Build it and they will come

The recent signing of a landmark tax deal between Botswana and the Organisation for Economic Co-operation and Development (OECD) puts the cherry on top of multi-sectoral efforts to enhance the country’s investment climate.

For years, the country has been dogged by a tax haven status prompted by international perceptions of weaknesses in local tax administration, laws and institutions. In an age where the free exchange of tax information and high standards of administration are indispensable pre-requisites for engaging with the global investment community, the tax haven label has indeed cost the country greatly.

Botswana has been on the European Union’s tax greylist since December 2017 and has remained there through 11 updates that have resulted in other nations being removed and others added. The adverse listing, due largely to the EU’s unhappiness with Botswana’s tax regime and exchange of information, is seen as a disincentive to both foreign investment as well as local companies’ ability to trade with the world as the country is seen as a tax avoidance and evasion haven. The new deal signed in Paris and known officially as the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), signals that the EU and 140 other members of the MAAC acknowledge that Botswana has addressed areas of concern around its tax regime.  Authorities expect that the greylisting will be lifted “within months” putting a final rose on the bouquet of incentives Botswana offers to investors in return for their capital and willingness to carry risk. ndeed, since the greylisting, investment promotion agencies such as the BITC, our diplomats in various countries, numerous business lobby groups and individual companies have faced difficulties selling the country’s investment opportunities.

Editor's Comment
Congratulations Anicia Gaothuse!

The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...

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