With a limited contribution of 5% to the country’s GDP, the manufacturing sector in Botswana holds significant potential for growth. In the aftermath of the COVID-19 crisis, the country is dedicated to a strategy of transforming and diversifying its economy through the Economic and Recovery Transformation Plan (ERTP).

To reduce dependence on the mining sector, the government has been actively promoting opportunities in various sectors, including manufacturing, and is relying on the private sector to drive this initiative. In order to support the development of the manufacturing sector, meet domestic demands, and expand into regional markets, the Botswana government has implemented policies such as tax incentives for investors, funding for research and development, and support for skills development and training.

Additionally, it is collaborating with the private sector to address challenges faced by the manufacturing sector, including limited access to finance, high energy costs, and labor shortages. The establishment of the Special Economic Zones Authority (SEZA) aims to alleviate these challenges by providing a range of services and fiscal advantages to manufacturers.

While Botswana’s manufacturing sector shows potential across several subsectors, such as textiles and clothing, agro-industry, and packaging, the automotive industry stands out due to increasing local and regional demand, as well as Botswana’s commitment to promoting environmentally friendly technologies. The nascent automotive industry in Botswana demonstrates strong potential for attracting investors, particularly in the assembly and manufacturing of components for both conventional and electric vehicles.