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Job Reintegration, Setting Up a Business, Bank- and Credit System
Unfortunately, in Botswana the Jobseekers do not have any financial support. There is as well no insurance to cover you for the time of unemployment.
When applying for a job one has to submit the following papers:
The relevant authorities must certify all copies before submission.
The usual procedure of an application is to state exactly in an application letter the type of a job you want and what experience of have in such a job. The application might be sent by post, e-mail, hand delivery or even sent by fax.
Organisations would then call those they have short-listed for interview. The short-listed are those who are meeting the requirements specified on an advertisement. Normally for an interview, you might be called by a letter written to you or even by a telephone. It can be an oral interview or written interview. The employer would like to know more about yourself – what work experiences you have and education related to the job you have applied for.
Normally if the vacant post is advertised in local newspapers etc. There is a deadline stated, therefore, one has to try and submit before the deadline. Job numbers stated as well, when a post is advertised, therefore, one must quote such numbers as well when responding to such an advert.
Other job advertisements are made on the National Radio stations, National Television, Notice boards around the commercial centres and in government offices. They appear as well on local newspapers and websites.
Announcements over the radio can cost around P 200 for 30 seconds slot over peak hour (after or before news reading) and roughly P 80 to advertise in the newspapers. There is also a small advertising only paper called "the Advertiser" and it can cost you P 2 per word to advertise in it.
In Botswana don’t exist many employment agencies. But in Gaborone exist at least two private ones. There is no service fee to be paid by jobseekers. All they have to do is to submit their curriculum vitae’s and certified copies relevant certificates, and references. Then the Employers are the one’s who contact the employment agencies and out if they have people for placement. If one qualifies for the job, the employment agency calls you for an interview after short-listing the applicants. The employer is the one who pays the agency for getting them the right candidate. The two agencies are:
Premiere Personnel
P.O. Box 1966
Gaborone, Botswana
Tel.: (00267) 395 2878
Fax: (00267) 393 0431
E-Mail: premierpersonnel@botsnet.bw
HMRC Management Consultants
Private Bag BR 198
Gaborone, Botswana
Tel.: (00267) 395 1640
Fax: (00267) 391 1494
E-Mail: recruitment@hmrc.co.bw
With the government all applications have to go through the relevant departments for public officers. Department of Public Services Management does job placement. No fee has to be paid for this. Other applications can be channelled through the Department of Labour and Home Affairs as well for the public service.
It is possible to contact companies and organisations directly. This is very important because one gets a chance to meet would be employers before hand and talk to them directly.
Bedia and Botswana Development Corporation are some of the corporations that will assist in finding business partners.
There are two types of business licences one can apply for.
For this type of a licence one has to submit three names to the Registrar of Companies, from which they will choose a name for you that is not in use with a fee of roughly P 3. It takes more or less than 3 weeks for the Registrar of Companies to respond. After that you fill a certain form at the Registrar of Companies for the approval of the name now and that costs P 20 and after another three weeks you will receive a certificate with the trading name and with that you can start to operate your business. This type of a licence is just for a sole director and having the certificate, you can open a bank account for the business.
You submit three names as well for the business as above to the Registrar of Companies but pays a fee of P 12 and this takes only a week for the approval of a name. After the name has been approved, then one has to fill the forms for the Business Memorandum. These form can be bought either from Printing and Publishing Company here in or Gaborone Printing works for P 30 but it can cost you P 1,500 (one thousand five hundred) for a consultant for preparing and submitting these forms. You will have to submit three copies of the Business Memorandum to the Registrar of Companies and pay another P 240. Thereafter, it takes two months to get a Certificate of incorporation. After that, you will have to fill Form 2, 4, and 5 which are stipulating the names of directors, shares etc. All these you will receive them from the Registrar of Companies.
There are regulations in Botswana concerning the protection of trade marks and patents. The act that provide for the protection of industrial property in Botswana including trade marks and patents, is called the Industrial Property Act of 1996.
If one wants to enquire about patents and legal trade marks he/she may do so by consulting the office of the Registrar of Trade marks, Patents and Designs in the Ministry of Trade and Industry. This office deals with regulations of trade marks and patents, implementation of the law, disputes and appeals relating to relevant act. This office also deals with international law, convections, acts and protocols such as the Paris Convention, ARIPOL (African Regional Intellectual Property Organisation), WTA, WIPO (World Intellectual Property Organisation) etc.
To open a bank account for a Company limited business one will need the following copies: Form 2, 4, and 5, certified copy of the Certificate of Incorporation and one copy of the Memorandum.
