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Business & Management Profile


AIDS Acquired Immune Deficiency Syndrome

AU African Union

BAC Botswana Accountancy College

BEDIA Botswana Export Development and Investment Authority BIDPA Botswana Institute for Development Policy Analysis BOCODOL Botswana College of Distance and Open Learning BOTA Botswana Training Authority

CKGR Central Kalahari Game Reserve

EBS European Business School

EMBA Executive Masters of Business Administration

EU European Union

GDP Gross Domestic Product

GIBS Gordon Institute for Business Studies

HDI Human Development Index

HIV Human Immunodeficiency Virus

ICT Information Communication Technology MANCOSA Management College of South Africa MBA Masters of Business Administration MBL Masters of Business and Leadership

MDP Management Development Programme

MW Megawatts

NBFIRA Non Bank Financial Institutions Regulatory Authority

NDP National Development Plan

NGO Non Government Organisation

SADC Southern African Development Community

SSA Sub-Saharan Africa

TEC Tertiary Education Council

UB University of Botswana

UCT University of Cape Town

UNESCO United Nations Educational, Scientific and Cultural Organisation UNISA University of South Africa

VAT Value Added Tax


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125k 100k 75k 50k 25k 0 25k 50k 75k 100k 125k Age unknown 95+ 90-94 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 4 COUNT CASE WEIGHT BY WEIGHT 2

AGE GR OUP SEX Age unknown 95+ 90-94 85-89 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 4 AGE GR OUP MALE FEMALE Population Projection (1000)

Year Male Female Total 2006 837 882 1 719 2007 847 888 1 735 2008 859 896 1 755 2009 871 904 1 755 2010 885 914 1 799 Source: Central Statistics Office Botswana Demographic Survey 2006



Botswana, a landlocked country in southern Africa bordered by South Africa, Namibia, Zambia, and Zimbabwe, achieved independence in 1966. At that time Botswana was considered one of the poorest countries in the world. Shortly after, the government was able to maintain a balanced budget with-out donor assistance. Within the last forty years Botswana has established itself as a model of development in Africa, with middle income status and an average annual growth rate of 9%.

Botswana’s total area of 581 730 sq km is comparable in size to France and slightly smaller than the state of Texas. It is a semi-arid country, with a sub-tropical climate due to the

rela-tively high altitude. The average temperature is 21.2 °C (70 °F) with an average range of 10.5 °C.

Botswana is a multi-party democratic republic recognised for its democracy, political stability, good governance and economic management. Elections are held every five years on the basis of universal adult suffrage and the president is elected by the National Assembly for a concurrent term of office. Opposition parties operate freely and are represented in the National Assembly.

Consistent with its reputation for democratic and constitutional governance, Botswana has maintained a sound hu-man rights record. Freedom of opinion is guaranteed, with a culture of open consultation that is characterised by lively discussions.

The judiciary is independent of the executive and the legislature and it provides strong protection of property rights. Botswana’s population has increased over the years largely as a result of improved health. The 2010 population projec-tion is 1 799 000.

The Gross Domestic Product (GDP) for 2009, based on Purchasing Power Parity (PPP), was estimated to be $26 520 mil-lion. With a per capita income of $13 992, Botswana’s global ranking by the International Monetary Fund is 58th. The mining sector contributes 26.0% to the GDP, followed by banks, insurance and business services at 12.4%, hotels


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South A fr ica Egypt M or oc co Tunisia Niger ia Ken ya Botsw ana Namibia M adagascar Sudan M ozambique Lib ya Sey chelles Sier ra L eone Lesotho Liber ia Somalia INTERNET SUBSCRIBERS 1 000 000 100 000 10 000 1 000 100 10 1


Visa Requirements

Entry visas are not required for citizens of the countries of the European Union, the United States of America and the Southern African Customs Union member states, of most Commonwealth countries and some of the Southern Af-rican Development Community. Citizens of other nations must obtain a visa prior to arrival from Botswana Embas-sies and High Commissions.

Personal Taxation

Botswana’s tax rates remain among the lowest in southern Africa. Both the top income tax rate and the top corporate tax rate are 25 per cent. Income tax is levied on personal income and gains for each tax year. It is source-based, lev-ied on income generated or deemed to be generated in Botswana, and it is administered under the Income Tax Act.

Quality of Life

In 2010 Botswana is currently ranked 2nd after Mauritius within Sub-Saharan Africa, and 93rd globally, according to the Human Development Index. Botswana’s score is 0.655 while Mauritius is 0.748. The HDI is a comparative measure of life expectancy, literacy rate, education and standards of living for countries worldwide.

Over the five-year period between 2005 and 2009 the av-erage inflation rate was 9.34%. The Bank of Botswana’s objective is to maintain inflation within the 3-6 per cent range, although Botswana’s high dependence on imports of food and petroleum products contributes significantly to raising inflation beyond the national targets.

