Botswana IFSC Botswana as an Emerging Outsourcing and Offshoring Centre.

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    04-Jan-2016

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  • Botswana IFSCBotswana as an Emerging Outsourcing and Offshoring Centre

  • OverviewPositive Investment ClimateWhat is the Botswana IFSC?Attributes of the Botswana IFSCOpportunities Business Process Outsourcing / Call CentresHolding Companies FundsCapital MarketsCatalysts

  • Positive Investment ClimateThe government of Botswana managed the economy extremely well after independence. A positive climate for private sector investment was established. Commission for Africa

  • What is the Botswana IFSC?Aims to develop Botswana as a world-class hub to facilitate delivery of wide range of cross-border financial services. Encourage skills transfer to develop sophistication of financial sector Not positioned as tax haven.

  • GoalsMeasuresJobs createdCapital employedTax revenueMeasurable linkages with rest of economy

  • Attributes of the IFSCBenign tax regimeNo exchange controls Growing Double Tax Agreement Treaty Network Withholding Tax exemptions for jurisdictions without treaties. No Capital Gains Tax (CGT)

  • OpportunitiesAfricanPrivateEquityFundsPan AfricanInfrastructureFundsAfrican Centre forInternationalInsurancePan AfricanBankingGroupsPan AfricanCommoditiesExchangeCentre forStructured FinancingAdministration & Shared Services CentresBPO & Call Centres

  • Business Process Outsourcing and Call CentresLower total costs than South Africa:150 for new agent to 350 for experienced agentRental rates: 5.00 - 6.50 per square metreAffordable international telephony rates (0.02 0.03)Readily available pool of skilled labour Close cultural alignment with UKBotswana provides Western investors with a solid business proposition for outsourcing services over the long term - Datamonitor

  • Holding CompaniesOpportunity for companies with growing African network to consolidate financial and administrative functions. Micro Provident Leading domestic micro-lender extending model into region. International investors, including FMO, IFC, Kingdom Zephyr. Total projected investment of US$45 millionOperational in 3 countries, opening in 4 more next year

  • FundsSecond largest pension fund industry in Sub Saharan Africa with 2.3 billion under management.A Fund Managers view of BotswanaAccess to global financial informationAdvanced telecoms/ robust connectivity at competitive rates Credit rating could be critical in attracting investment flowsBotswana's liquidity a potential source of funding to tap into Transparency/corruption rating and abolition of FX controls

  • Capital MarketsPan African Commodities and Derivatives Exchange (PACDEX) Multi-commodity exchange based in BotswanaEndorsed by African UnionSponsored by private company - PACPMumbai Commodities Exchange strategic partnerOperates second largest commodities exchange globallyRecently opened Dubai Gold and Commodities Exchange Will lead to improved price discovery, increased intra African trade, broadening of financial instruments.

  • CatalystsDiamond Trading Company BotswanaAvailability of pension fundsTelecommunications liberalisation Botswana Innovation Hub

  • ConclusionCommission into Africa notes Africa needs: A partnership between Africa and the developed world which takes full account of Africas diversity and particular circumstances.

  • Thank You.Botswana International Financial Services Centre 2006.

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