Business Licences in Botswana (Effective June 2020)

Manufacturing and Trading Licences (Effective Date 1^st June 2020)

MANUFACTURING LICENCES

Industrial Development Act of Botswana (Cap 43:01) regulates (1) manufacturing licences (2) registration of manufacturers and (3) exemption from registration.   When you manufacture arms, ammunition, pharamaceticals, maize milling, medicines, hides and skins which is governed by different Acts or when you manufacture goods regulated by Botswana Vaccine Institute or Botswana Energy Regulatory Authority or Department of Mines (and Minerals), this Act does not apply.  This Act does not apply to Botswama Meat Commission.

No one can manufacture any goods that affect public safety and public health without getting a licence from the Director of Industrial Affairs.  The director may give conditional licence and these conditions can relate to place or products or process. 

If one would like to manufacture goods in Botswana that does not affect public health or public safety, then there is no need for industrial licence but there is a need for registration. 

If you are a micro (sales less than P 100,000 and employees less than 6 including ownere) or a small (sales less than P 1.5 million and employees less than 25) manufacturer then there is no need for registration because you are exempt from registration.  But you have to apply for exemption.  This is the summary position:-

In other words,

1. Manufacturers with a turnover of more than P 1.5 million and more than 25 employees should apply for
   1. Registration Certificate where the process does not affect public health or public safety.
   2.  Manufacturing Licence where the process affects public health and public safety.
2. Sometimes manufacturers will have more than P 1.5 million turnover but will employ less than 25 employees.  Or they will employ more than 25 but will have a turnover of less than P 1.5 million.  In either case, the reply is the same as (1) above, meaning they should have Registration Certificate or Manufacturing Licence, as the case may be based on public health and public safety issues.
3. Sometimes manufacturers will have both less than P 1.5 million sales and at the same time they will employ less than 25 people.   They are called small manufacturers.  Small manufacturers include micro manufacturers who sell P 100,000 or less annually and at the same time employ 6 or less people including the owner.  These micro and small manufacturers are exempt from having to apply for Registration Certificate.  But they should apply for the exemption certificate.

Manufacturing Activities Reserved for Citizens

Following manufacturing activities are reserved for citizens of Botswana or companies wholly owned.  This means that a foreigner is not allowed to apply for manufacturing licences for the following industrial activities.  Size does not matter.

1. Bread and confectionery
2. Ice Making
3. Meat Processing
4. Peanut Butter
5. Purification and bottling of water
6. Traditional Sour Milk
7. Sorghum

Registration Certificates Reserved for Citizens

Following registrations (meaning exemptions from industrial licence) are reserved for citizens. 

1. Bricks
2. Burglar bars, gates and windows
3. Candles
4. Fencing materials
5. Floor polish
6. Packaging
7. Protective clothing
8. Roof trusses
9. School furniture
10. School uniforms
11. Screen printing and embroidery
12. Signage, including electronic signage
13. Trading crafts
14. Traditional leather products

Retrospective Effect

Non-citizens may hold currently manufacturing licences under the repealed Act until they fall due for renewal.  When it comes to renewal, the expectation of the Director of Industrial Affairs, in our opinion, should be that these reserved licences will be renewed under joint venture arranagements. 

TRADING LICENCE

This following chart is a brief summary of amendments to Trade Act effective 1^st June 2020.