BOTSWANA INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC) <ul><li>OPPORTUNITIES IN THE FINANCIAL SERVICES SECTOR </li></ul><...
<ul><li>Introduction  </li></ul><ul><li>Botswana: an attractive offshore alternative </li></ul><ul><li>- Business Environm...
BOTSWANA <ul><ul><li>Heart of Southern Africa: Angola, Namibia, South Africa, Zambia, Zimbabwe </li></ul></ul><ul><ul><li>...
WHAT IS BOTSWANA IFSC <ul><li>AFRICA’S ONLY “ONSHORE” CENTRE, PROVIDING A RANGE OF INCENTIVES TO COMPANIES ENGAGED IN CROS...
BUSINESS ENVIRONMENT <ul><li>No exchange controls </li></ul><ul><li>Highest investment grade sovereign credit rating in Af...
BUSINESS ENVIRONMENT cont’d <ul><li>Short time to register company </li></ul><ul><li>A legal / fiscal system that provides...
INCENTIVES <ul><li>Low corporate tax - 15%  </li></ul><ul><li>No WHT on dividends, interest, royalties, management fees et...
INCENTIVES cont’d <ul><li>Tax rebate for training - 200% </li></ul><ul><li>No Value Added Tax </li></ul><ul><li>Ministeria...
PEOPLE <ul><ul><li>UK cultural alignment (history, legal framework, education system) </li></ul></ul><ul><ul><li>High per ...
TECHNOLOGY INFRASTRUCTURE <ul><ul><li>Full range of technologies  </li></ul></ul><ul><ul><li>- ADSL </li></ul></ul><ul><ul...
TECHNOLOGY INFRASTRUCTURE SDH / Fibre where population densities highest Microwave & radio  for lower density areas Kasane...
TECHNOLOGY INFRASTRUCTURE <ul><li>Multiple Redundancy International Fibre Optic Links </li></ul>Walvis Bay SAT3/WASC Lusak...
SECTORS <ul><li>Cross Border Banking </li></ul><ul><li>Corporate Holding Structures / Group Treasury Operations </li></ul>...
HOLDING STRUCTURE / GROUP TREASURY <ul><li>Dividend management </li></ul><ul><li>Head office support functions, such as fi...
INTERNATIONAL INSURANCE <ul><li>Legislation passed by parliament April 2005 </li></ul><ul><li>Enables reinsurance, captive...
BUSINESS PROCESS OUTSOURCING <ul><li>Captive Shared Service Centre </li></ul><ul><li>Third Party Suppliers </li></ul><ul><...
CASE STUDY - SICAPITAL <ul><li>Debt securitisation vehicle </li></ul><ul><li>Purchase debt from technology multinational <...
CASE STUDY – ENTERPRISE BANKING GROUP <ul><li>Bank Holding Company </li></ul><ul><li>IFSC hub for raising capital with int...
CASE STUDY – ANDISA CAPITAL <ul><li>Subsidiary of Standard Bank of South Africa </li></ul><ul><li>Specialist treasury and ...
CASE STUDY <ul><li>Type: Data </li></ul><ul><li>Ownership: India / Botswana </li></ul><ul><li>Destination: USA </li></ul><...
CASE STUDY <ul><li>Type: Voice </li></ul><ul><li>Ownership: UK / SA / Botswana </li></ul><ul><li>Destination: UK </li></ul...
CASE STUDY <ul><li>Type: Voice </li></ul><ul><li>Ownership: Canada / Botswana </li></ul><ul><li>Destination: Sub Saharan A...
CASE STUDY – AON RISK MANAGEMENT <ul><li>Assist mining and resource companies minimize business & political risk in 13 Afr...
CAPITAL MARKET DEVELOPMENT <ul><li>Botswana Stock Exchange (BSE) </li></ul><ul><li>- Local Mkt Cap – 2.2 billion (USD) </l...
OPPORTUNITIES  – Botswana (Domestic) <ul><li>Sectors / Initiatives: </li></ul><ul><li>Banking, ICT, Mining, (financial) ad...
OPPORTUNITIES  – Regional (IFSC) <ul><li>Growing investment opportunities in Africa </li></ul><ul><li>However, environment...
CONCLUSION <ul><li>IFSC active business centre </li></ul><ul><li>Specialist financial services available locally </li></ul...
WITFOR 2005 <ul><li>World Information Technology Forum </li></ul><ul><li>Hosted by Government of Botswana </li></ul><ul><l...
