. In 2024, the country renewed its partnership with De Beers, extending their diamond sales agreement, which is expected to bolster investor confidence and promote further capital inflows into mining and associated industries over the next decade (De Beers Group).

The government continues to enhance its investment climate through targeted incentives and policy reforms. The Botswana Investment and Trade Centre (BITC) serves as the central agency for investment promotion and facilitation, offering tax holidays, exemption from import duties on machinery and raw materials, and access to land in designated Special Economic Zones (SEZs). These SEZs, such as the Sir Seretse Khama International Airport SEZ and the Lobatse SEZ, provide streamlined administrative procedures and infrastructure aimed at manufacturing, logistics, and agro-processing investors.

Botswana’s legal framework for investment is underpinned by the Investment Promotion Act, which assures equal treatment for foreign and domestic investors, guarantees against expropriation, and allows for the repatriation of profits and dividends. The government is currently reviewing the SEZ Policy, with updates expected in 2025 to further clarify incentives and operational guidelines for international investors (Special Economic Zones Authority Botswana).

Looking ahead, the government’s National Development Plan 12 (NDP 12), set for implementation through 2027, emphasizes diversification beyond mining, digital transformation, and sustainable development. FDI is expected to play a crucial role in these priorities, with new focus areas including green energy, financial technology, and sustainable tourism. With these strategic measures, Botswana is poised to maintain its position as a leading FDI destination in Southern Africa over the coming years.

Taxation, Finance, and Banking Landscape

Botswana’s taxation, finance, and banking landscape in 2025 continues to emphasize transparency, investment-friendly policies, and robust financial sector regulation, underpinned by a stable macroeconomic environment. The Botswana Unified Revenue Service oversees tax administration, with a corporate income tax rate of 22% for resident companies and a preferential rate of 15% for manufacturing enterprises and International Financial Services Centre (IFSC) companies. Value Added Tax (VAT) remains at 12%, applying to most goods and services, with select exemptions for basic commodities and financial services. The government maintains double taxation agreements with several countries, fostering cross-border investment and minimizing tax barriers (Botswana Unified Revenue Service).

Botswana’s central bank, Bank of Botswana, ensures monetary stability and supervises the banking sector. The banking system is characterized by high liquidity, dominated by subsidiaries of regional and international groups such as First National Bank of Botswana, Stanbic Bank Botswana, and Absa Bank Botswana. In 2024, the Bank of Botswana introduced enhanced capital and liquidity requirements aligned with Basel III, strengthening the sector’s resilience. The country’s sovereign credit rating remains among Africa’s highest, reflecting prudent fiscal management and a robust foreign exchange reserve position (Bank of Botswana).

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) regulates a diverse range of entities, including pension funds, insurance, microfinance, and capital markets. Recent amendments to the Securities Act and ongoing digitalization initiatives are aimed at increasing market transparency and investor protection. The Botswana Stock Exchange (BSE) continues to attract listings, supported by regulatory reforms to deepen local capital markets and facilitate foreign participation.

On the finance front, the government is prioritizing digital transformation, evident from the 2023 roll-out of the National Payment System modernisation project, which aims to promote financial inclusion and digital payments adoption. This is further supported by the Financial Sector Development Strategy 2023–2028, which targets enhanced access to credit for small and medium-sized enterprises (SMEs) and expansion of fintech solutions (Bank of Botswana).

Looking ahead, Botswana’s stable policy framework and ongoing reforms in taxation, banking, and capital markets are expected to sustain its appeal as an investment destination in 2025 and beyond. Investors benefit from predictable regulation, continued digital modernization, and a strong commitment to fiscal prudence, positioning Botswana as a leading gateway for investment in Southern Africa.

Key Risks and Mitigation Strategies for Investors

Investing in Botswana in 2025 presents both promising opportunities and notable risks that investors must carefully assess. The government continues to encourage foreign direct investment (FDI) through a stable macroeconomic framework and investor-friendly policies; however, several key risks persist in the business environment.

• Regulatory and Policy Risks:
  Botswana maintains a favorable investment climate, but regulatory changes—especially regarding land acquisition, taxation, and sector-specific licensing—can affect project timelines and returns. The government has recently updated the Companies Amendment Act (2022) to streamline business registration and reporting. Nevertheless, delays or ambiguities in implementation may pose risks. Investors are advised to engage with the Botswana Investment and Trade Centre for up-to-date guidance and to ensure compliance with evolving regulations.
• Political and Policy Continuity:
  Botswana is renowned for its political stability, yet changes in leadership or parliamentary priorities—especially around national elections slated for 2024—may shift policy focus or create uncertainty in the short term. Investors should monitor updates from the Government of Botswana and maintain relationships with local legal counsel.
• Infrastructure and Operational Risks:
  While infrastructure has improved, power and water supply remain inconsistent in some regions, affecting sectors like manufacturing and mining. The government’s ongoing projects, such as the North-South Carrier Water Project, aim to address these challenges, but investors should conduct thorough due diligence and consider risk mitigation, such as on-site backup utilities (Water Utilities Corporation).
• Foreign Exchange and Repatriation Risks:
  Botswana’s foreign exchange controls are generally liberal, allowing for repatriation of profits and capital. However, regional currency volatility and external shocks can impact the Botswana Pula (BWP). The Bank of Botswana provides regular updates on monetary policy and currency market interventions, which investors should track closely.
• Legal and Dispute Resolution:
  The country’s judiciary is independent, and commercial dispute resolution mechanisms are maturing. Still, legal proceedings can be slow. Investors are encouraged to include arbitration clauses in contracts and consider using the services of the Law Society of Botswana-registered firms for local legal support.

