Original scientific paper

FOREIGN DIRECT INVESTMENT IN BOTSWANA: TRENDS, REFORMS AND CHALLENGES

Mercy Magombeyi orcid.org/0000-0001-6280-140X ; Department of Economics; University of South Africa, Pretoria, South Africa
Nicholas M. Odhiambo orcid.org/0000-0003-4988-0259 ; Department of Economics; University of South Africa, Pretoria, South Africa

Abstract

This paper gives an overview of foreign direct investment (FDI) in Botswana from 1980 to 2013. The trends in FDI inflows, reforms that have been implemented, and challenges that need to be addressed in order to increase FDI inflows into the country are also highlighted. Reforms on FDI have been two-pronged. Firstly, there are policies that are aimed at creating a vibrate industry important for investment. Some of the policies pursued are: supportive industrial policies, regional integration and bilateral and multilateral trade agreements. Secondly, there are policies that directly target FDI. Among such policies are investment incentives, regulatory reforms, exchange control relaxation, Bilateral Investment Treaties (BITs) and the creation of Special Economic Zones. The overall analysis of the study shows FDI inflows in Botswana have been highly volatile and depressed since 1980, although a gradual increase has been recorded since the mid-90s.

Keywords

Foreign Direct Investment (FDI); trends; reforms; challenges; policies

Hrčak ID:

194708

URI

https://hrcak.srce.hr/194708

Publication date:

30.6.2017.

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