Transcript Botswana IFSC

Botswana IFSC
Stakeholder 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
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Botswana has relatively small economy.
External orientation vital
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Long genesis
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Singapore, Luxembourg.
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)
– Administration and BPO
– Insurance
11
21
Nil
• US$18.5 million capital employed
• Linkages: P11 million worth of local
services procured last year
Going Forward
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Botswana continues to have
comparative advantage.
A regional hub to facilitate
delivery of a wide range of crossborder 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
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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 capital
Update
• 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
centres
Update
• Regulations due by end 2006
Targets
• 1 major reinsurer (none so far)
• 5 captives
Banking
Opportunity
• Specialist diamond banks as a
possible base
• Regional / international banking
groups expanding in Africa
Update
• Feeding into upcoming banking
regulations to raise
competitiveness
Targets
• 3 significant international banks
Administration & BPO
Opportunity
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Outsourcing for regional and
international companies
Update
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Legislation approved shared service
and BPO functions
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Liberalisation of the ICT
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Outsource Botswana
Targets
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15 Administration & BPO Companies
Capital Markets
• Pan African Commodities and
Derivatives Exchange (PACDEX)
• Advanced plans to create multicommodity 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
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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.