Botswana

The Country

• Botswana, the “Switzerland of Africa”
• Stable multi-party democracy since 1966
• English speaking in parliament and law
• Easy to understand mineral law with good security of tenure
• Highest GDP per Capita Head in Africa
• Part of the Commonwealth
• Black and white stripes on flag to reflect racial harmony

Botswana has a flourishing multiparty constitutional democracy which has operated continuously since independence in 1966. Elections for the National Assembly occur every five years and every election since independence has been freely and fairly contested and has been held on schedule.

Freedom House, a US-based Non Government Organisation, publishes an annual comprehensive assessment of the state of political rights and civil liberties in 193 countries and 15 territories. Of these countries it highlights Botswana as one of the 90 “free” countries – (a further 60 are considered “partly free” and 43 “not free”). Botswana is one of only 11 “free” countries amongst the 48 states of Sub-Saharan Africa.

According to the Fraser Institute Annual Survey of Mining Companies 2009 / 2010 Policy Index, distributed to global governments on the attractiveness of their mining policies, Botswana retained its position as the highest ranked African country, in addition to ranking 1st in Africa and 7th in the world for current mineral potential.

From an investment point of view, Botswana ranked 1st globally in four categories, demonstrating the lowest levels of uncertainty that exist in:

• Administration and enforcement of regulations
• Environmental regulations
• Regulatory duplication and inconsistencies
• Tax Regime

This survey clearly enforces A-Cap’s view that Botswana is, and continues to be, an attractive investment opportunity in terms of location for the Company to focus its core activities. A-Cap’s focus remains committed to Botswana and it has established policies to further develop its local staff and continues to employ the bulk of its workforce from the local population.