Crime Rate

Botswana has one of the lowest crime rates in the region. The government has enacted the necessary legislation to support the law enforcement agencies to fight local and trans-national organised crime.

Drinking water

Potable water across the country is treated to meet the WHO Guidelines for Drinking Water.


The bulk of Botswana’s energy capacity is thermal, mainly coal fired. More than half of Botswana’s power require-ments are imported from South Africa and Zambia. How-ever, the establishment of a major coal fired power

sta-tion, taking advantage of vast coal reserves, will position Botswana as a net exporter of electricity by 2013, with an estimated total supply and demand of 1 070 and 790 MW, rising to 1 730 and 880 MW by 2016.

Telecommunications and Information Communication Technology

A range of communications products and services include wired and wireless networks, basic voice telephony and voice messaging, Internet Protocol-based networks and solutions, high speed internet access, data networks, cus-tomer premises equipment, fibre optic connectivity solu-tions and online directory services. The liberalisation of the telecommunications market in 2006 increased efficiency and led to the establishment of the three national mobile operators, Mascom Wireless Botswana, Orange Botswana and BeMobile. The service neutral licenses enabled the na-tional operators to offer a broad range of telecommunica-tions services under one license.

Internet Subscribers by Country

Source: The United Nations Information and Communication Technologies Task Force

The connection of Botswana to the undersea fibre optic cables on the east and west coasts of Africa will position Botswana for a more efficient high speed broadband in-ternet, data transmission and internet penetration, consis-tent with the objectives of the national Information Com-munication Technology policy.


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Family Health

In addition to an extensive network of close to 300 clinics, 400 health posts and 850 mobile posts, primary health care services in Botswana are integrated within overall hospital services provided to the population in the out-patient sections of primary, district and referral hospitals. There are public and private health care services, including Gaborone’s newly commissioned state-of-the-art Boka-moso Private Hospital, which has been designated the national referral centre.

Botswana has a national policy on HIV/AIDS prevention and care that outlines government’s response to the epi-demic.

Pre-Primary to Secondary Schooling

Botswana offers opportunities for enrolment in pre-prima-ry, primary through secondary schooling, leading to the country’s internationally recognised public and private ter-tiary institutions.


The game reserves of Botswana are popular destinations for animal viewing and photographic safaris. The Central Kalahari Game Reserve (CKGR), the world’s second largest protected area, Chobe National Park, Khutse and Moremi Game Reserves and the Kgalagadi Trans-Frontier Park are popular for their different species of animals, reptiles and birds. They contain a diversity of wildlife including lions, African elephants, buffaloes, leopards and rhinoceros. The Okavango Delta, the Kalahari Desert and the grass-lands and savannas are home to the blue wildebeest, many antelopes and other mammals and birds. Botswana still has a few of the endangered animal and bird species which are almost extinct in other African countries, such as rhinos, which are found in the Mokolodi Game Reserve near Gaborone and the Khama Rhino Sanctuary near Se-rowe village.

The Chobe National Park has the world’s largest concen-tration of African elephants while the Okavango Delta, with its exceptional natural beauty, is the world’s largest inland river mouth. It is formed where the Okavango River empties into a swamp in the Kalahari Desert, where most of the water is lost to evaporation. The Makgadikgadi Pan, a large salt flat in the middle of the dry savanna of north-eastern Botswana, is one of the largest salt pans in the world.

Botswana is notably well endowed in wildlife resources and is experiencing a significant growth in tourist demand. The country ranked fifth in southern Africa in 2008, with 2.1 million tourist arrivals in comparison to South Africa which ranked second with 9.5 million tourist arrivals.

It is of interest that about 20% of Botswana has been set aside as National Parks and Game Reserves, all of which are surrounded by, where possible, areas designated as Wildlife Management Areas in which the interests of wild-life have preference. In fact more than 34% of the country is preserved for conservation of wildlife. None of these protected areas are fenced, allowing game complete free-dom of movement.


Corporate Registration

The Companies Act, which imposes strict obligations on corporate governance, requires that all entities must be classified as a private company, exempt private company, public company or a close company. The Companies Act provides for compulsory compliance for the accounting records of businesses to be maintained in Botswana, and for a qualified company secretary and auditor to be ap-pointed for non-exempt private and public companies, among others.

The process for company registration, from the initial res-ervation of a company name through to the issue of the registration certificate by the Registrar of Companies and Intellectual Property, has a turn-around time of ten work-ing days. The Botswana Export Development and Invest-ment Authority (BEDIA) plays a facilitative role in assisting potential investors to set up in Botswana through its One-Stop Service Centre.

Business Taxation

Botswana’s tax rates remain among the lowest in southern Africa. Both the top income tax rate and the top corporate tax rate are 25%. Company tax is levied at 15% and Ad-ditional company tax at 10%. Other taxes include value added tax (VAT) and inheritance tax. VAT is an indirect tax levied at 12% on the supply of goods and services consumed within Botswana. It is not a business expense because it is borne by the consumer.