SAMPLING OF IFSC COMMUNITY
www.ifsc.co.bw For more information. THANK YOU
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BOTSWANA INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC)

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  • Assumptions Human Resource (HR) Professional P3,500 per month Graduate P2,500 per month Form 5 leaver 2/3 years experience P1,800 per month Infrastructure Includes: ICT Equip, Furniture, Office Space incl. maintenance P3,000 per month Methodology employed to arrive at US$ 8 per seat per hour US$:BWP 1:5 Working month 22 days Working day 8 hours
  • BOTSWANA INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC)

    1. 1. BOTSWANA INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC) <ul><li>OPPORTUNITIES IN THE FINANCIAL SERVICES SECTOR </li></ul><ul><li>BOTSWANA INVESTMENT FORUM </li></ul><ul><li>LONDON </li></ul><ul><li>14 TH JUNE 2005 </li></ul>
    2. 2. <ul><li>Introduction </li></ul><ul><li>Botswana: an attractive offshore alternative </li></ul><ul><li>- Business Environment </li></ul><ul><li>- Incentives </li></ul><ul><li>- Technology Infrastructure </li></ul><ul><li>- People </li></ul><ul><li>- Sectors </li></ul><ul><li>- Case Studies </li></ul><ul><li>- Opportunities </li></ul><ul><li>Conclusion </li></ul>CONTENT
    3. 3. BOTSWANA <ul><ul><li>Heart of Southern Africa: Angola, Namibia, South Africa, Zambia, Zimbabwe </li></ul></ul><ul><ul><li>Multiparty democracy, cosmopolitan, high levels of personal safety </li></ul></ul><ul><ul><li>Top Tourism Destination </li></ul></ul><ul><ul><li>National language: English </li></ul></ul><ul><ul><li>Time zone: GMT+2 </li></ul></ul>
    4. 4. WHAT IS BOTSWANA IFSC <ul><li>AFRICA’S ONLY “ONSHORE” CENTRE, PROVIDING A RANGE OF INCENTIVES TO COMPANIES ENGAGED IN CROSS BORDER SERVICES </li></ul>
    5. 5. BUSINESS ENVIRONMENT <ul><li>No exchange controls </li></ul><ul><li>Highest investment grade sovereign credit rating in Africa (Moody’s & Standard & Poors) </li></ul><ul><li>Most competitive business environment in Africa (WEF) </li></ul><ul><li>Freest economy in Africa (Heritage Foundation) </li></ul><ul><li>Least corrupt in Africa (Transparency International) </li></ul>
    6. 6. BUSINESS ENVIRONMENT cont’d <ul><li>Short time to register company </li></ul><ul><li>A legal / fiscal system that provides the right framework </li></ul><ul><li>Signatory to International Conventions combating money laundering and financing of terrorism </li></ul><ul><li>Law protects investor’s property rights (Accenture) </li></ul><ul><li>Lower operating cost structure to tradition “offshore” centre </li></ul><ul><li>Botswana IFSC not positioned as a tax haven </li></ul>
    7. 7. INCENTIVES <ul><li>Low corporate tax - 15% </li></ul><ul><li>No WHT on dividends, interest, royalties, management fees etc </li></ul><ul><li>Unilateral credit for WHT suffered in other jurisdictions </li></ul><ul><li>Double Tax Agreements (UK,, SA, Namibia, Zimbabwe, Mauritius Sweden, India etc.) Treaties with other SADC member states under negotiation </li></ul>
    8. 8. INCENTIVES cont’d <ul><li>Tax rebate for training - 200% </li></ul><ul><li>No Value Added Tax </li></ul><ul><li>Ministerial Exemption Order (2002) enables importation of specialised personnel </li></ul><ul><li>Guaranteed in law until 2020 </li></ul>
    9. 9. PEOPLE <ul><ul><li>UK cultural alignment (history, legal framework, education system) </li></ul></ul><ul><ul><li>High per capita expenditure on education, over 25% of annual budget </li></ul></ul><ul><ul><li>Approximately 28,000 citizens placed in tertiary institutions within and outside Botswana </li></ul></ul><ul><ul><li>Graduate labour pool, readily trainable </li></ul></ul><ul><ul><li>Literacy rate approximately 80% </li></ul></ul><ul><ul><li>Performance culture (Govt. rollout of PM) </li></ul></ul><ul><ul><li>Unions relatively business friendly </li></ul></ul>
    10. 10. TECHNOLOGY INFRASTRUCTURE <ul><ul><li>Full range of technologies </li></ul></ul><ul><ul><li>- ADSL </li></ul></ul><ul><ul><li>- VSAT </li></ul></ul><ul><ul><li>- VOIP (2005) </li></ul></ul><ul><ul><li>Data Protection Legislation expected by end 2005 </li></ul></ul><ul><ul><li>Competitive telephony rates – volume based (UK & USA outbound traffic US$0.1 for >500K minutes per month) </li></ul></ul>
    11. 11. TECHNOLOGY INFRASTRUCTURE SDH / Fibre where population densities highest Microwave & radio for lower density areas Kasane Jwaneng Nata Francistown S-Phikwe Mahalapye Orapa Letlhakane Ghanzi Maun Lobatse Gaborone SDH/ Fibre 140M PDH Radio 34MPDH Radio PDH/ Fibre Palapye Mohembo
