Overview
• What is the Botswana IFSC?• Attributes of the IFSC• Other Benefits of Operating in
Botswana • Target Sectors • Case Studies (4)• Catalysts for Growth
What is the Botswana IFSC?• A regional hub to facilitate
delivery of a wide range of cross-border financial services.
• Targeting companies with a growing business presence in Africa.
• An active financial services centre, and not positioned as tax haven.
Attributes of the IFSC
• Benign tax regime• No exchange controls • Growing Double Tax Agreement
Treaty Network • Withholding Tax credits for
jurisdictions without treaties (up to 15%)
• No Capital Gains Tax (CGT)
Other Benefits of Operating in Botswana
• Highest Sovereign credit rating in mainland Africa (S&P / Moody’s)
• No restrictions on ownership • Abolition of foreign exchange
controls • Least corrupt country in Africa
(Transparency)• Liquidity a potential source of
funding to tap into• Growing pool of graduate labour
available to financial sector
Opportunities
Investment Funds
International
Insurance
Non-financial
CompaniesBanks
Capital Markets
Cross-Sectoral Activities
AfricanPrivateEquityFunds
Pan AfricanInfrastructure
Funds
African Centre forInternational
Insurance
Pan AfricanBankingGroups
Pan AfricanCommodities
Exchange
Centre forStructured Financing
Administration & Shared Services Centres
BPO & Call Centres
Target Sectors
• Administration and Shared Services Companies
• Banks• Business Process Outsourcing • International Insurance• Investment Funds
AON Risk Management
• Subsidiary of US-listed Aon Corporation
• Provides specialist risk management services to blue chip mining companies in Sub Saharan Africa
• Expanding to offer reinsurance activities
Pangaea Development Holdings
• Holding company rolling out property developments in Africa
• US-based investment company• US$46m investment in Zambia
includes 5 000 houses plus amenities
• Future projects in Kenya, Ghana• Funding and guarantees from
OPIC, FMO
Africa Real Estate Company
• Partnership combining international and local capital
- BIFM (Botswana based promoter)- International Finance Corporation
• Planned initial investment of US$120 million
• Will invest in existing and new developments across Africa
PACDEX
• Pan African Commodities and Derivatives Exchange (PACDEX) – Advanced plans to create multi-
commodity exchange based in Botswana in 2007
– Endorsed by African Union– Sponsored by private company - PACP– Mumbai Commodities Exchange (MCX)
strategic partner– Aims to improve price discovery,
increase intra African trade, broaden financial instruments.
Catalysts for Growth
• Diamond Trading Company (DTC) Botswana
- Banking and insurance opportunities
• Domestic capital sources• Botswana Innovation Hub
Concept - Technology-enabled park to
support financial services
Conclusion
• Botswana is uniquely positioned to support companies with a growing business presence in Africa.
• Botswana IFSC aims to become pre-eminent cross-border financial services centre in Africa.