botswana ifsc stakeholder briefing 27 november 2006
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Botswana IFSCStakeholder Briefing
27 November 2006
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.
Strategic Rationale
• Botswana has relatively small economy.
• External orientation vital• Singapore, Luxembourg.
• Long genesis• 1995 – Deloitte & Touche Study • 1999 – IDI / ICC – Ireland • 2000 – Launched in BDC• 2003 – Establishment of IFSC company
• After 2003, better focus on marketing and capacity building
Current Status
• 35 accredited companies – Banking 3– Non-Bank Financial (incl. Funds)
11– Administration and BPO 21– Insurance Nil
• US$18.5 million capital employed• Linkages: P11 million worth of
local services procured last year
Going Forward
• Botswana continues to have comparative advantage.
• A regional hub to facilitate delivery of a wide range of cross-border financial services.
• Targeting companies with a growing business presence in Africa.
• Have defined targets for period up to end of NDP 9 (2009)
Target Sectors
• Administration and Shared Services Companies
• Banks• Business Process Outsourcing • International Insurance• International vestment Funds
International Investment Funds
Opportunity • Pan African funds – resources,
property, infrastructure• Ability to leverage local capitalUpdate • Exempt from capital gains tax
as of 2006 Targets• 12 * funds of US$50m and
above
International Insurance
Opportunity • Reinsurance and captive
insurance for Africa • No effective competing
regional centresUpdate • Regulations due by end 2006Targets• 1 major reinsurer (none so far)• 5 captives
Banking
Opportunity • Specialist diamond banks as a
possible base• Regional / international banking
groups expanding in AfricaUpdate • Feeding into upcoming banking
regulations to raise competitiveness
Targets• 3 significant international banks
Administration & BPO
Opportunity • Outsourcing for regional and
international companies Update • Legislation approved shared
service and BPO functions • Liberalisation of the ICT• Outsource Botswana Targets• 15 Administration & BPO
Companies
Capital Markets
• 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• PACP working with Contango
Markets, a leading commodities exchange consultant to finalize feasibility and roll-out plan
Learning Points
• Important to continue building up legislative and regulatory platform
• Often important to build up capacity of domestic industries first
• Skills readiness vital• IFSC will grow in tandem with
domestic business environment • Requires commitment and
persistence from Government and private sector partners
Thank You.Botswana International Financial Services Centre
2006.
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