Banking and Finance
In recent years there has been a sharp increase in activity in the banking and finance sector of Botswana. This has taken place in both the regulatory and transactional spheres of the sector.
The introduction of the Non-Bank Financial Institution Regulatory Authority Act extended the financial sector regulatory regime to non-bank financial institutions such as asset managers, finance and leasing companies, micro lenders, investment advisors, custodians and the operators of securities exchanges.
In the transactional sphere there has been an increase in the private financing of infrastructure projects with the government actively promoting Public Private Partnerships and Project Financing as methods of financing such projects.
The property market in Botswana continues to post significant growth and appreciation despite the recent down turns in the domestic and global economy.
In Gaborone the two biggest drivers of this growth have been the development of the new central business district (CBD) and the London based Diamond Trading Company’s relocation to the capital.
Mining, Energy and Natural Resources
The resource sector is the mainstay of the Botswana economy and the biggest contributor to Botswana’s GDP.
Mining is the dominant activity in this sector and is regulated by the Mines and Minerals Act [CAP: 66:01]. This Act establishes a sound regulatory regime that strives to reach a balance between mining activity and environmental control. The Act also sets up a platform for the Botswana government to obtain a stake or interest in mines established in Botswana.
Another important area in the resource sector is energy. Botswana is currently facing an energy shortage and this has driven an explosion of activity to meet this challenge including changes in legislation to allow for the private ownership and operation of power stations. The national power utility is also in the process of building several new power stations and negotiating electricity supply and wheeling agreements with neighbouring states.
Engineering, Construction and Building
The growth of Botswana’s economy continues to drive the development and construction sector.
The relocation of the London based Diamond Trading Company to Botswana and the development of the Gaborone CBD caused a flurry of construction across the capital. Further afield, large infrastructure projects are being undertaken in an attempt to keep up with the growing demands of the Botswana economy.
Armstrong Attorneys are the Botswana LEX Africa member. Visit www.armstrongs.bw