Regulatory Environment

Botswana operates a best practice and international stan-dards-compliant legal and regulatory environment, has ac-ceded to international conventions, and strictly observes internationally accepted guidelines on combating money laundering and financial crimes.

The Bank of Botswana and the Non Bank Financial Insti-tutions Regulatory Authority (NBFIRA), individually and in collaboration, ensure maintenance of a robust supervisory framework for financial stability. The NBFIRA is the regu-lator of Botswana registered and domiciled non-banking financial entities including pension funds, asset manage-ment, consumer/micro lending, insurance and collective


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investment undertakings. The Bank of Botswana regulates the banks and banking operations.

The regulatory authorities in the education sector are the Tertiary Education Council (TEC) and the Botswana Train-ing Authority (BOTA) with the mandate to, respectively, register tertiary institutions and monitor the performance of the vocational training system. For registration of a new institution, from the time of submitting an application through to a final decision being taken, the turn-around time is approximately 3 months. The two organisations will be merged to operate under one legislation by 2012.

Work and Residence Permits

Work and residence permits are required for the employ-ment of non-citizens. To make it easier to acquire skilled human resources, the Immigration and Citizenship Act and the Employment of Non-Citizens Act, which govern the requirements for permanent residence and citizenship, are continually reviewed.



The Ease of Business Start-up and Operation

Botswana has investor-friendly business reforms. BEDIA is an autonomous organization established in 1998 to promote investment in Botswana, with a special empha-sis on export-oriented manufacturing industries. Through its One Stop Service Centre, BEDIA provides services for investor needs and aftercare. The Centre focuses on en-abling investors to secure all clearances and approvals as quickly as possible under one roof.

Investment Climate and Competitive Investment Incentives

Botswana is a free market economy with liberal foreign exchange controls and a liberal private foreign investment incentive scheme that welcomes joint venture operations. There are no restrictions on reinvestments or repatriation of earnings and capital. The government has never na-tionalised or expropriated any foreign business. Instead, it is pursuing a privatisation strategy that seeks to balance the strengths and limitations of markets and government so as to achieve sustained economic growth.

The country’s credibility and credit-worthiness rating by Standard and Poor’s and Moody’s is higher than any other sub-Saharan African country. It is considered the most transparent country on the African continent, according to Transparency International.

There is a well-developed legal system, based on Common Law, which facilitates business and commercial activities. There are no foreign exchange controls, and profit, divi-dends and capital can be readily repatriated.

Political Stability, Good Governance and Sound Macro-Economic Policies

Since independence, political stability and sound macro-economic policies have provided the foundation for the country’s successes. According to the 2006 Gallup poll, Botswana stands out among many other African nations with regard to the level of investor confidence toward the country’s social and political institutions.

Effective Business Infrastructure

The country has a reliable digital telecommunications in-frastructure that is spread throughout the country and facilitates efficient business operation. Business conduct is highly computer based and relies on the internet as a business tool, in both the public and private sectors. The Botswana Telecommunications Corporation and other companies offer a range of different technology and busi-ness services.

Botswana participates as a shareholder in the undersea fibre optic cables running on the east and west coast of Africa, which will link up to international telecommunica-tions networks. When this network infrastructure is op-erational, communication (internet and data transmission) will be efficient, fast, reliable and affordable.


The policy framework for the implementation of the edu-cation sector is based on the National Policy on Eduedu-cation, the Revised National Policy on Education, the new Tertiary Education Policy, the National Vocational Training Policy, the National Credit and Qualification Framework, the Mai-tlamo ICT Policy, Vision 2016, and the Science and Tech-nology Policy, together with other government policies. The key objectives of the education sector include the fol-lowing:

• ten years of universal basic education

• increasing access to senior secondary education • expanding vocational and technical training • promoting lifelong learning

• increasing access and equity at tertiary level • improving access to education services by children


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25 000 20 000 15 000 10 000 5 000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 External Botswana Student Placement 2000-2010 Destination 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 TOTAL Botswana 5 984 6 228 6 435 6 583 5 803 5 200 5 455 14 500 17 300 8 141 8 024 89 653 External 727 5 274 3 049 1 797 1 631 1 672 1 946 2 317 1 751 501 315 20 980 Total 6 711 11 502 9 484 8 380 7 434 6 872 7 401 16 817 19 051 8 642 8 339 110 633 The education sector receives the largest share of total

government expenditure. Recurrent expenditure on edu-cation averaged 28% of the total in the three years to 2009/10. Investment in education continues to be a prior-ity even in the current planning period, NDP 10, in order to achieve the aspirations of Botswana’s Vision 2016. Over the past 10 years, 2000 - 2010, almost 110 500 students were sponsored by government, nearly 20% of whom were placed in foreign institutions. The highest peak was observed during 2007 and 2008 with between

15 000 and 20 000 students placed in both local and for-eign institutions. Since 2000 there has been a gradual de-cline in the number of placements in foreign institutions, resulting in 5% and 4% respectively for 2009 and 2010. During the same period there was a significant increase in government sponsorship of students to local private institutions. Although the global economic recession has impacted on the government’s ability to maintain sponsor-ship volumes, the government remains committed to fully supporting the education of its citizens.


