How to Start a Horticulture Business in Botswana

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Thinking about starting a horticulture business in Botswana? With increasing demand for fruits, vegetables, and floriculture, this sector presents a promising opportunity for you to generate income, create jobs, and contribute to national food security. The country’s favorable climate further enhances your potential for successful horticultural ventures.

Growing a variety of crops is essential for nutrition-sensitive agriculture, as it helps ensure sustainable diets that are nutritious, affordable, and culturally appropriate for Botswana’s population. Training in basic agronomic principles is essential to ensure your success in diversified horticultural operations.

As Botswana reduces its dependence on imports, many horticultural inputs and products are still imported, particularly from South Africa, impacting the local value chain and production efficiency. In fact, more than 90% of inputs, such as seeds, seedlings, pesticides, fertilizers, machinery, and equipment, are imported from South Africa, despite the availability of locally sourced seeds and seedlings from the Ministry of Agriculture’s Nursery or independent nurseries.

While newly established organic fertilizer and seedling manufacturers are emerging locally, the importation of fertilizers and pesticides remains regulated by the Agro-chemicals Act, which mandates annual renewal of import permits. Local horticultural production is encouraged through government programs focused on agricultural development, including business planning, seed certification, and farm management support.

For further guidance on establishing and managing your farming enterprise in Botswana, Brimco’s Farming Business Guide offers practical advice to help you navigate each stage of the process successfully.

This guide will walk you through every step of launching a successful horticultural venture, from selecting crops and registering your business to securing land and accessing funding.

Why Invest in Horticulture in Botswana

1. Rising Local Demand: Urbanization and lifestyle changes are driving a surge in the consumption of fresh produce nationwide. Restaurants, retailers, and households are increasingly sourcing vegetables, fruits, and herbs from local farmers like you, driven by a growing demand for a diverse range of fresh produce to meet various nutritional and culinary needs.
2. Import Substitution Opportunity: Botswana still imports a significant portion of its horticultural products, particularly vegetables such as tomatoes, peppers, and onions. This presents a gap in the market that you can fill as a local producer.
3. Government Support: The Ministry of Agriculture is actively promoting horticulture as a key strategy for food security and economic diversification. Initiatives like ISPAAD and the Horticulture Impact Accelerator Subsidy Scheme provide access to inputs, extension services, and marketing support, emphasizing the importance of producing safe food for consumers.
4. Export Potential: With proper certifications, you can grow high-value crops such as herbs, flowers, and specialty vegetables for export to regional markets, including South Africa and the broader SADC region, where meeting safe food standards is essential.

Choosing the Right Horticulture Enterprise

Horticulture covers a broad spectrum of crops and business models. Common options in Botswana include:

• Vegetable Farming: Tomatoes, onions, green peppers, spinach, carrots, and cabbage are high in demand.
• Fruit Production: Mangoes, citrus fruits, bananas, and watermelons grow well in suitable zones.
• Floriculture: Flower farming for bouquets, landscaping, and export markets is emerging as a niche.
• Herbs & Specialty Plants: Basil, mint, coriander, and aloe vera have culinary and medicinal value.

Using pesticides is important for effective crop protection, helping you improve yield and quality by reducing losses from pests and diseases.

Choose crops based on your location’s climate, access to water, market demand, and available skills.

Legal Requirements and Business Registration

1. Register Your Business: Use the Companies and Intellectual Property Authority (CIPA) to register your business name and structure. The required documents include your proof of identity, business name reservation, and completed application forms.
2. For expert assistance with business setup and planning, consider using Brimco’s professional services to simplify your process.
3. Tax Registration: Sign up for a Tax Identification Number (TIN) with the Botswana Unified Revenue Service (BURS). Required documents are your business registration certificate and proof of address.
4. Trade License: Apply for a trade license through your local council, specifying “horticultural production”. The required documents typically include your business registration certificate, TIN, and proof of premises.
5. Environmental Compliance: If you operate on a commercial scale, you may need environmental clearances for land use and water extraction. Required documents may include an environmental impact assessment and land ownership or lease documents. You will also need to demonstrate your legal rights to the land planned for use, which can be done through a Land Board Certificate, lease, or title deed.

Most government offices and service centers for business registration are open from Monday to Friday, so plan your visits accordingly.

Both citizens and non-citizens are eligible to register horticulture businesses.

Securing Land for Horticulture

Botswana offers three types of land: tribal, state, and freehold.

