Botswana: Double Taxation Avoidance Deal to Boost Investment
Gaborone — The Minister of Finance and Economic Development, Mr Kenneth Matambo says the double taxation avoidance agreement between Botswana and France could boost foreign direct investment between the two countries.
Speaking during an occasion to seal a protocol to make amendments to the agreement on Thursday, Mr Matambo stated that the agreement eliminates chances of double taxation of income between the two countries.
"I hope this will encourage foreign direct investment between our countries. I wish to mention that Botswana offers a lot of advantages to investors. To mention a few, Botswana has the lowest tax rates in the region. We are also one of the few countries in the continent which does not have foreign exchange controls," the minister explained in Gaborone, before co-signing the protocol with French ambassador to Botswana, Mr Pierre Voillery.
Mr Matambo also said the conclusion of the protocol made the double taxation avoidance instrument compliant with international standards on transparency and exchange of information on tax.
He further said the instrument facilitated closer cooperation between the two countries' tax administrations, and would go a long way in helping to guard against tax evasion through exchange of tax information.
French ambassador, Mr Voillery explained that Botswana would be taken off the French list of non-cooperative states and territories as soon as the agreement had been ratified and came into effect.
"It means that investors are going to come much easily in Botswana," he said.
He further said the French Agency of Development would also be able to fund development programmes.
By Jeremiah Sejabosigo