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D 60 000 50 000 40 000 30 000 20 000 10 000 0 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9

Education Landscape in Botswana

The Government emphasises the development of human resources by investing in education and training to raise productivity. Botswana has both private and public institu-tions of international standard that meet the increasing demands of the rapidly growing economy.

The primary school enrolment in Botswana is consistent with targets set for the Millennium Development Goal of achieving universal primary education by 2015. In 2004 the net enrolment rate for the primary school age group, those between 7 and 13 years, was 98.5%.

The transition rate from primary to junior secondary school is 96.9% and there has been an increase in the junior to senior secondary school transition rate as a result of gov-ernment’s systematic investment in education and expan-sion of senior secondary schools.

As a result of the government’s efforts and overall strat-egy to ensure an informed and educated nation, student enrolment increased considerably from 20 000 to nearly 50 000 between 2003/04 and 2008/09.

Botswana Education Hub

Botswana provides a unique investment opportunity based on its background and distinctive historical, cultur-al, geographiccultur-al, political and economic characteristics. It has a unique investor value proposition to fully leverage and transform itself into an education investment destina-tion of choice, and a centre of excellence in educadestina-tion, by attracting leading tertiary institutions, scholars, research-ers and students into the country. The Government of Bo-tswana is fully committed to the establishment of centres of excellence in selected educational opportunities.


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Global growth is anticipated to have been in the 0.0-0.5% range during 2009/2010 compared with 2.7% in 2008. The immediate prospect for growth in Africa is uncertain, and the commitment of Africa’s global partners yet to be tested. Africa’s geophysical environment can accom-modate the growing population, while the aggregate of Africa’s Gross Domestic Product (GDP) reveals that Africa’s is the fifth largest economy globally, exceeded only by China, Germany, India, Japan, and the U.S. Thus Africa offers the opportunity to tap into a market of universal importance, and cannot be ignored in global terms.


The business and management-related education indus-try in Africa is developing steadily, and South Africa alone boasts a hundred top business schools. There are also a number of private business schools, most in South Africa but also in Botswana, which serves as an indication of the market potential.

Botswana Business Schools

University of Botswana Business School (UB)

The University of Botswana has recently established a busi-ness school with full-time (12 months) and part-time (11 weeks’ contact over twenty-four months) MBA options. They are also in the process of establishing an online chan-nel and video conferencing facilities. The business school

has exchange agreements with Wharton Business School and Ohio University Business School, and their focus is on local talent development with an MBA tuition fee of around P57 600 for Botswana students and P86 400 for others.

Botswana Accountancy College (BAC)

The BAC has established a specialized MBA programme targeting CIMA and ACCA qualified managers, entrepre-neurs and professionals. The programme is administered in partnership with the University of Derby, with face-to-face tuition as well as online learning materials to support all course content. It is of twelve months’ duration with an annual start date of May/June.

Botswana College of Distance and Open Learning (BOCODOL)

Bocodol provides telecommunication-based access to MBA programmes at leading business schools in India via the Pan-African E-Network Project, which provides distance and correspondence-based programmes at graduate and postgraduate level to various African countries.

Business Schools in South Africa

South Africa has a number of business schools accommo-dating students from all over Africa, including public and private universities and higher education institutions:

Public universities

The top ranked business schools in South Africa are pre-sented in the table below. All these universities have a number of non-South African students registered and have to date set the benchmark for African business schools.


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Private business schools

The number of successful private business schools in South Africa is testimony to the vibrant market for higher educa-tion and specifically for business-related programmes:

• Henley Management College: A fully South Af-rican-owned local subsidiary of the British-based Henley Management College;

• Boston City Campus and Business School: A fully South African-owned private business school pro-viding for graduate studies in business and related fields. It does not offer a MBA programme. It cur-rently has 20 000 students in various cities in South Africa;

• IMM: A fully South African-owned private business school specialising in marketing learning and de-velopment;

• Monash: An Australian university focusing on un-dergraduate studies in, amongst others, business degrees;

• Regent Business School: A supported distance learning programme completed over 30 months in association with the University of Luton;

• Milpark Business School: Offers a one-year full-time or part-full-time MBA with the financial industry as its main target market;

• Management College of South Africa (MANCO-SA): Offers a distance learning MBA in tourism de-velopment and management.