• Tribal Land: Accessible through Land Boards; most common for citizens.
• State Land: Leased through the Ministry of Lands and Water Affairs.
• Freehold Land: Privately owned and ideal for long-term investment but expensive.

Ensure your land access includes adequate water sources for irrigation. Drip irrigation systems are recommended to manage Botswana’s semi-arid conditions efficiently.

7 Steps to Start a Horticulture Business in Botswana

Starting a horticulture business in Botswana involves a series of well-planned steps to ensure success and sustainability. Below is a concise overview of the essential steps to follow for launching your horticulture business effectively.

1. Decide on the Crop & Enterprise Type: Start small with a focus crop like tomatoes or spinach.
2. Research Local Markets: Visit grocers, hotels, and fresh produce markets to understand demand cycles. Gather all the necessary information about market demand, regulations, and business requirements to make informed decisions.
3. Secure Suitable Land: Ensure access to fertile soil and a sustainable water supply.
4. Register and License Your Business: Use CIPA and your local council for legal setup. Make sure you have all the necessary information about required documents, processing times, and costs before proceeding.
5. Build Basic Infrastructure: Install fencing, boreholes, irrigation systems, and nursery tunnels if needed.
6. Access Inputs and Labour: Source certified seeds, organic compost, and skilled workers.
7. Implement and Grow: Start production, track performance, and adjust planting cycles based on yield and demand.

Preparing a Business Plan: When preparing your business plan, include all the necessary information such as thorough research, comprehensive data, and detailed market analysis to ensure credibility and success. A solid business plan is crucial for securing funding and must include financial projections and a cropping program.

Access to Funding and Support Programs

As a horticulture farmer in Botswana, you can access a variety of funding and support programs designed to promote agricultural development and business growth:

• CEDA (Citizen Entrepreneurial Development Agency): Provides loans for infrastructure development and working capital. Both individual farmers and groups can apply, with groups required to meet minimum size and contribution criteria set by the agency.
• YDF (Youth Development Fund): Offers grants and loans specifically targeted at youth-led agribusiness ventures, encouraging young entrepreneurs like you to enter the horticulture sector.
• ISPAAD (Integrated Support Programme for Arable Agriculture Development): A government subsidy program that supports farmers by providing inputs such as seeds and fertilizers, as well as advisory services. ISPAAD assistance is available once per year for up to three years, with a maximum funding ceiling per project.
• Both individual and cluster farmers can apply, provided they meet eligibility requirements including minimum farm size and contribution percentages. The program also supports the purchase of irrigation systems and related equipment to improve your production efficiency.
• NDB (National Development Bank): Offers agricultural loans and credit guarantee schemes to support your capital investment and expansion in horticultural businesses.

To increase the likelihood of funding approval, prepare a comprehensive business plan that clearly outlines cost breakdowns, projected income, and detailed funding needs. Including certified copies of required documents and submitting all necessary paperwork promptly will help ensure a smooth application process.

Infrastructure and Equipment Needs

• Irrigation system (drip or sprinkler)
• Seedling nursery or tunnels
• Borehole or water storage tank
• Fencing and shade netting
• Basic harvesting and storage tools

You can source these from local agricultural suppliers or apply for tenders under government procurement schemes.

Building a Profitable Business Plan

Include the following elements in your business plan:

• Production schedule and expected yields
• Market research and target clients
• Pricing strategy and sales channels
• Cost estimates (inputs, labour, transport)
• Contingency planning for droughts or pest outbreaks

Quality writing and thorough research are essential in developing a compelling business plan that can help you secure funding and manage operations effectively. Use the plan to raise funds and guide your first 1–3 years of operations.

Marketing and Distribution

• Direct Sales: Sell directly to consumers via farm stalls, roadside vendors, or local markets.
• B2B Supply: Partner with hotels, supermarkets, restaurants, or processors.
• Wholesalers and Cooperatives: Use intermediaries to handle logistics and bulk orders.
• Export: Work with Botswana Horticulture Council and BITC to certify and export your produce.

Branding, packaging, and consistency of supply are key to winning long-term contracts.

Compliance, Taxes, and Sustainability

• Register with BURS and track your income for tax obligations.
• Keep records of pesticide use and follow integrated pest management (IPM).
• Use water-saving technologies and consider organic practices.
• Join agricultural cooperatives or industry associations for shared resources and lobbying.
• When using digital platforms for marketing or compliance, consider the features of tools like Facebook, such as advanced data collection, user control options, and enhanced security, to improve both your user experience and advertising effectiveness.

