Sanlam urges Botswana to expand tax base

Despite having low debt levels compared to most African countries, Sanlam economists believe Botswana’s overreliance on diamonds reveals an urgent need for a wider tax base. Sanlam economist, Patrick Buthelezi, told BusinessWeek during a Business Summer School Training there that whilst all sub-Saharan African countries needed to rethink their fiscal goals and policies due to rising debt levels, Botswana’s challenge is the decline in mineral revenues and the urgency of diversifying these streams.

“Botswana is not in a bad shape,” he said. “Its revenue collection as a percentage of GDP is better than most countries. "At the same time, it has a lower corporate tax rate which means revenue is managed well and lower corporate tax can help the country to attract Foreign Direct Investment.”