Current international partnerships in Africa

As far as international partnerships are concerned, a num-ber of eminent business schools in the US and Europe have long-standing relationships with local institutions and organisations. These include:

Columbia University, which is working with GIBS on the African Leadership Programme of the business foundation;

University Status Offerings Financial Times

Ranking (2009) and 2010

University of Currently rated among Full-time and part-time Global: 89

Cape Town the top 100 global MBA MBA programme. Exec MBA: 49

Business School programmes and Executive MBA and open

executive MBAs executive education

Wits Business Ranked among the top Full-time and part-time Exec MBA: (62)

School 100 for executive MBA programme. Open exec educ.: 53

education Executive MBA and open

executive education

University of Ranked among the top 100 Full-time and part-time Exec MBA: 63 Stellenbosch for executive education MBA programme. Executive Open exec educ.: 55

MBA and open executive education. It also has an MDP offering which is delivered throughout southern Africa

University of Pretoria: Ranked among the top 50 Two-year full-time Open exec educ.: 45 Gordon Institute for for executive education MBA programme

Business Studies (GIBS)

Other public university business schools include Rhodes University Business School, Free State University Business School, North West University Business School and University of South Africa Business School.


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• Haas School of Business, University of Califor-nia, Berkeley, which helped to establish both un-dergraduate business and MBA programmes for the Ashesi University in Accra, Ghana;

• European Business School (EBS), which is part-nering with the University of Stellenbosch Business School on an exchange programme for students; • University of South Africa Graduate School

of Business Leadership, which has established a programme in Ethiopia under the UNISA SBL brand name offering MBA, MBL and DBL programmes.

Corporate and academic partnerships include

• MTN (Cellular company) and Duke Business School, collaborating in an African MDP;

• Nedbank, collaborating with Insead Business School in a local MDP.

Apart from international business schools partnering with African ones, in 2005 four of the largest U.S. foundations (Ford, Rockefeller, MacArthur, and Carnegie) started the Partnership for Higher Education in Africa in response to the Report of the Commission for Africa, which the then British Prime Minister Tony Blair submitted to the Group of Eight in July 2004. In addition, the World Bank’s Interna-tional Finance Corporation has piloted the Global Business School Network to help develop African management schools.

The concept of partnering or establishing a footprint in Africa is thus not foreign to a number of world class insti-tutions, which is an indication of the inherent potential for such a venture, considering that Africa will have a billion potential customers in the near future.

Other African Universities

There are a number of business schools in other African countries, notably Namibia, Ghana, Nigeria, Tanzania, Kenya, Uganda, Tunisia, Rwanda, Angola and Zimbabwe, but none of these universities would serve as a credible business partner to position Botswana as a preferred man-agement education destination for the region.

International multi-country business schools

A number of universities and business schools have suc-cessfully established branches in foreign countries.

These include:

• Insead, with a campus in Singapore which is a suc-cessful expansion of an established higher educa-tion brand;

• Carnegie Mellon University, with a branch of the Tepper School of Business in Qatar, set up in 2005, that offers degrees from the Tepper School of Business and the School of Computer Science at the Qatar Education City;

• Northwestern University (Kellogg), with a branch in Hong Kong for its Executive MBA pro-gramme;

• Hult International Business School, with cam-puses in the UAE, UK, USA and China, and cur-rently listed among the top 100 business schools; • Bradford School of Management, with a

foot-print in the UK, Germany and the Netherlands; • Helsinki School of Economics, with branches in

South Korea and Singapore;

• University of Chicago (Booth), with established branches in the UK and Singapore;

• University of Pittsburgh (Katz), with campuses in Brazil and the Czech Republic;

• University of Rochester (Simon), which has ex-panded into Switzerland;

• Henley Business School (currently ranked 18 for EMBA in Europe), operating the Henley Manage-ment College in South Africa as a full subsidiary of the university in the United Kingdom.


Although there are a number of existing business schools and MBA programmes available through a variety of channels, none of these rank among the top 50 global MBA programmes. There is an opportunity for a top 50 MBA programme to establish a footprint in Botswana as a springboard to the SADC region and beyond.


The SADC Protocol on Education and Training provides for cooperation on higher education and training (art. 7), and below are some provisions that are relevant for the profile:


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• Member states agree to recommend to universities and other tertiary institutions in their countries to reserve at least five per cent of admission for stu-dents from SADC nations other than their own; • Member states agree that within ten years of the

date of entry into force of this protocol, they will treat students from SADC countries as home stu-dents for the purposes of fees and accommoda-tion.



One of the objectives of the Botswana Education Hub is to position Botswana within the next five to ten years as a preferred destination for business and management edu-cation, which is generally associated with MBA or related degrees and qualifications.

The concept is to establish a highly credible business school that will appeal to a wide variety of African stu-dents in Botswana, in partnership with an internationally credible player or players in the business manager/leader development industry.

The concept is non-specific, leaving the options open to the interested investor. These include:

1) Establishing a venture with the investor’s own or an alternative brand name

2) Establishing a business school as a Botswana brand, in association with the investor

3) Investing in developing a Botswana business school with an exit option after a period of time.

