Botswana IFSC Stakeholder Briefing 27 November 2006.

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.