Automotive

Automotive in Botswana

Driving forward: Navigating change and opportunity in Botswana's automotive sector

Botswana's automotive sector, while primarily focused on the import, distribution, and maintenance of vehicles, is a dynamic and essential component of the nation's economy. It underpins trade, logistics, and personal mobility, directly impacting businesses and consumers across the country. As global trends such as digitalisation, electrification, shifting consumer preferences, and evolving mobility solutions gain traction, the Botswana automotive landscape is poised for significant transformation. Local players from vehicle dealerships and parts distributors to service centres and financiers must adapt to these changes to remain competitive and meet the growing demands of the Batswana market.

At PwC Botswana, we understand the intricacies of the automotive ecosystem. We combine our deep local market insights with PwC's extensive global expertise in the automotive industry to help our clients including importers, distributors, retailers, and associated service providers to strategically navigate challenges, optimise operations, and capture new growth opportunities in this evolving sector.tenance of vehicles, is a dynamic and essential component of the nation's economy. It underpins trade, logistics, and personal mobility, directly impacting businesses and consumers across the country. As global trends such as digitalisation, electrification, shifting consumer preferences, and evolving mobility solutions gain traction, the Botswana automotive landscape is poised for significant transformation. Local players from vehicle dealerships and parts distributors to service centres and financiers must adapt to these changes to remain competitive and meet the growing demands of the Batswana market.

The evolving automotive landscape in Botswana

The automotive sector in Botswana is influenced by several key trends and local characteristics:

• Import-driven market: Botswana's automotive market is predominantly driven by new and used vehicle imports, requiring robust supply chain management and customs compliance.
• Shifting consumer preferences: A growing middle class and urbanisation are driving demand for specific vehicle types (e.g. SUVs, bakkies), coupled with increasing expectations for digital purchasing experiences and after-sales service.
• Nascent electrification: While still in early stages, interest in electric vehicles (EVs) and hybrid options is emerging, presenting future opportunities and infrastructure challenges.
• Digitalisation of sales and service: Customers expect seamless digital interactions, from online browsing and purchasing tools to digital service bookings and connected car features.
• After-sales and parts market: A critical component of the value chain, focused on efficient parts distribution, skilled technicians, and customer loyalty programmes.
• Regulatory and environmental considerations: Evolving standards for vehicle emissions, safety, and import regulations, alongside a growing emphasis on sustainable practices.
• Financing and insurance: The critical role of financial services in facilitating vehicle ownership and protecting assets.
• Regional dynamics: The influence of regional trade agreements and cross-border logistics on vehicle and parts supply.

1. External audit (statutory audits and assurance)

Audit the full automotive value chain: manufacturers, distributors/importers, dealerships, service and aftersales networks, and fleet operators and verify governance disclosures, internal controls, and risk management processes to support transparent stakeholder reporting.

We provide assurance on non-financial disclosures (ESG, sustainability metrics, governance) to enhance investor confidence and regulator credibility. This ensures financial reporting aligns with Botswana regulatory requirements and international standards (IFRS).

2.  Internal audit, risk governance and controls

Expand internal audit coverage across procurement, production, quality, supply chain, aftersales, and IT systems to strengthen governance and risk management and provide independent assurance that informs strategic decision-making, protects value, and drives performance improvements.

Furthermore, we can implement risk-based testing across revenue streams, warranty processes, inventory, regulatory compliance, data privacy, and cybersecurity, with concrete recommendations to elevate the control environment.

3. Tax and regulatory compliance

Navigate Botswana's specific tax regulations (e.g. import duties, VAT, corporate tax) and industry-specific compliance requirements. We provide expert advice to optimise tax positions and ensure adherence to local laws.

4. Sustainability and ESG

Prepare for a sustainable future. We advise on strategies for EV adoption, charging infrastructure considerations, waste management for automotive parts, and integrating broader ESG principles into your business operations and reporting.

5. Risk management and cybersecurity

Identify and mitigate operational risks, including supply chain disruptions and cyber threats to connected vehicles and customer data. We help build robust risk management frameworks

Why choose PwC Botswana for automotive?

• Local market acumen: Our team possesses a deep understanding of Botswana's unique automotive market dynamics, consumer behaviour, and regulatory environment.
• Global automotive network: We leverage PwC's worldwide automotive practice, bringing global insights, innovative solutions, and leading industry benchmarks to your local operations.

Partner with PwC Botswana to navigate the road ahead

Whether you are a vehicle importer, a dealership group, or a parts supplier, PwC Botswana is your trusted partner in accelerating growth and achieving excellence in the automotive sector.