Mitigation strategies include proactive regulatory engagement, detailed due diligence, political risk insurance, and robust contract structuring. By leveraging local expertise and government facilitation services, investors can better navigate Botswana’s evolving investment landscape through 2025 and beyond.

Case Studies: Recent Success Stories and Market Entrants

Botswana’s investment landscape has drawn notable attention in recent years, with a series of high-profile entries and successful expansions across diverse sectors. These case studies illustrate the country’s appeal to both regional and international investors as it continues to implement reforms and diversify its economy in line with Vision 2036 goals.

• De Beers Group’s Rough Diamond Sales Expansion: In 2024, De Beers Group reaffirmed its commitment to Botswana through the renewal of its sales agreement with the government, ensuring that the majority of the company’s rough diamond sales would be conducted in Gaborone for the next decade. This deal, worth an estimated $6 billion annually, signifies Botswana’s pivotal role in the global diamond industry and secures local beneficiation and employment opportunities.
• Choppies Enterprises’ Regional Growth: Local supermarket giant Choppies Enterprises has continued its expansion, opening new outlets across Botswana and neighboring countries in 2023–2025. The retailer’s reinvestments have generated hundreds of jobs and supported local suppliers, showcasing the impact of domestic capital in the retail sector.
• First National Bank Botswana’s Digital Banking Innovation: First National Bank Botswana (FNBB) has established a leading position in digital banking, launching new mobile banking solutions and SME lending platforms in 2024. FNBB’s investments in fintech have contributed to increased financial inclusion and support for local entrepreneurship.
• Norilsk Nickel’s Mining Investment: In 2023–2024, Norilsk Nickel completed major upgrades to its Tati Nickel operations following renewed mining licenses by the Botswana government. This revitalization has led to job creation and technology transfer, reflecting the success of Botswana’s mining policies focused on sustainability and value addition.
• CA Sales Holdings’ Consumer Logistics Expansion: CA Sales Holdings, a leading fast-moving consumer goods (FMCG) distributor, significantly expanded its logistics network in Botswana in 2024, enhancing supply chain efficiencies and facilitating market entry for international brands.

These examples underscore Botswana’s ability to attract and retain investment through regulatory stability, sound fiscal management, and a business-friendly environment. With continued government efforts to streamline investment processes and strategic infrastructure upgrades underway, the outlook for new market entrants and expanded operations remains positive through 2025 and beyond.

Future Outlook: Botswana’s Global Position by 2029

Botswana’s investment landscape is undergoing notable transformation as the country positions itself for heightened global relevance through 2029. The government’s Vision 2036 agenda, which emphasizes economic diversification, digital transformation, and sustainable development, continues to guide policy initiatives and investor incentives. In 2025, Botswana is leveraging its political stability, robust legal framework, and strategic regional location to attract both regional and international investors.

Key legal reforms have recently been implemented to improve the ease of doing business. The amended Companies Act and enhanced Companies and Intellectual Property Authority digital services now allow for faster company registration and improved investor protection. The 2022 Investment Facilitation Act, enforced by the Botswana Economic Development Council, streamlines licensing and approval processes, reducing bureaucratic hurdles for new entrants. These reforms are complemented by the Botswana Investment and Trade Centre’s ongoing investor aftercare programs, which offer support throughout the business lifecycle (Botswana Investment and Trade Centre).

Botswana’s mineral wealth—particularly diamonds—continues to underpin its economy, but 2025 marks an intensification of efforts to diversify. The government is encouraging foreign direct investment (FDI) in sectors such as renewable energy, agro-processing, financial services, and tourism. The 2023 Botswana Energy Regulatory Authority (BERA) framework supports Independent Power Producers (IPPs) and renewable energy investments, aligning with the country’s target to achieve 30% renewable energy generation by 2030 (Botswana Energy Regulatory Authority). Simultaneously, the Botswana Meat Commission is facilitating agro-processing investments to enhance value addition and exports.

FDI inflows are projected to rise steadily, with the Bank of Botswana reporting a 14% year-on-year increase in 2024, driven by mining, infrastructure, and fintech investments. Botswana’s macroeconomic environment remains stable, with inflation within the 3–6% target range and foreign reserves above US$5 billion, providing further confidence to international investors.

Looking to 2029, Botswana’s global position is expected to strengthen as it leverages regional trade agreements, such as the African Continental Free Trade Area (AfCFTA), and continues to invest in digital infrastructure and human capital. The country’s commitment to transparent governance and investor-friendly reforms, alongside expansion into non-traditional sectors, is likely to position Botswana as a leading investment destination in Southern Africa over the next five years.

Sources & References

• Bank of Botswana
• Botswana Investment and Trade Centre
• Botswana Investment Policy
• Botswana Power Corporation (BPC)
• SEZA
• Statistics Botswana
• De Beers Group
• Botswana Unified Revenue Service
• First National Bank of Botswana
• Stanbic Bank Botswana
• Absa Bank Botswana
• NBFIRA
• BSE
• Companies Amendment Act (2022)
• Choppies Enterprises
• Norilsk Nickel
• Botswana Energy Regulatory Authority
• Botswana Meat Commission