Botswana IFSC

An Emerging Outsourcing and Financial Services Centre

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

Markets

Opportunities

Investment Funds African Private Equity Funds International Insurance Non financial Companies African Centre for International Insurance Banks Capital Markets Pan African Banking Groups Pan African Commodities Exchange Pan African Infrastructure Funds Centre for Structured Financing Cross-Sectoral Activities 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.

Thank You.

Botswana International Financial Services Centre 2006.