In Botswana taxes are paid for taxable income as provided for in the Botswana Income Tax Act of 1995.
There are number of companies in Botswana that sell numerous insurance products/policies found in the market. One of the big insurance companies in Botswana is the Botswana Insurance Company (BIC). Their range of products include Fire Insurance (contents or building), office, computer, motor, money, plant and heavy machinery and group personal accidents (24 hours). Workmen’s compensation is also catered for but only when on duty, as well as public liability insurance. The insurance rates range from 2.5 – 4 % of the value of the insured.
Botswana Insurance Company
Private Bag BR 185, Gaborone
info@bifm.info.bw
When recruiting for reliable and good staff, the best option is to advertise in the local newspapers and internet, sometimes regionally and even internationally depending on the level, skill and experience of the staff required. The human resources organisations formed in Botswana are also a very good channel to find a good and reliable staff.
In general terms contractual full time employment is commonly practised in Botswana. There is also part time employment and a very small percentage is found in freelancing.
The biggest employer in Botswana is the Botswana Government. The type of employment offered by the Botswana government is permanent and pensionable. When you are permanent and pensionable you can be transferred anywhere in Botswana where your services are required. You are entitled to a gratuity when you retire and a pension commensurate with your salary.
Temporary employees may not be transferred, they only get gratuity without any pension when they retire. We also have Industrial class employees, who are non permanent and pensionable. They get their gratuity every five (5) years after which they begin another five year contract of employment.
The private sector and parastatals play a big role in employment in Botswana. Even though this sector does not employ as many people as the public sector, they provide a more lucrative employment than the public sector. General the employees in the private and parastatals are better off.
The social expenditure covered includes insurance, pension, savings plans or funeral benefits, areas of social security. Employers normally contribute to the social security costs or benefits of their employees.
When one wishes to retire or terminate his or her employment they give the necessary notice or period of intent to retire or terminate employment in line with the laws governing retirement or termination in Botswana.
The Old Age Pension Scheme was introduced in October 1996. The pension is paid to all citizens aged 65 years and above. The primary objective of the Old Age Pension Scheme in Botswana is to offer financial security to the elderly citizens, this providing income maintenance to those who are no longer at work, or in the case of the poor, who would have no meal if the monthly allowance was not assured. The Scheme is administered by the Ministry of Local government.
In April 1998, a World War II Veterans Allowance was also introduced. This is paid to war veterans who fought under the Botswana banner in World War I and II. In cases where the veteran is no longer alive, the allowance is paid to their spouse/s or children aged 21 years and below.
There are small, medium to big companies that provide services which may be necessary or support in one form or the other the establishment of start up for business. These services commonly are: lawyer, tax consultant, business consultant and accounting firms.
Service charges or fees are applied when businesses are registered and these vary in accordance with the type and size of business. There are also fixed fees for such things as a visa, work permit, application for residence permit. Registration of companies or businesses is often done by other companies that specialise in such jobs. Registration may also be done by an individual by making an application directly to the Registrar of Companies. The charges for registration are standard but fees for may vary from one company to another depending on their service charges. There are quick ways to start operating such as buying a company off-the-shelf which generally costs around P 3,000 to P 4,000.
The cost of training staff to professional qualification may be substantial, but it is off set by government incentives on subsidy for training and employment creation.
Business Property
In major commercial centres, there are warehouses and offices to rent. The rent is generally determined by the market (the principle of supply and demand).
Electricity, Water and Heating
Electricity and water are in constant supply. The rate for supply of electricity and water are very competitive and reviewed from time to time to make it sustainable. Heating is not really a problem as it does not get extremely cold in Botswana safe for exceptional winter days and nights which are rare. Cleaning is reasonable as the required labour force is very much affordable. Maintenance varies according to type however, it is done at very reasonable cost.
Taxes
Business tax is controlled by the Income Tax (ITA) of 1995. Further information may be obtained from the Commissioner of Tax P/Bag 0013, Gaborone, Botswana. Resident company tax is 15 % of taxable income. Non resident company tax is 25 % of taxable income.
Construction Cost
In construction most of the material used is sourced from outside which makes it a bit expensive. The cost of planning varies from small company to medium size, big and multi-nationals. The bigger the company the higher the cost would normally be. The cost of labour is very much competitive and attractive.
Machines
Machines which are generally imported from outside are quite expensive. It is also often too expensive to install and repair, particularly where spare parts are involved. Implementation would normally run smoothly until the machines start aging and the cost of spares begins to rise.
