Botswana IFSCAn 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

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.

Thank You.Botswana International Financial Services Centre

2006.