The objectives of this opportunity are as follows:

1) To establish the credibility of Botswana in the busi-ness and management education industry in the shortest time possible;

2) To identify and finalise a partnership as soon as possible with an African and internationally-recognised institution that will be accepted within the target market;

3) To establish a business model that will be afford-able to the target market within the prevailing socio-economic and infrastructure constraints in Africa, and be commercially viable to the investor; 4) To investigate the option of establishing a specia-lised business school, such as entrepreneurship or public administration, which will complement the strengths of Botswana as the host country; 5) To utilise and optimise current Botswana

infra-structure and education capacity without signifi-cant additional capital investment.


Our research in regional trends indicates a number of configuration options for a business school, with various channels to choose from in delivering the learning, includ-ing full-time contact study and part-time distance learninclud-ing. It does, however, seem as if the part-time and distance learning models are the more popular options. Based on this trend we recommend a management development programme consisting of the following elements:

1) Distance and technology-supported learning: This is a term used to describe education that is received at an off-site location. In the past, students who participated in a distance learning programme re-ceived their education through correspondence courses, but new technology has brought about many other options including audio-based mate-rial, DVD-based matemate-rial, interactive internet, in-teractive television, electronic and visual material and even consideration of online examination and webinars, etc.

2) Part-time study: Full-time MBA study is for most students prohibitively expensive and sometimes even impracticable, due to work and career com-mitments. Botswana wants to attract experienced managers who are serious about improving their skills and managerial competency portfolio. For this reason we believe that a part-time study mod-el will be preferable to a full-time MBA.

3) African management solutions: Although quite a number of African students study at international universities both in the West and East, the benefits are not always evident and the models and theo-ries may even be counter-productive. For this


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son we are of the opinion that the potential part-ners should be willing and able to create a learning opportunity for experienced African managers and prospective managers that will address and solve Africa’s managerial challenges and problems. This may be achieved in a number of ways including contextual case studies, credible African members of faculty, faculty and student exchange, contextu-ally adjusted curriculum etc. None of these are in-tended to infringe on the Academic independence of the interested partner.

4) Modular curriculum to accommodate certificate and postgraduate studies: Our research suggests a modular education curriculum that will allow for extended study and accommodate the various business realities of full-time employees and busi-ness owners. One model to consider is specific rec-ognition after completion of a selected number of modules. We found this structure in a number of currently successful programmes in South Africa.


Although the University of Botswana has a business school and required infrastructure, the need is to establish an in-dependent business school that may or may not collabo-rate with the University of Botswana Business School. The investor may consider a partnership with the Univer-sity of Botswana library in the short to medium term, to provide adequate reference resources.

The Botswana Innovation Hub could potentially facilitate a mutually beneficial partnership between the investor and the Botswana business community and government. With regards to facilities, an institution such as the Cresta organization may be considered as a partner for accom-modation and student lodging.


Commercial incentives

The Botswana Innovation Hub provides for special com-mercial incentives to an interested business school.

Faculty exposure and social responsibility credentials

A specific benefit of establishing a footprint or business venture in Botswana is for the faculty to gain substan-tial exposure to the southern African region without the significant first world element of a country like South Af-rica. Furthermore, it will enhance the social responsibility credentials of the investor to invest, and therefore partici-pate, in the further development of the education industry in the SADC region.

Commitment to education

Botswana is extremely committed to education, having one existing public university with approximately 14 000 students and significant ongoing capital investment. A second public university is under construction to address technology development. Some private universities have been established in Botswana, taking advantage of the prevailing investment climate. Education is highly subsidised and the university is no exception.

Economic pressure as a strong business case

Industrialisation of the Botswana economy is a major chal-lenge, especially with South Africa as a giant neighbour. Yet the imperative is relentless with more than 20 000 students arriving on the labour market each year, and jobs must be found for them, which means diversifying the economy. There is a recognised shortage of skilled labour and high quality managers and business leaders, which poses a further challenge to the industrialisation of Bo-tswana.


The local and regional market for management educa-tion has been growing steadily over the last ten years. This trend is supported by the establishment of business schools in various SADC countries and the strengthening of existing ones in South Africa.

The target market for MBA studies would include: • Regional self-sponsored private students • Regional government-sponsored postgraduate


• Regional organisation-sponsored management students.

The training needs and market have been roughly esti-mated for Botswana and SADC on the following assump-tions:

• Botswana:

- A number of students study at universities outside the country, although there are already two exist-ing MBA programmes in Botswana;

- The number of MBA students in Botswana seems to exceed 200 registered postgraduates per an-num;

- Botswana has 23 Ministries, 16 local authorities and 16 parastatals. Assuming a requirement of two qualified business managers per entity every year, a conservative estimate indicates that more than a hundred qualified business managers are needed for public services per annum;


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stock exchange, Botswana requires at least an-other hundred qualified business managers for the private sector per annum.