Offices Rooms
Office rooms and stores are easy to find as they are always available in the market. Laboratories, computer services, telephones services and tools or equipment are readily available or can easily be purchased from outside. Pool vehicles for transport would also be within reach provided the resources are there to purchase them. Patents licenses, trade mark rights and copy rights are catered for under the Registrar of patents and trade mark rights.
Goods produced in Botswana may be at the level of half finished or finished goods depending on who you are producing for. Raw materials sometimes wholly come from outside or may have certain component that is sourced locally.
Operating costs for start up are very important and these costs largely determine how well you are likely to do after the start up phase. It is important to get the operating costs for start up right. If you get them right you are likely to start well and continue growing. If you get the costs wrong you are bound to have problems.
The government of Botswana has several programmes to assists Botswana to better their living standards. These are agricultural and business programmes. Some of the schemes are grants while some are offered as loans.
Integrated Field Services (IFS) is a division within the Ministry of Trade, Commerce and Tourism, its primary objective is to support development of small-scale indigenous enterprises, to assist in securing finances, provides business management /technical training and advisory services.
Citizen Entrepreneurial Development Agency (CEDA) is also an entrepreneurial scheme under the Ministry of Finance & Development Planning. It offers loans to citizen entrepreneurs. CEDA has been established to redirect efforts to deal with the real constraints affecting the development of citizen businesses and citizen participation in the economy. Through this agency Botswana will have improved access to financial and entrepreneurial training and thus will be able to engage in sustainable economic activities better equipped with requisite skills for running businesses.
Some of the objectives of Citizen Entrepreneurial Agency are
Criteria for Assistance
The scheme is available to citizens of 18 years or over wishing to start a legal business and again to existing legal businesses that are owned by citizens of 18 years of age or above; and under the Venture Capital Fund, both citizens and joint ventures between citizens and foreign investors.
It is available for registered, viable new start-up businesses in all sectors of the economy; viable expansions to existing registered businesses in all sectors of economy; and viable purchases of equity share capital in existing registered foreign owned businesses, which are expanding.
In all cases, promoters or project sponsors are encouraged to contribute something towards the project cost as equity or owner’s contribution to share the risk, show some commitment and confidence in the project as well as to lighten the burden of repayment. The contribution may be in cash or in kind or a combination of both. However, Small/Micro Scale and Medium Scale projects will still be assisted even if equity or owner’s contribution cannot be raised.
Level of Assistance
Small/Micro Scale Projects
Medium Scale Project
Large Scale Projects
Assistance for large scale projects is in the form of equity capital and/or loan and management assistance. This is provided under the Venture Capital Fund. However, promoters are required to contribute a minimum of 25 % of total project cost equity and pay market related interest rates.
Ministry of Agriculture offer programmes like National Master Plan in Arable and Diary Development (NAMPAADD). The programme is expected to make arable and diary farming profitable and more attractive to farmers, thereby creating employment opportunities, in turn increase rural incomes and a reduction in rural to urban migration.
The Central Bank (Bank of Botswana) was established in 1975. The primary responsibility of the bank include the conduct of monetary policy; provision of banking services to government; banks and selected public sector organizations; regulating and supervision of the banks and other financial institutions; issues of currency; management of foreign exchange reserves etc. The primary objective of the Bank is to promote and maintain monetary stability. It ensures the soundness of banking.
There are numerous commercial banks licensed to operate in Botswana. Some of the Banks are Barclays Bank, Standard Chartered Bank, Bank of Baroda, First National Bank, Botswana Savings Bank, Stanbic Bank,
Standard Chartered Bank of Botswana
P. O. Box 496
Gaborone
Tel.: (+267) 3601500
Fax: (+267) 3972933
Standard Chartered Bank is highly recognised as a leading cash management supplier across the emerging markets. Its cash management services cover local and across the border Payments, Collections, Information Management, Account Services and Liquidity Management for both corporate and institutional customers.
Standard Chartered offer foreign currency account services. This account may be opened in major currencies. Cash withdrawal is flexible and there is an option for Call, or Fixed Accounts for periods of 1,3, 6 and 12 months. The minimum balance of this account is US$ 1,000, GBP 500, Rand 5000 and Euro 500.
The bank offer mortgage loans, the minimum of which is P20 000 and the maximum is P 500,000. The tenor is 20 years or up to 60 years. There is a low interest rate of 1 % to 3 %. The repayment period is flexible. The bank provides personal loans, the minimum of which is P 15,000 and a maximum of P 40,000 with a tenor of 36 months. There is a top up option when the loan has run for 12 months.
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