    12. 12. TECHNOLOGY INFRASTRUCTURE <ul><li>Multiple Redundancy International Fibre Optic Links </li></ul>Walvis Bay SAT3/WASC Lusaka Windhoek EASC Dar es Salaam Maputo Cape Town Mtunzini Luanda
    13. 13. SECTORS <ul><li>Cross Border Banking </li></ul><ul><li>Corporate Holding Structures / Group Treasury Operations </li></ul><ul><li>Fund Management / Administration </li></ul><ul><li>Int’l Insurance / Reinsurance / Captive Insurance </li></ul><ul><li>Business Process Outsourcing </li></ul>
    14. 14. HOLDING STRUCTURE / GROUP TREASURY <ul><li>Dividend management </li></ul><ul><li>Head office support functions, such as finance, I.T, training </li></ul><ul><li>Intra group financial management </li></ul>
    15. 15. INTERNATIONAL INSURANCE <ul><li>Legislation passed by parliament April 2005 </li></ul><ul><li>Enables reinsurance, captive, & insurance brokerage activities </li></ul><ul><li>Member of IAIS & CISNA </li></ul>
    16. 16. BUSINESS PROCESS OUTSOURCING <ul><li>Captive Shared Service Centre </li></ul><ul><li>Third Party Suppliers </li></ul><ul><li>US$ 8 per seat / hour </li></ul>
    17. 17. CASE STUDY - SICAPITAL <ul><li>Debt securitisation vehicle </li></ul><ul><li>Purchase debt from technology multinational </li></ul><ul><li>Issues commercial paper against that debt to regional institutional investors </li></ul>
    18. 18. CASE STUDY – ENTERPRISE BANKING GROUP <ul><li>Bank Holding Company </li></ul><ul><li>IFSC hub for raising capital with international development finance institutions </li></ul><ul><li>Invests in banking entities in East and Southern Africa </li></ul>
    19. 19. CASE STUDY – ANDISA CAPITAL <ul><li>Subsidiary of Standard Bank of South Africa </li></ul><ul><li>Specialist treasury and financial advisory firm </li></ul><ul><li>Provides management services to SICAPITAL </li></ul>
    20. 20. CASE STUDY <ul><li>Type: Data </li></ul><ul><li>Ownership: India / Botswana </li></ul><ul><li>Destination: USA </li></ul><ul><li>Services: Medical Transcription </li></ul><ul><li>Projected scale: 250 </li></ul>
    21. 21. CASE STUDY <ul><li>Type: Voice </li></ul><ul><li>Ownership: UK / SA / Botswana </li></ul><ul><li>Destination: UK </li></ul><ul><li>Service: Telemarketing of Mortgage Products / </li></ul><ul><li>Lead generation for IFAs </li></ul><ul><li>Projected scale: 500 </li></ul>
    22. 22. CASE STUDY <ul><li>Type: Voice </li></ul><ul><li>Ownership: Canada / Botswana </li></ul><ul><li>Destination: Sub Saharan Africa </li></ul><ul><li>Services: GPS enabled Location Based Services, Telemarketing / Sale of GPS Solutions </li></ul><ul><li>Projected Scale: 50 </li></ul>
    23. 23. CASE STUDY – AON RISK MANAGEMENT <ul><li>Assist mining and resource companies minimize business & political risk in 13 African countries </li></ul><ul><li>Parent is NYSE listed, Fortune 500 Company </li></ul><ul><li>Provide Management Services to Captive Insurance Companies in Botswana </li></ul>
    24. 24. CAPITAL MARKET DEVELOPMENT <ul><li>Botswana Stock Exchange (BSE) </li></ul><ul><li>- Local Mkt Cap – 2.2 billion (USD) </li></ul><ul><li>Foreign Equity Mkt Cap – 39 billion (USD) </li></ul><ul><li>Pension Funds </li></ul><ul><li>2.8 billion USD under management </li></ul><ul><li>50% off shore </li></ul>
    25. 25. OPPORTUNITIES – Botswana (Domestic) <ul><li>Sectors / Initiatives: </li></ul><ul><li>Banking, ICT, Mining, (financial) advisory, consulting services </li></ul><ul><li>Government outsourcing of non core functions </li></ul><ul><li>Privatisation – banks, telecomms etc </li></ul><ul><li>Domestic investments can be used as platform for regional initiatives </li></ul>
    26. 26. OPPORTUNITIES – Regional (IFSC) <ul><li>Growing investment opportunities in Africa </li></ul><ul><li>However, environment still presents major challenges in many countries </li></ul><ul><li>Botswana IFSC environment offers “Risk Mitigation” solution </li></ul>
    27. 27. CONCLUSION <ul><li>IFSC active business centre </li></ul><ul><li>Specialist financial services available locally </li></ul><ul><li>Business friendly flexible environment </li></ul>
    28. 28. WITFOR 2005 <ul><li>World Information Technology Forum </li></ul><ul><li>Hosted by Government of Botswana </li></ul><ul><li>August 31 – September 2, 2005 </li></ul><ul><li>Theme: ICT for Accelerated Development </li></ul>
    29. 29. SAMPLING OF IFSC COMMUNITY
    30. 30. www.ifsc.co.bw For more information. THANK YOU

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