• South Africa:

- The market in South Africa is around 1 400, and students pay between $16 000 and $41 000 for tuition. There is only one business school ranked among the top 100 global MBA programmes, but a number of business schools achieve top 100 rankings in the executive education discipline. A top 50 business school in Botswana would have a realistic probability of attracting prospective stu-dents away from the SA business schools without impinging on domestic demand.

- A large number of managers in South Africa are participating in management development pro-grammes presented by top 50 business schools. - The market for short courses presented in South

Africa is significant for a highly credible institution. There does not seem to be a dominant player in this market, but all business schools offer learning in this sub-sector.

- Various electronic publications indicate quite a

number of non-South African students registering for MBAs at South African business schools, most notably those at UCT and UNISA.

• SADC region:

- Although there are quite a number of business schools in the SADC region, including in Namibia, Zimbabwe, Botswana and Angola, international recognition for these institutions may still be a few years ahead, which leaves a real opportunity for a credible investor.

- Other countries in Africa with business schools in-clude Tanzania, Kenya, Ghana, Rwanda, Nigeria, Egypt and Ethiopia.

According to the latest UNESCO report, the total number of mobile students in Africa is in excess of 100 000, the majority of whom select either the UK or South Africa to further their studies. As indicated in the chart below the two most popular destinations for tertiary students are South Africa with 45 000 and the United Kingdom with 25 000. The chart clearly indicate a significant number of African students interested in academic qualifications from the countries where the majority of top 50 business schools reside. South Africa 44 828 Ghana 1 431 Malaysia USA 21 711 UK 25 087


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Based on the mobility of students in the region, it is clear that there is a significant market for education in gen-eral. The exact proportion of those students engaged in postgraduate business and management studies cannot be confirmed, but a rough estimate of 1% would indicate a potential target market of 1 100 students either able to pay privately or with access to scholarships.


To compare price sensitivity in the African context, the study reviewed the general cost of the four types of MBA offering in South Africa. The table below clearly indicates the price range of the various business schools there:

South Africa

Full-time tuition fee $20 000 - $41 000 Executive MBA tuition fee $27 000 - $33 000 Part-time tuition fee $16 000 - $41 000

Distance learning tuition fee $14 000

Compared with the tuition fee for an online MBA at Duke University, which can be as high as $120 000, the price gap seems significant, and the potential investor needs to take this into consideration. There has, however, been an exception in recent times, with Bond University (Australia) offering a MBA in South Africa (during the late 1990s and early 2000) at comparative international pricing and a sig-nificant premium on other South African business schools. It was oversubscribed and commercially very successful during that time.



In South Africa all the leading business schools including UCT business school (the only African business school ranked in the top 100 global MBA programmes), GIBS, USBS and WITS insist on GMAT and TOEFL testing to

de-termine academic and language proficiency. The selection criteria are very stringent, providing for high quality co-horts. UCT Business School is a regional service provider and accommodates a significant percentage of foreign students, all of whom have to achieve the required selec-tion criteria levels for admission.


All monetary values in this section are presented in Botswana Pula (BWP) with a convertible rate of 1BWP = 0.15USD (as of November 2010).


The type of business model will to a large extent deter-mine the risk and associated investment requirements for the investor.

The study identified a number of different types of busi-ness models including:

1) Full time or part time service offering with own in-frastructure, full time staff etc.

2) Full time or part time service offering with rented infrastructure and contracted staff

3) Full time or part time service offering with Infra-structure sharing arrangements including exchang-ing of staff

4) Joint venture with the existing University of Bo-tswana business school

5) Online business model with small administrative footprint

As with most investment opportunities, it is expected to take a few years before the opportunity will yield positive financial returns. Recurrent expenditures could be recov-ered from the start. The potential to generate overall posi-tive financial returns also exists. Financial returns will be enhanced by two factors:

Option 1: This assumes the use of existing facilities

Capital Investment (CI) -

Initial Investment P5 400 000

Operational Cost (OC) per year P54 264 000

Revenue per year P82 425 000

NPV over a 10 year period P152 397 413

IRR over a 10 year period 521%

NPV over a 15 year period P189 813 459

Option 2: This assumes the use of new facilities

Capital Investment (CI) -

Initial Investment P55 440 000

Operational Cost (OC) per year P48 000 000

Revenue per year P82 425 000

NPV over a 10 year period P141 897 021

IRR over a 10 year period 62%


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• Marketing to ensure that enrolment targets are met and that enrolment increases in time;

• Cost control by for example using and sharing facili-ties available at existing educational institutions.

Infrastructure cost

Capital requirements are estimated to be limited if the in-vestor is to rent facilities for the Botswana Innovation Hub at around P90/m2. This excludes the provision for student accommodation. Our estimates suggest around 2,200m2

facility would suffice in the short term.

