India - Botswana Economic and Commercial Relations

India and Botswana have instituted normal trading arrangements and signed bilateral trade agreement in January 2001 providing for most favoured nations (MFN) treatment. Both nations are members of WTO. Botswana is also member of the four-nation Southern African Customs Union (SACU) with which India is negotiating for free trade agreement. Separately Botswana is member of 13 nations Southern African Development Community (SADC) which is negotiating among itself for Customs Union by 2010.

Annual imports of Botswana is about Pula 12 billion (Rs. 12000 crores). While substantial portion of imports are from South Africa and EU, more and more goods and services are coming from Asia(Japan, Cina and India). In respect of India, position of and potential about export of merchandise are as follows:

Engineering goods: Nearly 1/3rd of India export to Botswana constitutes engineering goods. Construction is one of the fastest growing sectors in Botswana and there are good potential for export of building materials including electrical items. Export of automobile parts, hand tools for machinery and similar products are also possible.

Apart from export of goods, Indian companies can bid for lucrative contracts in Botswana tenders floated by Ministry of Works and Transport which can be accessed through website: www.gob.bw/business/tenders.html

Textiles: Botswana enjoys preferential trade agreement with USA for export of textiles. Indian companies can export cotton fabrics to textile companies but competition is strong.
Drugs and Pharmaceuticals: Botswana does not recognize generic drugs as of early 2004. However, Indian companies can apply for registration of their generic drugs. Other chemicals and hospital supplies do not require registration and have good potential.

Food products: Indian processed foods are enjoying increasing quantity in Botswana. At least four large stores have commenced marketing Indian food products during 2003 alone.

However, very few companies import directly from India to Botswana. Most of the goods imported in Botswana are supplied by companies in South Africa which earlier imported them from India.

Apart from export of goods, Botswana offer substantial opportunities for export of services, professional jobs and contracts in ITC sector. Botswana economy is strong with surplus trade in revenue with high credit rating. However, advice of parties who know about Botswana market is important.

Source : Indian High Commission, Botswana