- Carlos Bernitt
The 2025 Budget Speech has sparked critical discussions on economic diversification, tax policy, and investment factors that will significantly shape Botswana’s economic future. These conversations provide an opportunity for the private sector to contribute meaningfully to long-term national growth and sustainability.
Carlos Bernitt, Managing Director of Kgalagadi Breweries Limited (KBL), recently engaged in a thought-provoking discussion on a local podcast that explores critical business issues and advocates for local success and development. The discussion, which took place immediately after the presentation of the 2025 Budget Speech by the Vice President and Minister of Finance, His Honour Ndaba Gaolathe, on Monday, 10th February 2025, provided a timely opportunity to reflect on Botswana’s economic outlook. Bernitt emphasized the importance of regulatory stability, local sourcing, and fostering an investment-friendly environment to drive sustainable development.
A key concern for businesses operating in Botswana is the country’s reliance on imports. “Currently, 78% of our inputs are imported, but we are taking steps to change that,” Bernitt noted. KBL has already begun trials on locally sourced sorghum to strengthen agricultural partnerships and reduce dependency on external suppliers. Encouraging the growth of local industries and supply chains is not just an economic necessity, it is a long-term strategy to build resilience and create more opportunities for Botswana’s farmers and entrepreneurs.
Policy certainty is another key factor in supporting investment and economic growth. “For businesses to thrive, we need predictable and transparent regulatory frameworks. Investors need clarity on tax structures and how policies will be implemented over time,” Bernitt said. The introduction of digital invoicing and structured tax policies has the potential to modernize Botswana’s economic landscape, but their execution must be designed in a way that enhances, rather than restricts, business operations.
As one of Botswana’s longest-standing corporate citizens, KBL remains committed to investing in the country’s future. However, taxation policies play a significant role in determining the sustainability of industries.“Botswana is currently one of the few countries that impose a levy on top of excise tax. This creates additional challenges for long-term investment planning and can deter foreign direct investment,” Bernitt explained. Balanced taxation policies that support both government revenue generation and a business-friendly environment are essential in making Botswana a more competitive investment destination.
With government and industry leaders actively engaging in dialogue, there is great potential to unlock new opportunities that extend beyond the traditional mining sector. “We need to work hand-in-hand with policymakers to develop regulations that encourage growth, investment, and economic diversification,” Bernitt stated. He believes that businesses like KBL have a key role to play in driving Botswana’s ambitions for a more diversified and sustainable economy.
As discussions around the budget speech continue, KBL remains at the forefront of advocating for collaborative policymaking and long-term economic solutions. Botswana’s future success will depend on a regulatory framework that nurtures investment, supports local industries, and ensures economic resilience for generations to come.
