Botswana to open export promotion office in India

New Delhi, Dec 8 (UNI) Keen to attract Indian investment in minerals, especially diamonds, copper and coal exploration Botswana will soon set up an export and investment promotion office here.

''We also want to attract Indian investment in technology as well as its business acumen especially in the small and medium enterprises sector,'' Botswana President Festus Mogae said today.

The announcement of setting up Botswana Export Development and Investment Authority (BEDIA) has followed the opening of High Commission in India in April this year.

Mr Mogae, who also 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.

The President said Botswana offered an attractive investment climate. ''The corporate tax rates are low, at 15 per cent for manufacturing and 25 per cent 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 including delays in giving licenses and other hindrances will 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 said the country's strategy to diversify its industrial base will make it an attractive destination for Indian business. Member of Confederation of Indian Industries' Africa Committee K K Kapila lauded Mr Mogae'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 diamond cutting and polishing industry,'' he said.

CII suggested an integrated skills development programme for people from Botswana and said it will reciprocate the initiatives made by the country.

Botswana figures in the Centre'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,'' he said.

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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