Common Challenges in Horticulture (and How to Overcome Them)

• Water Scarcity: Botswana’s semi-arid climate often limits water availability, posing a significant challenge for horticulture.
• To overcome this, invest in sustainable water management solutions, such as boreholes, drip irrigation systems, and rainwater harvesting systems. These methods help conserve water while ensuring your crops receive adequate moisture throughout the growing season.
• Pests and Diseases: Crop losses due to pests and diseases can severely impact your yields and profitability. Implementing Integrated Pest Management (IPM) practices, including regular crop scouting, biological controls, and judicious use of pesticides, can effectively reduce infestations.
• Training yourself and your staff on IPM techniques is crucial for maintaining healthy crops.
• Labour Shortages: Finding skilled and reliable labour can be difficult, especially during peak seasons.
• Partnering with local youth programs and investing in training and upskilling your workforce can help address labour gaps. Creating a positive work environment and offering fair wages also encourages retention.
• Market Access: Establishing reliable market channels is essential to avoid post-harvest losses and maximize profits. Participate in trade shows, farmers’ markets, and government programs like the Botswana Agricultural Marketing Board (BAMB) to build connections with buyers.
• Developing relationships with hotels, supermarkets, and exporters can also open up stable sales opportunities.
• Seasonal Variations: The availability of certain crops and their market demand fluctuate with seasons, which can disrupt your production and income. Planning crop cycles carefully, diversifying your crop portfolio, and using greenhouse or tunnel technologies can help mitigate the effects of seasonality and ensure a more consistent supply to the market.

Start Your Horticulture Business

Starting a horticulture business in Botswana offers you a promising opportunity to capitalize on growing local demand, strong government support, and exciting export prospects.

With careful planning, adherence to legal requirements, and a commitment to producing high-quality crops, you can establish a successful enterprise that contributes to national food security, creates employment, and generates sustainable income. However, the horticulture business in Botswana faces challenges such as market volatility, which can impact your profitability and planning.

Whether you are just beginning or looking to expand, expert guidance from professionals like Brimco can help you navigate the process of business setup, registration, and growth with confidence and ease.

Frequently Asked Questions (FAQ)

What licenses do I need to start a horticulture business in Botswana?

You need to register your business with the Companies and Intellectual Property Authority (CIPA), obtain a Tax Identification Number (TIN) from the Botswana Unified Revenue Service (BURS), and apply for a trade license from your local council specifying horticultural production. Depending on your scale, environmental clearances may also be required.

Can both citizens and non-citizens start a horticulture business in Botswana?

Yes, both citizens and non-citizens are eligible to register and operate horticulture businesses in Botswana.

How do I secure land for my horticulture project?

Land can be accessed as tribal land through Land Boards, state land leased via the Ministry of Lands and Water Affairs, or freehold land which is privately owned. Ensure the land has reliable water sources for irrigation.

What government support is available for horticulture farmers?

Programs like ISPAAD provide subsidies on inputs such as seeds, fertilizers, and irrigation equipment. The Citizen Entrepreneurial Development Agency (CEDA) and Youth Development Fund (YDF) offer financing options. Additionally, the Horticulture Impact Accelerator Subsidy Scheme supports production and marketing.

What are the main challenges in horticulture farming in Botswana?

Challenges include water scarcity, pest and disease management, labour shortages, market access difficulties, and seasonal fluctuations affecting crop availability and prices.

How important is a business plan for a horticulture business?

A well-prepared business plan is crucial for securing funding, guiding operations, and forecasting financial performance. It should include market research, production schedules, cost estimates, and contingency plans.

Are there any import restrictions related to horticulture?

Yes, import permits and phytosanitary certificates are required for importing plants and plant products, regulated under the Plant Protection Act. These documents ensure compliance with Botswana’s agricultural standards.

How can I improve water management on my farm?

Investing in drip irrigation, boreholes, and water storage systems helps conserve water and ensure efficient irrigation, especially important given Botswana’s semi-arid climate.

Where can I find certified seeds and seedlings?

Certified seeds and seedlings are available from the Ministry of Agriculture’s Nursery and independent nurseries across Botswana.

How do I access funding for my horticulture business?

You can apply for loans and grants through CEDA, YDF, ISPAAD, and the National Development Bank (NDB). Preparing a comprehensive business plan increases your chances of approval.