Government securities Non-government securities
Primary market T-Bills Bonds Corporate Other
Tenor/maturity 182 days 1 to 24 years 1 to 14 years 2 to 14 years
Auction frequency Quarterly Quarterly Ad hoc Ad hoc
Auction method Dutch auction Dutch auction Ad hoc Ad hoc
Auction participation Primary dealers Primary dealers Private placement Private placement
Bid size Minimum bid BWP5m Minimum bid BWP5m Unlimited Unlimited
Source: Bank of Botswana, FNB Botswana, RMB Global Markets
Secondary market
Turnover range - - - -
Liquidity Low Low Low Low
Bid/offer spread 20bp 20bp 20bp 20bp
Day-count convention ACT/365 ACT/365 ACT/365 ACT/365
Settlement T+3 T+3 T+3 T+3
Note: 1. As at March 2018; 2. Year-to-date value as at March 2018.
Corporate tax Residents Non-residents
Corporate income tax rate 22% 30% The corporate income tax for manufacturing and International Financial Services (IFSC) companies is 15%.
Capital gains tax rate 22% 30% The effective capital gains tax on the sale of shares for both resident and non-resident companies are 16.5% and 22.5% respectively, but certain exemptions do apply.
Value-added tax 12% 12% Training levies of 0.2% and 0.05% are applicable to turnovers of less than BWP2bn and more than BWP2bn respectively.
Withholding tax
Dividends 8% 8% -
Interest 10% 15% A 10% withholding tax is levied on interest paid to residents.

Source: PwC, KPMG

RMB is a leading African Corporate and Investment Bank.