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 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 BPO21 –InsuranceNil 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 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 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.