The Government of Botswana has established the Special Economic Zone Authority (SEZA) in 2015 to support and manage the development of the 8 SEZs in Botswana, and assist in economic diversification through developing trade and investment in Botswana while providing key services to foreign direct investors to the country.
SEZA is an organisation that has taken a long-term approach to identifying industry trends and is able to work together with relevant stakeholders and investors. SEZA’s main goal regarding foreign direct investors is to partner up with target companies that are well placed in being the leaders of the future. In order for SEZA to be a vested partner in the foreign direct investors Botswana attracts and will attract in future, certain services are to be fine-tuned on behalf of the country. There are a number of services provided by SEZA that significantly benefit investors who are planning to or are already investing in Botswana.
SEZA stimulates innovation through SEZs by fostering linkages and spillovers with firms within and outside of the SEZs. SEZA also maintains a focused sector strategy with development phases regardless of the industry represented. Furthermore, human resource development is of utmost importance to SEZA and constant efforts to include the young, skilled local workforce to investing companies are made. SEZA aligns itself with national and regional plans that are translated into strong political willpower and a dynamic approach with favourable public opinion. SEZA represents a well-educated bureaucracy that is aware of the complexity and dynamics of SEZ development and makes for a strong management body with a high level of autonomy and decision power.
Botswana has eight special economic zones operating, namely SIR SERETSE KHAMA INTERNATIONAL AIRPORT (SSKIA), TULI BLOCK, LOBATSE, FAIRGROUNDS, PANDAMATENGA, GREATER PALAPYE, FRANCISTOWN, and SELEBI PHIKWE.
SIR SERETSE KHAMA INTERNATIONAL AIRPORT (SSKIA) - MIXED USE
The location of the Sir Seretse Khama International Airport (SSKIA) location is very strategically located for business. The combination of airport facilities and the site’s proximity to the diamond hub makes SSKIA appealing to a variety of sectors. High value-to-volume ratio manufacture products prosper here due to the air transportation infrastructure. These include pharmaceuticals, medical devices, and electronics and electrical equipment, to name a few. With the development of the manufacturing sector and increased liberalisation of the aviation industry, SSKIA has become an aerotropolis with integrated logistics that are supporting industries in the SEZ and Gaborone. SSKIA SEZ is the centre of excellence in the region due to its business incubation facilities, retail, and e-commerce ecosystem, as well as being the centre for certification services. SSKIA is Botswana’s alternate gateway to Southern and Eastern Africa and is also an innovation hub, consisting of a high-capacity infrastructure and complete high-tech industrial ecosystem.
The current focus activities for SSKIA SEZ include diamond beneficiation, logistics, and automotive components.
TULI BLOCK - AGROPOLIS
Focusing on horticulture, Tuli Block is known as the “Agropolitan” bread basket of Botswana. The SEZ hosts a bustling floriculture and tourism culture and opportunity for growth in both these sectors are vast. Other sectors that benefit from Tuli Block include logistics, particularly cold storage, as well as high-value support sectors for horticulture and floriculture like genetics research and design services. Logistics, particularly cold storage, as well as high-value support sectors for horticulture and floriculture like genetics research and design services are also well established in this area. Tuli Block also represents very strong lifestyle brand association.
LOBATSE - MEAT AND LEATHER
Lobatse SEZ is home to beef, leather and at biogas park. These sectors are thriving in this region, especially garments/apparel manufacturing due to the presence of raw materials, (leather). The biotechnology sector, particularly in vaccine development and medical applications, is well established in Lobatse. Furthermore, downstream expansion into design services and branding services for apparel and leather goods, and even e-commerce ecosystem support the sale of these products. Lobatse enjoys strong national brand association.
FAIRGROUNDS - INTERNATIONAL FINANCE & TECHNOLOGY
Fairgrounds is the financial centre of Botswana. Considering the service-oriented and knowledge-based nature of the existing industries, sectors like biotechnology and healthcare enjoy good synergy with the site.
Furthermore, expansion into financial technology (FinTech), as well as next-generation exchange such as carbon exchange or SME-focused exchange, makes the Fairgrounds SEZ a strong contender for the leading financial and services innovation centre in Africa.
PANDAMATENGA - AGROPOLIS
Pandamatenga is the agricultural hub and agro-processing SEZ of Botswana. The site is also a production hub for high-quality agricultural products expanding into logistics, particularly cold stage, R&D into food processing and agriculture-focused biotechnology. Pandamatenga delivers high-quality agricultural products and assures demand though an international memorandum of understanding (MOUs)
GREATER PALAPYE - ENERGY
Greater Palapye SEZ is the power hub of Botswana. The existing Morupule power stations and proximity to Botswana’s coal reserve make Palapye the centre of coal-based power generation. Due to access to inputs, coal-based chemicals industry are easily developed here. Furthermore, leveraging on the existing power grid, renewable energy sector (mainly solar energy) is produced at Palapye as any electricity generated feeds smoothly into the national power grid. With the ready supply of electricity, light manufacturing sectors excel at Palapye. The education sector is also very much at home here due to BIUST (Botswana International University of Science and Technology) being located at Palapye.
FRANCISTOWN - MIXED USE
With the existing transportation connectivity infrastructure and its strategic location at the northern edge of Botswana’s established railway, Francistown has become the country’s logistics hub. Logistics-related services such as warehousing and distribution, packaging and labelling, etc. have a strong presence in this area and there is plenty room for expansion should new business be introduced here. The Francistown logistics hub is evolving into an e-commerce hub, making use of the already integrated logistics infrastructure. With its proximity to the Botswana International University of Science and Technology, the SEZ taps into graduates as well as existing workforce, further strengthening and developing the light manufacturing sector as well as the financial technology sector.
SELEBI PHIKWE - MIXED USE
Selebi Phikwe evolved from a mining town into alternative sectors, including logistics and coal-based chemicals. The existing smelting facilities are being used for base metal beneficiation, relying on the availability of raw material supplies from the region. Apart from these sectors, Selebi Phikwe is well populated by tourism-related industries and activities such as a casino, golf courses, sports clubs, bird watching and more. There are also plenty of hotels, guest houses, camping sites and lodges available as tourist accommodation in the area.
The following industry sectors are strategic to enable long-term economic growth of Botswana, and their growth will be stimulated through the use of SEZ’s and incentives – Agro Business, Water Management, Energy, Financial Services, Applied ICT, Health, and Manufacturing.
Source:
Special Economic Zones Authority of Botswana