Connectivity cost

The connectivity cost for an online option will vary and although connectivity cost in Botswana is currently fairly high the connectivity expense for the investor could be significantly reduced with by establishing the business school at the Botswana Innovation Hub. A conservative estimate of connectivity cost is up to $6 000 (P42 000) depending on the service provider and band-width. For

Material production cost

The material production cost is comparative with the re-gion. The printing facilities are readily available in Gabo-rone. The other cost element to consider will be material distribution, collection and storage depending on the type of MBA program.

Operational cost

Salaries and other recurrent expenditures will depend on the faculty arrangement. We anticipate the investor will initially operate with a small full-time operational team with contracted faculty depending on the module. The estimated operational expenditure is estimated to be P48 million. This includes a full time director and administra-tive officer. Cost items to consider are:

• Travel and accommodation • Salaries or contract fees • Office administration

• Registration and record keeping


New Facility

Description Qty Floor Area Total Area Cost/Floor Area Amount

Land 1 10 000 10 000 150 1 500 000 Administration Block 1 600 600 8 000 4 800 000 Teaching Classroom 8 200 1 600 5 000 8 000 000 Auditorium 4 200 800 5 000 4 000 000 Computer Room 2 200 400 5 000 2 000 000 Library 1 400 400 8 000 3 200 000 Conference Facility 1 1 000 1 000 7 500 7 500 000

Cafeteria & Dining 1 1 000 1 000 5 000 5 000 000

Sub Total 5 800 36 000 000

Add 10% Contigency 3 600 000

Sub Total 39 600 000

Add 25% for Furniture & Equipment 9 900 000

Sub Total 49 500 000

Add 12% VAT 5 940 000

Total Estimated Costs 55 440 000

Existing Facility

Initial Capital Costs for re-furbishment and/or partitions at 15% of Infrastructal cost 5 400 000 Operating Cost

Rental per year for Existing Facility at P90/m2 6 264 000

Other Costs (Utilities, salaries, internet connection etc) 48 000 000


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Accreditation Cost

There will be a cost associate with the required curricu-lum and material accreditation with BOTA. This may delay the start date, as the process may take longer than antici-pated.

Marketing cost

The initial marketing cost may be significant, but would reduce in the medium to longer term as general aware-ness increases amongst the target market due to word of mouth and the utilisation of other forums such as business forums, corporate platforms etc.

Student accommodation cost

Student accommodation can be arranged through part-nership with a local hospitality organization such as the Cresta group of hotels.


Annual revenues would range from just under P100m to P200m depending on price and student quality. The revenue assumptions are based on a P205 000 fee for the MBA, P150 000 for the EMBA, average of P37 500 per customised programme participant and average P10 000 per participant in short courses. Revenues largely de-pend on the in-take of Master students and short course participants. The in-take is based on an estimated annu-al intake of 300 (P61 500 000) MBA students (two in-takes), 92 (P13 800 000) EMBA students, 150 participants (P5 625 000) in customized programmes and 150 partici-pants (P1 500 000) for short courses. Minimum Potential Revenue is P82 425 000.


Legitimate African footprint

Apart from the commercial benefit it will definitely be advantageous for the investor to establish an African footprint. With its rich resources and growing population Africa will become a significant economic partner in the future and this will also be the case for education.



As discussed in the context of the drivers for this study, the marketing strategy should focus on the following ele-ments:

• Centre of undeniable excellence in its field; • Excellent international credentials at an academic


• International recognition of the qualification; • Lecturers with years of practical experience in the

field, in addition to appropriate qualifications; • Three levels of qualification - certificate, diploma,

degree – through one- to four-year courses; • High professional and academic standards, with

no concessions to inadequate performance; • A world class business school in Africa, with

lectur-ers from Africa or with African experience; • An international network formed as a result of

studying at the business school, with specific selec-tion criteria to prevent students from one country dominating the class.


The initial channels will mainly be radio and printed media throughout the region. This will include frequent advertis-ing in the business press in South Africa, Botswana, Na-mibia, Mozambique, Zimbabwe, Zambia, Uganda, Tanza-nia, Kenya, Lesotho, Swaziland, Malawi and Nigeria. The study anticipates that most applicants will probably come from South Africa, Botswana, Namibia and Zimbabwe, and the investor might in the short term consider placing radio advertisements in these countries.

In the medium term, other channels such as corporate platforms, electronic mailing lists and selected publica-tions might be considered.

As an academic institution there are various opportunities such as conferences, seminars, short courses and customised corporate programmes through which to market the business school.


The pricing strategy should be a function of the price sen-sitivity and the number of students required to be com-mercially sustainable. Part of the pricing message might also be information on financial aid institutions.

Although the price elasticity may not be at the same level as elsewhere in the world, the study clearly shows a sig-nificant investment in education from individuals, corpo-rations and governments.





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